AC market trends and future of cooling

Md. Tanvir Rahman
Chief Business Officer
Walton Air Conditioner

At Walton, we are seeing consumers becoming more proactive. Instead of waiting for peak heatwaves, many customers are now purchasing ACs ahead of the summer season. This shift in consumer behavior has encouraged manufacturers to strengthen production planning, improve distribution coverage, and ensure sufficient inventory before the peak demand period begins.

The days of panic-buying an AC during a heatwave are fading as more Bangladeshis shift toward proactive, pre-season purchasing. Md. Tanvir Rahman, Chief Business Officer of Walton Air Conditioner, discusses how this change in consumer habits is reshaping production planning and the industry’s 2026 growth outlook.

The Daily Star (TDS): With temperatures hitting record highs, how has the demand forecast for 2026 changed?

Md. Tanvir Rahman (MTR): Bangladesh has been experiencing increasingly intense and prolonged summers, and this shift is having a noticeable impact on the AC market. For 2026, the demand forecast has been revised upward compared to earlier projections. Air conditioning is gradually transitioning from a luxury product to an essential household appliance.

TDS: Almost all new models focus on inverter technology. Is there still a future for non-inverter ACs in the Bangladeshi market?

MTR: Inverter technology has quickly become the preferred choice due to its superior energy efficiency and long-term cost savings. However, non-inverter air conditioners still have a place in the Bangladeshi market, particularly in specific commercial or temporary use scenarios. They often prioritise lower upfront investment rather than long-term electricity savings. In such cases, non-inverter models remain a practical option.

TDS: How are “Smart ACs” performing in terms of sales? Do consumers actually use the mobile app features?

MTR: Smart air conditioners equipped with IoT and Wi-Fi connectivity are gradually gaining popularity in Bangladesh. Initially, many consumers perceived these features as premium add-ons. However, as smart home technology becomes more familiar, users are increasingly appreciating the practical benefits.

Younger consumers and tech-savvy families are actively using mobile applications to control their AC remotely, schedule cooling times, and monitor energy usage. At Walton, we have noticed a steady increase in interest in smart-enabled models, especially among urban homeowners.

TDS: Are you seeing an increase in AC sales from outside Dhaka and Chattogram?

MTR: Expansion of AC sales beyond major metropolitan cities is one of the most encouraging trends in the market. However, rural and semi-urban markets present unique challenges like, voltage fluctuations and infrastructure limitations. To address these challenges, Walton is focusing on wider distribution coverage, accessible after-sales service, and continuous consumer education across the country.

TDS: How is the industry managing rising costs of imported raw materials amid dollar fluctuations?

MTR: To counter dollar fluctuations and rising costs, Walton prioritises localization. However, policy imbalances—1% tariffs on imports versus 15% customs tariff and 15% VAT on raw materials—stifle domestic industrialisation and employment.

Interview conducted by Adrin Sarwar