India is one of the fastest emerging economies worldwide. With a boom in infrastructure and several government initiatives, several industries are on the path of growth, including HVAC&R. Here, industry experts share their views on the growth of HVAC&R in India.
The growth story
India’s infrastructure sector is booming; so are the industries associated with this sector.
Sangita Jhangiani, Consulting Engineer & Founder, Enova and President, Mumbai Chapter, Indian Society of Heating, Refrigerating & Air-conditioning Engineers (ISHRAE), says that the growth of HVAC&R in India has so far been good and will continue to grow. “Forty years ago, having a refrigerator in a home was a luxury. But, today, every home, including the low income group, can afford a refrigerator. It has become a necessity now.”
Similarly, 15 years ago, there were very few users of air conditioning products, especially the smaller units such as window and split A/Cs. But now, most of the homes have at least one unit, says Jhangiani. Even the building developers are making provisions for air-conditioning systems in buildings. So I do see that at least in this segment there will be growth, she adds.
Today, every mall is air-conditioned and the commercial spaces have started witnessing tremendous change. “It’s no more considered a luxury,” says Jhangiani. “It has become mandatory to provide provisions for air-conditioning, whether it is a residential or commercial space. Moving forward the market will continue to grow. So the future is bright.”
Meanwhile, Kulwant Singh, Entrepreneur and Founder, Kleanwave Solutions, says that the global HVAC market is estimated to witness growth at a CAGR of 4.5 per cent and 2.6 per cent over the period 2018-2024 in terms of volume and value respectively.
“Due to rapid change in climate [global warming], innovation in information technology, social networking media and use of advanced technology in medical, agricultural and space research, the HVAC&R market is going to increase exponentially,” Singh adds.
Booming infrastructure sector
One of the major driving factors for the HVAC industry over the years has been the rise of construction sector in India. Increased construction activity in residential, commercial, and industrial sector has increased the demand for HVAC products in the recent years. High-rise buildings, shopping complexes, malls and hypermarkets now penetrating in tier 2 cities are also some of the major factors that have helped the industry.
The Indian government has invested around $1 trillion on infrastructure projects during 2013-2019. Also, India has witnessed a boon in real estate with growing urbanisation, growth in IT parks and Special Economic Zones, and massive real estate investments.
However, Singh suggests that technical experts, OEMs and young entrepreneurs should work in the direction of adoption of green energies to run the HVAC equipment.
Growth in middle class population
Rising middle class population is also one of the major consumers of HVAC&R appliances. Aditya Mittal, COO, Mittal Refrigeration, says, “In early ’80s and ’90s, air-conditioning was a luxury; now, it is not. It has become a necessity. With the rise in middle class, upper middle class and the rise in the disposable income, people now buy more and more air-conditioners.”
Charuchandra Dewasthale, Director, Eximious Ventures Pvt Ltd, believes that in India, HVAC&R is on the absolute path of growth, as most of the cities have started using the systems for comfort cooling applications. Railways is another big consumer of comfort cooling applications.
Refrigeration is another area where massive growth is possible as refrigeration sectors have started appearing near bigger market places. The impact on the HVAC industry is very positive, as the government is harping on agricultural produce and encouraging a value chain to be set up.”
According to a statistics, HVAC&R industry is growing at a very tremendous pace, and this pace will continue. “It is an upcoming and growing industry. And yes, I foresee that this industry will grow. So, till the time there are humans on Earth, there will be food and to preserve the food, refrigeration is required. Similarly, if they need an office, factory or a house or a vehicle to transit, they will need air-conditioning. So, it will remain till the end of humanity,” Mittal opines.
Till the time there are humans on Earth, there will be food and to preserve the food, refrigeration is required
Aditya Mittal, COO, Mittal Refrigeration
Forty years ago, having a refrigerator in a home was a luxury. But, today, every home, including the low income group, can afford a refrigerator.
Sangita Jhangiani, Consulting Engineer & Founder, Enova and President, Mumbai Chapter, ISHRAE
HVAC&R is on the absolute path of growth, as most of the cities have started using the systems for comfort cooling applications
Charuchandra Dewasthale, Director, Eximious Ventures Pvt Ltd
Technical experts, OEMs and young entrepreneurs should work in the direction of adoption of green energies to run the HVAC equipment
Kulwant Singh, Entrepreneur and Founder, Kleanwave Solutions
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