Indian HVAC Market Poised to Double in Five Years with 15% Annual Growth

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Indian HVAC Market Poised to Double in Five Years with 15% Annual Growth

Mumbai, 16th March 2026: Industry leaders at ACREX India 2026 highlighted that the Indian HVAC sector is set for major expansion, with the market expected to grow at nearly 15% annually and potentially double within the next five years.

The industry is rapidly shifting toward local manufacturing, AI-driven predictive maintenance, and high-efficiency cooling technologies to capture strong growth opportunities across residential, commercial, and infrastructure sectors. With residential air conditioner penetration still around 10%, companies are focusing on super-efficient systems designed for Indian climate conditions that can reduce energy consumption by up to 60%.

Organized by ISHRAE, ACREX India 2026 brought together more than 400 exhibitors from over 40 countries and attracted more than 30,000 visitors, making it South Asia’s largest exhibition for HVAC, refrigeration, and intelligent building technologies.

Leading companies including LG, Carrier, Daikin, Voltas, Danfoss, Schneider Electric, Panasonic, Johnson Controls, and Tecumseh showcased next-generation cooling technologies focused on sustainability, automation, and energy efficiency.

Mr. Mukundan Menon, Managing Director, Voltas Limited, said,
“The Indian HVAC industry is at the cusp of strong expansion, growing at nearly 15% annually and expected to double within five years. Around 15 million residential AC units are sold every year in India, and this may reach 30 million units by 2030. Rapid construction of data centres, district cooling projects, and infrastructure development is creating strong demand. The GST reduction on air conditioners from 28% to 18% will further boost demand, with visible impact expected in summer 2026.”

Mr. Ravichandran Purushothaman, President, Danfoss Industries Private Limited, said,
“The HVAC industry in India has nearly doubled in the past three years, with a strong shift toward local manufacturing aligned with the Atmanirbhar Bharat initiative. According to the India Cooling Action Plan, cooling demand in India could grow eight times by 2038. Growth in semiconductor plants, data centres, and advanced manufacturing is driving demand for high-performance cooling solutions. The industry is also focusing on energy efficiency, water efficiency, and carbon reduction.”

Mr. Jayanta Kumar Das, Society President, ISHRAE, said,
“ACREX India brings the entire HVAC ecosystem together on one platform. As cooling demand increases, the focus must shift from equipment alone to the entire lifecycle of systems, including installation, operation, and maintenance, which account for nearly 90% of total costs. Through training, research, and partnerships across more than 55 locations, ISHRAE is working to support innovation, skills development, and sustainable cooling solutions.”

Mr. Amod Dikshit, Chairman, ACREX India, said,
“India’s fast infrastructure growth and rising dependence on cooling in sectors like data centres, airports, hospitals, hotels, metro rail, and district cooling projects is creating huge opportunities for the HVAC industry. Cooling already accounts for nearly 40% of India’s electricity demand, making efficiency and sustainability extremely important. With the Bureau of Energy Efficiency upgrading standards every two years, the industry is continuously moving toward more efficient technologies.”

Ricardo Maciel, CEO of Tecumseh, said,
“India is one of the fastest-growing HVAC and refrigeration markets in the world. At ACREX, we reinforced our commitment to the Indian market through sustainable technologies and local manufacturing. Tecumseh introduced the TC3 premium-efficiency compressor platform, delivering over 30% energy savings compared to current systems.”

Mr. Sanjeev Seth, Sr Vice President, LG Electronics India Limited, said,
“AI is transforming HVAC systems in India through predictive maintenance, remote monitoring, and intelligent controls. These technologies improve efficiency, reliability, and system performance. At ACREX India 2026, LG showcased advanced intelligent HVAC solutions designed for India’s growing cooling needs.”

Mr. Abhishek Verma, Panasonic Life Solutions India, said,
“Residential AC penetration in India is still low, creating huge growth potential. The market is expected to grow at nearly 15% CAGR. Customers now demand energy-efficient, AI-powered cooling systems with better indoor air quality, and Panasonic is developing solutions to meet these needs.”

Globally, the HVAC industry is entering a major growth phase, expected to reach nearly $445 billion by 2033. HVAC systems already consume nearly 40% of total building energy worldwide, pushing the industry toward sustainable and high-efficiency technologies such as AI-enabled HVAC, VRF systems, natural refrigerants, district cooling, and advanced data centre cooling solutions.

ACREX India 2026 clearly demonstrated that the future of cooling lies in efficiency, sustainability, digital intelligence, and local manufacturing.