New Delhi: The Indian room air-conditioner (RAC) market is projected to grow at a robust CAGR of 12%, reaching ₹50,000 crore by FY 2028-29, according to Tata group firm Voltas in its latest annual report.Voltas, a market leader in the RAC segment, noted that competition has intensified with the entry of both homegrown and leading foreign players. The company expects this competitive intensity to increase further in the near future, presenting both challenges and opportunities.
Key growth drivers for the RAC segment include rising temperatures, increasing disposable incomes, and the availability of consumer finance. Voltas sold over 2 million AC units in 2023-24, setting a record for the highest number of ACs sold by any brand in a single year. Additionally, the company achieved sales of 1 million AC units in just 110 days from January 1 to April 20, 2024.This season, several companies have reported more than two-fold growth in sales during April and May, as temperatures soared to around 45 degrees Celsius in many regions, breaking previous records.Voltas plans to strengthen its market leadership by expanding Exclusive Brand Outlets (EBOs) and other sales channels. The company also highlighted that competition in the Commercial Air Conditioning (CAC) sector is expected to rise as leading foreign players focus on this market.
The Consumer Electronics and Appliances Manufacturers Association anticipates record RAC sales this year, with an annual figure of around 14 million units in 2024. Demand for commercial air conditioning is increasing across various industries and establishments, driven by a focus on comfort and sustainability.However, Voltas noted that the recent implementation of Quality Control Orders (QCO) norms poses challenges for the industry by affecting the import of components.
The Indian air conditioning industry heavily relies on imports, which account for about 65-70% of the product value.In the commercial refrigeration (CR) segment, Voltas expects to maintain an annual growth rate of over 10% until FY 2028-29. The company anticipates several product categories within this segment to register high double-digit growth.
