The inverter AC (air conditioner) market is gaining momentum in India on the back of aggressive push by the manufacturers as also changing buyer preferences.
Despite higher initial purchase cost, the promise of lower monthly electricity bill is seen as an attractive value proposition for inverter ACs. When compared to normal ones,
Inverter-built systems vary the speed of the compressors and deliver precise cooling, thereby cutting down the power consumption.
Growth outlook is seen favourable as more and more customers are becoming aware of the benefits of the inverter technology.
'This segment in the last two years has seen phenomenal growth, which is estimated to continue this year as well. Growth in our inverter segment has surpassed the normal split AC segment,' said Rajeev Bhutani, Director-Sales, Consumer Electronics, Samsung India Electronics.
The recent new product launches included a very high portion of inverter ACs. Companies such as LG, Samsung, Blue Star, Sharp and Onida, among others are bullish on growth prospects and expect the inverter category to dominate industry in the coming years.
Samsung gets a considerable contribution from the inverter segment and expect it to grow at an exponential pace in the in next 2-3 years. Sharp, a recent entrant, has been selling only inverter ACs in the country with expanded range.
'I think the share of inverter ACs will rapidly grow and in the next five years, one can expect over 30 per cent of the market to be dominated by inverter ACs.
As the volumes grow, the prices of inverter ACs will also come down, said B Thiagarajan, Executive Director & President- Airconditioning & Refrigeration Products Group, Blue Star.
In India, the inverter AC segment is relatively new and growing. But in the mature markets, it is more established segment and, therefore, comprises a larger part of the AC segment.
According to estimates, the share of inverter ACs is just three per cent in India, while it is about 50 per cent in China.
In Japan, 100 per cent of the market is for inverter ACs. Meanwhile, the Bureau of Energy Efficiency is also in the process of introducing the Energy Labeling programme for inverter ACs.