In 2025, the Indian air conditioner (AC) market is expected to generate $7 billion in revenue, with a projected annual growth rate of 17.58 percent CAGR from 2025 to 2030. Further, by 2030, the market volume of Air Conditioners is forecasted to reach 28 million units, with an anticipated 17.1 percent growth in volume in 2026. The surge in demand for air conditioners in India is driven by the expanding middle class and rapid urbanisation.
As per a few reports, brokerage firm PhillipCapital anticipates that domestic air conditioner (AC) companies such as Blue Star, Godrej, and Havells India’s Lloyd are poised to gain market share in the Indian market, while competitors like Voltas and Daikin may experience a decline in market share.
The brokerage noted that Godrej’s strong value proposition is likely to drive its growth in the market. Daikin, on the other hand, is expected to face market share pressure owing to its premium pricing and limited flexibility in offering price reductions.
Additionally, the brokerage has projected organic price increases for domestic air conditioner manufacturers in the first quarter of FY26.
PhillipCapital has highlighted the following stocks as key focus areas within India’s air conditioning sector:
Blue Star Limited
With a market cap of Rs. 41,287.4 crores, the stock moved up by nearly 1.4 percent on BSE to Rs. 2,041.9 on Monday.
According to the brokerage, Blue Star is expected to gain market share in South India, supported by strong brand recall. By December 2024, the company’s room AC business saw significant growth, achieving a quarterly market share of 14 percent.
Blue Star Limited is India’s leading air conditioning, commercial refrigeration, and MEP (Mechanical, Electrical, Plumbing, and Fire-fighting) contracting company. It offers a wide range of cooling solutions and has also made inroads into water and air purification, engineering facilities management, commercial kitchens, and healthcare refrigeration.
Havells India Limited
Havells India Limited, with a market cap of Rs. 1.02 lakh crore, witnessed a nearly 1 percent rise in its stock price on the BSE to Rs. 1,653.45 on Monday.
According to the brokerage, Lloyd—Havells’ consumer durables brand—is expected to gain volume market share and improve margins in the near term, driven by operating leverage.
Havells India acquired the consumer durable business (CDB) of Lloyd Electric and Engineering in February 2017 for Rs. 1,600 crore. This acquisition included the Lloyd brand and the CDB, which is engaged in sourcing, assembling, marketing and distribution related to Lloyd’s consumer durables, such as air conditioners, TVs, washing machines and other household appliances.
Voltas Limited
With a market cap of Rs. 43,508 crores, the stock moved up by nearly 2.5 percent on BSE to Rs. 1,317.55 on Monday. According to PhillipCapital, Voltas is likely to lose market share due to factors such as pricing gaps, average product quality, subpar after-sales service, and intensifying competition.
Voltas continues to remain the market leader in both Split and Window Air Conditioners, recording an exit market share of 20.5 percent, as of December 2024.
As of the end of September 2024, Voltas held an 11.1 percent market share in the air cooler category, securing its position as the No. 2 brand. Additionally, by November 2024, its year-to-date market share reached 8.3 percent in washing machines and 5.1 percent in refrigerators.
Voltas Limited, part of the Tata Group, is engaged in the business of AC, refrigeration, electromechanical projects and engineering product services for mining, construction equipments and the textile industry.
Written by Shivani Singh
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