Business

India’s HVAC&R Industry Set For Major Growth Amid Urbanization And Sustainability Push

India’s Heating, Ventilation, Air Conditioning & Refrigeration (HVAC&R) industry is gearing up for significant growth, fueled by urbanization, expanding infrastructure, and an increasing emphasis on energy efficiency and sustainability. The sector is set to receive a substantial boost, with the government allocating Rs 6,700 crore under the Production Linked Incentive (PLI) scheme to promote domestic manufacturing and reduce reliance on imports.

South India Leads Demand And Technological Advancements

According to recent data, South India accounts for 40% of the country’s total HVAC demand, with Bengaluru at the forefront, contributing 20% of the national consumption. The city is also a hub for advancements in smart controllers and cutting-edge HVAC technology, driving the industry’s evolution.

As the HVAC market grows rapidly, industry players are focusing on energy efficiency, sustainability, and innovation to meet the ever-changing demands of customers. Experts believe that the industry can play a crucial role in creating a comfortable, healthy, and sustainable indoor environment for India’s expanding population, provided the right strategies and investments are made.

Also Read: India’s Electric Vehicle (EV) Market Set To Cross 28 Million Units By 2030

The industry’s commitment to growth and innovation is evident in the upcoming ACREX 2025 expo, a three-day event dedicated to HVAC and intelligent building technologies. The expo will serve as a platform for manufacturers to engage with government officials, industry leaders, and key stakeholders.

Government Support Strengthens India’s HVAC Manufacturing Ecosystem

The Indian government has already disbursed Rs 5,700 crore to companies working to reduce import dependency and strengthen India’s manufacturing capabilities. The PLI scheme aims to create a comprehensive component ecosystem for air conditioners and LED lights, positioning India as a key player in global supply chains.

Experts predict that urbanization and infrastructure development will continue to drive the demand for HVAC systems in residential, commercial, and industrial spaces. India’s urban population expect to reach 590 million by 2030, further accelerating the need for climate control solutions. At the same time, the government’s focus on sustainable development, energy efficiency, and smart cities has spurred increased investment in eco-friendly and energy-efficient HVAC technologies.

Transformative Growth Projected For HVAC Industry

Yogesh Mudras, Managing Director of Informa Markets India, highlighted the transformative shift the HVAC industry is undergoing, driven by rising demand for smart, connected, and sustainable climate control solutions.

Anoop Ballaney, President of the Indian Society of Heating, Refrigerating, and Air Conditioning Engineers (ISHRAE), emphasized the HVAC industry’s role in driving India’s sustainability goals. “The HVAC industry is a key driver of India’s sustainability goals, contributing to energy efficiency, indoor air quality, and infrastructure resilience. We remain committed to advancing next-generation HVAC solutions through skill development, innovation, and smart retrofitting strategies that align with India’s urban growth,” Ballaney said.

Challenges Ahead: Energy Efficiency And Sustainability Standards

Despite its growth prospects, the industry faces challenges in meeting the government’s emphasis on reducing energy consumption and adopting sustainable practices. These include the need for energy-efficient products, the use of eco-friendly refrigerants, and waste reduction.

With increasing demand for sustainable HVAC systems, the industry further continue to innovate and adapt to meet both customer expectations and environmental standards. As India’s HVAC sector evolves, it stands poised to play a vital role in shaping the nation’s urban and energy future.

Richa Kaushik

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