Daikin Industries Ltd., the global leader in air conditioning manufacturing, is gearing up for expansion in India to meet the surging demand driven by rising temperatures. The Japanese company has signed an agreement to acquire an additional 33 acres of land near its existing facility in southern India, according to Kanwal Jeet Jawa, CEO of Daikin India, who shared the news from the company’s headquarters in Osaka last week.
“With 93% of the Indian population still without air conditioners, the potential market for us is enormous,” said Jawa. India, which has experienced record-breaking temperatures this year, is seeing air conditioning evolve from a luxury to a necessity.
The country is one of the fastest-growing markets for air conditioners globally, and according to the International Energy Agency, India is expected to surpass the U.S. and become the second-largest market after China by 2036.
Daikin has already seen significant growth in India, with sales of around 700,000 units in the first quarter of the year—a 40% increase compared to the previous year in local-currency terms. The company aims to double its sales in India by 2025 compared to 2021 levels.
Jawa expressed confidence in expanding Daikin’s presence in India, where the residential air-conditioning market is projected to triple to 30 million units by 2030. The company also plans to increase production to support its goal of exporting air conditioners to 100 countries across Africa, the Middle East, and South America by March 2026.
The growing accessibility of air conditioners in India, facilitated by online shopping and installment payment options, is further fueling market growth. “Indian consumers are no longer just looking for the cheapest option; they want value for their money,” Jawa noted.
Since Daikin began producing air conditioners in India in 2009, the company has become a dominant player in both the commercial and residential segments. Its main competitors in the residential market include Tata Group’s Voltas Ltd. and South Korea’s LG Electronics Inc.
Beyond air conditioning, Daikin is also planning to expand its commercial refrigeration business in India, capitalizing on the increased demand for frozen food since the Covid-19 pandemic. Jawa predicts this segment could grow to around 10 billion rupees ($119.1 million) annually by 2030.
Currently, Daikin counts Blink Commerce Pvt., a food delivery company, among its clients in this sector. “Refrigeration in India today is at the stage where air conditioning was 30 years ago,” said Jawa, underscoring the untapped potential in this growing market.
