India's HVAC Industry Set For Massive Growth With Rs 6700 Crore PLI Boost

Bengaluru: India's Heating, Ventilation, Air Conditioning & Refrigeration (HVAC&R) industry is poised for massive growth, driven by urbanisation, infrastructure expansion, and a strong focus on energy efficiency and sustainability. As per information, the industry is expected to receive a Rs 6700 crore Production Linked Incentive (PLI) boost, aimed at promoting domestic manufacturing and reducing import dependency. As per data, South India accounts for 40 percent of the country's HVAC demand, with Bengaluru leading the way with 20 percent of national consumption. The south Indian city is driving advancements in smart controllers and cutting-edge HVAC technology.

Amidst rapid growth, the industry is focusing on energy efficiency, sustainability, and innovation to meet the changing demands of customers. The industry players believe that the HVAC industry can play a vital role in creating a comfortable, healthy, and sustainable indoor environment for India's growing population with the right strategies and investments.

A three-day expo, ACREX 2025 dedicated to HVAC and intelligent building technologies, serves as a platform for manufacturers to engage with government officials, industry leaders, and key stakeholders. This year’s event expects over 30,000 visitors and 500 exhibitors from more than 40 countries, showcasing global advancements in HVAC technologies.

The Indian government has already disbursed Rs 5700 crore to companies committed to reducing import dependency and strengthening India's manufacturing capabilities. The PLI scheme is expected to create a complete component ecosystem for the Air Conditioners and LED Lights Industry in India, making the country an integral part of the global supply chains.

On the future of the industry, experts believe that urbanisation and infrastructure development have led to the rise in India's urban population, which is expected to reach 590 million by 2030, driving the demand for HVAC systems in residential, commercial, and industrial spaces. On the other hand, the Indian government's focus on sustainable development, energy efficiency, and smart cities has led to increased investment in HVAC technologies and essentially, the development of energy-efficient, eco-friendly, and smart HVAC systems has improved the industry's growth prospects.

According to Yogesh Mudras, Managing Director, Informa Markets in India, “The HVAC industry in India is experiencing a transformative shift, fuelled by the increasing demand for smart, connected, and sustainable climate control solutions. The sector is poised for robust expansion, with a projected CAGR of 16%. As urbanisation and infrastructure growth accelerate, the need for HVAC solutions that enhance occupant comfort while reducing environmental impact has never been greater.” 

Anoop Ballaney, President of ISHRAE, asserted the industry's role in driving India's sustainability goals, stating, "The HVAC industry is a key driver of India's sustainability goals, contributing to energy efficiency, indoor air quality, and infrastructure resilience. We remain committed to advancing next-generation HVAC solutions through skill development, innovation, and smart retrofitting strategies that align with India's urban growth."

The industry also faces challenges including, bringing products that are energy efficient, as the government's emphasis on reducing energy consumption and adopting sustainable practices, such as using eco-friendly refrigerants and reducing waste.