Indian room air-conditioner market to reach US$ 5.6 billion (Rs. 50,000 crore) by FY29: Voltas

The India room air-conditioners (RAC) market is projected to grow at a robust CAGR of 12% and reach US$ 5.6 billion (Rs. 50,000 crore) by FY 2028-29, according to Tata group firm Voltas' latest annual report. Voltas, a market leader, noted that competition in the Indian RAC market has intensified with the presence of both domestic and leading foreign players and is expected to increase further. Key drivers of growth for the RAC segment include increasingly hot summers, rising disposable incomes, and the desire for a better lifestyle supported by easy access to consumer finance.

In 2023-24, Voltas sold over 2 million AC units, marking the highest number of ACs ever sold by a single brand in one year. Voltas also reported selling 1 million AC units in just 110 days from January 2024, to April 2024. This season, many companies experienced over two-fold growth in April and May as sales surged during the scorching summer, with temperatures reaching around 45 degrees, setting new records in several locations.

Going ahead, Voltas plans to strengthen its market leadership by expanding its network of Exclusive Brand Outlets (EBOs) and other distribution channels.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.