Report Overview

India VRF Air Conditioner Market - Industry Trends & Forecast Report, 2029

India VRF (variable refrigerant flow) air conditioner market size was estimated at USD 892.54 million in 2022. During the forecast period between 2023 and 2029, India VRF air conditioner market size is projected to grow at a CAGR of 14.58% reaching a value of USD 2,336.91 million by 2029. Major factors driving the market growth include recent increase in construction activities at airports, metro rail stations, commercial spaces, and the expanding retail sector via shopping malls. Also, the country's market for VRF air conditioners has been boosted by the government's rising expenditures on urbanization and public infrastructure through programs like the "Smart Cities Mission."

India VRF Air Conditioner Market - Overview

Variable refrigerant flow, commonly known as variable refrigerant volume (VRV), is an HVAC technology that was created in 1982 by Daikin Industries, Ltd., a major player in the market. The VRF system can provide simultaneous heating and cooling by using refrigerants as the medium for various units' heating and cooling needs.

Growth Drivers

Smaller Cities Fuel Market Expansion

A sizeable portion of India's air conditioner sales is attributed to growing demand from small cities, especially those with a population of under a million. In Patna, Lucknow, Kanpur, Indore, Mangalore, and Visakhapatnam, air conditioners are in high demand. Two central air conditioning businesses, Daikin and Voltas, have started to make investments in these cities. In addition, LG and Voltas might experience an increase in air conditioner sales in tier II and III cities over the next several years.

Improvements in Living Standard Promoting Market Expansion

Rising standard of living in India and the widening selection of deals and discounts have an impact on the demand for air conditioners in that country's market. Companies like Daikin, Panasonic, Hitachi, Voltas, Blue Star, Havells, and Syska are among those that have applied to produce essential air conditioner components to meet the needs of the country. Also, to make their products more accessible to customers of all income levels, businesses are now offering their items on equated monthly installments (EMIs). These elements are expected to have an impact on the rise in air conditioner sales in India.

Restraints

High Installation Costs

Installing a VRF system has a hefty upfront cost. When compared to standard air conditioning systems, this system is 50% more energy efficient while costing 15-20% more. For instance, according to research by Washington State University, installing a VRF HVAC system costs roughly USD 18 per square foot served, compared to between USD 12 and USD 15 for a typical HVAC system.

Impact of COVID-19 on India VRF Air Conditioner Market

The market for VRF systems was significantly impacted by the COVID-19 epidemic. At a time when people are spending more time at home, HVAC technologies are crucial to personal comfort. In addition, HVAC technologies supply heating, cooling, and air filtration in establishments including hospitals, clinics, and laboratories. The COVID-19 outbreak, and domestic quarantine affected the global and industrial supply, forcing component suppliers and manufacturers to reassess how to use the global distribution network to ensure business continuity.

India VRF Air Conditioner Market

Segmental Coverage

India VRF Air Conditioner Market - By Compressor

India VRF air conditioner market by compressor is split into Air Cooled and Water Cooled segments.

India VRF Air Conditioner Market - By Component

Based on component, the India VRF air conditioner market is divided into Indoor Units, Outdoor Units, and Control System & Accessories segments. During the period in analysis, it is forecast that the outdoor unit sub-segment will have a commanding market share. The growing demand for replacement and retrofitting in the nation is driving the market for outdoor units. Consumer preference for VRF systems has replaced traditional HVAC systems as a consequence of increased consumer awareness and the implementation of regulations to reduce carbon emissions, which will support demand during the projection period.

India VRF Air Conditioner Market - By System

Based on system, India VRF air conditioner market is divided into Heat Pump System (Air-source, Ground-source, and Absorption), and Heat Recovery Systems. The heat recovery system segment is expected to have a dominant market share in the Indian market. Heat recovery systems are widely used in commercial settings such as malls, schools, hotels, and restaurants, among others, where simultaneous heating and cooling are required. In the coming years, rising investment combined with increased construction activity in the corporate and service sectors is expected to drive demand for heat recovery VRF systems.

