| Study Period | 2019 - 2030 |
| 2024 Market Size | USD 1,431.6 Million |
| 2025 Market Size | USD 1,489.5 Million |
| 2030 Forecast | USD 1,959.9 Million |
| Growth Rate (CAGR) | 5.4% |
| Largest Country | Saudi Arabia |
| Fastest-Growing Country | Saudi Arabia |
| Nature of the Market | Fragmented |
| Largest End User Category | Commercial |
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The MEA chiller market will generate an estimated revenue of USD 1,431.6 million in 2024, and it is expected to rise at a CAGR of 5.4% during the forecast period (2024–2030), to reach USD 1,959.9 million by 2030.
The rampant industrial development, increasing number of data centers, economic expansion, and growing tourism and healthcare industries propel the MEA market. Further, this growth is influenced by the rising population, climatic circumstances, regional economic regulations, and rising concerns for the environment. The latest innovations in the field of sensor and AI technology due to the need to find energy-efficient solutions are also driving the market.
In Saudi Arabia, the ambitious Vision 2030 aims to advance the infrastructure in an attempt to diversify the economy away from oil revenue. Substantial investments are being made in residential, industrial, and commercial infrastructure, including in giga projects, such as NEOM and the Red Sea project. These places will require innovative HVAC systems to tackle the extreme desert climate, which is why chillers have become an integral part of these developments. In addition, the global climate crisis has created the need for more-energy-efficient and eco-friendly chiller systems in the country.
Similarly, the U.A.E. market is growing owing to the strict building efficiency compliance and the exemplary multi-storey-building-dotted skylines of Dubai and Abu Dhabi. The U.A.E. has been at the forefront of implementing green building technologies. Moreover, international events, such as the Expo 2020, necessitate the installation of cooling solutions.
Additionally, in Qatar, the aim to expand the economy and the booming construction industry since the 2022 FIFA World Cup have greatly influenced the demand for chillers. The high living standards and the desert climate drive the need for innovative cooling technologies in sports facilities and premium housing and office units.
IoT-integrated chillers enable the continuous, real-time monitoring of critical parameters, including humidity, temperature, and pressure, as they are embedded with advanced sensors and connectivity. The substantial advantages of this approach in terms of efficiency, remote monitoring, and predictive maintenance boost the adoption of IoT-enabled chillers in the MEA region. Their capability of predictive maintenance, which estimates and addresses probable failures, aids in timely maintenance, thereby averting downtime and expensive repairs. This feature is particularly important for industries that require uninterrupted temperature regulation, such as food & beverages, data centers, and pharmaceuticals.
Similarly, IoT-enabled chillers contribute to optimized energy consumption by adjusting the cooling yield based on real-time weather conditions. This reduces the operational cost and helps in the efficient management of energy. Middle-Eastern countries, which have a hot climate, are promoting IoT-enabled HVAC chillers to optimize energy consumption and contribute to their goal of smart infrastructure and sustainability.
The chiller market in the MEA region is driven by the expansion of the industrial sector as regional countries aim to move beyond the conventional oil and gas economy. The shift is clearly visible in Saudi Arabia and the U.A.E., which are heavily investing in pharmaceuticals, food processing, manufacturing, and other non-oil industries. These factories need extensive cooling solutions for process heat management, with a view to optimizing the production environment and protecting perishable goods against damage.
Saudi Arabia's Vision 2030 promotes investments in its industrial cities, such as Jubail and NEOM, thereby augmenting the demand for chillers in the petrochemical, food & beverage, and pharmaceutical industries.
The increasing focus on high-value manufacturing and non-fossil technologies is propelling the need for chillers in the U.A.E., particularly in industrially productive regions, such as Jebel Ali. In the same way, Egypt is diversifying its economy with investments in sectors such as textiles, food processing, and chemicals. The increasing government investments in infrastructure developments in industrial regions, such as the Suez Canal Economic Zone, facilitate the demand for chillers.
The regulatory framework in the MEA region regarding energy efficiency is diverse. Gulf states, such as the U.A.E. and Saudi Arabia, have imposed strong regulations to reduce their carbon footprints, while those in Africa are characterized by a weak regulatory ecosystem. This regulatory fragmentation creates complications for chiller manufacturers in market navigation, by leading to higher compliance costs in the major markets and less scalability.
Additionally, the economic instability in the MEA region, specifically across the oil-based GCC states, hinders the chiller market advance. When the price of oil is high, there is an increase in the investment in infrastructure, but when it falls, it tends to adversely impact the treasury. Political instability and currency volatility, which was seen with Egypt's recent currency devaluation, disrupt economic activities and raise import costs. In an unstable economy, businesses emphasize the cost rather than innovative features as long as the base technology works, thus delaying investment in cutting-edge chiller technologies.
