The increasing infrastructure spending and construction boom is the primary factor that is projected to drive the Saudi Arabian heating, ventilation, and air conditioning (HVAC) market at a CAGR of 3.2% during 2020–2030 (forecast period). This way, the market size would grow from $2,709.0 million in 2019 to more than $3,197.4 million by 2030.
The COVID-19 pandemic is adversely affecting the Saudi Arabian HVAC market. The country has witnessed a temporary shutdown of different industries, due to the lockdown implemented by the government. The pandemic has also impacted the supply chain of electronic components, such as compressors, embedded systems, and fan units, as well as of refrigerants, from countries including China and Vietnam, which, in turn, has hampered the import of HVAC equipment.
Services To Hold Major Market Share in Market
The Saudi Arabian HVAC market, under segmentation by offering, is bifurcated into equipment and service, wherein the service bifurcation is projected to lead it in 2030. The demand for HVAC installation and maintenance services in the country is growing, predominantly due to the rise in the awareness about improving the product lifecycle, performance, and efficiency.
Based on end-user, the Saudi Arabian HVAC market is categorized into commercial, industrial, and residential. Among these, the commercial category would experience the fastest industry growth, mainly led by the rising number of commercial offices/buildings and growing hospitality sector in the kingdom.
During the forecast period, the Western region is projected to expand at the highest CAGR in the Saudi Arabian HVAC market. This can be attributed to the cities of Jeddah, Madinah, Makkah, and Tabuk witnessing a large number of infrastructure development projects in various stages of completion. Some of the infrastructure projects include the development of the $500-billion-worth NEOM city in the Tabuk region, $8.0-billion Red Sea project, and $4.8-billion Jeddah Downtown residential complex.
Product Launches: Most Effective Strategic Tool Adopted by Market Players
In order to hold on to their position in the competition, as well as improve it, players in the Saudi Arabian HVAC market are focusing on product launches.
In January 2019, Daikin Industries Ltd. launched a new R-32 Altherma hydronic hybrid heat pump, DEU19-006, which is designed for lower emissions of CO2, compared to standard gas-condensing boilers.
The key players in the Saudi Arabian HVAC market include Trane Technologies plc, Carrier Global Corporation, Daikin Industries Ltd., Mitsubishi Electric Corporation, LG Electronics Inc., Johnson Controls International plc, Gree Electric Appliances Inc. of Zhuhai, Danfoss A/S, Midea Group Co. Ltd., Zamil Air Conditioners, and S.K.M. Cooling LLC.