Report Overview

Middle East and Africa Air Conditioner Market - Industry Trends & Forecast Report, 2029

Middle East and Africa air conditioner market size was estimated at USD 5.08 billion in 2022. During the forecast period between 2023 and 2029, the size of Middle East and Africa air conditioner market is projected to grow at a CAGR of 7.73% reaching a value of USD 7.94 billion by 2029. Major growth drivers for the Middle East and Africa air conditioner market include the rising temperatures, urbanization, and an increase in construction and infrastructure projects. The demand for air conditioning systems in this region is largely driven by the need to cope with high temperatures and create comfortable indoor environments. Notably, COVID-19 pandemic has affected the industry as people spend more time at home and invest in home appliances, including air conditioners, to improve living conditions. The commercial sector in the Middle East and Africa, particularly in hospitality, healthcare, and retail, is witnessing a surge in demand for air conditioning units, driving market expansion. Consumers in the region are increasingly seeking energy-efficient and eco-friendly air conditioning systems due to environmental concerns, spurring manufacturers to develop more efficient models. Also, the rapid expansion of homeownership across the continent, particularly in well-established nations such as South Africa, Kenya, and Nigeria, has spurred a heightened demand for air conditioning systems. Another driving force is the impacts of climate change and a rising trend towards enhanced lifestyles. Innovations and improvements in the power grid system are also contributing to the growth of the African air conditioner market. According to projections from the International Energy Agency, there is an expected tenfold increase in electricity demand for air conditioners in Africa by 2040, providing a clear indication of the upward trajectory expected during the forecast period.

Middle East and Africa Air Conditioner Market – Overview

The Middle East and Africa (MEA) air conditioner market refers to the collective market for air conditioning systems and units within the countries in the MEA region. The market includes the production, distribution, and sale of various types of air conditioning equipment, such as split air conditioners, window air conditioners, central air conditioning systems, portable air conditioners, and related components. It also encompasses the demand for these systems in both residential and commercial applications, taking into account factors like climate conditions, urbanization, energy efficiency, and technological advancements. The MEA air conditioner market is influenced by various drivers, trends, and challenges, making it an important sector within the broader HVAC (Heating, Ventilation, and Air Conditioning) industry.

Middle East and Africa Air Conditioner Market

Growth Drivers

Growing Population and Rapid Urbanization

The Middle East and Africa air conditioner market is experiencing significant growth due to a burgeoning population and rapid urbanization. As more people migrate to urban centers in the region, the demand for air conditioning units in residential buildings, commercial spaces, and public infrastructure has surged. The sweltering climate and extreme heat in many areas have made air conditioners a necessity, further fueling market growth. Additionally, the rise in smart home technology integration, increased awareness of energy-efficient solutions, and the adoption of eco-friendly air conditioning systems are contributing factors. This burgeoning market is poised to continue its upward trajectory as urbanization and population growth persist.

Restraints

High Cost of Air Conditioners

The high cost of air conditioners serves as a significant restraint to the growth of the Middle East and Africa air conditioner market. While the demand for cooling solutions is substantial due to the region's scorching climate, the cost of acquiring and installing air conditioning systems remains a challenge for many consumers. This financial barrier affects both residential and commercial sectors, limiting widespread adoption. Additionally, the ongoing economic challenges and disparities across the Middle East and Africa contribute to affordability concerns. Manufacturers and policymakers are increasingly exploring cost-effective and energy-efficient alternatives to address this hurdle and promote broader market expansion.

Impact of COVID-19 on Middle East and Africa Air Conditioner Market

COVID-19 pandemic adversely affected the Middle East and Africa air conditioner market. Stringent nationwide lockdowns resulted in a significant drop in both the sales and production of air conditioning systems across the region. The tourism industry, a key catalyst for air conditioner demand, experienced a decline due to reduced construction activities and limited operation of hospitality and retail businesses. Consequently, the Middle East and Africa's air conditioner market witnessed a notable downturn, mirroring the broader economic repercussions of the pandemic. This impact highlights the intricate connection between regional economies and the air conditioning industry in the midst of a global health crisis.

