By Sandeep Budki
India’s air-conditioner market is undergoing a notable transformation as rising temperatures and growing disposable incomes reshape product expectations and buyer profiles. Millennials and Gen Z homeowners are becoming key drivers of demand, pushing brands to deliver air-conditioning solutions that combine energy efficiency, health features and digital integration.
“Gen Z and millennial homeowners are informed, eco-aware, and tech-savvy,” said Anurag Sharma, MD & CEO of Akai India. “Their expectations have evolved from basic cooling to energy efficiency, air quality, smart control and even aesthetic alignment with their spaces,” he added. Not surprising, manufacturers are offering features such as smart controls, mobile app integration, AI-driven modes and air purification systems that are becoming standard across mid and premium segments.
Samsung’s AI-enabled WindFree ACs combine energy-saving capabilities with intelligent automation. “AI Energy Mode saves up to 30% energy, tackling the key buying factor for consumers — energy efficiency without compromising comfort,” said Ghufran Alam, VP, digital appliances business, Samsung India. The lineup includes features such as AI Fast & Comfort Cooling and geo-fencing, which activates the AC as users approach home. Samsung’s “Quick Remote” enables mobile-based control without requiring a traditional remote, while a 3D ‘Map View’ offers virtual monitoring of temperature.
Likewise, Panasonic is betting on a tech-driven approach through its Miraie platform. “We’ve designed ACs that extend beyond basic cooling with IoT and AI capabilities, and indoor air hygiene,” said Abhishek Verma, business head, Air Conditioners Group, Panasonic Life Solutions India. The company has launched 61 new models in 2025, with features such as Converti7, enabling energy output adjustment between 45% and over 100%, and Matter integration, which allows interconnectivity across smart ecosystems. Panasonic’s Miraie app supports remote access, smart diagnostics, personalised sleep settings and service scheduling.
In response to India’s varied and often extreme weather conditions, AC companies are adapting inverter technology to improve efficiency. “Inverter technology in India now needs to do more than just save energy — it has to adapt to fluctuating voltages, extreme climates, and varied usage patterns across regions,” said Sharma of Akai. “Our ACs feature smart load adaptability and stabiliser-free operation, ensuring consistent performance and lower bills even during voltage drops,” he added.
Akai’s Nilgiree Series, designed for younger consumers, includes features such as Ayurvedic air purification and PM 1 filtration at an accessible price point. Its Siaachen Series offers eight convertible cooling modes and stable performance in temperatures as high as 55°C. Godrej Appliances is also strengthening its smart offerings. “Our new Smart ACs go further than regular remote connectivity,” said Kamal Nandi, business head & EVP, Appliances Business, Godrej Enterprises Group. “We offer features like smart filter cleaning notifications, energy monitoring, and smart schedulers that eliminate the need for remotes or voice commands.”
Health-focused are becoming a key differentiator too. Panasonic’s Nanoe technology offers active air purification, while Akai has integrated Ayurvedic filtration across multiple product lines. Despite innovation across brands, AC penetration remains low. While flexible finance schemes are helping increase adoption of premium models, analysts expect double-digit growth in the AC segment over the next few years. “We’re no longer in the age of passive cooling,” said Sharma. Today’s buyers want comfort, control, and consciousness — all rolled into one product.”