Saudi HVACR market to grow 13% in next five years
The Saudi refrigeration market is expected to grow nearly 13% in the next five years
The Saudi refrigeration market is expected to grow nearly 13% in the next five years, according to a new report.
Currently valued at $3.2bn, Saudi Arabia’s HVACR market is mostly driven by key developments such as airports, metros, and housing projects as well as an increased demand for smarter solutions and products, highlights the ‘Saudi Arabia HVACR Market Outlook 2021’ report by TechSci Research.
The kingdom’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.
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 $80bn.
“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,” added Abou Ltaif.
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.
According to the report, this is why district cooling technology is currently 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.”
Hosted from 15-17 January at Jeddah Centre for Forums & Events, HVACR Expo Saudi 2017 will explore current trends, challenges and opportunities in the Kingdom’s growing HVACR market.