Tech and Inflation reshaping the AC market

Md Noor A Alam 
Deputy Managing Director 
Elite Hitech Industries Ltd

One of the major things we recommend non inverter users is keeping the temperature at 27°C instead of 24°C or 22°C. Even a shift from 25°C to 27°C can reduce electricity consumption by more than 15 per cent. Using a fan for better air circulation also helps users remain comfortable at higher temperature settings.

Bangladesh’s air conditioner market is entering a transformative phase shaped by energy awareness, smart technology, and changing consumer behaviour. In this interview with The Daily Star, he discusses market slowdowns, eco-friendly refrigerants, lifestyle ACs, and the future of cooling solutions in Bangladesh.

The Daily Star (TDS): Given the intensifying heatwaves, how have the sales volume targets for the 2026–2027 window been recalibrated?

Md Noor A Alam (MNA): I think the weather this year has not been particularly favourable for air conditioner sales. Not to mention, the ongoing war between the USA and Iran has also affected the country’s consumer buying patterns. So, I think for 2026–2027, the targets for national consumption should be reduced a little compared to last year.

TDS: What are the primary technical and safety bottlenecks preventing local factories from making a 100 per cent transition to R32 or next-generation eco-refrigerants?

MNA: I think manufacturers are ready to transition toward R32 and other next-generation eco-friendly refrigerants. However, it depends heavily on government policy support.

For example, lower customs duties on raw materials for these new-generation air conditioners could reduce production costs. Lower prices would help accelerate adoption among end consumers and make the transition much faster.

TDS: To what extent is the demand shifting toward Tier-2 and Tier-3 cities, and how are brands overcoming the challenges of rural after-sales service?

MNA: The demand scenario in Tier-2 and Tier-3 cities is somewhat different from urban areas. We see small pockets within Tier-3 cities where air conditioners are becoming more popular. However, most areas are still not fully adopting air conditioning, mainly because of the economic stress the country is going through due to global conflicts and other circumstances. In terms of after-sales service, we maintain connected technicians across the country.

TDS: How impactful have “trade-in” or “buy-back” schemes been in accelerating the phase-out of obsolete, power-hungry cooling units?

MNA: Yes, trade-in and buy-back schemes are helping phase out obsolete and power-hungry cooling units. Whenever someone plans to replace an old air conditioner, these schemes become a no-brainer because they help customers save money in terms of future electricity bills. So yes, these initiatives are significantly helping the transition.

TDS: In the current inflationary climate, are buyers opting for “capacity downsising” or choosing entry-level brands over high-efficiency premium models?

MNA: Yes, in the current inflationary climate, buyers are trying to downsize to some extent. Consumers are prioritising performance over brand prestige. Many now favour certified local products that offer comparable quality at better prices, valuing actual efficiency over expensive foreign labels.

Interview conducted by Marzia Bhuiya Tabenda