Aug 1 2016 | Focus

RISING DEMAND

With the rapid industrialisation and urbanisation the demand for HVAC (heating, ventilation, and air conditioning) systems is on the rise in India. The increase in the purchasing power of the middle class in India is also driving the demand for ACs in households. The commercial sector is another driver for such HVAC systems demand. India is constantly moving on the higher growth trajectory leading to spurt in the development of commercial, retail and hospitality on a large scale. These sectors are the prime drivers of HVAC systems in India. Sandeep Sharma takes a look at the HVAC sector in India....

HVAC GLOBAL MARKET
According to report from ReportsnReports, the global HVAC market is forecast to grow steadily at a compound annual growth rate (CAGR) of 7 percent from 2016 to 2020. The construction and real estate sectors worldwide are on the rise mainly in the developing countries and likely to impact the growth of HVAC market positively. According to latest report by wiseguyreports on HVAC Equipment World Market Segmentation and Major Players Analysis 2020, the major drivers of the global HVAC equipment market are increase in new households, rising average construction spending, rapid urbanization and growth in disposable income across several major economies. Growing requirement from commercial segment and high demand for HVAC products in the Asia Pacific region are other key drivers of the market.

SECTORAL OFFERINGS
The HVAC systems in India are broadly segmented as Split AC, Windows AC and Others. The products and solutions mainly include air-conditioners, ventilation fans, Heat pumps, humidifiers/ dehumidifiers, boilers, furnaces and air pumps. The market is dominated with air handling equipments, heating equipments, cooling equipments along with air treatment, air filtration and de-dusting market segments.

CHALLENGES
HVAC (heating, ventilating, and air conditioning) systems are gradually becoming the lifeline of individuals working in varied environment. HVAC is basically the technology that maintains air quality in not only residential, commercial and industrial establishments but also provide vehicular environmental comfort. HVAC system works on three principles –Heating, Air Conditioning & Ventilation and provides a complete purified air conditioning environment.  Its goal is to provide thermal comfort and acceptable indoor air quality. The customers of today are quite demanding and HVAC players have to constantly follow and implement advances in technology, provide energy efficient systems, ensure safety parameters and eco-friendly norms. These factors influence the buying decisions and differentiate between one HVAC players with the other.

MARKET PLAYERS
Some of the prominent players in the Indian HVAC sector include Daikin, Voltas, Blue Star, Carrier Corporation, Videocon, Hitachi, Haier, LG, Samsung, Ingersoll-Rand, Motherson Bergstrom HVAC Solutions Pvt. Ltd, Danfoss India, Kirloskar Pneumatic Company Ltd and Sterling and Wilson among others. The sector comprises a mix of both domestic and international players. Domestic ones are gaining traction in terms of providing improvised products as well as capturing markets where low cost is the key to buying HVAC products/solutions. International companies and large players bank on parameters such as reliability and after-sales services to increase their foothold in the market.

NEED OF THE HOUR

To boost the growth of HVAC sector in India, at the Government level, there is need to have rationalisation of excise structure, streamlined policies considering the ground facts, incentives to manufacturers under ‘Make in India’ programme. The industry should come together to set up research and development hubs, encourage and share technological innovations.

FUTURE OUTLOOK
With the Government focus on developing 100 Smart Cities in India along with the manufacturing hubs as part of ‘Make in India’ programme. The upswing in the demand for HVAC looks promising and guaranteed. New constructions in the residential, commercial, and industrial sectors are likely to push the demand for HVAC systems in India with the focus on energy efficient systems. According to the research report by TechSci Research, "India HVAC Market Forecast & Opportunities, 2019", the HVAC market in India is forecast to reach US$ 3.97 billion by 2019.


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