Published: April 2021 | Report Code: SE11652 | Available Format: PDF | Pages: 155
The Saudi Arabian heating, ventilation, and air conditioning (HVAC) market size was $2,476.1 million in 2020, and it is expected to showcase a CAGR of 8.1% during the forecast period (2021–2030). The increasing population of the country, coupled with the rising disposable income, will be a key driver for the HVAC industry in Saudi Arabia. Moreover, the growing number of infrastructure development projects and rising religious tourism activities in the country are expected to impact the market positively.
The HVAC industry has witnessed a significant COVID impact across different stages of the value chain. Some of the key countries, which are significant exporters to Saudi Arabia and have also witnessed a negative COVID impact, include China, the U.S., Brazil, Russia, India, Italy, Spain, and other Western European nations. With the announcement of countrywide lockdowns, the industry has faced a significant loss on account of the disruptions in the supply of electronic components, such as compressors, embedded systems, and fan units, as well as refrigerants. Additionally, the restrictions imposed on pilgrim visits during the holy month of Ramadan significantly affected the industry.
The equipment category held the larger share during the historical period (2015–2020), based on offering. The high demand for new equipment in the country is due to the extreme climatic conditions. Additionally, the growing development of commercial spaces, such as metro stations, expansion of the King Abdulaziz International Airport, and other construction projects, are driving the sale of HVAC systems in the kingdom. Furthermore, Riyadh, the Saudi capital, is expecting to open the world’s largest turnkey metro project, worth $23 billion, by 2021. The project will feature a powerful cooling system adaptable to external heat, which will increase the demand for HVAC equipment in the market.
The commercial category held the largest share in the Saudi Arabian HVAC market in 2020, based on end-user. This was mainly on account of the rising number of commercial offices/buildings and growing hospitality sector. Additionally, the religious tourism sector in the country is set to prosper in the coming years, following infrastructure investments of over $50 billion in and around Makkah and Medina.
The western region of Saudi Arabia held the largest market share in 2020. This can be attributed to the major infrastructure development projects in Jeddah, Makkah, Madinah, and Tabuk. Among these megaprojects are Qiddiya, NEOM City, Amaala, and Riyadh Green, which will boost the demand for HVAC systems and the related services once complete. Many of these developments are being done in the backdrop of the Saudi Vision 2030, via which the government intends to diversify its economy, on account of its strong reliance 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. District cooling systems produce hot and chilled water at a central plant and distribute the energy to numerous buildings for heating and cooling. As a result, the systems eliminate the requirement for separate systems for each building. Further, the district cooling system consumes almost 50% less electricity as compared to a conventional cooling system, which reduces the overall energy expenses of consumers. In Saudi Arabia, almost 70% of the power is consumed by air conditioning systems. Hence, customers are focusing more on energy-efficient air conditioning equipment, which is further driving the demand for district cooling systems in the country.
The increase in the spending on infrastructure, which has resulted in the rising construction activities in Saudi Arabia, is supporting the growth of the HVAC industry of the country. In Saudi Arabia, there are several ongoing projects of metro railway and other pieces of commercial infrastructure. Moreover, the kingdom aims to completion of the first phase of the NEOM megacity project, worth $500 billion in total, by 2025.
Due to its religious significance, Saudi Arabia is one of the most-visited tourism destinations globally, which is primarily boosting the hospitality industry here. Due to the rising visitor count, several international hotel chains are increasing their presence in the country. HVAC systems offer comfort by helping control the temperature in a room as per requirement; thus, they are an essential part of modern hotels. As a result, the growing hospitality industry is boosting the demand for HVAC equipment and services in Saudi Arabia.
|Base Year (2020) Market Size||$2,476.1 Million|
|Market Size Forecast in 2030||$4,821.8 Million|
|Forecast Period CAGR||8.1%|
|Report Coverage||Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis; Company Profiling|
|Market Size by Segments||By Offering; By End-User; By Region|
|Secondary Sources and References (Partial List)||Air Movement and Control Association, American Society of Heating, Refrigerating and Air-Conditioning Engineers Qatar Oryx Chapter Inc., American Society of Mechanical Engineers, Consortium for Energy Efficiency, Global Cold Chain Alliance, Indoor Environment Energy Efficiency Association, International Institute of Refrigeration, International Monetary Fund, Ministry of Health – Kingdom of Saudi Arabia|
The Saudi Arabian HVAC market is highly competitive and fragmented in nature, with the presence of several global and local HVAC manufacturers. Many companies are investing in the research and development of new products to be ahead of others.
Johnson Controls International plc, Daikin Industries Ltd., LG Electronics Inc., Mitsubishi Electric Corporation, Gree Electric Appliances Inc. of Zhuhai, Danfoss A/S, S.K.M Air Conditioning LLC, Qingdao Haier Co Ltd., GAMI Air Conditioners Manufacturing, Ingersoll-Rand Plc, Carrier Global Corporation, Panasonic Corporation, Samsung Electronics Co. Ltd., Fujitsu General Limited, Zamil Air Conditioners, Petra Engineering Industries Co., and Blue Star Limited are key players in the market.
In recent years, players in the market have launched various new products to expand their presence. For instance:
The Saudi Arabia HVAC market report offers comprehensive market segmentation analysis along with market estimation for the period 2015–2030.
Based on Offering
Based on End-User
The 2030 size of the market for HVAC equipment and services in Saudi Arabia will be $4,821.8 million.
Presently, the larger share in the Saudi Arabian HVAC industry, based on offering, is held by the equipment category.
The market for HVAC equipment and services in Saudi Arabia derived the highest revenue from the central region of the kingdom.
The major Saudi Arabian HVAC industry growth drivers are the rising infrastructure spending and expanding hospitality sector.
The market for HVAC equipment and services in Saudi Arabia is fragmented.
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