Report Overview

India Truck and Bus Air Conditioner Market – Industry Trends & Forecast Report, 2030

India Truck and Bus Air Conditioner Market size was estimated at USD 434.78 million in 2023. During the forecast period between 2024 and 2030, the India Truck and Bus Air Conditioner Market size is projected to grow at a CAGR of 6.12% reaching a value of USD 656.33 million by 2030. Prominent drivers of the market include the increasing adoption of advancements in road infrastructure, regulatory measures implemented by the government, and a rising number of private educational institutions. Notably, the rapid expansion of road infrastructure, particularly the construction of state and national highways, has significantly contributed to the growth of the bus and truck industry in the country in recent years. The expeditious implementation of initiatives and investments by both national and state governments to stimulate economic and industrial sectors, such as tourism, trade, and commerce, is a key driver for the positive trajectory of road infrastructure development.

By volume, the India Truck and Bus Air Conditioner Market size was estimated at 3.8 thousand units in 2023. During the forecast period between 2024 and 2030, the India Truck and Bus Air Conditioner Market size is projected to grow at a CAGR of 3.24% reaching the volume of 4.6 thousand units by 2030. The Government of India has endorsed a draft notification mandating the incorporation of air-conditioning systems in the cabins of N2 and N3 category trucks. This initiative seeks to elevate road safety by ensuring conducive working environments for truck drivers, enhancing their efficiency, and mitigating concerns related to driver fatigue. Consequently, all trucks are required to be fitted with air conditioners by 2025, creating opportunities for retrofitting by truck manufacturers. This directive is anticipated to stimulate the market in the foreseeable future as existing trucks undergo updates and modernization to align with the revised regulations.

Truck and Bus Air Conditioner – Overview

A truck and bus air conditioner refers to a specialized cooling system designed for use in trucks and buses. It is designed to regulate and maintain a comfortable temperature inside the cabin of these vehicles, providing cooling during hot weather and often offering heating functionalities for colder conditions. Truck and bus air conditioners are crucial for ensuring the comfort and well-being of passengers and drivers during transportation. They are specifically engineered to meet the challenges posed by the larger interiors of trucks and buses, offering effective climate control in diverse weather conditions.

India Truck and Bus Air Conditioner Market

Growth Drivers

Rising Demand for Electric Trucks and Buses

The escalating demand for electric trucks and buses in India is amplifying the need for advanced truck and bus air conditioning systems. Fueled by government initiatives, carbon reduction targets, and corporate sustainability efforts, there is a growing inclination towards air conditioned electric buses. States like Kerala, Karnataka, Tamil Nadu, and Bengal are markedly improving public transportation by investing significantly in sustainable and comfortable travel options. Notably, in 2022, the West Bengal government awarded Tata Motors a contract to manufacture 1,180 electric buses, including 12-meter low-floor and 9-meter standard AC floor buses, intensifying market growth. Furthermore, the burgeoning e-commerce and last-mile delivery services, particularly in urban areas, are poised to drive the demand for electric trucks, equipped with air conditioners to meet evolving logistics needs, contributing to the advancement of sustainable urban transportation.

Challenges

High Initial Cost

The growth of the India Truck and Bus Air Conditioner Market could be impeded by the significant initial costs associated with these systems. The high upfront expenses function as a restraining factor, hindering widespread adoption within the market. This financial barrier poses a challenge for potential buyers, including fleet operators and transportation companies, affecting the overall market expansion. Efforts to address and mitigate these cost concerns will be crucial in promoting the broader acceptance and growth of air conditioning systems in trucks and buses across the country.

Impact of Escalating Geopolitical Tensions on India Truck and Bus Air Conditioner Market

The India Truck and Bus Air Conditioner Market faces potential challenges due to escalating geopolitical tensions. Heightened uncertainties and geopolitical conflicts may disrupt supply chains, impacting the production and distribution of air conditioning systems for trucks and buses. Fluctuations in global trade relations, sanctions, or geopolitical crises can lead to increased material costs, affecting market dynamics. Furthermore, geopolitical tensions can influence economic stability, potentially impacting the purchasing power of consumers and businesses. Players in the India Truck and Bus Air Conditioner market need to closely monitor geopolitical developments to navigate potential challenges and strategize resiliently in response to the evolving geopolitical landscape.

