The air-conditioning market in the Kingdom is poised to exceed SR9.37 billion ($2.5 billion) annually by 2019, local media said quoting a report released by a global research firm.
The report comes at a time when demand for air-conditioners in the Saudi market has witnessed a significant growth. In 2013, the Kingdom imported from China and Thailand nearly 2.4 million A/C units for the value of SR2.7 billion, Al-Eqtisadiah daily said.
The report — Saudi Arabia Air-Conditioner Market Forecast & Opportunities, 2019 — said that centralized air-conditioning units, such as chillers and VRFs, are expected to gain stronger foothold in the Kingdom’s markets over the next five years.
However, the share of window air-conditioners is expected to witness a decline during the same period, the report said. The rising numbers of housing units, expansion of commercial and institutional spaces, and extreme climatic conditions are the major growth drivers for the country’s air-conditioner market.
In Saudi Arabia, summers stretch to around nine months in a year with maximum temperatures reaching 55°C in some parts of the country, according to the report.
Mega developmental projects announced by the government and private companies, such as educational institutions, hotels, office spaces, and expansion and development of cities in the country, are expected to create a lucrative market for air-conditioner manufacturers and suppliers over the next five years, the report said.
The rapidly expanding affluent population base in the country is increasingly opting for luxury housing units, which is boosting the demand for centralized air-conditioning units in the country’s residential sector. In addition, the booming hospitality and tourism industry in the country is also anticipated to trigger the demand for air-conditioners in Saudi Arabia during 2014-2019, it said.
"Major Saudi cities such as Makkah, Riyadh and Jeddah are witnessing rapid infrastructural development, thereby providing a huge growth opportunity for air-conditioner companies to offer complete air-conditioning solutions to their customers in these cities,” said Karan Chechi, Research Director with TechSci Research.
Moreover, as Saudi Arabia experiences very hot climate for the majority of the year, the air-conditioner has become more of a necessity than a luxury item, and with growing income levels, the demand would continue to grow over the next five years, Chechi added.
Saudi air-conditioning market poised to exceed SR9.37bn by 2019
