India’s air conditioner (AC) market witnessed a historic surge in 2024, with sales reaching an unprecedented 14 million units, driven by extreme heatwaves and rising urban demand.
🔥 Heatwaves Propel AC Sales to Record High
The Consumer Electronics and Appliances Manufacturers Association (CEAMA) reported that the blistering summer of 2024 led to record-breaking AC sales. May alone saw a 30–40% increase in volume compared to previous years, as temperatures soared past 45°C in several regions, including Delhi-NCR.
CEAMA President Sunil Vachani noted that air conditioners have become a “quintessential requirement” in urban households, transitioning from a luxury to a necessity due to the escalating heat.
🏠 Residential Market Leads the Surge
Of the 14 million units sold, approximately 10–11 million were for residential use. Major brands like Voltas, LG, Haier, Hitachi Johnson, Lloyd, Panasonic, Daikin, and Godrej experienced significant sales growth. In May, companies such as Voltas, LG, and Haier reported a twofold increase in year-on-year sales volumes. BW Retail World
Haier Appliances India President NS Satish highlighted a 103% increase in AC sales from March to May compared to the same period the previous year, anticipating a 35–40% growth in AC sales and a 30% rise in refrigerator sales.
⚙️ Energy Efficiency and Local Manufacturing Drive Growth
The market’s evolution is also attributed to the availability of energy-efficient models catering to various income groups and significant investments in indigenous manufacturing. The Production-Linked Incentive (PLI) scheme has encouraged companies to establish local manufacturing units for components, aiding in meeting the rising demand.
🌍 Future Outlook: Balancing Demand and Sustainability
Despite the surge, only about 7% of Indian households currently own ACs, indicating vast potential for market expansion. However, this growth poses challenges, including increased electricity demand and environmental concerns. Experts warn that to accommodate the rising AC usage, India may need to triple its electricity production, much of which currently relies on coal, contributing to greenhouse gas emissions.
