AC subscription model is opening one of the biggest revenue opportunities for OEMs right now.
Imagine having recurring revenue coming in every month from your customers. Already, AC manufacturers in certain markets have picked up the shifts in consumer behaviour towards large, expensive appliances that are quickly moving from the realm of luxury to being a necessity. Models like monthly rentals (or subscription) and bundled hours of cooling are becoming preferred ways of using an AC. Who had imagined ACs would be sold as a service- Cooling As A Service?
With Datacultr, OEMs can run this model with clear visibility, better control, and zero manual effort. Here’s everything you need to know – what exactly this model is, what the revenue potential is, who is actually subscribing to ACs, and why now is the right time.
What is the AC Subscription Model and How Does it Work for OEMs
In a traditional mode, you make an AC, sell it to a dealer or directly to a customer, and that is the end of the transaction. One sale. One payment. Done.
Whereas, in the AC subscription model, the customer does not buy the AC. They pay a monthly amount to use it. You still own the unit. And you earn revenue every month for as long as that customer is a subscriber- whether it is 12 months, 24 months, 36 months, or longer.
What does this mean in real terms?
The global home appliances rental market was valued at USD 45.38 billion in 2024 and is projected to reach USD 76.80 billion by 2030. The AC segment specifically is growing at 11.5% every year, the fastest of any appliance category. That growth is happening because customers want cooling as a service. And OEMs who move into the AC subscription model early will take the largest share of it.
Who is Actually Subscribing to ACs? Is it Real Demand
This is where it gets very interesting. Three customer groups are making the AC subscription model grow fast:
- Urban renters and young professionals move cities every few years. They do not want to buy an AC that they will sell or leave behind. A monthly subscription model fits their lifestyle. Over 60% of appliance rental agreements globally are for six months or longer. These are not short-term users.
- First-time buyers in emerging markets want quality cooling but find the upfront cost out of reach. For them, the AC subscription model is a realistic path to premium ACs. This is the largest and fastest-growing segment.
- Upgrade-driven consumers no longer want to own a product for ten years. They want the latest models with better energy ratings, smart features, and newer technology when it is available.
Together, these three groups represent a market that your current sales model is largely not reaching. The AC subscription model opens all three.
How Does Datacultr Make the AC Subscription Model Easy to Run
Datacultr’s solution for AC subscription helps OEMs run and scale this model in a simple and controlled way. It connects customer payments with access to the AC and allows OEMs to follow a structured flow: Remind. Restrict. Lock.
Here is how it works in practice:
When a subscriber misses a payment, you send reminders through a companion app or your own app. If payment is not received, you can remotely restrict various functionalities of the AC. And if the subscriber continues to default, the unit is remotely shut off completely. No field visits. No recovery teams. No legal overhead. The AC manages the payment relationship itself.
And from the dashboard (or APIs), your team can see the real-time status of every unit in the portfolio, including payment status and usage activity.
Datacultr works with OEMs to integrate this capability during manufacturing, so every unit is subscription-ready before it leaves the factory. This makes Datacultr’s solution for Device as a Service (DaaS) programs practical to run at any scale, in any market.
Why Now Is the Right Time to Move
Because the manufacturers who move first will set the terms. The customers who subscribe to your ACs today are loyal to you for years. They will upgrade within your ecosystem, refer others, and become valuable.
The manufacturers who wait will find that the market has already moved. Customers in key segments will already be locked into a subscription with competitors. Getting them back is much harder than getting them first.
Ready to explore what growth potential the AC subscription model opens for your business? Talk to our team today.
About Datacultr:
Datacultr is a digital risk and device management platform trusted by leading banks, NBFCs, telcos, OEMs, and retail chains across 35+ countries. The platform supports millions of devices, including smartphones, tablets, laptops, smart TVs, air conditioners, and other consumer durables. It enables secure device financing and Device as a Service (DaaS) programs at scale.
People Also Ask
As an AC manufacturer, will I earn more from subscriptions?
Yes. With the AC subscription model, a 36-month subscriber will generate more revenue than a one-time buyer of the same unit. Plus, you also have ownership of the AC throughout and can potentially offer it to a new subscriber. Add the upgrade revenue from the same customer in the next cycle. With Datacultr, OEMs can track and manage the entire subscriber lifecycle, from first payment to renewal via a single dashboard.
Can I run both a subscription program and my regular sales model at the same time?
Yes, and most manufacturers do. Some product lines or geographies work better as direct sales; others are ideal for subscription. You do not have to choose. You expand your options and reach more customers across both models.
How do I make sure subscribers keep paying every month?
Datacultr handles this. Our platform links payment status directly to device access, so the AC itself drives payment compliance, without your team needing to follow up manually. Reminders, restrictions, and remote control all happen within the system.