The HVAC industry in India is pacing for sustainability

Dynamic changes in the market, the acceptance of technology, and the education of designers and consultants certainly provide a positive outlook.

The HVAC industry in India is looking promising in 2023. Post Covid the market has been quite lucrative in the HVAC industry. India is growing faster in the HVAC industry than the global rate. The global CAGR is at 5 – 6 percent, whereas India is growing faster. This is due to various factors.

One aspect is the pipeline projects, which were held up during Covid, and now we are witnessing a sudden boom in the data centre industry.

Secondly, Our evergreen pharmaceutical industry is also surging beyond the norms. Finally, let’s remember the government’s initiatives in the Union budget concerning infra spending is at an all-time high. It is a perfect time for the HVAC industry in India, specifically. If the same trend continues, then the time ahead is very positive.

Although to avoid any sugar coating, a large chunk of projects falling in 2023 are pipeline projects (from pre-Covid) or “silver projects,” As a country, we need to be a little cautious in 2024. We may not see exponential growth as in the last couple of years, but things look positive.

Refrigerants and sustainable Cooling
Let me give you an example. HFC refrigerants in India started several years after its introduction in the West. HFO refrigerants are now being adapted in India about 5-6 years after the movement has picked up in the West. – India takes time to adapt to newer and sustainable technologies. However, this gap is reducing. Sustainability was a very notional concept a decade ago, but today, this is no longer theoretical. Project designs are closely made in compliance with ECBC, ASHRAE standards and green building guidelines. India is sincerely looking at ‘net zero’ emissions for its skyline. This is a genuine move towards making things happen. Climaveneta, as an OEM, sees this as a good push.

Let me give you another example. A decade ago, air-cooled magnetic chillers were an alien concept and unheard of. Many Indian projects accept such technologies or are willing to analyze them same. India is coming up with its 1st Data Centre in Chennai completely installed with magnetic chillers. The supply of products, unheard of in the Indian market before, is increasing. The Indian market, the designers, and consultants within the system are pushing towards this and trying to make it a reality.

Make-in-India is a drastic shift 
Make-in-India has seen a drastic shift in the last few years. Climaveneta started India manufacturing almost a decade ago. It was a rare concept for Chiller OEMs to have a facility in India during that time. More manufacturers were importing into India, and only a few were manufactured in India. Now, everything has almost reversed. The ratio of local manufacturing vs imported is higher.

Global companies (in India) needed more time to be ready to accept technologies from India. Today, we can proudly say that global companies (outside India) accept India exports into their facilities.

Industries such as data centres, probably the most mission-critical application, did not accept Indian made products. Today, this has completely changed. The dynamic changes in the market, the acceptance of technology, and the education of designers and consultants certainly provide a positive outlook. Good time to be here!