India’s $2 bn fan market heats up with smart tech and premium appeal

The average summer temperature in India has seen a notable rise over the years, with heat waves becoming the new norm. According to the Indian Meteorological Department (IMD), the summer of 2024 was the country's warmest in 123 years.

While the demand for air-conditioners is evidently on the rise, electric ceiling fans are the highest-selling cooling appliance in the country, with approximately 41 million units sold annually, as per Energy Efficiency Services Limited, India.

According to the International Market Analysis Research and Consulting Group (IMARC Group), the market size of the Indian electric fan reached $2 billion in 2024. It is expected to reach $5.64 billion by 2033 with a Compound Annual Growth Rate (CAGR) of 12.20%. 

In addition to global warming, other factors such as urbanisation, increased purchasing power, energy-efficient technologies, the popularisation of e-commerce, the expanding commercial sector and the growing real estate market in India have all contributed to the growth of the Indian electric fan market. 

Government electrification initiatives have also turned rural India into a market for electric fans. 

The electric fan market experiences its highest sales, accounting for 65% of its annual revenue during Q1 and Q2, which is marked by severe heat waves in several parts of India.

As reported by ResearchAndMarkets.com, North India is the biggest market for electric fans in the country due to hotter climatic conditions and higher population density. 

As much as 60% of overall electric fan sales can be attributed to ceiling fans in urban and rural areas alike, while table fans have a market share of 15% in semi-urban regions with erratic power supply, according to Wiserfeed Consulting, another market research firm. 

Owing to the rapid growth in the real estate market, the residential sector comprises 75% of the total demand for fans. The commercial sector, primarily in urban India, follows with 15% of the market share, while the industrial sector accounts for the remaining 10%.

India is also a price-sensitive market, which explains why fans priced under Rs 1,500 comprise 50% of overall sales, especially in rural India.

However, fans in the premium segment, priced between Rs 2,000 and Rs 5,000, are also seeing a 15% year-on-year increase in demand due to the increasing disposable income of the burgeoning middle class.

Notably, luxury fans priced around Rs 5,000 comprise 5% of overall sales with an 18% CAGR.

From ancient Egyptian manual punkahs to Philip Diehl's first electric fan in 1882, the evolution of fans has been remarkable. Today's smart Internet-of-Things (IoT) fans, powered by efficient Brushless Direct Current (BLDC) motors, represent a complete transformation in cooling technology.

IoT fans are smart fans that connect to Wi-Fi, enabling control via smartphone apps or voice assistants like Google Home or Alexa. These fans also feature smart-home functions such as speed adjustment based on room temperature.

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Soaring electricity costs, coupled with government incentives, have led to the introduction of BLDC-powered fans in India. These energy-efficient fans consume 50-65% less energy than traditional models, cutting power use from 75-80 W to just 28-35 W. 

However, despite the aforementioned factors, only three out of 100 homes in India use energy-efficient fans, as per Energy Efficiency Services Limited, India.

The entry of smart home technologies in India’s middle-class households points towards a general premiumisation trend. 

Top players such as Orient, Crompton, and Atomberg are also leveraging the premiumisation trend, with Atomberg alone recording 200% sales growth in India in 2023.

The premium fan segment (decorative, anti-dust, silent, remote-controlled) itself grew 18-20% in 2023, with a projected 22% CAGR through 2025. 

According to Gaurav Dhawan, business head, ECD, Orient Electric, the brand is seeing a consumer shift towards aesthetically appealing, energy-efficient, and technologically advanced fans. 

“Aesthetics and premium designs are gaining prominence, especially as fans are now seen as an extension of home décor,” says Dhawan. 

He goes on to explain which products are gaining traction in the market, saying, “Products that combine form and function—like our Aero series with IoT features, reverse rotation, and integrated lighting—are gaining traction, especially in urban and aspirational segments.”

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According to Orient, traditional retail stores are where India is still buying fans, “especially in tier 2 and rural markets where trust and physical visibility matter most”.

However, the company has also witnessed accelerated growth across e-commerce and quick commerce, driven by convenience and changing shopping behaviour in urban centres.

Comparing AC with fan market, Dhawan notes, “While the AC market is expanding, fans remain the first-choice cooling appliance for the majority of Indian homes.”

“More importantly, even in AC-enabled households, fans are used in tandem to improve air circulation and reduce overall energy consumption”, he adds.

Tanmay Prusty, chief marketing officer of Crompton, also talks about the predominance of electric fans in Indian households: “Millions of fans are sold annually. Given that they are one of the most used appliances in Indian homes, small efficiency gains in fans can lead to meaningful savings for households and a significant reduction in national energy consumption”.

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Crompton has created two platforms to reinforce its commitment to innovation and energy efficiency.

Prusty explains, “Our in-house Nucleus platform powers the premium BLDC range with efficient motors, durable electronics, and smart connectivity. The X-Tech platform strengthens our legacy in induction fans, offering better efficiency and durability. Both these platforms are indigenously built, ‘Made in India’, and leverage our resilient supply chain”.

According to the Crompton CMO, in-store sales are still leading the market in India for the brand.

“Our strong dealer network and reliable after-sales service further strengthen our presence, ensuring accessibility, satisfaction, and trust across India.”

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“Through a dynamic mix of TV, digital, and social platforms,” Crompton expects to reach value-conscious consumers focused on energy efficiency, as well as premium buyers seeking cutting-edge design and performance.

Atomberg Technologies, unlike many leading brands in the electric fan industry that focus on the highly lucrative economic sector, exclusively specialises in premium BLDC-powered electric smart fans.  

Atomberg does not plan to manufacture electric fans in the budget category, as it believes that the BLDC motor technology is what renders its fans energy efficient, enabling consumers to reduce their electricity bills by up to 65%.

“If you look at it from that lens, then Atomberg fans practically pay for themselves in two-three years,” says Piyush Sethia, marketing head at Atomberg Technologies.

Atomberg initially capitalised on its energy and cost efficiency by targeting B2B sales, particularly within energy-intensive sectors such as ceramic factories, where fans are employed for drying goods throughout the day.

“It was only after our initial success in the B2B market that we pivoted to becoming a B2C brand, first with ecommerce platforms and then by unlocking offline channels”, adds Sethia.

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Online purchases comprise 25% of Atomberg's sales as opposed to the 10% sales that its competitors make online, according to GowthX, an EdTech platform and a professional network for strategists, marketers, etc.

In his recent LinkedIn post, Sibabrata Das, co-founder of Atomberg Technologies, announced that the brand has crossed the Rs 1,000-crore revenue mark in 2025, “a feeling of achievement which will not last long as we start focusing on (our) next year's goal”, he added. 

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Atomberg aims to double down on its energy-saving innovation with its 5th-generation BLDC-powered smart fans to address the pressing problem of increasing carbon emissions. 

So far, Atomberg fans have managed to reduce carbon emissions by 12.5 lakh tonnes, which is equivalent to planting 5 crore trees, according to Sethia.

The Indian fan market is no longer just about beating the heat, it's a dynamic arena where extreme weather, rising disposable incomes, and smart tech are fuelling a premiumisation wave, offering savvy marketers a cool new opportunity beyond mere utility