Middle East and Africa Chiller Market To Generate Revenue Worth USD 1,872.5 Million by 2030
- Published: October 2023
The Middle East and Africa (MEA) chiller market is expected to be valued at USD 1,872.5 million by 2030, progressing at a CAGR of 6.5% during the expected period (2024–2030). This can be ascribed to the rising requirement for chillers from the transportation and hospitality sectors and for district cooling systems. Moreover, the escalation in the demand for inverter-based chillers is forecasted to provide enormous opportunities to industry participants in the upcoming years.
In addition, the increasing number of construction projects, such as hotels and commercial spaces, are driving the demand for chillers. For instance, the U.A.E.’s hospitality sector is projected to hike by 25% by 2030, with an addition of 48,000 rooms. Also, the demand for district cooling systems in the region is expanding swiftly, propelled by government initiatives and investments in the development of infrastructures. Further, several companies in the region are acquiring green building practices, which comprise the utilization of district cooling systems.
Furthermore, several district cooling providers in the region are transferring toward renewable energy to power their cooling systems. They are also focusing on energy-efficient technologies to diminish their operating costs and enhance the sustainability of their operations. For example, Emirates Central Cooling Systems Corporation (Empower) is one of the major district cooling companies in the U.A.E., which has installed solar panels on several cooling plants to lessen its carbon footprint.
Additionally, technological advancements in this field are driving the market growth. Inverter technology in chillers makes them extremely efficient as contrasted to conventional AC systems. Thus, end users are aiming to adopt inverter-based cooling and heating solutions. Also, an inverter automatically adjusts the power operation, depending upon the actual need, which eliminates the on/off operation. Hence, it minimizes energy bills by up to 50%, provides a stable temperature and quick cooling, enhances the life of chillers, and offers no sound disturbance.
Industrial Category To Witness Significant Growth
Based on end user, the industrial category is expected to witness remarkable growth in the coming years. This can be due to the rising number of industrial projects, such as oil and gas, in the region. For instance, the U.A.E. is observing an immense investment in oil and gas refinery development projects to boost production capacity. Apart from this, Saudi Arabia is also recording a buildup of reserve oil production capacity.
Based on country, the U.A.E. market is projected to exhibit significant growth, advancing at a CAGR of 6.7%, in the coming years. This can be attributed to the rising number of construction projects in the country, such as hotels, due to the increasing number of tourists. This is because several tourist attractions have been built across the country, such as Dubai Creek Harbour 2025, Jewel of the Creek 2019, Heart of Europe 2020, Marsa Al Arab 2020, and Marasi Business Bay 2022. These attractions are expected to drive the tourism industry in the U.A.E., and, in turn, the hotel construction sector.
Some of the key players in the market include GAMI Air Conditioners Manufacturing Company L.L.C., Midea Group Co. Ltd., Mitsubishi Electric Corporation, Zamil Air Conditioners, Petra Engineering Industries Co., S.K.M Air Conditioning LLC, Daikin Industries Ltd., United Technologies Corporation, Ingersoll-Rand plc, and Johnson Controls International Plc.