Construction Sector Offering Indian HVAC Market Immense Growth Opportunities

The Indian HVAC market is growing due to infrastructural development, technological advancements, and expanding tourism sector. The value of the domain in 2018 was estimated by P&S Intelligence to be $3.9 billion and the CAGR during the forecast period (2019–2024) to be 7.0%.

The term, ‘HVAC’ short for heating, ventilation, and air conditioning, refers to electrical equipment used in either just one or all these applications simultaneously. Apart from heating or cooling, these systems also take away the contaminants and odor, filling the room with fresh air from outside.

Among the types of systems used, i.e. heating, ventilation and cooling, cooling systems were the largest category in 2018, both in terms of the total units sold and revenue generated.

The primary reasons for the dominance of cooling systems in the HVAC market of India have been the hot weather conditions in most parts of the country and the growth of small and medium enterprises (SMEs) and commercial hubs. Further, among the northern, southern, western, and eastern regions, the northern region contributed over 30.0% revenue to the market in 2018.

Now, the heating category of the Indian HVAC market is divided into furnaces, boilers, heat pumps, and unitary heaters, among which the boilers category held 17.6% revenue share in the market in 2018.The growing demand for boilers for thermal power generation, itself propelled by the increasing energy requirement across the country, was considered the primary reason behind this.

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However, during the forecast period, the heat pumps category is expected to advance at the highest CAGR (of more than 9.0%) due to the rising installation rate of energy-efficient pumps in residential and commercial buildings.