Increasing mercury level in the country, high adoption of air coolers by middle class group, growing demand high end coolers in tier I & II cities and a sustainable shift from unorganized to organized market are expected to generate double revenues.
Air coolers work on the principal of evaporative cooling i.e. it cools air through the dissipation of water. Residential air coolers are the coolers which are used for personal and professional use in houses and offices. There are basically four types of residential coolers viz. personal cooler, room cooler, desert cooler and tower type coolers. The personal or portable cooler is smaller, more compact and suited to bedrooms and living rooms, while the desert cooler is ideal for halls, larger rooms and offices. Tower air coolers are currently one of the most trending variants in the market. They take up less floor space but are still powerful enough to be used in big rooms.
According to recently published report of Bonafide Research “India Air Cooler Market Outlook, 2021”, residential air cooler market was growing at a CAGR of 15.68% in the period 2010-2014. Around 35 lakh units of residential air cooler were sold in the year 2014. The growing middle class and increasing disposable income provides many opportunities in the residential air cooler industry. The increase in private consumption is growing primarily due to rising income of people in the country.
Residential organized market consists of branded air coolers whose range is between INR 4000-19000. The air cooler market has been penetrated by close to 8% households out of the total estimated 247 million households in India. Since last decade there is a shift in environment due to which temperature is gaining new milestone each year. In addition to this, the perception of perception of Indian consumers is changing when it comes to cooling solutions, air coolers are not viewed as any luxury item now.
Considering lower cost of ownership (70% lower capital costs and 90% lower running costs) and the constrained power supply situation in India, air coolers are the mass market option for Indian consumers. So, the potential customer base for cooling solutions in India is huge. Traditionally, metal body coolers were used which was sold by unorganized players. Now days, plastic body room coolers are most preferable as they look attractive in comparison to metal body coolers. Moreover, the stylish designs of room and personal air coolers launched in last few years were high on demand and popularity among urban Indian consumers. Whereas non-branded residential air coolers have become the cheapest way to beat the heat for Indian consumers in tier II, tier III and rural areas.