New Delhi, March 10 -- The Indian air conditioner (AC) industry is expected to register a robust 19 per cent CAGR growth over the next three years, driven by rising temperatures and increasing disposable income, according to a report by Motilal Oswal.

The report highlights that the industry has already witnessed strong demand in FY25, following a 12 per cent YoY volume growth in FY24, which saw sales of around 9.4 million units. Looking ahead, the industry is projected to grow at a compounded annual growth rate (CAGR) of 19 per cent over FY24-27, with a sharp 35-40 per cent YoY increase anticipated in FY25.

It said "In FY24, industry volumes grew by 12 per cent YoY to around 9.4 million units. We expect a 19 per cent CAGR in industry vo...