U.A.E. Chiller Market is Expected to Reach $186.4 Million by 2024

U.A.E. chiller market is expected to reach $186.4 million by 2024, registering a CAGR of 5.9% during forecast period, according to P&S Intelligence.

Factors including rising demand from district cooling and overall growth in the construction industry are driving the growth of the market. Apart from this, growing demand for inverter chillers anticipated to provide significant opportunities in the forecast period.

During 2015-2017, the country registered a drop in the sales of chillers due to fall in oil prices in 2014-2015, resulted in contraction of the country’s GDP, where oil contributes 30% of GDP, however, diversification of its economy nullified oil price crisis to a great extent. The country is set to host World Expo 2020, which is driving the construction sector. The event is exhibiting increased investments in tourism-related projects, commercial infrastructure, and transportation development in the country; citing estimated cost of over $9 billion.

Insights on market segments

On the basis of chiller type, the market is segmented into screw, scroll, centrifugal, reciprocating, and absorption. The absorption category is gaining traction across various industrial applications, wherein consumers are shifting toward solar powered absorption chillers. Although, the one-time cost of this type of chiller is much higher than electricity powered chillers, however the long-term energy cost is near to zero which is a huge factor for its increasing adoption.

Based on end-user, U.A.E. chiller market has been categorized into commercial, industrial, and residential, wherein commercial is further segmented into hospitality, transportation, offices and buildings, healthcare, supermarket/hypermarket, and government. Of these categories, hospitality category is expected to register huge growth during the forecast period. Chillers are increasingly being adopted for the cooling purposes in the hotel industry. To prepare for World Expo 2020, the country is witnessing an influx of hotel construction projects. In U.A.E., Dubai is exhibiting the largest number of hotel construction projects, in which top hotel companies including Marriott International, Hilton Hotels & Resorts, and Accor S.A. are gearing-up for the upcoming tourists.

Abu Dhabi is expected to provide lucrative opportunities during the forecast period. Apart from developing oil and gas sector, the government is planning to pursue Abu Dhabi 2030 plan, which is aimed at attracting at least 7.9 million tourists, annually. Following this, the government is aiming to expand office and retail spaces to 7.5 million square meters and 4 million square meters, respectively, by 2030.

Browse report overview with 42 tables and 40 figures spread through 108 pages and detailed TOC on "U.A.E. Chiller Market by Type (Screw [Water-Cooled, Air-Cooled], Centrifugal, Scroll [Air-Cooled , Water-Cooled], Absorption [Direct-Fired, Hot Water, Steam], Reciprocating [Water-Cooled, Air-Cooled]), by End-User (Commercial [Hospitality, Transportation, Offices and Buildings, Healthcare, Supermarkets/Hypermarkets, Government], Industrial [Oil and Gas, Food and Beverage, Energy and Utilities, Pharmaceutical, Automotive], Residential), By Region (Dubai, Abu Dhabi & Al Ain, Sharjah & Other Northern Emirates) – Market Size, Share, Development, Growth and Demand Forecast, 2014–2024" at:https://www.psmarketresearch.com/market-analysis/uae-chiller-market

Increasing infrastructural spending to provide lucrative opportunities

Upcoming infrastructural projects in U.A.E. expected to propel infrastructure development in the country. The government of Dubai has approved expenditure of $15.5 billion, with the focus on infrastructure spending for the upcoming World Expo in 2020. Under this project, the red metro line would be extended, which would connect to Al Maktoum airport. Also, Dubai Roads and Transport Authority (RTA) aims to increase public transportation usage from 15-20% by 2020. Additionally, in Abu Dhabi, various projects including Ain Al Faida Residential Development, Jebel Hafeet Housing Development, Midfield Terminal, and Zayed City mega projects are expected to be completed in the coming years.

U.A.E. Chiller Market Competitive Landscape

Due to high capital investment, the threat of new entrants is low in the market. In the last year, the majority of the top companies were involved in product launches to expand their product portfolio, and to cater new consumer demand. Some of the major players in the U.A.E chiller market include Johnson Controls International plc, Ingersoll-Rand plc, United Technologies Corporation, Daikin Industries Ltd., Mitsubishi Electric Corporation, LG Electronics Inc., Gree Electric Appliances Inc. of Zhuhai, Zamil Air Conditioners, DANA Group of Companies, S.K.M Air Conditioning LLC.

U.A.E Chiller Market Segmentation

Market Segmentation by Chiller Type

• Screw
  • Water-Cooled
  • Air-Cooled
• Scroll
  • Water-Cooled
  • Air-Cooled
• Absorption
  • Steam
  • Hot Water
  • Direct-Fired
• Centrifugal
• Reciprocating
  • Water-Cooled
  • Air-Cooled

Market Segmentation by End-User

• Commercial
  • Transportation
  • Hospitality
  • Healthcare
  • Supermarket/Hypermarket
  • Offices and buildings
  • Government
  • Others
• Industrial
  • Chemical
  • Food and Beverage
  • Pharmaceutical
  • Automotive
  • Energy and Utilities
  • Oil and Gas
  • Others
• Residential

Market Segmentation by Region

• Dubai
• Abu Dhabi & Al Ain
• Sharjah & Other Northern Emirates