Saudi Arabia Chiller Market To Generate Revenue Worth $346.3 Million by 2030

The Saudi Arabia chiller market is expected to generate revenue of USD 346.3 million by 2030, registering a CAGR of 3.1% during the forecast period (2024–2030). This can be attributed to the surging number of infrastructural projects and the growing tourism and hospitality industries. The government is actively taking part and increasing investment in the development of infrastructure. This has boosted the demand for cooling systems, especially chillers, in various areas such as commercial places.

Moreover, the expansion of the tourism sector has accelerated the demand for chillers in the country. The tourism industry has gained a major place in Saudi Arabia’s vision for 2030. For instance, there has been a remarkable 225% increase in incoming tourism revenue in comparison to the first quarter of 2022. This signifies the rise in the number of visitors.

Air-Cooled Chillers Dominate the Market

Based on type, the Saudi Arabia chiller market is categorized into centrifugal, screw, scroll, absorption, and reciprocating chillers. Among these, the scroll category is expected to grow at a significant CAGR during the forecast period. It is further bifurcated into air-cooled and water-cooled.

Between the two, the air-cooled category holds a larger revenue share in the market. This is because air-cooled chillers are observed to be the most preferred by end users, owing to their beneficial properties. Moreover, the rising number of luxury villas and medium-sized buildings, and major deployments of space cooling systems in large manufacturing plants, the oil and gas sector, commercial spaces such as airports, and small industrial plants, are driving the need for air-cooled chillers.

Commercial Category Holds the Largest Share

The commercial category dominates the chiller market in Saudi Arabia in terms of revenue. The dominance is attributed to several factors, such as there has been a significant increase in the number of offices and buildings, the expansion of the hospitality sector, and the growth in the nation’s tourism industry particularly in religious places. This is further fueled by the nation’s substantial infrastructure investments in commercial facilities, tourism-related projects, and the transportation sector.

In addition, the tourism sector is also highly important for job creation. For instance, in March 2022 Qusai Al Fakhri, CEO of the Tourism Development Fund, said at an event in Riyadh that the tourism sector is expected to create 1 million new jobs by 2030. New jobs in adjacent sectors such as construction are also expected to be created as the transport sector expands.

Moreover, the development and construction activities are projected to play an important role in driving the growth of the market in this category during the forecast period 2024–2030. The estimated cost for these expansions exceeds a certain billion, indicating substantial opportunities for commercial chillers in Saudi Arabia.

Some of the key players operating in the market are Ingersoll-Rand plc, United Technologies Corporation, Daikin Industries Ltd., Petra Engineering Industries Co., Zamil Air Conditioners, Gree Electric Appliances, Mitsubishi Electric Corporation, and Thermax Limited.