Saudi Arabia chiller market is expected to reach $291.0 million by 2024, registering a CAGR of 2.7%, during the forecast period. This growth can be attributed to rising investments in the tourism-related projects, commercial infrastructure, and development in the overall hospitality sector, according to P&S Intelligence.
Insights into the market segments
Based on type, the market is segmented into centrifugal, screw, scroll, absorption, and reciprocating chillers; wherein scroll category is further segmented into air-cooled, and water-cooled. Of these categories, air-cooled category is estimated to hold a largest revenue share in the market, in 2018. Air cooled chillers are observed to be the mostly preferred by the end-users, owing to rising number of luxury villas, medium-sized buildings, and small industrial plants, where smaller capacity chiller unit is required.
Based on end-user, Saudi Arabia chiller market has been categorized into commercial, industrial and residential. Among these, commercial category is estimated to hold the largest revenue share in 2018. This is due to rising number of commercial offices/buildings and growing hospitality sector in Saudi Arabia. Also, religious tourism in the country is on the rise, following infrastructure investment of over $50 billion in around the region of Makkah and Medina. Therefore, growing infrastructure developments in commercial sector projected to be a key driver for the growth in commercial chiller market, which is expected to exhibit a healthy growth rate during the forecast period.
Growing tourism and food and beverage (F&B) sectors buoyed the demand for chillers
Growing tourism sector is driving the growth of Saudi Arabia chiller market. The tourism sector is a major industry in the Saudi Arabia’s Vision 2030 economic diversification plan. According to the World Travel and Tourism Council, the tourism sector in the country accounted for 9.4% of total GDP in 2017. Also, the country is witnessing a growth in both the international visitors and domestic tourism. For instance, in 2017, inbound passengers spent around $26 billion in 2017, while total spending from domestic tourism recorded $13 billion in 2017.
Browse report overview with 47 tables and 35 figures spread through 110 pages and detailed TOC on "Saudi Arabia Chiller Market by Type (Screw [Water-Cooled, Air-Cooled], Centrifugal, Scroll [Air-Cooled , Water-Cooled], Absorption[Direct-Fired, Hot Water, Steam], Reciprocating [Air-Cooled, Water-Cooled]), by End-User (Commercial [Hospitality, Transportation, Offices and Buildings, Supermarkets/Hypermarkets, Healthcare, Government], Industrial [Oil and Gas, Food and Beverage, Energy and Utilities, Pharmaceutical, Automotive], Residential), by Region (Central, Western, Eastern, and Southern) – Market Size, Share, Development, Growth and Demand Forecast, 2014–2024" at:https://www.psmarketresearch.com/market-analysis/saudi-arabia-chiller-market
Further, the Government of Saudi Arabia is presently investing in developing tourism infrastructure, by opening new international airport in Jeddah that would be able to handle around 100 million passengers in a year. Moreover, due to the country’s religious significance, Saudi Arabia is one of the largest tourist destinations in the Gulf Cooperation Council (GCC) region. For instance, Makkah region has the largest number of hotel chains in the country. Every year around 4 million Muslim pilgrims visit Makkah and Medina, which positively supports the growth of hospitality sector in the region. As chillers are increasingly being used in hotels and restaurants, their demand from hotels is expected to increase in the coming years.
On the other hand, F&B sector require chillers for preserving the food, at a constant temperature. Chillers are used in F&B sector to cool soft drinks, wine, sauces, and others. Saudi Arabia imports around 80% of its edible food products. Screw chillers are the common type of chilling equipment used in F&B sector. Moreover, F&B sector in Saudi Arabia is expected to reach $18.2 billion by 2020. On account of this, the demand for chillers from F&B industry is set to drive the market in the coming years.
Saudi Arabia Chiller Market Competitive Landscape
Saudi Arabia chiller market is highly competitive due to the presence of large number of global and regional players. The market is led by companies such as Daikin Industries Ltd., Johnson Controls International PLC, United Technologies Corporation, Zamil Air Conditioners, and Ingersoll-Rand plc. Some of the key players operating in the Saudi Arabia Chiller market include Johnson Controls International plc, Ingersoll-Rand plc, United Technologies Corporation, Daikin Industries Ltd., S.K.M Air Conditioning LLC, Petra Engineering Industries Co., Zamil Air Conditioners, Gree Electric Appliances, Inc. of Zhuhai, Mitsubishi Electric Corporation, Thermax Limited, and Danfoss A/S.
Saudi Arabia Chiller Market Segmentation
Market Segmentation by Chiller Type
Market Segmentation by End-User
Market Segmentation by Region