In 2021, $2,390.4 million was produced by the Saudi Arabia HVAC market, which is set to touch $4,821.8 million by 2030, advancing at an CAGR of 8.1% from 2021 to 2030. The market is primarily driven by rising infrastructure investment, the desire to reduce food waste, and the developing hospitality sector. Ground-source HVAC systems are becoming more and more popular, which might lead to new opportunities in the nation. By utilizing the energy contained in the ground to heat and cool homes, these systems conserve natural resources like coal and gasoline that would otherwise be used to generate electricity at power plants.
The demand for smart VRF systems is a noticeable trend in the Saudi Arabia HVAC market. To reduce energy use and improve sustainability, many customers are relying on intelligent and energy-efficient technologies. These systems include smart thermostats, enhanced monitoring systems, and better controls. Additionally, they offer more consistent temperatures and cleaner air than conventional systems. Users can utilize a smartphone app to track the functioning of these systems. Additionally, they produce less noise as compared to conventional systems.
Get More Insights: Saudi Arabia HVAC Market Segmentation Analysis Report
The commercial sector had the biggest share in 2021, of more than 40%. To reduce its dependency on the oil trade, the Saudi government is generously supporting the hospitality and corporate sectors. The commercial sector’s need for these products and services is rising as a result of the rise in hotels, travel destinations, and office buildings. Government and business sector investments in infrastructure also support the Saudi Arabia HVAC market.
For instance, there are now ongoing projects like the $26.6-billion Grand Mosque expansion in Mecca and the $16.5-billion Haramein rail line between Mecca and Medina. By 2025, 25 million people are expected to travel to the holy sites annually, owing to these upgrades, which are meant to increase religious tourism in the nation. As a result, increased commercial infrastructure development is anticipated to be a key factor in commercial market expansion.
The western region, which held a Saudi Arabia HVAC market share of over 40% in 2021, will advance rapidly in the coming years due to the massive magnitude of infrastructure development. Several of Saudi Arabia’s most significant cities, such as Jeddah, Madinah, and Mecca, are located in the western part of the country. The completion of megaprojects like NEOM City and Amaala would increase demand for such systems and related services in the area. A large portion of this development is being carried out by Saudi Vision 2030, the government’s objective to diversify the economy of the nation and lessen its reliance on the oil and gas sector.
Product launches are the primary strategic technique used by companies to differentiate themselves from market competitors. A list of some players in Saudi Arabia HVAC market is Daikin Industries Ltd., Zamil Air Conditioners, Johnson Controls International plc, S.K.M. Air Conditioning LLC, Gree Electric Appliances Inc. of Zhuhai, LG Electronics Inc., Midea Group Co. Ltd., Carrier Global Corporation, Danfoss A/S, and Trane Technologies plc.
Hence, the rising requirement to lessen food wastage and growing infrastructure spending coupled with the developing hospitality sector are factors propelling demand for HVAC in Saudi Arabia.