Escalating Geopolitical Tensions Could Adversely Affect Market Growth

Effects of the prolonging Israel-Hamas war and resulting increase in the geopolitical tension across the Middle East could significantly affect the growth of the Middle East and Africa air conditioner market. The significant threat to the market is primarily driven by uncertainties and instability in the region. The continuous raging conflict creates an atmosphere of unpredictability, impacting consumer behaviors and market dynamics. Uncertainty surrounding the situation can lead to cautious spending and investment decisions, affecting the air conditioner market's performance. Additionally, the instability in the Middle East region can disrupt supply chains, potentially leading to delays in product availability and increased costs. Moreover, the war's aftermath may require reconstruction efforts, potentially driving demand for air conditioning systems in affected areas. The extent of these effects depends on the conflict's duration and its impact on the overall stability of the region.

Middle East and Africa Air Conditioner Market

Segmental Coverage

Middle East and Africa Air Conditioner Market – By Product Type

By product type, the Middle East and Africa air conditioner market is divided into Window, Split & Multi Split Packaged Air Conditioner (PAC), Variable Refrigerant Flow (VRF), and Others (Chillers and Portables) segments. The split & multi split PAC segment holds the highest share in the Middle East and Africa air conditioner market by product type due to its adaptability to the region's diverse needs. These systems offer a flexible solution for both residential and commercial spaces, catering to varying room sizes and cooling requirements. The split design, with indoor and outdoor units, is well-suited for the often-scorching climate, allowing for efficient cooling while maintaining aesthetics. Also, these systems are known for their energy efficiency and ease of installation, essential factors in a region striving for sustainability. The split and multi-split packaged air conditioners are preferred for their versatility, energy efficiency, and reliable performance, making them the preferred choice across the Middle East and Africa.

Middle East and Africa Air Conditioner Market – By End User

On the basis of end user, the Middle East and Africa air conditioner market is bifurcated into Residential and Commercial segments. The commercial end-user segment holds a higher share in the Middle East and Africa air conditioner market. The rapid growth of the commercial sector in the region, including industries such as hospitality, healthcare, and retail, has propelled the demand for air conditioning units. The construction of hotels, malls, hospitals, and various commercial spaces necessitates efficient cooling solutions. Notably, the increasing number of commercial buildings and offices, driven by urbanization and economic development, further boosts the demand for air conditioners. Also, the adoption of energy-efficient and eco-friendly cooling systems is becoming imperative for businesses, aligning with the region's growing environmental awareness and sustainability initiatives, thus favoring the commercial segment.

Middle East and Africa Air Conditioner Market – By Distribution Channel

Based on distribution channel, the Middle East and Africa air conditioner market is divided into Multi-brand Stores, Exclusive Stores, and Online segments. The multi-brand stores segment held the highest share in the Middle East and Africa air conditioner market by distribution channel. These stores typically offer a wide range of air conditioner brands, models, and price points, catering to diverse customer preferences and budgets. This flexibility makes multi-brand stores a popular choice for consumers seeking various options and features. Also, consumers in the Middle East and Africa often value in-person shopping experiences and the ability to physically assess products, which multi-brand stores provide. This, coupled with the convenience of having multiple choices in one location, has contributed to the segment's leading market share.

Middle East and Africa Air Conditioner Market – By Country

Geographically, the Middle East and Africa air conditioner market is segmented as Saudi Arabia, UAE, Qatar, Kuwait, South Africa, Nigeria, Algeria, and Rest of MEA. Saudi Arabia holds the highest share in the Middle East and Africa air conditioner market. The scorching desert climate in the region necessitates widespread air conditioning usage, both in residential and commercial spaces. Notably, the country's strong economic growth and urbanization have increased the demand for cooling solutions, particularly in the construction of new buildings and infrastructure. Also, government initiatives and regulations promoting energy efficiency and the adoption of eco-friendly cooling technologies further drive market growth. Saudi Arabia's pivotal role in the regional market is a reflection of these factors, making it a key contributor to the industry's dominance in the region.

