With a current value of $3.2 billion (£2.5 billion), Saudi Arabia’s HVACR (heating, ventilation, air conditioning and refrigeration) market is expected to grow steadily over the next five years, according to the ‘Saudi Arabia HVACR Market Outlook 2021’ by TechSci Research.
In the report, commissioned by HVACR Expo Saudi, Saudi Arabia’s largest dedicated indoor climate and refrigeration event, figures show that between 2011 and 2015, Saudi Arabia’s HVACR market grew at a healthy compound annual growth rate (CAGR) of more than 13 per cent. Whilst the long duration of summers and the high temperature throughout the year are major factors boosting HVACR systems’ sales in the country, a rapidly growing population, increasing urbanisation and religious tourism are also 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.
Firas Abou Ltaif, HVACR Expo Saudi project manager, commented:
“The demand for HVAC equipment in Saudi Arabia will keep growing steadily, boosted by the Government’s construction projects valued at around $80 billion (£64.5 billion). Saudi Arabia’s construction sector is already one of the largest global markets in value terms, contributing to around eight per cent of the national GDP. According to the report, it is expected to grow at 7.8 per cent between 2016 and 2021.”
The report also revealed the refrigeration market grew at a CAGR of around 11.80 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 per cent 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 per cent less power compared to regular HVAC systems, while providing better cooling.
Abou Ltaif sent out a stark warning, he said:
“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. This is why, district cooling is not only feasible in this country: it is necessary.”
The largest event in Saudi Arabia dedicated to the heating, ventilation, air conditioning and refrigeration, HVACR Expo Saudi 2017, will be held at the Jeddah Centre for Forums & Events from 15-17 January 2017, and will explore current trends, challenges and opportunities in the Kingdom’s growing HVACR market.