India's room AC market likely to touch $5 billion by FY28: Voltas

economictimes.indiatimes.com:

CAGR) of 10 per cent, according to Tata group firm Voltas. The company expects to be at the forefront of this growth. Voltas, an industry leader in the segment with a market share of 21.6 per cent in FY23, remains «very optimistic» about the room air conditioner business and is investing in augmenting its capacity, the company said in its latest annual report.

It will reap the benefits of the growth drivers, including hotter summers, rising disposable incomes and aspiration for a better lifestyle. «Easy access to consumer finance has provided a much-needed boost to this category and will continue to do so in the future,» it said. «The Indian room air conditioner market is expected to reach USD 5 billion by 2027-28, with a CAGR of ~10 per cent.

Voltas, being the industry leader with a market share of 21.6 per cent (2022-23) in this segment, is expected to be at the forefront of this growth,» the company said. Its product range, brand positioning and channel network will allow it to capitalise on several trends forecasted to shape the industry's future, it added. According to the company, rural demand is expected to pick up in the coming years on the back of stability in the overall macroeconomic environment, including the tapering of inflation and higher consumer confidence.