India Air Conditioner Market (2025-2031) | Value, Forecast, Trends, Share, Revenue, Growth, Size, Industry, Outlook, Analysis & Companies

Topics Covered in India Air Conditioner Market Report

India Air Conditioner Market Report thoroughly covers the market by product type and by region. India Air Conditioner Market Outlook report provides an unbiased and detailed analysis of the ongoing India Air Conditioner Market trends, opportunities/high growth areas, and market drivers. This would help stakeholders devise and align their market strategies according to the current and future market dynamics.

India Air Conditioner Market Synopsis

The India air conditioner market witnessed growth during 2021–2025, supported by rapid urbanization, infrastructure expansion, and rising consumer affordability. The government’s Smart Cities Mission, completed by 2025, drove large-scale adoption of centralized and residential cooling systems. Rural electrification initiatives enabled wider penetration into Tier II, Tier III cities, and villages, expanding the addressable market for affordable and energy-efficient models. The growing middle-class share, accounting for some percent of population in 2025 and rising disposable incomes 2023 to 2024, boosted sales of inverter and premium split ACs.

In addition, the real estate sector’s expansion, luxury home sales priced higher and above rising in 2024 and the hospitality sector recording some branded hotel signings in 2024, within emerging cities, fueled demand for VRF and large-capacity commercial ACs. Meanwhile, office and retail infrastructure saw robust growth, with new office supply in Q2 2025. Collectively, these developments positioned the India AC market for sustained growth through 2025, supported by both policy initiatives and evolving consumer preferences.

According to 6Wresearch, the India Air Conditioner Market is projected to grow at a CAGR of 13.6% in revenue and 12.5% in volume from 2025 to 2031, driven by growing demand for eco-friendly systems and supported by increasing consumer spending power. Government initiatives, including the Production-Linked Incentive (PLI) scheme, scheduled to run from FY 2021-22 to FY 2028F-29F, under which in 2025, some companies have committed investments for local manufacturing of key AC components, and policies promoting sustainable consumption are boosting domestic production and adoption of energy-efficient appliances.

The tourism sector, contributing annually from 2019-2030 to GDP through hotels, travel, and airlines, is expected to increase demand for large-scale cooling solutions. Similarly, real estate expansion, with new mall supply expected across major cities by 2027, alongside luxury housing and commercial developments, would drive residential and commercial AC installations.  Increasing consumer focus on indoor comfort, smart home integration, and online availability further supports market expansion, positioning the India air conditioner market for sustained growth.

Market Segmentation By Product Type

In 2031, the room air conditioner (RAC) segment is projected to retain the larger market revenue and volume size and is expected to have fastest revenue and volume growth during 2025-2031. The expansion of residential construction, including luxury and mid-segment housing, along with the replacement of older units, would further support RAC sales.

Market Segmentation By Region

In 2031, urban region is projected to retain the larger revenue size in the India air conditioner market. Expanding office spaces, retail complexes, and premium housing in metro and Tier I cities drive strong demand for both residential and commercial ACs, as urban consumers show higher adoption of energy-efficient, smart, and inverter-based units.

Key Attractiveness of the Report

• 10 Years Market Numbers.
• Historical Data: Starting from 2021 to 2024
• Base Year: 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• India Air Conditioner Market Overview
• India Air Conditioner Market Outlook
• India Air Conditioner Market Forecast
• Historical Data and Forecast of India Air Conditioner Market Revenues for the Period 2021-2031F
• Historical Data and Forecast of Market Revenues, By Product Type, for the Period 2021-2031F
• Historical Data and Forecast of Market Revenues, By Region for the Period 2021-2031F
• India Air Conditioner Market Drivers and Restraints
• Industry Life Cycle
• Porter’s Five Force Analysis
• India Air Conditioner Market Evolution & Trends
• Market Opportunity Assessment
• India Air Conditioner Market Volume Share, By Top RAC Companies, 2024
• India Air Conditioner Market Volume Share, By Top PAC Companies, 2024
• Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations

Market Scope and Segmentation

The report provides a detailed analysis of the following market segments:

By Product Type

• Room Air Conditioner (RAC)
• Packaged Air Conditioner (PAC)

By Region

• Urban
• Rural