Saudi Arabia HVAC Market To Generate Revenue Worth $4,821.8 Million in 2030

Due to the growing hospitality industry, the Saudi Arabia HVAC market is expected to generate $4,821.8 million in revenue by 2030, expanding substantially over the forecast period (2022–2030). The increasing religious and leisure travel to the kingdom has opened up investment opportunities in the hospitality sector, thus resulting in the construction of many new hotels in its major cities.

For 2022, 24,052 new rooms at 42 new hotels are in the pipeline. Moreover, in 2023, 12,440 keys are planned at another 27 properties, while 54 projects with 23,594 rooms are already underway for 2024 and beyond.

In addition, by 2023, the Kempinski Hotel Makkah will feature 383 rooms and suites. In addition, the Mövenpick Hotel Heraa in Jeddah, which will have 300 rooms, will open in the first quarter of 2023. The hotel will be close to major projects such as the Kingdom Tower and the Jeddah Waterfront. These hotels will require these systems to provide comfort, by helping maintain temperature in the rooms, as needed. As a result, Saudi Arabia's growing hospitality industry is boosting its HVAC market.

The COVID-19 pandemic has severely impacted markets across the globe. The pandemic created a negative impact on the market in Saudi Arabia in its initial phase. As per the Ministry of Finance of the Kingdom of Saudi Arabia, Saudi Arabia’s economy contracted in 2020 due to the pandemic and its impact on the global oil market.

Operations at manufacturing facilities, commercial spaces, and major recreational places were halted to prevent the virus from spreading across the country. As a result, the Saudi Arabian HVAC market has experienced a negative impact in 2020, with a drop in demand for services across the region.

However, after lifting the lockdown and other restrictions, the Saudi government gave significant support to the business and hospitality industries in 2021, in order to reduce its dependency on the oil trade. As a result, Saudi Arabia's economy was expected to grow by 3.2% in 2021, according to the Saudi Ministry of Finance. The need for these equipment and services is expanding now, as the number of hotels, resorts, and other kinds of commercial buildings grows.

Services Are Rapidly Gaining Popularity

Saudi Arabia will see a rapid growth in the demand for HVAC services, with a CAGR of 10.2%, during the forecast period. As the demand for the systems grows, so will the need for installation and maintenance services. Furthermore, a service contract establishes a long-term relationship between the customer and the provider of the service.

Furthermore, during the forecast period, the commercial sector will present a significant opportunity for HVAC system and service providers. Due to Saudi Arabia's fast-growing population and increasing religious significance, the government has launched a variety of development projects, including the construction of economic zones and metro rail projects. Over the next few years, the demand for HVAC systems in both commercial and residential buildings is expected to rise as a result of these big projects with large investments.

The western region of the country is one of its most-important tourism areas, with major construction and development projects underway in Mecca and Madinah. The number of pilgrims visiting Mecca and Madinah is expected to increase, thus boosting the demand for hotels and resorts in the area. Every year, between 2 and 4 million Muslim pilgrims visit these holy cities.

Product Launches Are Most-Effective Strategic Measures Taken by Players

Players in the Saudi Arabia HVAC market have been frequently involved in product launches to gain a significant position. For instance,

In May 2021, for the Middle East and Africa (MEA) region, Daikin Industries Ltd. introduced the "MC55 series" of air purifiers, which have three stages of filtration, including a HEPA filter.

Major players operating in the Saudi Arabia HVAC market include Johnson Controls International plc, LG Electronics Inc., Gree Electric Appliances Inc. of Zhuhai, Trane Technologies plc, Danfoss A/S, Carrier Global Corporation, Midea Group Co. Ltd., Daikin Industries Ltd., Zamil Air Conditioners, and S.K.M. Air Conditioning LLC.