Jalal Ahmed, a mid-age corporate executive in the capital, bought a 1.5-tonne air conditioner (AC) last month for around Tk63,000 using a 12-month, zero-interest credit card instalment plan.
For his family, the decision followed years of discomfort. Bangladesh is increasingly seeing summer temperatures cross 40°C with high humidity, causing sleep disruption and fatigue.
“With around Tk3,000 added to my monthly electricity bill, I am better now,” he told TIMES of Bangladesh.
ACs became more affordable, his income rose, and power consumption fell with newer technology, he said.
His purchase reflects a broader shift. Not long ago, air conditioners were limited to a small affluent segment.
That has changed as rising temperatures, income growth, local manufacturing, and easier financing expanded access.
Industry data shows the pace of change. Annual sales have climbed from below 50,000 units two decades ago to around 5 lakh to 7 lakh units now. Before the pandemic, yearly demand stood at roughly 2 lakh to 2.5 lakh units.
Local manufacturing has been a key driver. Prices fell by at least 30 per cent compared to imported units, with more than 80 per cent of units now produced in domestic plants.
Household AC prices range from around Tk35,000 to over Tk1 lakh, depending on capacity, technology, and features.
The market is centred on 1 to 1.5 tonne units for households and small commercial spaces, generating around Tk6,000 crore in annual revenue.
Industry insiders expect total demand to reach 15 lakh to 20 lakh units by 2035.
Alongside, around 50,000 light commercial units are sold annually. The broader commercial segment adds another Tk1,000 crore market, contributing roughly 1 lakh tonnes of cooling capacity each year.
Technology has reshaped the market. Inverter ACs account for roughly 60 to 80 per cent of sales, adjusting compressor speed to reduce electricity use and deliver stable cooling.
Manufacturers are adding smart controls, app-based operation, and adaptive cooling. Air filtration and purification systems are gaining traction amid rising indoor air quality concerns.
Some systems combine multiple functions. Self-cleaning features, anti-bacterial filters, and plasma-based purification address dust, humidity, and hygiene challenges.
Durability has become a focus. Full copper tubing, anti-corrosion coatings, and voltage-tolerant designs are positioned as essential for long-term use.
Warranty terms have also improved, with compressors covered for up to 12 years and other parts for around five years.
Consumer behaviour is shifting. Buyers are no longer treating ACs as one-time purchases. Once installed in one room, households often add more units over time.
Flexible payment options are accelerating adoption. Interest-free instalment plans have lowered upfront costs, with a significant share of purchases now made through such financing.
Seasonality remains pronounced. Around 70 to 85 per cent of annual sales occur between March and June when temperatures peak.
Despite rapid growth, penetration remains low at 3-5 per cent of households, up from less than 1 per cent a decade ago.
The low base signals strong expansion potential, especially as demand spreads to semi-urban and rural areas.
The outlook remains firm. Rising temperatures, improved electricity access, and higher purchasing power are expected to sustain growth.
Industry projections suggest the market could expand by 10 to 20 per cent in the near term if intense summer conditions persist.
Over the longer term, penetration could reach 15 to 20 per cent by 2035, making air conditioning a standard household utility.
