U.A.E. 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 U.A.E. chiller market is estimated to have generated a revenue of USD 129.8 million in 2023, and it is expected to grow at a CAGR of 6.0% during the forecasted period, to reach USD 191.5 million by 2030. This is ascribed to the rising hospitality sector, overall growth in the sector of construction, and the surging requirement for chillers from the transportation industry in the country.

Moreover, the market is growing in the country due to the booming business opportunities in cities such as Dubai and Abu Dhabi, the surging requirement for district cooling units and inverter chillers, rapid industrialization, and the panoramic development in the sector of construction.

For instance, the Dubai Food Park (DFP), a state-of-the-art food park, is currently under development in Dubai Wholesale City. It is devised to be situated close to the Expo 2020 site and is expected to be valued in billions. The DFP is considered to meet the increasing requirement for food in the country. This project was initiated in the previous year and is forecasted to take 10 years to conclude. Similarly, Dubai hosted the World Expo 2020, which led to the rise in the construction industry and the development of commercial infrastructure, projects correlated to tourism, and the transportation sector.

Therefore, the market is forecasted to evolve as a result of hiking in the requirements from several end-use industries. In addition, when there is planning for the infrastructure expansion by operators, the demand for chillers is increasing. Further, in the country, there is extremely high temperature throughout the year. It is also projected that the country will witness a significant rise in temperatures, by about 2.21 oC by 2050, mainly in the summer season. With the increase in temperature, the demand for chillers is surging, as cold water produced by them is engaged for providing air conditioning in buildings.

However, the rising electricity consumption is one of the major worries in the country. The electricity demand is very high in the summer season, due to the extensive use of air conditioners. Thus, the U.A.E. is concentrating on the use of renewable sources of energy. The nation is witnessing an annual average global solar radiance of 6 kWh/m2/day. To use this energy, the government launched 'Energy Strategy 2050', which focuses on promoting renewable energy.

Thus, the inclination toward solar-powered chillers has been observed in the U.A.E. This is also because of the surging need for cost-effective cooling systems and the requirement to reduce energy consumption. Also, these chillers use energy that comes from waste heat, such as heat generated from solar panels or steam from industrial processes. Hence, the sale of solar energy-driven chillers is projected to witness high growth in the country during the forecast period.

Highest Opportunities Are Generated by Centrifugal Category

Based on chiller type, the centrifugal category is forecasted to present immense opportunities in the market during the forecast period. The acquisition of high-energy productivity magnetic centrifugal chillers with a compact energy footprint in lieu of conventional centrifugal chillers is the most remarkable trend being observed in the market. For instance, in February 2023, Trane, one of the top players of chillers in the country, inscribed an agreement with the Emirates Central Cooling Systems Corporation, to provide environment-friendly centrifugal chillers with an entire capacity of 110,000 RT to Empower.

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Commercial Category Holds Massive Revenue Share

Based on end user, the commercial category holds the largest revenue share in the market. This is because of the high adoption of chillers in several commercial applications, such as hotels, commercial buildings, offices, hospitality, supermarket/hypermarkets, healthcare facilities, and government buildings, and enormous investments for the development of hotels and hike in figures of hotel construction projects.

Based on commercial end user, the hospitality sector dominates the market. This is because the sector has inscribed noteworthy growth in the current years. For instance, as per the World Travel and Tourism Council, the sector of travel and tourism has contributed significantly to the GDP of the country. Also, chillers are acquiring resistance in the industry of hotels for the purpose of cooling. In the U.A.E., Dubai reports for the immense quantity of hotel construction projects. Notable hospitality players, such as Hilton Hotels & Resorts, Marriott International, and Accor S.A., are developing themselves for the upcoming invasion of tourists.

For instance, in April 2023, a Dubai-based Hospitality Management Holding (HMH) Group initiated 18 new hotels in the Arabian Travel Market, while during its engagement in the ATM-2023, the Group will exhibit its projects in the hospitality sector between the region and sign new association agreements. The Group will take advantage of the platform to showcase its futuristic strategies and evolutionary plans in foreign markets. The HMH Group supervises 13 hotels and resorts in and outside the U.A.E., with a total inventory of 2032 rooms.

Dubai Is the Largest Market in the U.A.E.

Based on region, Dubai is considered the principal market in the country for chillers. This is because of the high growth in construction activities due to the World Expo event that happened in 2020. Moreover, on a long-term basis, the Dubai government put efforts toward diminishing the dependency on the oil and gas sector and focusing on the development of other sectors such as tourism and hospitality. The government is inscribing more than 150 major hotel projects in response to the forthcoming paramount event in Dubai, to cater to the requirement for approaching tourism invasion. Thus, these factors drive the demand for chillers in this region.

Major Players Operating in the U.A.E. Chiller Market

• Johnson Controls International plc
• Ingersoll-Rand plc
• United Technologies Corporation
• Daikin Industries Ltd.
• Mitsubishi Electric Corporation
• LG Electronics Inc.
• Gree Electric Appliances Inc. of Zhuhai
• Zamil Air Conditioners
• DANA Group of Companies
• S.K.M Air Conditioning LLC

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

• Dubai
• Abu Dhabi and Al Ain
• Sharjah