The screw category accounts for the highest revenue, of USD 500.5 million.
This dominance is owing to the excellent efficiency, especially with part-load conditions, versatility, longevity, and low maintenance cost of screw chillers. These advantages lead to the expanding use of screw chillers in diverse applications, from large commercial and hotel air conditioning to industrial process cooling. Compared to other types, screw chillers have fewer moving parts, which lessens the probability of mechanical failures and other maintenance needs.
The absorption category is the fastest-growing during the forecast period. Absorption chillers are highly energy-efficient and cost-effective when optimally exploiting waste heat or renewable sources, such as solar–thermal power. Further, they use refrigerants with a much lower Global Warming Potential, making them a more-conscious choice for the environment. Their high efficiency in harnessing heat from renewable energy sources is contributing to the growing demand for them as the region transitions toward a greener cooling solution.
The components analyzed here are:
The commercial category has been recording the largest MEA chiller market share over the historical period (2019–2024).
This is primarily credited to the surge in population, significant economic development, rapid urbanization, and their corresponding influence on cooling needs, especially in the U.A.E., Saudi Arabia, Qatar, Egypt, and South Africa. The developments in the tourism & and hospitality and healthcare sectors, changing nature of commercial real estate, and strict regulations on energy efficiency also propel this category.
The industrial category will advance at the highest CAGR, of 5.8%, in the next six years. Due to the important role of chillers in maintaining the ideal temperature in factories for workers, machines, as well as temperature-sensitive and perishable goods, they are widely demanded in the industrial sector. Various government policies emphasize compliance with the industry standards regarding worker safety and product quality. In such scenarios, a robust cooling system becomes imperative.
The end users evaluated here:
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Saudi Arabia dominates the MEA chiller market with revenue of USD 364.4 million in 2024, and it is expected to have the highest CAGR, of 6.2%, during the forecast period. The reason for this is the large-scale infrastructure development and tourism projects in Saudi Arabia, such as NEOM City, Amaala, Qiddiya Entertainment District, and the Red Sea Project. These projects generate a massive demand for chillers for the comfort of residents and visitors.
Additionally, the Saudi Standards, Metrology and Quality Organization (SASO) makes strict provisions for energy efficiency for HVAC systems, including chillers. The government’s initiative to strengthen public health services and the flourishing tourism sector further fuel the expansion of the market.
Egypt is also a potentially opportune market owing to the large-scale infrastructure development, expansion of the economy, and growth in environmental consciousness. The Egyptian economy is performing well as a result of the steady growth in GDP and high foreign investments. The government is modernizing infrastructure and encouraging industrial development, which has led to the initiation of several commercial and industrial construction projects in planned cities. Being a generally hot country, such establishments require efficient cooling mechanisms.
The demand for chillers is also rising in the country due to the increasing hotel and resort construction and renovations along the Red Sea Coast and in Luxor. The Egyptian government has implemented numerous strategies to address energy conservation, which has enhanced energy efficiency in all sectors. With such regulations, energy-efficient chillers are being adopted to cut down on electrcity consumption and operating expenses.
The countries analyzed here are:
The market for chillers in the MEA is fragmented in nature. It is characterized by the presence of various multinational companies and local manufacturers providing a diverse range of chillers, including screw, centrifugal, scroll, absorption, and reciprocating.
Furthermore, the varying regulatory environment, economic growth rate, and climatic conditions create different demand dynamics in the respective countries. While the major global brands hold significant market shares, the regional players also have a marked presence. This makes for a fragmented and competitive market landscape with varying levels of penetration and specialization for companies across components, applications, and geographies, thus widening the scope for new entrants.
In April 2024, Daikin Middle East and Africa FZE announced a partnership with Almoayyed Contracting Group, a company based in Bahrain, as its new distributor. This partnership reiterates Daikin's intention of strengthening its position in the Middle East and bringing advanced HVAC solutions closer to customers.
In February 2024, Carrier Global Corporation and Alat, a PIF company, partnered to build a manufacturing and R&D facility in Saudi Arabia that would deliver innovative HVAC solutions. Such a partnership will benefit customers in the kingdom and its giga projects, such as NEOM, while ensuring wider regional and even global distribution.
In November 2023, Daikin Middle East and Africa FZE introduced the Daikin iPlant Manager in the MEA region. The system uses data analytics and real-timer monitoring to enable maximum operational efficiency and long life for chiller plant air conditioning.
In March 2023, Carrier Global Corporation presented the newest products and services at the seventh annual HVACR Expo Saudi, held as part of the Big 5 event in Riyadh.
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