Indian HVAC market

Commercial refrigeration represents 78% of the Indian air-conditioning market
The Indian HVAC market is growing at a fast pace, mainly owing to the huge rise in construction activity in the real estate market. Between 2004 and 2009 it grew at a compound annual growth rate (CAGR) of 20% and in 2009, the market was worth INR 108 billion (almost USD 2 billion).

These figures are related to the strong CAGR of 20% over the 2005-2010 period in the real estate sector, a sector that has contributed to over 8% of the country’s GDP. Construction mainly concerned retail, hospitality, health-care and commercial services or special economic zones (SEZs), all of which require HVAC systems.

Generally speaking the largest air-conditioning share (78%) in the country concerns commercial services. Governmental development schemes and incentives also contribute greatly to this trend and CAGR growth rates of 14% in investment are envisaged over the 2012-2017 period. Generally speaking, infrastructure investment rose by 575% between the 10th and 12th five year plans, which has heavily contributed to the growth of the HVAC industry.