India wants to limit temperature settings on new air conditioners in order to save energy. According to AP, the power minister proposed a rule in June requiring air conditioners sold in the country to raise the bottom temperature of their thermostats from the current 17° C (62° F) to 20° Celsius (68° Fahrenheit). While this sounds like a small temperature change, it could save around 18 percent of electricity consumption, which is significant in one of the world’s fastest growing AC markets.
AC unit ownership is surging in India. According to estimates from analysts at Statista Market Insights, a total of 13.3 million AC units are estimated to have been sold in 2024, up from 10.2 million in 2023. In 2025, this figure is expected to hit 15.4 million, while by 2030, analysts forecast the figure to have almost doubled to around 28 million units.
In terms of revenue, around $7.5 billion worth of air conditioning units were sold in 2024, up from $4.8 billion in 2023 (+34 percent). Statista analysts calculate that the biggest driver of this increase was rising temperatures, citing how India has been experiencing increasingly intense heatwaves over the past years, with temperatures often soaring above 40°C (104° F). In 2024, the country saw a surge in AC sales as it faced record-breaking heat.
The second biggest factor contributing to the growth in sales of ACs in India between 2023/2024 was the move by retailers and financial institutions to offer enhanced Equated Monthly Instalment (EMI) options such as zero percent EMIs in order to make ACs more accessible. Statista analysts explain: “These flexible payment plans allow consumers, especially from the burgeoning middle class, to purchase ACs without significant upfront costs, thereby boosting sales.”
Other important drivers of growth include rapid urbanization and a growing middle class, which have seen rising disposable incomes and a bigger consumer base, as well as the rise of e-commerce platforms in India, which have made it more convenient to buy ACs online, including same day delivery and installation services. Meanwhile, shops likely lost some business to the growing second-hand market in India, which in itself makes cooling solutions accessible to a broader audience.
In addition to increasing the baseline temperature of AC units, energy experts say consumers around the world can reduce energy consumption by opting for more efficient models.
