U.A.E. HVAC Market Overview
U.A.E. HVAC market is estimated to value $963.3 million in 2018, and is expected to advance at a CAGR of 6.4% during the forecast period 2019–2024. Increasing spending on transportation sector coupled with surging hospitality industry are the major factors contributing to the growth of the HVAC market in the country. Based on HVAC type, U.A.E. HVAC market is segmented into heating, ventilation, and cooling. Among these, cooling category is estimated to hold largest market share in 2018, due to increasing construction projects in the country.
On the basis of heating equipment type, U.A.E. HVAC market has been categorized into furnaces, boilers, heat pumps, and unitary heaters. Among these, heat pumps category held largest volume share in the market. Additionally, on the basis of ventilation type, U.A.E. HVAC market has been categorized into ventilation fans, air handling units and fan coil units, humidifiers/dehumidifiers, and air cleaners. Of these, ventilation fans category is estimated to hold largest market share. This can be attributed to the presence of over 5,200 manufacturing plants situated across the country, where ventilation fans constitute a major part of ventilation system.
Based on cooling type, U.A.E. HVAC market has been segmented into Room ACs, Split Units, Variable Refrigerant Flow (VRF), Ducted Split/Packaged Unit, and Chillers. Among these, ducted split/packaged units estimated to hold largest share in 2018, due to the presence of numerous high-rise buildings in the country. The country is expected to exhibit major installations pertaining to the cooling systems in the next two years, owing to upcoming World Expo 2020 event, resulting in major surge in construction projects.
U.A.E. HVAC Market Dynamics
The key trend observed in the U.A.E. HVAC market is the growing popularity of the smart HVAC systems. To minimize energy consumption, and strengthen sustainability, a large portion of customers are switching toward smart HVAC technologies. Smart HVAC systems offer better control, building automation systems, advanced monitoring systems, Internet of Things (IoT) enabled temperature controls, and smart thermostats. In addition, this system also offers better temperature variability and produce cleaner air as compared to older systems. Thus, due to growing demand for more sophisticated and energy efficient technologies in U.A.E, smart HVAC systems are trending in the country.
Increasing spending on transportation sector is one of the key drivers being noticed in the U.A.E. HVAC market. Rise in spend on metro railway expansion projects, and construction of new airports is supporting the growth in demand for HVAC systems in the country. In U.A.E, there are several upcoming metro railway expansion projects. For instance, in 2018, the Government launched ‘Route 2020’ project, that covers the extension of Dubai Metro Red Line by over 9 miles from Nakheel Harbour & Tower Station to the site of World Expo 2020 in Jebel Ali. This route would have 7 stations consisting of two underground stations, one interchange station, three elevated stations, and the special-event Expo Iconic Station. The country is investing heavily on transportation construction projects due to upcoming ‘World Expo 2020’ event.
A major opportunity for the growth of players operating in the U.A.E. HVAC market lies in growing popularity of geothermal HVAC systems. Geothermal HVAC systems are one of the eco-friendly approaches to heat and cool homes. They use energy stored in the ground to heat and cool houses. Hence, this system helps to save natural resources like coal. As a result, a geothermal system reduces the energy consumption, which in the course of a year could result in meaningful savings for users. Additionally, this system does not produce any carbon monoxide or some other greenhouse gasses that contribute both to increasing carbon footprint and air pollution. As a result of the government’s promotion toward energy efficient products, geothermal HVAC is posing an opportunity for the U.A.E. HVAC market.
U.A.E. HVAC Market Competitive Landscape
U.A.E. HVAC is fragmented and competitive market with primary competitive drivers being price, energy efficiency, reputation, quality, and technical know-how. Factors such as upcoming event ‘World Expo 2020’, and rising population is opening up new opportunities in the UAE market for HVAC players and has led to rise in competition among market players.
Some of the major players operating the U.A.E. HVAC market includes, United Technologies Corporation, SKM Air Conditioning LLC., Zamil Air Conditioners, LG Electronics Inc., Gree Electric Appliances Inc. of Zhuhai, Mitsubishi Electric Corporation, Johnson Controls International PLC, Danfoss A/S, Ingersoll-Rand plc, Midea Group Co. Ltd., and Daikin Industries Ltd.