Saudi Arabia’s HVACR (heating, ventilation, air-conditioning and refrigeration) market is poised for solid growth over the next five years mainly driven by $80 billion Saudi construction boom, said a report.
Saudi Arabia features amongst the leading markets for air conditioners across the globe.
The long duration of summers and the high temperature throughout the year are not the only factors boosting the sector's sales in the country. A rapidly growing population, increasing urbanisation and religious tourism are also driving the upward trend, stated the report by leading research firm TechSci Research.
Currently valued at $3.2 billion, the kingdom's HVAC market is expected to grow steadily by 2021, said TechSci Research in its ‘Saudi Arabia HVACR Market Outlook 2021.’
The report was commissioned by HVACR Expo Saudi, the country's largest dedicated indoor climate and refrigeration event, to be held from January 15 to 17 at Jeddah Centre for Forums & Events.
Organised by dmg events Middle East, Asia & Africa, the expo will see experts discuss the current trends, challenges and opportunities in the kingdom’s growing HVACR market. It is expected to draw 3,500 visitors and industry peers.
Between 2011 and 2015, Saudi Arabia’s HVACR market grew at a healthy CAGR (compound annual growth rate) of more than 13 per cent, stated the report commissioned by HVACR Expo Saudi, the largest dedicated indoor climate and refrigeration event in the kingdom.
"The demand for HVAC equipment in Saudi Arabia will keep growing steadily, driven by the construction boom," remarked Firas Abou Ltaif, the expo manager.
Saudi Arabia’s construction sector is already one of the largest global markets in value terms, contributing to around 8 per cent of the national GDP and is expected to grow at 7.8 per cent between 2016 and 2021, stated Abou Ltaif.
According to the report, the refrigeration market grew at a CAGR of around 11.8 per cent during 2010-14, and is projected to grow at a CAGR of around 12.27 per cent 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.
“Currently, about 70 per cent 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,” stated Abou Ltaif.
"This is why, district cooling is not only feasible in this country: it is necessary," he added.
According to him, HVACR Expo Saudi addresses the need for a dedicated, focused event, offering products, training and education solutions for the entire industry.
The largest event in Saudi Arabia dedicated to the heating, ventilation, air conditioning and refrigeration will 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.
More than 80 local and international companies will be showcasing their 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.
Rachad Abdallah, the head of marketing and quality at Arabian Air-Conditioning Company, exclusive distributor of Carrier in Saudi Arabia, pointed out that the Saudi market presented 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," remarked Abdallah.
Carrier, a world leader in high-technology heating, air-conditioning and refrigeration solutions and a subsidiary of United Technologies Corp, will be exhibiting its latest products at the expo.
"We were proud to participate as Platinum sponsor in 2016, and will once again commit to this event at the same level," said Abdallah.
"HVACR 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," he added
Copyright 2021 Al Hilal Publishing and Marketing Group