Middle East and Africa (MEA) Chiller Market Size and Share Analysis by Chiller Type (Screw, Scroll, Absorption, Centrifugal, Reciprocating), End User (Commercial, Industrial, Residential)- Industry Demand Forecast to 2030

Market Overview

The Middle East and Africa (MEA) chiller market is estimated to have generated a revenue of USD 1,227.6 million in 2023, and it is expected to grow at a CAGR of 6.5% during the forecasted period, to reach USD 1,872.5 million by 2030. This is ascribed to the surging development in the industry of construction related to infrastructure, government support, the rising need for chillers for district cooling systems, and the increasing requirement for chillers from the transportation and hospitality sectors.

Moreover, technological advancements in this field drive the market growth. For instance, Tabreed, a leading district cooling company in the U.A.E., introduced a new platform that works on the usage of artificial intelligence and machine learning to improve the presentation of its cooling systems. In addition, inverters in chillers increase their efficiency and also provide some merits such as quick cooling, longer life, stable temperature, and no sound disturbances. This is forecasted to generate enormous opportunities for participants in the industry during the projected duration.

Furthermore, countries in the region are focusing on using energy-efficient heating and cooling solutions and renewable energy for chillers. Also, district cooling providers are now concentrating on energy-efficient technologies to lessen their operating costs and upgrade the feasibility of their operations. Such initiatives are projected to uplift the MEA chiller market during the expected duration. For instance, Emirates Central Cooling Systems Corporation (Empower), one of the leading district cooling companies in the U.A.E., introduced solar panels on numerous of its cooling plants to diminish its carbon footprint.

In addition, the region hosted several big events, such as the Dubai Expo Event, the FIFA World Cup 2022, and the Africa Confederation Cup (AFCON). This has boosted the new construction of hotels, stadiums, metros, airports, and others, which resulted in a high demand for chillers in the MEA region. For instance, the construction of the Red Line metro in the U.A.E. and the third phase of the Line 3 metro with six new stations in Egypt.

Additionally, the market is observing a shift from standard centrifugal chillers to magnetic bearing chillers. The use of magnetic bearing technology allows chillers to function without oil lubrication. Also, these chillers have fewer moving parts, which need less maintenance and service. This results in low operational costs and an increase in maintenance savings. Further, these chillers are 40% more efficient, produce less sound, and are lightweight, as compared to standard centrifugal chillers.

Screw Category Dominates the Market

Based on the type segment, the screw category holds the largest revenue share in the market. This is due to the surging adoption of screw chillers by commercial and industrial sectors. This category is further bifurcated into two parts: water-cooled and air-cooled, where water-cooled chillers hold a significant market share. This is because water-cooled chillers are widely preferred when the consumption of power is more or over 5 MW and the introduction of advanced water-cooled chillers in the region.

For instance, in August 2018, Trane Inc., a provider of indoor comfort solutions and services and a brand of Ingersoll-Rand plc introduced RTHF G, which is a modern addition to the XStream variety of water-cooled screw chillers and utilizes R-1234ze, a near-zero GWP refrigerant. The new and modern design would be available in countries of Europe, the Middle East, and Africa.

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Commercial Category Holds the Largest Share

Based on the end user segment, the commercial category accounts for the largest market share. It includes hospitality, transportation, offices and building, healthcare, supermarket/hypermarket, government, and other sectors, which together generates a high demand for chillers in the market. Among these, the transportation category is projected to observe swift growth during the expected duration. This can be due to the continuous and forthcoming transportation projects in Saudi Arabia, Nigeria, Egypt, Qatar, the U.A.E., and Israel.

In addition, the increasing environmental concerns have also constructed energy-structured district cooling systems, an approving solution for cooling in commercial spaces. For instance, in Saudi Arabia, the Ministry of Energy declared plans to develop 50 modern district cooling projects by 2030. Similarly, the U.A.E. is also preparing to widen its district cooling capacity to 3.5 million refrigeration tons (RT) by 2030.

Saudi Arabia Is the Market Leader in the Region

Saudi Arabia holds the largest market share, as the country is witnessing increased construction activities, which include hotels and metro projects, in response to a rise in the tourism sector and several initiatives adopted by the government such as Saudi Vision 2030 and National Transformation Programme (NTP). Advocating these, the billion worth of contracts have been granted for construction projects and other developments in the infrastructures.

For instance, $500 billion is to be financed for the building of the NEOM city. The city would include several industries such as energy, water desalination, biotechnology, food & beverages, and manufacturing, and commercial buildings such as airports, metros, and several residential projects. Thus, these factors drive the demand for chillers in the country.

Major Players Operating in the Chiller Market in MEA Are:

• GAMI Air Conditioners Manufacturing Company L.L.C.
• Midea Group Co. Ltd.
• Mitsubishi Electric Corporation
• Zamil Air Conditioners
• Petra Engineering Industries Co.
• S.K.M Air Conditioning LLC
• Daikin Industries Ltd.
• United Technologies Corporation
• Ingersoll-Rand plc
• Johnson Controls International Plc

Market Size Breakdown by Segment

This fully customizable report gives a detailed analysis of the industry from 2017 to 2030, based on all the relevant segments and geographies.

Based on Chiller Type

• Screw
  • Water-cooled
  • Air-cooled
• Scroll
  • Water-cooled
  • Air-cooled
• Absorption
  • Steam
  • Hot-water
  • Direct-fired
• Centrifugal
• Reciprocating
  • Water-cooled
  • Air-cooled

Based on End User

• Commercial
  • Transportation
  • Hospitality
  • Healthcare
  • Retail
  • Corporate
  • Government
• Industrial
  • Chemical
  • Food and beverages
  • Pharmaceuticals
  • Automotive
  • Energy and utilities
  • Oil and gas
• Residential

Regional Analysis

• Saudi Arabia
• U.A.E.
• South Africa