$80 Billion worth of construction projects boost Saudi Arabia's HVACR market
Currently valued at $3.2 billion, Saudi Arabia’s HVACR market is expected to grow steadily in the next five years. According to the ‘Saudi Arabia HVACR Market Outlook 2021’ by TechSci Research, commissioned by HVACR Expo Saudi, Saudi Arabia’s largest dedicated indoor climate and refrigeration event, the country features amongst the leading markets for air conditioners across the globe.
Between 2011 and 2015, Saudi Arabia’s HVACR market grew at a healthy CAGR of more than 13%, the report shows. The long duration of summers and the high temperature throughout the year are not the only factors boosting HVACR systems’ sales in the country. Indeed, a rapidly growing population, increasing urbanisation and religious tourism are considered key drivers of this trend, which are expected to strongly contribute to the expansion of the Saudi HVACR market in the next five years.
“The demand for HVAC equipment in Saudi Arabia will keep growing steadily, boosted by the Government’s construction projects valued at around $80 billion,” Firas Abou Ltaif, HVACR Expo Saudi Project Manager, commented. Saudi Arabia’s construction sector is already one of the largest global markets in value terms, contributing to around 8% of the national GDP. According to the report, it is expected to grow at 7.8% between 2016 and 2021.
According to the report, the refrigeration market grew at a CAGR of around 11.80% during 2010-14, and is projected to grow at a CAGR of around 12.27% over the next five years in Saudi Arabia. Also, building insulation is projected to grow at a CAGR of around 7.39% during 2015-20, mainly on account of increasing concerns regarding energy saving.
Rising power demand and stringent energy efficiency regulations developed by the Saudi Government are among the key challenges faced by the HVACR industry in the country. This is why, according to the report, the district cooling technology is the number one emerging trend in Saudi Arabia. Cost-effective and energy efficient, district cooling consumes 50% lesser power compared to regular HVAC systems, while providing better cooling.
“Currently, about 70% of electricity consumption in the Kingdom is used to power air conditioners. If more sustainable solutions are not implemented, energy consumption will soon double, as half million new homes are needed to meet Saudi Arabia’s growing population demand,” Mr. Abou Ltaif warned. “This is why, district cooling is not only feasible in this country: it is necessary”.
HVACR Expo Saudi 2017, running from Jan 15 to 17 at Jeddah Centre for Forums & Events, will explore current trends, challenges and opportunities in the Kingdom’s growing HVACR market. Organised by dmg events Middle East, Asia & Africa, the show is an unmissable platform for HVACR professionals to develop their business and network with 3,500 expected visitors and industry peers.
“HVACR Expo Saudi addresses the need for a dedicated, focused event, offering products, training and education solutions for the entire Saudi HVACR industry,” Mr. Abou Ltaif stated. Over 80 local and international companies will showcase latest and most innovative solutions across the exhibitions’ four sections: Air conditioning, ventilation systems & components, HVAC industry services, Ducting systems & machinery, and Heating pumps, heat exchangers & equipment.
“The Saudi market presents many opportunities for HVACR manufacturers. With key developments of airports, metros, and housing projects, the drive towards digitization and smart solutions, and the increasing focus on sustainability, we already offer sustainable, highly efficient products that are in line with the 2030 Vision of the Kingdom,” Rachad Abdallah, Head of Marketing and Quality at Arabian Air-Conditioning Company, exclusive distributor of Carrier in Saudi Arabia, and a subsidiary of United Technologies Corp, commented.
Carrier, a world leader in high-technology heating, air-conditioning and refrigeration solutions, will be exhibiting its latest products at HVAC R Expo 2017: “Carrier was proud to participate as Platinum sponsor in 2016, and will once again commit to this event at the same level,” Mr. Abdallah announced. “HVAC R Expo Saudi is a major event in Saudi Arabia allowing for industry leaders to present their latest innovations and keeping the market updated on trends and regulations. It also provides a platform for collaboration and discussion on the challenges and opportunities the industry is facing with special focus on Saudi market.”
The largest event in Saudi Arabia dedicated to the heating, ventilation, air conditioning and refrigeration will also provide an unprecedented educational offer of 16 CPD certified and free to attend workshops. Delivered by industry experts, the workshops will unveil latest insights and best practices in the HVACR sector.
The ‘Saudi Arabia HVACR Market Outlook 2021’ by TechSci Research is now available at www.hvacrexposaudi.com.