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From $2,709.0 million in 2019, the Saudi Arabian heating, ventilation, and air conditioning (HVAC) market size is set to expand to $3,197.4 million by 2030, at a CAGR of 3.2% during the forecast period (2020–2030). The key factors driving the market are the rising infrastructure spending and growing hospitality industry in the country.
The Saudi Arabian HVAC market growth has been negatively impacted by the COVID-19 pandemic, both on the demand and supply sides. Due to the lockdown imposed by the government, the construction industry is facing challenges, such as a decrease in the funding for projects, shut down of construction sites, and postponement of ongoing projects, owing to material, machinery, and laborer shortage and economic uncertainty.
According to market analysis, the cooling category, on the basis of equipment type, dominated the Saudi Arabian HVAC market in 2019, and it is expected to continue its dominance during the forecast period. This can be attributed to the growing development of commercial spaces, such as metro stations, expansion of King Abdulaziz International Airport, and other under-construction and newly-commissioned infrastructure projects. The Saudi capital, Riyadh, is expecting to open the world’s largest turnkey metro project by 2021, worth $23 billion, wherein the stations will feature a powerful cooling system, adaptable to external heat.
The consulting category, based on service type, is expected to witness the fastest growth in the Saudi Arabian HVAC market during the forecast period. Consulting services primarily include an inspection by a trained professional, who identifies the issues and recommends maintenance or overhaul.
The commercial category, on the basis of end-user, held the largest share in the Saudi Arabia HVAC market in 2019. This can be attributed to the growing religious tourism sector in the country, for which an infrastructure investment of over $50 billion has been planned for the cities of Makkah and Medina and the areas around them. These developments are projected to drive the demand for cooling equipment in the commercial spaces in the country.
In 2019, the Central region held the largest Saudi Arabian HVAC market share, on account of the vast number of commercial projects commissioned in and around Riyadh. Additionally, the region has four cities with more than a million people, 20 cities with between 100,000 and 1 million people, and 45 cities with between 10,000 and 100,000 people. These population centers are favorable spots for new construction projects, thereby making the Central region the most lucrative HVAC industry in the kingdom.
The Saudi Arabian HVAC market is projected to witness the highest CAGR in the Western region during the forecast period. This can be attributed to a number of major infrastructure development projects underway in cities such as Jeddah, Makkah, Madinah, and Tabuk. These developments are being made on the backdrop of Saudi Vision 2030, via which the government intends to diversify its economy, which currently depends on the oil and gas industry.
The usage of district cooling systems has been observed as one of the key trends in the Saudi Arabian HVAC market. A district cooling system produces hot or chilled water at a central plant and distributes this to buildings, for heating and cooling. As a result, the system eliminates the need for separate systems for heating and cooling in buildings. Further, a district cooling system consumes almost 50% less electricity, as compared to a regular cooling system, which reduces the overall energy expenditure for the consumer.
The growing hospitality industry is driving the growth of the Saudi Arabian HVAC market. Due to its religious significance, Saudi Arabia is one of the largest tourist destinations globally, which is primarily fueling the hospitality industry in the country. According to the Middle East Real Estate Predictions by Deloitte, a total of 4,500 additional hotel rooms are expected to be commissioned by 2021 in the country, which would ultimately lead to a high demand for HVAC equipment and services. Due to the growing demand for accommodation, several international hotel chains are increasing their presence in the country.
|Base Year (2019) Market Size||$2,709.0 Million|
|Forecast Period (2020-2030) CAGR||3.2%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional Breakdown, Competitive Analysis, Company Share Analysis, Companies’ Strategic Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||Offering, End-User, Region|
|Market Size of Geographies||Central, Western, Eastern, Southern|
|Secondary Sources and References (Partial List)||Air-Conditioning, Heating, and Refrigeration Institute (AHRI), American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Qatar Oryx Chapter, Inc., American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), American Society of Mechanical Engineers (ASME), Association of Cooling Professionals (AACP), Consortium for Energy Efficiency (CEE), Global Cold Chain Alliance (GCCA), Heating, Air-conditioning and Refrigeration Distributors International (HARDI), Indoor Environment Energy Efficiency Association (ACCA), International Council of Air-Conditioning, Refrigeration, and Heating Manufacturers Association (ICARHMA), Ministry of Health – Kingdom of Saudi Arabia, Ministry of Transport- Kingdom of Saudi Arabia, Radiant Professionals Alliance (RPA), Refrigeration Service Engineers Society (RSES)|
The Saudi Arabian HVAC market has been found to be consolidated, with several global companies operational in the country, including Johnson Controls International plc, Carrier Global Corporation, Daikin Industries Ltd., Mitsubishi Electric Corporation, LG Electronics Inc., and Trane Technologies plc.
In recent years, organizations in the Saudi Arabian HVAC industry have focused on product launches as an effective mechanism to compete in this market.
The Saudi Arabia HVAC market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Offering
Based on End-User