The air conditioners (ACs) which provide respite from the heat have become a basic need for many families in India. But the one major concern of buying AC is the amount of money that would be spent on the electricity bill each month. But this concern is bringing about a shift in the strategy of the companies. The customers nowadays demand the Air conditioners that can cool the room temperature along with saving electricity. This is why the companies are shifting their attention towards 5-star Air conditioners, inverter technologies, and features that will help to understand power consumption. This is because the customers are now not interested in just knowing the cost of the AC but also in its total cost after years.

As per the estimate by the IMARC Group, the Indian market of air conditioning was valued at $6.15 billion in 2025. Further, it is expected to reach a value of $7.07 billion in 2026 and $21.59 billion in 2034. Rising temperatures, urbanization, and the need for cooling in homes are driving this market.

A 2024 survey by the Bureau of Energy Efficiency (BEE) and CLASP shows that fans, ACs, and coolers account for a significant portion of household electricity consumption. According to this survey of 4,321 households across 20 states, these appliances accounted for 40% of total household electricity consumption. ACs alone accounted for 11% of total household electricity consumption, compared to 12% in urban households.

The number of households owning ACs in the country is also increasing. According to the survey, 13.3% of households owned ACs in 2024, compared to 10% in 2022. In cities, AC penetration reached 17% of households. 55% of ACs in the surveyed households were purchased within the last five years. These figures indicate that as demand for ACs increases in the future, the importance of energy-saving technology will also increase.

According to LG Electronics India, consumers are now considering the initial cost of purchasing an AC, as well as the long-term cost of using it. According to the company, more than half of LG's AC sales are now 5-star or higher energy-efficient models, up from more than 45% last year. In the first quarter of FY 2027, the company's residential AC sales increased by approximately 20%.

When purchasing an AC, different models can be compared by looking at the star rating and annual power consumption. For example, Daikin's 1.5-ton 5-star model has an ISEER rating of 5.70 and an annual energy consumption of 716.97 units. Meanwhile, the company's 1.5-ton 3-star model has an ISEER rating of 4.40 and an annual energy consumption of 880.1 units. Based on these figures, the difference in the stated annual energy consumption for both models is approximately 163 units. However, actual energy savings may vary depending on usage hours, room conditions, temperature, and other conditions.

The air conditioners (ACs) which provide respite from the heat have become a basic need for many families in India. But the one major concern of buying AC is the amount of money that would be spent on the electricity bill each month. But this concern is bringing about a shift in the strategy of the companies. The customers nowadays demand the Air conditioners that can cool the room temperature along with saving electricity. This is why the companies are shifting their attention towards 5-star Air conditioners, inverter technologies, and features that will help to understand power consumption. This is because the customers are now not interested in just knowing the cost of the AC but also in its total cost after years.

As per the estimate by the IMARC Group, the Indian market of air conditioning was valued at $6.15 billion in 2025. Further, it is expected to reach a value of $7.07 billion in 2026 and $21.59 billion in 2034. Rising temperatures, urbanization, and the need for cooling in homes are driving this market.

A 2024 survey by the Bureau of Energy Efficiency (BEE) and CLASP shows that fans, ACs, and coolers account for a significant portion of household electricity consumption. According to this survey of 4,321 households across 20 states, these appliances accounted for 40% of total household electricity consumption. ACs alone accounted for 11% of total household electricity consumption, compared to 12% in urban households.

The number of households owning ACs in the country is also increasing. According to the survey, 13.3% of households owned ACs in 2024, compared to 10% in 2022. In cities, AC penetration reached 17% of households. 55% of ACs in the surveyed households were purchased within the last five years. These figures indicate that as demand for ACs increases in the future, the importance of energy-saving technology will also increase.

According to LG Electronics India, consumers are now considering the initial cost of purchasing an AC, as well as the long-term cost of using it. According to the company, more than half of LG's AC sales are now 5-star or higher energy-efficient models, up from more than 45% last year. In the first quarter of FY 2027, the company's residential AC sales increased by approximately 20%.

When purchasing an AC, different models can be compared by looking at the star rating and annual power consumption. For example, Daikin's 1.5-ton 5-star model has an ISEER rating of 5.70 and an annual energy consumption of 716.97 units. Meanwhile, the company's 1.5-ton 3-star model has an ISEER rating of 4.40 and an annual energy consumption of 880.1 units. Based on these figures, the difference in the stated annual energy consumption for both models is approximately 163 units. However, actual energy savings may vary depending on usage hours, room conditions, temperature, and other conditions.