Saudi Arabia HVAC Market to Reach $2.4 Billion by 2024

Published Date:   April 2019

The Saudi Arabia HVAC market is expected to reach $2.4 billion by 2024, registering a CAGR of 4.5%, during the forecast period. The market is buoyed by several factors predominantly, growing investments in the tourism-related projects, commercial infrastructure, and development in the overall hospitality sector, finds P&S

Insights into the market segments

Based on ventilation type, the market is divided into ventilation fans, humidifiers/dehumidifiers, air handling units & fan coil units, and air cleaners. Of these, ventilation fans category is estimated to hold the largest revenue share in 2018. This is owing to its wide range of applications, varying from general ventilation for circulation of air, to collecting dust particles in manufacturing plants, in order to avoid wear and tear of machineries.

Saudi Arabia HVAC Market

In terms of fan coil units (FCU) type, the market is classified into four-pipe FCU and two-pipe FCU. Of these, four-pipe FCU sub-category is estimated to hold a larger revenue share in 2018, owing to increasing number of high-rise commercial offices and buildings, large scale hospital buildings, and airport expansion projects. However, the two pipe FCUs are increasingly being deployed for residential applications. In 2018, Saudi Ministry of Housing, awarded contracts for 19,000 housing units, which are to be built in cities like Jeddah, Al Khobar, and Riyadh. Therefore, construction of residential units is projected to drive the demand for two pipe FCUs during the forecast period.

Variable Refrigerant Flow (VRF) system is categorized into heat pump systems and heat recovery systems. Out of these, heat recovery system is projected to register faster growth during the forecast period. This can be attributed to the fact that these systems provide significant advantages over heat pump systems, such as efficient heat management as well as lower energy requirements. The growing awareness among customers regarding the advantages of heat recovery system is providing a major boost to the growth of heat recovery systems.

Growing hospitality sector aiding further growth in the market

Saudi Arabia is registering positive growth in demand for HVAC systems on account of rising hospitality sector. Due to religious significance, Saudi Arabia is one of the largest tourism destinations, globally, which is primarily fueling the hospitality sector in the country. In 2017, the country witnessed nearly 14% annual rise in the number of rooms as compared to 2016. Further, as of 2018, around 40,000 guestrooms in 89 projects are under-construction. Due to increasing demand, many international hotel chains are increasing their presence in the country.

Browse report overview with 81 tables and 48 figures spread through 144 pages and detailed TOC on "Saudi Arabia HVAC Market by HVAC Type (Heating [Heat Pumps {Air Source, Water Source, Ground Source}, Furnaces {Gasoline, Propane, Electric}, Boilers {Fire-tube, Water-tube}, Unitary Heaters), Ventilation [Ventilation Fans {Centrifugal Fans, Axial Fans, Domestic Exhaust Fans, Power Roof Fans}, Air Handling Units {Terminal Units, Makeup Air Units, Rooftop Units} and Fan Coil Units {Two-pipe, Four-pipe}, Humidifiers/Dehumidifiers, Air Cleaners {Type 1, Type 2, Type 3, Type 4, Type 5}], Cooling [Room ACs {Mini Splits, Window ACs}, Split Units, Ducted Split/Packaged Unit {Packaged Unit With Water Cooled Condenser, Packaged Units With Air Cooled Condenser}, Variable Refrigerant Flow {Heat Pump Systems, Heat Recovery Systems}, Chillers {Centrifugal, Screw, Scroll, Absorption, Reciprocating}]), by End-User (Commercial [Offices and Buildings, Supermarkets/Hypermarkets, Government, Healthcare, Hospitality, Transportation], Industrial [Oil and Gas, Food and Beverage, Automotive, Energy and Utilities], Residential), By region (Central, Western, Eastern, Southern) – Market Size, Share, Development, Growth and Demand Forecast, 2014–2024" at:

For instance, in 2018, Marriott International planned to open around 29 new hotels and nearly 6,000 guestrooms in line with Saudi Vision 2030. Further in 2019, Hilton Worldwide Holdings Inc., is planning to build around 35 new hotels in the next 3-5 years. Also, Radisson Hospitality AB announced that it would open two new hotels in the country by 2020. HVAC systems offer comfort and has the ability to keep control the temperature in a room as per the requirement of guests. Thus, presently, HVAC systems are an essential part of modern hotels. As a result, growing hospitality sector is fueling the growth of Saudi Arabia HVAC market.

Saudi Arabia HVAC Market Competitive Landscape

Saudi Arabia HVAC market is highly fragmented. In the recent past, product launches have been the major activities in the market. Companies like Johnson Controls International plc is focusing on facility expansion to strengthen its position in Saudi Arabia HVAC market. Additionally, the companies are majorly focusing on enhancing their product portfolios and expanding their businesses in the country.

Some of the key players operating in the Saudi Arabia HVAC market include Johnson Controls International plc, LG Electronics Inc., Mitsubishi Electric Corporation, Gree Electric Appliances Inc. of Zhuhai, Ingersoll-Rand plc, Danfoss A/S, United Technologies Corporation, Midea Group Co. Ltd. Daikin Industries Ltd., Zamil Air Conditioners, and S.K.M Air Conditioning LLC.

Saudi Arabia HVAC Market Segmentation

Market Segmentation by HVAC Type

  • Heating
    • Heat Pumps
      • Air source
      • Water source
      • Ground source
    • Furnaces
      • Gasoline
      • Propane
      • Electric
    • Boilers
      • Water-tube
      • Fire-tube
    • Unitary Heaters
  • Ventilation
    • Ventilation Fans
      • Centrifugal fans
      • Axial fans
      • Domestic exhaust fans
      • Power roof fans
    • Air Handling Units
      • Terminal units
      • Makeup air units
      • Rooftop units
    • Fan Coil Units
      • Two-pipe
      • Four-pipe
    • Humidifiers/Dehumidifiers
    • Air Cleaners
      • Type 1: HEPA + Carbon
      • Type 2: HEPA + Carbon + Ionizer
      • Type 3: HEPA + Carbon+ UV
      • Type 4: HEPA + Carbon + Ionizer+ UV
      • Type 5: Other Technologies
  • Cooling
    • Room ACs
      • Mini splits
      • Window ACs
    • Split Units
    • Ducted Split/Packaged Unit
      • Packaged unit with water cooled condenser
      • Packaged units with air cooled condenser
    • Variable Refrigerant Flow
      • Heat pump systems
      • Heat recovery systems
    • Chillers
      • Centrifugal
      • Screw
      • Scroll
      • Absorption
      • Reciprocating

Market Segmentation by End-User

  • Commercial
    • Commercial Offices/Buildings
    • Hospitality
    • Transportation
    • Supermarkets/Hypermarkets
    • Healthcare
    • Government
    • Others (include educational institutions, cold storage facilities, data centers, banks, departmental stores, convenience stores, and stadiums)
  • Industrial
    • Food and Beverage
    • Oil and Gas
    • Automotive
    • Energy and Utilities
    • Others (include electronics, textile, pharmaceutical, manufacturing, glass, pulp and paper, shipbuilding, machinery, steel, cosmetic, rubber, tobacco, nuclear, toy, and, arms and ammunition, chemical and cement industries)
  • Residential

Market Segmentation by Region

  • Central
  • Southern
  • Western
  • Eastern