India VRF Air Conditioner Market - By Application

Based on application, the India VRF air conditioner market is divided into Residential, Commercial, and Industrial segments. Due to the increasing number of malls, retail space, and corporate buildings in India, the commercial sub-segment is expected to have a dominant market share. According to the Business Standard, mall developers and investors, such as Raheja's Inorbit Malls, the Xander-APG joint venture Virtuous Retail South Asia (VRSA), property developer Prestige Estates Projects, and Blackstone's Nexus Malls are looking to double their space in the next year or two.

India VRF Air Conditioner Market - By Region

India VRF air conditioner market by region is divided into North India, South India, East India, and West India.

Competitive Landscape

Competition in India VRF air conditioner market is intense. Major competitors in the market include Johnson Controls-Hitachi Air Conditioning, LG Electronics India Pvt Ltd, Mitsubishi Electric India Pvt Ltd, Panasonic Corporation, Samsung India Electronics Ltd, and Voltas Limited. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In 2020 - Trane Technologies Plc announced the launch of Genyue5+, a full DC Inverter VRF system for India and SAARC markets. Genyue5+ can be controlled with its GEN Network Control, the advanced 15’’ touchscreen controller. Additionally, the Genyue5+ inverter is expected to be used across sectors, including retail, healthcare, hospitality, commercial, educational institution, and others.

Scope of the Report

By Compressor

• Air Cooled

• Water Cooled

By Component

• Indoor Units

• Outdoor Units

• Control System and Accessories

By System

• Heat Pump System

1. Air-source

2. Ground-source

3. Absorption

• Heat Recovery System

By Application

• Residential

• Commercial

• Industrial

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 VRF Air Conditioner Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing Construction Activities Across Airports, Metros and Commercial Spaces
         2. Governments Increasing Spending Towards Public Infrastructure
      2. Restraints
         1. Stringent Government Regulations for Eco-Friendly Products
      3. Opportunities
         1. Advancement in Technology
      4. Challenges
         1. Impact on Supply Chain Due to Covid
   3. Technology 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 VRF Air Conditioner Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Compressor
         1. Air Cooled
         2. Water Cooled
      2. By Component
         1. Indoor Units
         2. Outdoor Units
         3. Control System and Accessories
      3. By System
         1. Heat Pump System
            1. Air-source
            2. Ground-source
            3. Absorption
         2. Heat Recovery System
      4. By Application
         1. Residential
         2. Commercial
         3. Industrial
      5. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India VRF Air Conditioner Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Compressor
      2. By Component
      3. By System
      4. By Application
6. South India VRF Air Conditioner Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Compressor
      2. By Component
      3. By System
      4. By Application
7. East India VRF Air Conditioner Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Compressor
      2. By Component
      3. By System
      4. By Application
8. West India VRF Air Conditioner Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Compressor
      2. By Component
      3. By System
      4. By Application
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India VRF Air Conditioner Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India VRF Air Conditioner Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)

11. 11. Other Prominent Players
12. Key Strategic Recommendations
13. 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.  Assumptions & Limitations

*Financial information in case of non-listed companies can be provided as per availability.

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

List Of Figures

Figure 1       India VRF Air Conditioner Segmentation       

Figure 2       India VRF Air Conditioner Market Value Chain Analysis     

Figure 3       Company Market Share Analysis, 2022

Figure 4       India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029    

Figure 5       India VRF Air Conditioner Market Share, By Compressor, By Value, 2019–2029          

Figure 6       India VRF Air Conditioner Market Share, By Component, By Value, 2019–2029          

Figure 7       India VRF Air Conditioner Market Share, By System, By Value, 2019–2029    

Figure 8       India VRF Air Conditioner Market Share, By Application, By Value, 2019–2029

Figure 9       North India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029          

Figure 10     North India VRF Air Conditioner Market Share, By Compressor , By Value, 2019–2029  

Figure 11     North India VRF Air Conditioner Market Share, By Component, By Value, 2019–2029  

Figure 12     North India VRF Air Conditioner Market Share, By System, By Value, 2019–2029          

Figure 13     North India VRF Air Conditioner Market Share, By Application, By Value, 2019–2029          

Figure 14     South India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029          

Figure 15     South India VRF Air Conditioner Market Share, By Compressor , By Value, 2019–2029  

Figure 16     South India VRF Air Conditioner Market Share, By Component, By Value, 2019–2029  

Figure 17     South India VRF Air Conditioner Market Share, By System, By Value, 2019–2029          

Figure 18     South India VRF Air Conditioner Market Share, By Application, By Value, 2019–2029          

