Heatwave Fuels Growth for AC Industry: 3 Key Factors to Watch

The Indian air conditioner market is experiencing rapid growth, driven by three key factors: rising temperatures, increasing urbanization, and favorable consumer financing options. As heatwaves intensify, the demand for air conditioners is surging, with sales projected to grow by 20-25% in FY2025. Urbanization and higher disposable incomes are also contributing to this trend, as more households opt for multiple AC units. Additionally, government initiatives like the Production-Linked Incentive (PLI) scheme are boosting domestic manufacturing, reducing reliance on imports. These factors are expected to propel the AC market to reach ₹50,000 crore by 2029.

 

Source: Financial Express, Angel One, Smallcase