Indian room AC market to achieve $5 bn value by FY28: Voltas

New Delhi, July 3 (KNN) India’s room air conditioner (AC) market is expected to touch USD 5 billion by fiscal year 2027-28 with a compound annual growth rate (CAGR) of 10%, according to Tata group firm Voltas.

Anticipating to be at the forefront of this growth, Voltas with a market share of 21.6% in FY23, remains “very optimistic” about the room air conditioner business.

Voltas 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%. Voltas, being the industry leader with a market share of 21.6% (2022-23) in this segment, is expected to be at the forefront of this growth,” the company said.

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.  (KNN Bureau)