The report by TechSci Research stated that valued at $3.2 billion currently, the kingdom's HVAC market is expected to grow steadily by 2021, according to TradeArabia News Service.
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 ‘Saudi Arabia HVACR Market Outlook 2021’ report.
Saudi Arabia features among leading markets for air-conditioners across the globe. Between 2011 and 2015, the country's HVACR market grew at a healthy CAGR (compound annual growth rate) of more than 13%.
Saudi Arabia’s construction sector is already one of the largest global markets in value terms, contributing to around 8% of the national GDP (gross domestic product) and is expected to grow at 7.8% between 2016 and 2021.
According to the report, the refrigeration market grew at a CAGR of around 11.8% 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.
“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 a million new homes are needed to meet Saudi Arabia’s growing population demand,” stated Firas Abou Ltaif, Expo Manager of the HVACR Expo Saudi. "This is why district cooling is not only feasible in this country: it is necessary."
The report was commissioned by HVACR Expo Saudi which is the country's largest dedicated indoor climate and refrigeration event. It will be held from January 15-17 at the Jeddah Centre for Forums & Events.