The HVAC industry in India is considered to be one of the vital components of infrastructural or building facilities. HVAC systems are created for a wide variety of purposes from regulating temperature, airflow and humidity. As India gears up towards further developing its industries, there is an expected increase in the demand for HVAC solutions.
India has 3 main industrial zones focusing on developing its HVAC Industry in North India, West India and South India. These areas are composed of the country’s major economic centers where commercial activities and massive construction projects are developed.
The HVAC market in India
India records a steady growth rate for its HVAC equipment consumption. Although the country is experiencing robust growth in this segment, there are still other segments like air conditioning that have room for economic growth. Based on the 2014 sales of HVAC equipment data, cooling equipment accounts for 80% while air conditioners only account for 6%. Heating appliances comprise of relatively low percentage share. This is attributed to the fact that a large part of the country mostly experience hot and humid seasons while those in the Northern, colder parts rely on traditional heating methods such as woodfires, insulated houses etc.
The market is comprised mainly of imports. From 2010 to 2014, the number of imports increased by 18%. Among the exporters, China is dubbed as the biggest exporter of HVAC and in India, they hold about 60% of market share. China’s global exports amounted to 40,490 USD Million in 2014 followed by Germany, Mexico, Italy, Thailand and USA. In terms of exports of HVAC to India, China ranks number 1 followed by Germany, Mexico, Italy and Thailand.
One of the major industries in need of HVAC solutions is the construction industry which is experiencing a slowdown. But the good news is that there are still a lot of factors that drive the growth for HVAC equipment despite this particular slump. Factors that boost the growth of the HVAC industry include the following:
- Construction of new hospitals, clinics and other facilities that require temperature control
- Ongoing projects to modernize airports
- New established metro railways that have high demand for ventilation and cooling
- Increasing demand for in-home HVAC solutions and other related services
With the increasing demand for HVAC equipment, there are several opportunities for those who want to sell their aircon and other HVAC solutions in India. Even for new market players, high demand for these products, makes it a viable business opportunity.
It is important to take note that Indian customers are becoming more sensitive to price and are searching for affordable and energy efficient HVAC solutions. With huge brands dominating the market, it is quite a competitive environment. The right offerings are durable, efficient HVAC equipment that is innovative and affordable at the same time.
For a detailed insight into the Indian aircon and HVAC solutions sector, conduct market research before you devise an effective entry plan.