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Currently valued at US$3.2 bn, Saudi Arabia’s HVACR market is expected to grow steadily in the next five years
According to the ‘Saudi Arabia HVACR Market Outlook 2021’ by TechSci Research, commissioned by HVACR Expo Saudi, Saudi Arabia’s largest dedicated indoor climate and refrigeration event, the country features amongst the leading markets for air conditioners across the globe.
Between 2011 and 2015, Saudi Arabia’s HVACR market grew at a healthy CAGR of more than 13 per cent, the report shows. The long duration of summers and the high temperature throughout the year are not the only factors boosting HVACR systems’ sales in the country. Indeed, a rapidly growing population, increasing urbanisation and religious tourism are considered key drivers of this trend, which are expected to strongly contribute to the expansion of the Saudi HVACR market in the next five years.
“The demand for HVAC equipment in Saudi Arabia will keep growing steadily, boosted by the Government’s construction projects valued at around US$80 bn,” Firas Abou Ltaif, HVACR Expo Saudi project manager, commented. Saudi Arabia’s construction sector is already one of the largest global markets in value terms, contributing to around 8 per cent of the national GDP. According to the report, it is expected to grow at 7.8 per cent between 2016 and 2021.
“Currently, about 70 per cent of electricity consumption in the Kingdom is used to power air conditioners. If more sustainable solutions are not implemented, energy consumption will soon double, as half million new homes are needed to meet Saudi Arabia’s growing population demand,” Mr. Abou Ltaif warned. “This is why, district cooling is not only feasible in this country: it is necessary”.
HVACR Expo Saudi 2017, running from Jan 15 to 17 at Jeddah Centre for Forums & Events, will explore current trends, challenges and opportunities in the Kingdom’s growing HVACR market. Organised by dmg events Middle East, Asia & Africa, the show is an unmissable platform for HVACR professionals to develop their business and network with 3,500 expected visitors and industry peers.
“The Saudi market presents many opportunities for HVACR manufacturers. With key developments of airports, metros, and housing projects, the drive towards digitization and smart solutions, and the increasing focus on sustainability, we already offer sustainable, highly efficient products that are in line with the 2030 Vision of the Kingdom,” Rachad Abdallah, head of marketing and quality at Arabian Air-Conditioning Company, exclusive distributor of Carrier in Saudi Arabia, and a subsidiary of United Technologies Corp, commented.
The ‘Saudi Arabia HVACR Market Outlook 2021’ by TechSci Research is now available at www.hvacrexposaudi.com.