The Saudi Arabian HVAC TAB services market revenue is expected to be $94.6 million in 2030, exhibiting a compound annual growth rate of 8.6% during 2021–2030. This can be attributed to the rising infrastructure development activities, proliferating need to curb food wastage, growing hospitality industry, and increasing system demand due to the extremes of the climate.
Saudi Arabia witnesses a significant increase in heat in the peak summer months, with the average temperature in the months of June and July hovering around 42 °C. As a result, there is a significant need for HVAC systems and TAB services. Furthermore, the country's growing population is boosting the demand for these solutions for residential usage. In addition, Saudi Arabia’s TAB services business is predicted to benefit greatly from the forthcoming commercial initiatives, such as airports, high-rise buildings, and luxury residences and villas.
The surge in the demand for HVAC systems from the country's commercial sector is attributable to technological breakthroughs and inventions, such as district cooling, solar air conditioning systems, and smart HVAC devices. Furthermore, the Saudi Arabian refrigeration industry is likely to benefit from the growing desire to prevent food wastage. Thus, market participants are expanding their service portfolio in the country to meet the rising demand.
Among the service types, the balancing category led the Saudi Arabian HVAC TAB services market in 2021, and it is expected to retain its dominance during the forecast period. Balancing plays an imperative role in the planning and management of commercial infrastructure projects, as well as for residential purposes. In addition to providing more comfort during summers, air balancing can also enhance the energy efficiency, elongate the lifespan of HVAC equipment, and enhance the air quality. Particulates in the air slowly collect on the surfaces of various HVAC components during normal operation, thus resulting in a gradual loss of energy efficiency; hence, balancing is required from time to time.
Among the end uses, the commercial industry dominated the market in 2021, mainly due to the rising establishment of numerous commercial offices and buildings. Additionally, religious tourism activities in the country are on the rise, for instance, infrastructure investment of over $50 billion in 2017 intended at augmenting the number of Hajj and Umrah pilgrims till 2020.
The infrastructure investment includes $26.6-billion funding for the expansion of the Grand Mosque in Mecca and $16.5 billion for the Haramein high-speed railway project connecting Mecca and Medina. These developments are speculated to drive religious tourism in the country, with 25 million people expected to arrive at the holy shrines every year from 2025 onward.
The Western region accounted for the largest share in the market in 2021, because of the high number of infrastructure projects in various cities. For instance, in July 2022, construction work on the first phase of the $6.93 billion (SAR 26 billion) Thakher Makkah, one of the largest projects in the Saudi city of Makkah, was almost complete. This comprises the development of hotels and residential, commercial, and service-related facilities in around 100 land plots, which, in turn, is expected to enhance the need for HVAC services in the long run.
Key players in the market include Fahad Nazer Corporation, Saudi Aircon, CSI, Abdullah H. Al Shuwayer Company, Cold Oasis Group (COG), Al-Fainaq Int’l Trading & Contracting Est., Shan International Environmental Solutions, Zamil Air Conditioners Applus Servicios Tecnológicos S.L.U., and Teamac Arabia.