With the U.A.E. government focusing on diversifying its economy, which is currently dependent on oil exports, investments in the construction sector, to boost the tourism industry, are rising. This is the primary factor that is projected to drive the U.A.E. heating, ventilation, and air conditioning (HVAC) market at a CAGR of 5.2% during 2020–2030 (forecast period). At this pace, the market size would grow from $1,873.1 million in 2019 to more than $2,774.7 million by 2030.
The COVID-19 pandemic is negatively impacting the U.A.E. HVAC market, as the measures taken to contain the virus spread in many countries have badly hit HVAC component supply and equipment manufacturing and trade activities. HVAC equipment is dominantly imported from countries such as China, Vietnam, India, and Japan, and due to the lockdown imposed there, HVAC manufacturing has been impacted.
Services To Contribute Higher Revenue To Market
The U.A.E. HVAC market, under segmentation by offering, is bifurcated into equipment and service, of which the service bifurcation is expected to hold the major share in 2030. The country is witnessing a rising demand for HVAC installation and maintenance services, owing to the rising demand for maintaining system longevity, performance, and efficiency, for which preventive maintenance is an important requirement.
Based on end user, the U.A.E. HVAC market is categorized into commercial, industrial, and residential. Among these, the commercial category would experience the fastest industry growth over the forecast period, driven by the pouring investments in commercial real estate. The growth in the commercial sector is backed by the rising investments in the hospitality and tourism industry, where several projects, including hotels, theme parks, and malls, are in the pipeline. The construction of these commercial spaces is set to drive the demand for HVAC systems.
In 2019, the Dubai region held the largest share in the U.A.E. HVAC market. As the country gears up for World Expo 2020 to be held in Dubai, .
Partnerships: Major Strategic Tool to Compete in Market
In order to have a competitive edge, players in the U.A.E. HVAC market are engaging in partnership with local players.
In January 2019, Daikin Industries Ltd. announced a partnership with Etihad Energy Services Company for the replacement of existing chillers with new energy-efficient variants, as part of the JAFZA Package 3 energy retrofit project. Under this project, Daikin Industries Ltd. was to replace 15 existing chillers with new inverter chillers at 11 JAFZA facilities.
The key players in the U.A.E. 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.