Samsung plans comeback in AC segment, to launch over a dozen models

Appliances and consumer electronic maker Samsung India is planning a comeback into the residential air-conditioner market, which witnessed unprecedented sales growth in summer this year.

The company is planning to launch over a dozen models of inverter ACs for its 2025 lineup in the next few weeks, expanding the total number of stock-keeping units (SKUs) to 15-16, an industry insider told PTI.

Its room air conditioner (RAC) will have Samsung's DNA of smart features such as its propriety Bespoke AI solutions, targeting consumers looking to buy premium ACs and extra features, he said.

A decade back, Samsung was the second-largest player in the RAC segment, having over 15 per cent market share in the 2014-15 fiscal year. However, Samsung lost steam in the segment after the company diverted its resources and energy to high-growth areas such as mobile phones, smart TVs, LED displays, etc.

 

The Indian appliances market is witnessing a trend of premiumisation, where consumers are picking up higher average selling price (ASP) products and are ready to pay extra for premium, energy-efficient and connected offerings.

Samsung expects a double-digit volume growth in the RAC segment in 2025, riding on the wave of premiumisation and aspirations in 2025, the industry insider said.

Samsung, which sold around half a million units in 2024, has a market share in the low single digits. With its new lineup of AC with acclaimed Bespoke AI platform, Samsung expects to corner a double-digit share of the Indian RAC market, considered to be very competitive.

An e-mail to Samsung India remained unanswered by the time of filing of the story.

Air conditioner sales in India typically start in the southern markets in mid-February. Its demand in India has been increasing due to a number of factors, including rising temperatures, urbanisation, and higher incomes.

The Indian RAC market, which is estimated to be about 11 million units, is dominated by players such as Tata group firm Voltas, LG, Daikin, BlueStar, Hitachi-Johnson, Panasonic, and Lloyd, etc.

The industry had "record-breaking figures for sales in May and June, with a surge of 30-40 per cent in volume growth due to the unrelenting heatwave in most parts of the country".

Moreover, the Indian RAC market is also evolving, helped by energy-efficient models that are suitable across income brackets and also by investment by the companies in indigenous manufacturing units of components.