AC market thrives on local brands, affordable prices
The AC market has doubled in the past four years, with at least 20 major companies now involved in manufacturing and assembling. At present, the annual sale of ACs in the country stands at around 6.5 lakh units

Fueled by rising global temperatures linked to climate change, Bangladesh, like many other countries, faces ever-more intense and prolonged heat waves. This trend has driven a surge in the use of air conditioners. Once a luxury, middle and upper-middle-income families now seek relief from the sweltering heat by purchasing ACs of different capacities.
Since early April, air cooler and AC sales have skyrocketed in the capital, extending to even moderately affluent rural families. This demand boom led to the establishment of numerous AC manufacturing firms in the country, enticing buyers with innovative technology and affordable prices.
According to sector insiders, the AC market has doubled in the past four years, with at least 20 major companies now involved in manufacturing and assembling.
At present, the annual sale of ACs in the country stands at around 6.5 lakh units, with a market value exceeding Tk6,000 crore.
Nurul Afsar, deputy managing director of Electro Mart, told TBS, "The AC market is booming because a growing number of individuals turn to ACs for relief from the oppressive heat. The expansion can be attributed to the rise of the middle class, the affordability of AC prices and advancement of rural economy"
Bangladesh's AC market
According to the Bangladesh Air Conditioning Equipment Importers Association (Baria), around 300,000 AC units were sold annually in the country in 2020. Over the next four years, the market has expanded to around 650,000 units, reflecting a yearly growth rate of over 20%.
Currently, the leading AC brand in the country is the Chinese manufacturer Gree. This brand commands a market share exceeding 25%, even though Gree ACs are now locally manufactured in Bangladesh by the domestic company Electro Mart.
Following closely is the local electronics giant Walton, holding approximately 22-23% of the AC market share. The third position is held by another Chinese brand, Media, capturing around 15% of the market. Haier holds a 10% market share.
Other notable brands such as Singer, General, Vision, Eco Plus, Samsung, LG, Butterfly, Jamuna, Hitachi, Panasonic, and Orion maintain a strong presence in the market. Hisense has also recently entered the Bangladeshi market.
Nurul Afsar, deputy managing director of Electro Mart, a local distributor of Gree brand, attributes the market's growth to rising temperatures and falling prices.
Affordability is a big factor
Naushad Hossain, employed in ACI Group's marketing department with a Tk50,000 monthly salary, recently purchased a one-tonne domestic AC for Tk40,000.
He told TBS, "Despite my modest income, I decided to install an AC due to its low price and the bank's convenient EMI options. I wanted to provide relief for my family, mainly my one-year-old child, in the scorching Dhaka heat."
Just five years ago, one-tonne ACs cost over Tk100,000. Presently, various Chinese-imported ACs are available for Tk40,000-45,000, while domestic brands like Walton and Pran-RFL's Vision ACs are priced between Tk40,000-45,000
Abdur Karim, head of Branding at Esquire, said one-tonne inverter ACs are currently available for Tk40,000-50,000. Even premium foreign brands are selling such ACs within Tk100,000. This contrasts sharply with prices five to six years ago, which were significantly higher.
Over 30% growth is expected this year
Amid a significant surge in AC sales in the summer of last year, the country experienced a shortage compared to demand, prompting companies to ramp up production earlier this year. They are now expecting a minimum of 30% growth in sales.
Walton Hitech Industries has boosted AC production by nearly 30% this summer, with its Chief Business Officer (Air Conditioners) Md Tanvir Rahman stating that over 50,000 AC units have been sold this season already, prompting further production to meet demand.
Nurul Afsar noted a sales growth of over 100% last year and anticipates at least a 30-35% increase this year.
Chinese brand Hisense has entered the Bangladeshi market this year, with its assembler Fair Group planning to introduce 70,000-75,000 units in the first year.
Mesbah Uddin Ahmed, chief marketing officer at Fair Group, anticipates grabbing a 10% market share this year with Hisense.
Immense potential
Bangladesh is set to become a middle-income country by 2026 and aims to be an upper-middle-income country by 2031. Per capita income is projected to reach $4111 by 2028. Rising incomes will drive up consumer electronics consumption. The electrification of nearly all areas of the country also boosts electronics usage in rural areas, along with a surge in air conditioner sales.
According to Boston Consulting Group (BCG), Bangladesh's middle class numbered 1.2 crore in 2015 and is expected to reach 3.4 crore by 2025. This class is expanding at an average annual rate of 10.5%. Anticipating this potential, major local business groups have significantly invested in the electronics sector.
Local brands like Walton and Vision are investing heavily in expanding the market. Additionally, several foreign brands have set up factories in Bangladesh to capture the market.
The demand for Walton AC has jumped sharply this year across the country as people desperately seek respite from the scorching heat amid a severe heatwave. Due to the high quality, energy-efficient inverter technology and advanced features used in Walton AC, Walton witnessed huge sales growth this month.
He added that we have sufficient AC stocks to meet the excessive demand.

Walton ACs have the highest number of features and advanced technology among all the AC brands operating in Bangladesh. He noted, "Our main product line consists of the most energy-efficient air conditioners, with a 6-star BSTI certification made possible by cutting-edge innovations. We have adopted Coatec technology in our ACs that is customised to Bangladesh's regional differences based on climate."
Industry experts believe the consumer electronics market will grow as the country's economy recovers. The air conditioner market is also expected to expand, with a projected 25% compound annual growth rate (CAGR) for 2023–27.