Decarbonizing India’s Cooling Sector
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This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.

DIL stands for Decarbonization for India’s Leaders, and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.


The cooling sector in India is a vast and rapidly growing market that spans various industries. The Indian HVAC (Heating, Ventilation, and Air Conditioning) market, a significant part of the cooling sector, was valued at approximately $94 million in 2021 and is projected to reach approximately $351 million by 2030, growing at a CAGR of 15.8% between 2021 and 2030.

Another crucial segment, the cold chain market, reached a value of nearly $23 billion in 2023 and is expected to grow at a CAGR of 14.3% over the forecast period of 2024-2032 to attain a value of approximately $77 billion by 2032.

The automotive coolant market is estimated to be $1.37 billion in 2024 and is expected to reach approximately $2.09 billion by 2029, growing at a CAGR of 8.82% during the forecast period (2024-2029).

A World Bank report estimated that keeping spaces cool using alternative and energy-efficient technologies in India can open an investment opportunity of $1.6 trillion by 2040. This also has the potential to create nearly 3.7 million jobs.

India’s Energy Efficiency Services Limited (EESL), led by CEO Vishal Kapoor, recognizes the cooling sector as a key area for energy efficiency gains. Its efforts include: Expanding its reach to micro, small, and medium enterprises (MSMEs) by offering energy-efficient technologies. Successfully contributing to avoiding at least 12 gigawatts (GW) of average peak power demand through various initiatives like the LED campaign, streetlight program, smart metering, and promoting star-rated appliances. Supporting the government’s push for electric cooking, including solar and five-star induction solutions. These initiatives underscore the magnitude of the efforts being taken to decarbonize the cooling sector in India.

KDDI Corporation, Mitsubishi Heavy Industries, Ltd., and NEC Networks & System Integration Corporation have been collaborating on decarbonization efforts in the cooling sector. On February 28, 2023, they conducted a demonstration test of an immersion cooling system for potential applications of liquid cooling of IT components in a hyper-scale data center, successfully achieving Tier 4 stable operation in a liquid-cooled unit. Compared to conventionally cooled data centers, immersion cooling reduced energy by 94%, resulting in a Power Usage Effectiveness (PUE) of 1.05, a metric indicating the energy efficiency of a data center.

Furthermore, Mitsubishi Heavy Industries has developed a new 40kVA-class 12ft container-type data center with an immersion/air-cooled hybrid cooling system capable of simultaneously housing servers utilizing three types of cooling methods: immersion cooling (25kVA), air cooling (8kVA), and water cooling (8kVA). They plan to commercialize this solution by the end of fiscal 2023.

Capitalize on the government’s push for energy efficiency by exceeding current standards with exceptionally efficient solutions. Exploring “Cooling-as-a-Service” models to address affordability concerns and create recurring revenue streams. With the cold chain market poised for growth at a CAGR of 14.3%, offer innovative solutions for temperature-controlled logistics across the supply chain. Move beyond basic cooling by exploring thermal comfort solutions like humidity control, localized cooling, and smart home integrations. Design solutions for the unique challenges of rural India, including inconsistent power and distributed service networks.

Sustaining this growth trajectory requires continued advancements in energy-efficient technologies, broader adoption of sustainable cooling solutions, and collaborative efforts between government, industry, and research institutions. By prioritizing innovation, affordability, and accessibility, India can ensure a cool and sustainable future for its citizens and industries. 


This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.

DIL stands for Decarbonization for India’s Leaders, and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.




About Narasimhan Santhanam (Narsi)

Narsi, a Director at EAI, Co-founded one of India's first climate tech consulting firm in 2008.

Since then, he has assisted over 250 Indian and International firms, across many climate tech domain Solar, Bio-energy, Green hydrogen, E-Mobility, Green Chemicals.

Narsi works closely with senior and top management corporates and helps then devise strategy and go-to-market plans to benefit from the fast growing Indian Climate tech market.

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