India Truck and Bus Air Conditioner Market

Segmental Coverage

India Truck and Bus Air Conditioner Market – By Product Type

By product type, the India Truck and Bus Air Conditioner Market is split into Roof Mounted Split AC and Back Wall AC segments.

India Truck and Bus Air Conditioner Market – By Vehicle Type

Based on vehicle type, the India Truck and Bus Air Conditioner Market is bifurcated into Bus and Truck segments. The bus segment holds a higher share in the India Truck and Bus Air Conditioner Market by vehicle type. It is primarily driven by the rise in outstation bus services and government initiatives. Online platforms like Zing Bus and Red Bus, coupled with migration and urbanization trends, have spurred the adoption of outstation bus services in India. This surge has created a demand for efficient, comfortable, and accessible transportation, leading operators to increasingly opt for air-conditioned buses and contributing to market growth. Also, the government's One Nation and One Permit initiative is expected to boost this segment's volume by simplifying permit processing for bus operators. State governments, including Delhi, Karnataka, West Bengal, Uttar Pradesh, and Tamil Nadu, are actively modernizing their public transport fleets, fostering a positive outlook for the demand for air-conditioned buses during the forecast period.

India Truck and Bus Air Conditioner Market – By Demand Type

On the basis of demand type, the India Truck and Bus Air Conditioner Market is bifurcated into OEM and Replacement segments. The OEM segment holds a higher share in the India Truck and Bus Air Conditioner Market by demand type. It can be attributed to the increased adoption of premium buses and trucks, particularly in the thriving tourism industry. India has seen a surge in the procurement of high-end trucks, spurred by intensified activities in mining, road construction, and the flourishing e-commerce sector. Notably, in 2022, Daimler India Commercial Vehicles reported a substantial 25% growth in sales, selling approximately 29,470 commercial vehicles compared to the previous year. This heightened demand for premium commercial vehicles has consequently increased the requirement for air conditioners for trucks and buses among OEMs striving to outfit their high-quality commercial fleets.

India Truck and Bus Air Conditioner Market – By Capacity

Based on capacity, the India Truck and Bus Air Conditioner Market is divided into Up to 10 Kw, 10.1–25 Kw, 25.1–40 Kw, and Above 40 Kw segments.

India Truck and Bus Air Conditioner Market – By Region

Geographically, the India Truck and Bus Air Conditioner Market is divided into North India, South India, East India, and West India regions.

Competitive Landscape

Major players operating in India Truck and Bus Air Conditioner Market include DENSO, JTAC, Valeo Thermal Commercial Vehicles Germany GmbH, TKT, Thermo King, Subros Limited, Marwahindia, Sidwal Refrigeration Industries Ltd, Eberspacher Gruppe GmbH & Co. KG, and TransACNR. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In December 2023 - The Ministry of Road Transport mandated air-conditioned cabins for new trucks in N2 and N3 categories, aiming to prioritize the welfare of truck drivers starting October 01, 2025. Despite cost concerns, Union Minister Nitin Gadkari emphasizes the imperative to improve working conditions for drivers, allowing truck manufacturers to sell chassis with integrated air-conditioning systems.

• In 2023 - Valeo India, a leading company in vehicle air conditioning, outlined an investment of USD 162 million over the next three to four years to enhance its business in the country.

