Daikin Industries Ltd., the world’s largest air-conditioner manufacturer, is set to expand its operations in India in response to the growing consumer demand driven by rising temperatures. The Japanese company has signed a memorandum of understanding to acquire an additional 33 acres near its existing factory in southern India, according to Kanwal Jeet Jawa, CEO of Daikin’s India operations.
India, where approximately 93% of the population still lacks access to air conditioners, presents a vast opportunity for Daikin. With temperatures in the country reaching record highs this year, the demand for air conditioning has escalated, posing both health risks and economic challenges. The International Energy Agency predicts that India, propelled by its rising middle class, will become the world’s second-largest air conditioner market by 2036, surpassing the U.S. and trailing only China.
Daikin has already capitalized on this trend, with its sales in India rising by 40% year-on-year in the first quarter of 2024, selling about 700,000 units. The company anticipates doubling its sales in India by 2025 compared to 2021 levels. Jawa expressed confidence in expanding Daikin’s existing three plants in the country, as the residential air-conditioning market is expected to triple to approximately 30 million units by 2030.
In addition to bolstering its presence in the air conditioning market, Daikin plans to enhance its commercial refrigeration business in India, aiming to leverage the growing popularity of frozen foods since the COVID-19 pandemic. The company projects this sector to reach Rs 1,000 crore ($119.1 million) annually by 2030.
Daikin’s expansion in India aligns with its broader strategy to increase production and export air conditioners to 100 countries across Africa, the Middle East, and South America by March 2026.
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