New Delhi: Indian exporters supplying the heating, ventilation, air-conditioning and refrigeration products are set to see solid growth as global markets are opening up for the segment, said Mahesh Desai, the head of India’s engineering exporters body.
Addressing the participants at a virtual expo on the Heating, Ventilation, Air Conditioning and Refrigeration (HVAC-R) segment, Desai said that outbound shipments would grow at a fast pace in coming years as more and more markets open up for global trade.
US, UAE and China were the three topmost destinations for India’s global exports of HVAC-R products in 2020 with their respective shares of 16.7 per cent, 7.0 per cent and 5.92 per cent.
As per the latest trade data, European Union (EU) is the largest importer of India’s HVAC-R products among all the regions with a consumption of over one-fifth of India’s total global exports of these products.
North America and Middle-East and West Asia (MEWA) regions were the immediate followers of the EU with respective shares of 18.2 per cent and 16.5 per cent. Both ASEAN and North-East Asian countries consumed over 10 per cent of India’s global exports of HVAC-R products last year.
"India ranks 24th in heating, 25th in AC and 33rd in refrigeration units. We are also the 16th largest global supplier of equipment and parts for air-conditioning, refrigeration and ventilation," Desai told the audience which included trade representatives from 36 countries.
Arun Kumar Garodia, Vice Chairman of EEPC India, said with the strong growth in the engineering segment, the country is set to achieve a record over $400 billion export in the current financial year.
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Garodia said the heating and refrigeration sector in the country faces stiff competition among several leading global companies and a number of local players.
"While the global names such as Carrier Corporation, Daikin Industries, Mitsubishi Electric Corporation, LG Electronics Inc, Ingersoll-Rand Plc and Panasonic Corporation are the ones that are competing for the market share, Indian firms such as Blue Star, Havells India, and Voltas also comfortably secure their places with the rising demand for their products," he said.
According to industry estimates, India exported HVAC–R products worth over $2 billion in 2020. It included the export of equipment and parts for air conditioners, refrigeration and ventilation systems had the biggest share of over 77 per cent, followed by the share of heating equipment with over 11 per cent share, refrigerating units with 6.64 per cent share and air conditioning units with a share of over 4 per cent.
India’s HVAC-R market is set to reach $31.6 billion by 2030, with a compounded annual growth rate (CAGR) of 16 per cent between 2020 and 2030.
"The Expo on heating and refrigeration segments would further incentivize overseas buyers to procure from India and bolster the overall merchandise outbound shipments enabling the country to reach the $400 billion mark this fiscal year with the exports worth more than $107 billion coming from the engineering sector," said Rakesh Shah, Past President of EEPC India.