Scope of the Report

By Product Type

• Roof Mounted Split AC

• Back Wall AC

By Vehicle Type

• Bus

• Truck

By Demand Type

• OEM

• Replacement

By Capacity

• Up to 10 Kw

• 10.1–25 Kw

• 25.1–40 Kw

• Above 40 Kw

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Truck and Bus Air Conditioner Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising disposable incomes and living standards
         2. Stringent regulations on driver fatigue
         3. Growing focus on safety
         4. Rising demand for electric trucks and buses
      2. Restraints
         1. High initial cost
         2. Increasing fuel efficiency concerns
         3. Lack of availability and accessibility of service networks
      3. Opportunities
         1. Innovation in technology and features:
         2. Focus on specialty Product Type
      4. Challenges
         1. Building brand awareness and trust among potential buyers
         2. Lack of standardized regulations
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Truck and Bus Air Conditioner Market: Marketing Strategies
5. India Truck and Bus Air Conditioner Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
         1. Roof Mounted Split AC
         2. Back Wall AC
      2. By Vehicle Type
         1. Bus
         2. Truck
      3. By Demand Type
         1. OEM
         2. Replacement
      4. By Capacity
         1. Up to 10 Kw
         2.  10.1–25 Kw
         3. 25.1–40 Kw
         4. Above 40 Kw
      5. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. North India Truck and Bus Air Conditioner Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By Vehicle Type
      3. By Demand Type
      4. By Capacity
7. South India Truck and Bus Air Conditioner Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By Vehicle Type
      3. By Demand Type
      4. By Capacity
8. East India Truck and Bus Air Conditioner Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By Vehicle Type
      3. By Demand Type
      4. By Capacity
9. West India Truck and Bus Air Conditioner Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By Vehicle Type
      3. By Demand Type
      4. By Capacity
10. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Truck and Bus Air Conditioner Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operation Channel Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
11. Impact of Escalating Geopolitical Tensions in India Truck and Bus Air Conditioner Market
12. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. DENSO
    2. JTAC
    3. Valeo Thermal Commercial Vehicles Germany GmbH
    4. TKT
    5. Thermo King
    6. Subros Limited
    7. Marwahindia
    8. Sidwal Refrigeration Industries Ltd
    9. Eberspacher Gruppe GmbH & Co. KG
    10. TransACNR
    11. Other Prominent Players
13. Key Strategic Recommendations
14. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1       India Truck and Bus Air Conditioner Market Segmentation         

Figure 2       India Truck and Bus Air Conditioner Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023                                               

Figure 4       India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Figure 5       India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Figure 6       India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Figure 7       India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Figure 8       India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030

Figure 9       India Truck and Bus Air Conditioner Market Share, By Region, By Value (USD Million) 2019–2030

Figure 10     North India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Figure 11     North India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Figure 12     North India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Figure 13     North India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Figure 14     North India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030

Figure 15     South India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Figure 16     South India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Figure 17     South India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Figure 18     South India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Figure 19     South India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030

Figure 20     East India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Figure 21     East India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Figure 22     East India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Figure 23     East India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Figure 24     East India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030

Figure 25     West India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Figure 26     West India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Figure 27     West India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Figure 28     West India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Figure 29     West India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030                                      

List of Tables   

Table 1        India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Table 2        India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Table 3        India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Table 4        India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Table 5        India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030

Table 6        India Truck and Bus Air Conditioner Market Share, By Region, By Value (USD Million) 2019–2030

Table 7        North India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Table 8        North India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Table 9        North India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Table 10      North India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Table 11      North India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030

Table 12      South India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Table 13      South India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Table 14      South India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Table 15      South India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Table 16      South India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030

Table 17      East India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Table 18      East India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Table 19      East India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Table 20      East India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Table 21      East India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030

Table 22      West India Truck and Bus Air Conditioner Market Size, By Value (USD Million), 2019–2030

Table 23      West India Truck and Bus Air Conditioner Market Share, By Product Type, By Value (USD Million) 2019–2030

Table 24      West India Truck and Bus Air Conditioner Market Share, By Vehicle Type, By Value (USD Million) 2019–2030

Table 25      West India Truck and Bus Air Conditioner Market Share, By Demand Type, By Value (USD Million) 2019–2030

Table 26      West India Truck and Bus Air Conditioner Market Share, By Capacity, By Value (USD Million) 2019–2030                                      

Table 27      DENSO Company Overview

Table 28      DENSO Company Overview

Table 29      JTAC Company Overview

Table 30      JTAC Company Overview

Table 31      Valeo Thermal Commercial Vehicles Germany GmbH Company Overview

Table 32      Valeo Thermal Commercial Vehicles Germany GmbH Company Overview

Table 33      TKT Company Overview

Table 34      TKT Company Overview

Table 35      Thermo King Company Overview

Table 36      Thermo King Company Overview

Table 37      Subros Limited Company Overview

Table 38      Subros Limited Company Overview

Table 39      Marwahindia Company Overview

Table 40      Marwahindia Company Overview

Table 41      Sidwal Refrigeration Industries Ltd Company Overview

Table 42      Sidwal Refrigeration Industries Ltd Company Overview

Table 43      Eberspacher Gruppe GmbH & Co. KG Company Overview

Table 44      Eberspacher Gruppe GmbH & Co. KG Company Overview

Table 45      TransACNR Company Overview

Table 46      TransACNR Company Overview