Emerging Trends across HVAC Market in India

The key trends in the HVAC industry are energy savings and precision automation control system which has led to the use of adjustable variable frequency drives in HVAC systems.

There is a huge opportunity to improve industrial automation levels that help in both energy efficiency and productivity of the plant through our valves, drives, PLC controllers, compressors, best safety standards and through products that reduce wastages. Awareness about optimum use of energy is quite high among customers today, therefore they are now slowly shifting to variable frequency drive as it is one of the best way to get energy efficiency.

Sustainability of HVAC industry depends upon investment climate of infrastructure and industrial projects segment. Current financial year, encouraging investment in the segment is like productive stimulus. The HVAC market is growing fast mainly due to rise in real estate market and infrastructure sector.

We can emerge as a major hub for manufacturing in the HVAC space Govt is serious and focuses on maintaining energy efficiency and provides incentives to the manufacturing industry. Localisation while sourcing products by Companies will boost the economy. Energy demand is estimated to triple over the next 10 years, there is a huge demand to shift to energy efficient technology. Every company is searching for HVAC equipments which are energy efficient to reduce energy consumption.

High efficiency oil-free centrifugal compressor are available in the market that provide high energy savings for HVAC systems reducing up to 35-50% of energy consumption than a commercial HVAC system.

HVAC systems are responsible for major share of electricity charges. This  puts pressure on sources of energy and the environment. By deploying energy efficient devices great energy saving can be achieved also keeping the cost in check.

If HVAC sector needs to grow, there is a huge investment required for refrigerated warehouses and storage infrastructure. We cannot solely depend on the govt investment, there has to be a better approach of PPP model. This will boost HVAC sector towards higher growth.

Current budget allocation in HVAC sector is a growth driver and will put this sector in higher growth trajectory. There has been huge increase in warehousing investment is a very positive step, one needs to look at how the infrastructure can be made sustainable.

An automated cold storage with best global technologies will cost 30 % more. It is important to note that 60% of the operating cost of a cold storage is due to electricity and this cost could be anywhere close to 1.5 crores per annum.

Danfoss has an India 2015 growth strategy in place where we will focus on 3 key megatrends: Cold Chain, Urbanization and Energy Efficiency. This strategy intends to increase base business and reach tier2 cities.