Figure 19     East India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029          

Figure 20     East India VRF Air Conditioner Market Share, By Compressor , By Value, 2019–2029          

Figure 21     East India VRF Air Conditioner Market Share, By Component, By Value, 2019–2029          

Figure 22     East India VRF Air Conditioner Market Share, By System, By Value, 2019–2029          

Figure 23     East India VRF Air Conditioner Market Share, By Application, By Value, 2019–2029          

Figure 24     West India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029          

Figure 25     West India VRF Air Conditioner Market Share, By Compressor , By Value, 2019–2029  

Figure 26     West India VRF Air Conditioner Market Share, By Component, By Value, 2019–2029          

Figure 27     West India VRF Air Conditioner Market Share, By System, By Value, 2019–2029          

Figure 28     West India VRF Air Conditioner Market Share, By Application, By Value, 2019–2029          

List of Tables

Table 1 India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029

Table 2 India VRF Air Conditioner Market Size, By Compressor , By Value, 2019–2029

Table 3 India VRF Air Conditioner Market Size, By Component, By Value, 2019–2029

Table 4 India VRF Air Conditioner Market Size, By System, By Value, 2019–2029

Table 5 India VRF Air Conditioner Market Size, By Application, By Value, 2019–2029

Table 6 North India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029

Table 7 North India VRF Air Conditioner Market Size, By Compressor , By Value, 2019–2029

Table 8 North India VRF Air Conditioner Market Size, By Component, By Value, 2019–2029

Table 9 North India VRF Air Conditioner Market Size, By System, By Value, 2019–2029

Table 10      North India VRF Air Conditioner Market Size, By Application, By Value, 2019–2029

Table 11      South India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029

Table 12      South India VRF Air Conditioner Market Size, By Compressor , By Value, 2019–2029

Table 13      South India VRF Air Conditioner Market Size, By Component, By Value, 2019–2029

Table 14      South India VRF Air Conditioner Market Size, By System, By Value, 2019–2029

Table 15      South India VRF Air Conditioner Market Size, By Application, By Value, 2019–2029

Table 16      East India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029

Table 17      East India VRF Air Conditioner Market Size, By Compressor , By Value, 2019–2029

Table 18      East India VRF Air Conditioner Market Size, By Component, By Value, 2019–2029

Table 19      East India VRF Air Conditioner Market Size, By System, By Value, 2019–2029

Table 20      East India VRF Air Conditioner Market Size, By Application, By Value, 2019–2029

Table 21      West India VRF Air Conditioner Market Size, By Value (USD Million), 2019–2029

Table 22      West India VRF Air Conditioner Market Size, By Compressor , By Value, 2019–2029

Table 23      West India VRF Air Conditioner Market Size, By Component, By Value, 2019–2029

Table 24      West India VRF Air Conditioner Market Size, By System, By Value, 2019–2029

Table 25      West India VRF Air Conditioner Market Size, By Application, By Value, 2019–2029

Table 26      Blue Star Limited Company Overview

Table 27      Blue Star Limited Financial Overview

Table 28      Carrier India Pvt Ltd Company Overview

Table 29      Carrier India Pvt Ltd Financial Overview

Table 30      Daikin Airconditioning India Pvt Ltd Company Overview

Table 31      Daikin Airconditioning India Pvt Ltd Financial Overview

Table 32      Fujitsu General (India) Pvt Ltd Company Overview

Table 33      Fujitsu General (India) Pvt Ltd Financial Overview

Table 34      Johnson Controls-Hitachi Air Conditioning Company Overview

Table 35      Johnson Controls-Hitachi Air Conditioning Financial Overview

Table 36      LG Electronics India Pvt Ltd Company Overview

Table 37      LG Electronics India Pvt Ltd Financial Overview

Table 38      Mitsubishi Electric India Pvt Ltd Company Overview

Table 39      Mitsubishi Electric India Pvt Ltd Financial Overview

Table 40      Panasonic Corporation Company Overview

Table 41      Panasonic Corporation Financial Overview

Table 42      Samsung India Electronics Ltd Company Overview

Table 43      Samsung India Electronics Ltd Financial Overview

Table 44      Voltas Limited Company Overview

Table 45      Voltas Limited Financial Overview