Saudi Arabia HVAC Market Research Report: By Offering (Equipment, Service), End-User (Commercial, Industrial, Residential) – Industry Revenue Estimation Report, 2022-2030

Market Overview

The Saudi Arabia HVAC market size was estimated at $2,390.4 million in 2021, and it is expected to grow at a CAGR of 8.1% during 2021–2030. The market is majorly driven by the increasing infrastructure spending, need to minimize food wastage, and growing hospitality industry.

In the Saudi Arabia HVAC market, a prominent trend is the growing preference for smart VRF systems. A large number of clients are turning to smart and energy-efficient technology to cut energy consumption and increase sustainability. Better controls, improved monitoring systems, and smart thermostats define these systems. In comparison to traditional systems, they also provide better temperature variability and cleaner air. These systems' performance can be monitored in real time by users, using a mobile app. Furthermore, when compared to traditional systems, they emit less noise. As a result of the country's growing need for advanced and energy-efficient technologies, these systems are becoming increasingly popular.

Opportunities Available in Ground-Source Systems

The growing popularity of ground-source HVAC systems is likely to open up various opportunities in Saudi Arabia. These systems use environment-friendly methods to heat and cool dwellings, using the energy stored in the ground, thereby conserving natural resources, such as coal and fuel, for generating electricity at power plants. These geothermal systems also result in significant energy savings for customers.

Furthermore, these systems do not emit carbon monoxide or other greenhouse gases, which contribute to air pollution. As the Saudi government encourages energy-efficient products, these systems present an attractive potential for Saudi Arabia HVAC market participants.

Impact of COVID-19

COVID has had a considerable impact on the market at several stages of the value chain. China, the U.S., Brazil, Russia, India, Italy, Spain, and other Western European countries, which are among the most-significant exporters to Saudi Arabia, have seen a negative COVID impact. In addition, the ban on pilgrim visits during the holy month of Ramadan in 2020 had a substantial impact on the industry.

The need for these equipment and services is now expanding, as the number of hotels, resorts, and commercial buildings grows. The market is predicted to rebound as a result of the gradual reopening of manufacturing facilities in order to meet the demand for equipment and services from the country's business sector.

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Equipment Accounted for Higher Demand in 2021

The country's strong demand for new equipment is owing to its harsh climate. Furthermore, the continuous rise in the number of commercial spaces and other construction projects in the kingdom is pushing up HVAC system sales. For instance, the Qiddiya project in Riyadh began in 2019, and it is expected to be completed in 2022. This Public Investment Fund project, which is around 45 kilometers from Riyadh, intends to become the "capital of entertainment, sports, and the arts." The project has already received $8 billion in funding, and it plans on hosting 17 million annual visitors by 2035. More infrastructure development projects are scheduled to be undertaken in the future as part of the country's economic zone development plans.

Commercial Sector Held Largest End User Share

In 2021, the commercial category had the largest revenue share, of more than 40%. The Saudi government is providing considerable support to the corporate and hospitality industries in order to minimize its reliance on the oil trade. As a result of the growing number of hotels, resorts, and office buildings, the commercial sector's demand for these equipment and services is increasing. Infrastructure investments by the government and private parties also fuel the market.

For example, projects such as as the $26.6-billion enlargement of Mecca's Grand Mosque and the $16.5-billion Haramein high-speed railway connecting Mecca and Medina are currently underway. These developments are intended to boost religious tourism in the country, with 25 million visitors expected to visit the holy places each year by 2025. Thus, rising infrastructure improvements in the commercial sector are expected to be a major driver for the commercial HVAC market's growth in the kingdom.

Western Saudi Arabia Market To Boom due to Infrastructure Development

Due to the enormous scale of infrastructure development, the western region is expected to grow significantly with market share of more than 40% in 2021. The western region of Saudi Arabia is home to several of its most-important cities, including Jeddah, Madinah, and Mecca. NEOM City and Amaala are among the megaprojects in the region that will increase the demand for these systems and related services once complete. Much of this development is being undertaken under the Saudi Vision 2030, the government's plan to diversify the country's economy in order to reduce its reliance on the oil and gas industry.

Key Players and Their Strategic Developments

The major strategic measure in the market is product launches, which companies are engaging in in order to stay ahead of their competitors. For instance:

• In December 2021, Carrier Global Corporation introduced the "AquaEdge 19MV," a water-cooled centrifugal chiller with oil-free magnetic bearings, which aims to improve buildings’ energy management by allowing HVAC systems, building operations, and data to be optimized.
• In August 2021, Trane Technologies plc introduced the "Sintesis Balance CMAF," an electric single unit for heating and cooling buildings. This system is designed for facilities that need to maintain varying temperatures, such as schools, hotels, hospitals, shopping malls, business buildings, and theaters. The system was first launched in Europe, the Middle East, and Africa.

Key Players in Saudi Arabia HVAC Market Are:

• Johnson Controls International plc
• LG Electronics Inc.
• Gree Electric Appliances Inc. of Zhuhai
• Trane Technologies plc
• Danfoss A/S
• Carrier Global Corporation
• Midea Group Co. Ltd.
• Daikin Industries Ltd.
• Zamil Air Conditioners
• S.K.M. Air Conditioning LLC

Market Size Breakdown by Segment

The Saudi Arabia HVAC market report offers comprehensive market segmentation analysis along with market estimation for the period 2015–2030.

Based on Offering

• Equipment
  • Heating
    • Heat pumps
      • Air-source
      • Water-source
      • Ground-source
    • Furnaces
      • Gasoline
      • Propane
      • Electric
    • Boilers
      • Water-tube
      • Fire-tube
    • Unitary heaters
  • Ventilation
    • Ventilation fans
      • Centrifugal fans
      • Axial fans
      • Domestic exhaust fans
      • Power roof fans
    • Air handling units (AHUs) and fan coil units (FCUs)
      • AHUs
        • Terminal units
        • Makeup air units
        • Rooftop units
      • FCUs
        • Two-pipe
        • Four-pipe
    • Humidifiers/dehumidifiers
    • Air cleaners
      • Type 1: High-efficiency particulate air (HEPA) + carbon
      • Type 2: HEPA + carbon + ionizer
      • Type 3: HEPA + carbon + ultraviolet (UV)
      • Type 4: HEPA + carbon + ionizer + UV
      • Type 5: Other technologies
  • Cooling
    • Room air conditioners (ACs)
      • Mini splits
      • Window ACs
    • Split units
    • Ducted splits
      • Water-cooled condensers
      • Air-cooled condensers
    • Packaged units
      • Water-cooled condensers
      • Air-cooled condensers
    • Variable refrigerant flow (VRF) systems
      • Heat pump systems
      • Heat recovery systems
    • Chillers
      • Centrifugal
      • Screw
      • Scroll
      • Absorption
      • Reciprocating
• Service
  • Upgradation/replacement
  • Maintenance and repair
  • Installation
  • Consulting

Based on End User

• Commercial
  • Offices and buildings
  • Hospitality facilities
  • Transportation structures
  • Supermarkets/hypermarkets
  • Healthcare settings
  • Educational institutions
• Industrial
  • Food and beverage facilities
  • Oil and gas structures
  • Automotive units
  • Energy and utility plants
• Residential

Geographical Analysis

• Central
• Southern
• Western
• Eastern