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India HVAC Market to Reach $5.9 bn by 2024

India HVAC market is expected to reach USD 5.9 billion by 2024, registering a CAGR of 7 per cent during the forecast period, according to P&S Intelligence.

The growth in the market can be attributed to increasing number of high-rise buildings, shopping complexes & malls, and hypermarkets in tier-II cities. Apart from this, the market is expected to propel on account of on-going smart city projects in the country.

Insights into the market segments

Based on ventilation type, India HVAC market is segmented into ventilation fans, humidifiers or dehumidifiers, air cleaners, and air handling units and fan coil units. Of these, ventilation fans category is estimated to hold the largest revenue share in the market, in 2018. This is due to growing demand for ventilation fans from commercial buildings owing to the guidelines provided for natural ventilation in national building code of India, 2005.

In 2018, air handling unit category is estimated to hold higher revenue share. This is owing to rising usage of air handling units across various applications such as commercial offices and buildings, industries, hospitals, data centers, server rooms, and universities. With further rising penetration of air conditioning systems across the country, the demand for air handling units is expected to increase throughout the forecast period.

Variable Refrigerant Flow (VRF) system is categorised into heat pump systems and heat recovery systems. Out of these, heat recovery sub-category is projected to register faster growth during the forecast period. This can be attributed to the fact that these systems provide significant advantages over heat pump systems, such as efficient heat management as well as lower energy requirements. The rising awareness among people regarding the advantages of heat recovery systems is providing a major boost to the growth of heat recovery sub-category.

Surging infrastructure spending in India buoyed the market growth

Surging infrastructure spending in India is driving the growth of Indian HVAC market. There are several infrastructural projects such as ongoing and upcoming airports, and metro railway expansion projects across the country. For instance, the government of India has granted around USD 57 million in the interim budget of 2019, for construction of Noida and Ghaziabad sections of the metro network.

Thus, increasing number of airports and metro stations in the country would increase the demand for HVAC systems. Hence, surging infrastructure spending especially on metro railway, and airports, is expected to fuel HVAC market growth in the country.