Report Overview

Increasing disposable income and growing urbanization are expected to boost the growth of the Egypt air conditioner market during the forecast period between 2023 and 2029.

Egypt Air Conditioner Market - Industry Trends & Forecast Report, 2029

Egypt air conditioner market size was estimated to be worth USD 1.06 billion in 2022. During the forecast period between 2023 and 2029, the Egypt air conditioner market size is projected to grow at a CAGR of 6.78%, reaching a value of USD 1.58 billion by 2029. Major growth factors for the Egypt air conditioner market include changing climate patterns in the region along with the increasing disposable income of the consumers. Furthermore, the increasing number of commercial and residential buildings owing to infrastructural development is also projected to fuel the Egypt air conditioner market growth during the forecast period.

Egypt Air Conditioner Market – Overview

An air conditioner is a device or system that lowers the temperature and regulates humidity in a confined room. These air conditioners do this via a variety of techniques, including passive cooling and ventilative cooling. They come in a range of sizes, from small models that are often used in cars and single rooms to larger models that are used to cool enormous buildings. There are several varieties of air conditioners available, including portable units, ducted central systems, mini-split, and multi-split systems.

Egypt Air Conditioner Market

Growth Drivers

Expanding Domestic Production of Air Conditioners

With the growing potential of the Egyptian air conditioner market and supply chain disruption during the COVID-19 pandemic, many private brands, particularly from China, are starting to invest in the market by establishing domestic production plants and facilities. Haier Smart Home intends to spend USD 130 million building a 200,000-square-meter complex in Cairo that will be completed in early 2024. Egypt's Elaraby Group and Taiwan's Rechi Precision Company have agreed to form a joint venture in order to build an air conditioning (AC) compressor factory in the country.

Restraints

High Cost of Air Conditioners

The average cost of air conditioners in Egypt ranges from around EGP 4,500 (approximately USD 145) to EGP 20,000 (approximately USD 650) and more. On top of the initial cost of the air conditioner, consumers have to bear the overhead charges, including periodic maintenance. The increase in raw material costs brought on by higher fuel prices, as well as component shortages, commodity price inflation, and supply chain disruption, have a direct impact on the cost of air conditioners in the nation. According to Time News, the demand for air conditioners is expanding but is only highly concentrated among the upper and middle-income group consumers. Such factors may limit the growth of the Egypt air conditioner market.

Impact of COVID-19 on the Egypt Air Conditioner Market

The unprecedented COVID-19 pandemic hampered the growth of Egypt's air conditioner market. The region is primarily dependent on imports, particularly from mainland China, to meet its local demand for air conditioners in the country. However, a temporary halt in China's manufacturing operations and supply chain disruptions negatively impacted market growth. Furthermore, the loss of jobs during the COVID-19 pandemic affected the purchasing power of Egyptian consumers, which limited the overall market growth during the period. However, the restrictions on international trade increased the local manufacturing market for air conditioners, which is anticipated to boost the overall market growth during the post-COVID-19 period.

Egypt Air Conditioner Market

Segmental Coverage

Egypt Air Conditioner Market – By Product Type

Based on product type, the Egypt air conditioner market is divided into splits, windows, VRF, chillers, and others (cassettes and ductable splits). The splits segment accounts for the highest share in the market and are projected to register a high growth rate during the forecast period as well. The growth of this segment is attributed to its higher energy efficiency than other types of temperature control systems, as well as the fact that they operate quietly and use less electricity.

Egypt Air Conditioner Market – By End User

Based on end user, the Egypt air conditioner market is segmented into residential, commercial, and industrial. The residential segment dominates the Egypt air conditioner market owing to the climate of the region. Egypt's weather is often hot, dry, and desert-dominated, with summer temperatures frequently reaching above 34°C (92°F). Furthermore, the increasing disposable income of consumers is further influencing the demand for air conditioners in the region. However, the commercial segment is projected to gain significant traction during the forecast period as well.

Competitive Landscape

Major players operating in the Egypt air conditioner market include Beko, Haier, Gree, Chigo, Samsung, LG, Voltas, Blue Star, Carrier, and TOYOTOMI. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2023 - Haier, a home appliance and consumer electronics company based in China, inaugurated Haier Egypt Ecological Park, its first Egyptian factory to manufacture consumer goods, including air conditioners.

Scope of the Report

By Product Type

• Splits

• Windows

• VRF

• Chillers

• Others (Cassette, Ductable Splits)

By End User

• Residential

• Commercial

• Industrial