Pointing out that the air-conditioning and refrigeration industry in India is in its “golden period,” B Thiagarajan, managing director of Blue Star Ltd, on Monday, pointed out that India is poised to overtake China as the largest consumer of air conditioners by 2040.
“The air conditioning and refrigeration industry is in its golden period. There is an unprecedented demand and growth. The only consumer durable that has been growing significantly since the past 6-7 months are room air conditioners. We expect this category to do well for the next 10 years,” said Thiagarajan during his visit to Ahmedabad for launching his company’s new range of room air conditioners.
“Globally, India is the fastest growing market for air conditioners. By 2040, it is expected to cross China’s market size. Today, out of the 200 million units of air conditioners sold around the world, China’s market size will be around 80-90 million units. But if you take China’s own consumption and exports it will be 110 million units. China controls more than 50 percent of the market,” he added.
The official pointed out that from 2005 onwards China’s air conditioning market grew exponentially to reach a residential household penetration of 80 per cent. “Now they have slowed down and we are growing. Of every 100 houses in India, only seven to eight houses may have an air conditioner. About 90 per cent of our air conditioner sales are from first time buyers and 65 per cent of these sales are from Tier-3, 4 and 5 towns, white more than 50 percent are buying through consumer finance.” Thiagarajan said.
India’s market for air conditioners is about 10 million units which is eight times smaller than China’s domestic market size.