Competitive Landscape

Major players operating in the Middle East and Africa air conditioner market include Voltas Limited, LG Electronics, Samsung Electronics, Daikin Industries, Gree Electric Appliances, Midea Group, Panasonic Corporation, Haier Group, Hisense Group, TCL Corporation, Carrier Corporation, Toshiba Corporation, Mitsubishi Electric Corporation, Electrolux AB, Bosch Group, Siemens AG, and Whirlpool Corporation. 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 June 2023 - LG Electronics, a major player in the electronics industry, embarked on a proactive quest for new business opportunities in emerging markets, expanding beyond its established presence in North America and Europe. CEO Cho Joo-wan's visit to Saudi Arabia and India from June 1 to 7 marked a strategic move. He explored potential collaborations with local subsidiaries in Saudi Arabia, particularly concerning the Neom smart city project, which received massive investments.

• In May 2023 - Panasonic announced an accelerated growth strategy for the Middle East and Africa, targeting double-digit revenue growth for 2023. The company launched the Nanoe-X and R32 refrigerant Residential Air Conditioner range.

• In October 2022 - Daikin, a global HVAC-R solutions manufacturer, is committed to expanding its presence in the Middle East and Africa (MEA) as part of its Fusion25 growth plan. The focus is on sustainability and localization, delivering innovative and sustainable solutions for residential, commercial, and industrial applications. Daikin has established entities and sales offices in key MEA locations, with a network of distributors. It opened a new manufacturing facility in Saudi Arabia and a training center in Nigeria to support local markets. Daikin is dedicated to reducing carbon emissions, with a goal of carbon neutrality by 2050.

Scope of the Report

By Product Type

• Window

• Split & Multi Split

• Packaged Air Conditioner (PAC)

• Variable Refrigerant Flow (VRF)

• Others (Chillers & Portables)

By End User

• Residential

• Commercial

By Distribution Channel

• Multi-brand Stores

• Exclusive Stores

• Online

By Country

• Saudi Arabia

• UAE

• Qatar

• Kuwait

• South Africa

• Nigeria

• Algeria

• Rest of MEA

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Middle East and Africa Air Conditioner Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Hot and humid climate in the region
         2. Growing population and urbanization
      2. Restraints
         1. High cost of air conditioners
         2. High energy consumption
      3. Opportunities
         1. Growing demand for energy-efficient air conditioners
         2. Growing demand for smart air conditioners
      4. Challenges
         1. Counterfeit products
         2. Lack of skilled workers
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Middle East and Africa Air Conditioner Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share and Forecast
      1. By Product Type
         1. Window
         2. Split & Multi Split
         3. Packaged Air Conditioner (PAC)
         4. Variable Refrigerant Flow (VRF)
         5. Others (Chillers & Portables)
      2. By End User
         1. Residential
         2. Commercial
      3. By Distribution Channel
         1. Multi-brand Stores
         2. Exclusive Stores
         3. Online
         4. Others
      4. By Country
         1. Saudi Arabia
         2. UAE
         3. Qatar
         4. Kuwait
         5. South Africa
         6. Nigeria
         7. Algeria
         8. Rest of MEA
5. Saudi Arabia Air Conditioner Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By End User
      3. By Distribution Channel
6. UAE Air Conditioner Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By End User
      3. By Distribution Channel
7. Qatar Air Conditioner Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By End User
      3. By Distribution Channel
8. Kuwait Air Conditioner Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By End User
      3. By Distribution Channel
9. South Africa Air Conditioner Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By End User
      3. By Distribution Channel
10. Nigeria Air Conditioner Market
    1. Market Size & Forecast, 2019–2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Product Type
       2. By End User
       3. By Distribution Channel
11. Algeria Air Conditioner Market
    1. Market Size & Forecast, 2019–2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Product Type
       2. By End User
       3. By Distribution Channel
12. Rest of MEA Air Conditioner Market
    1. Market Size & Forecast, 2019–2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Product Type
       2. By End User
       3. By Distribution Channel
13. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Middle East and Africa Air Conditioner Market Share Analysis, 2022
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
14. Impact of Covid-19 on Middle East and Africa Air Conditioner Market
15. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Voltas Limited
    2. LG Electronics
    3. Samsung Electronics
    4. Daikin Industries
    5. Gree Electric Appliances
    6. Midea Group
    7. Panasonic Corporation
    8. Haier Group
    9. Hisense Group
    10. TCL Corporation
    11. Carrier Corporation
    12. Toshiba Corporation
    13. Mitsubishi Electric Corporation
    14. Electrolux AB
    15. Bosch Group
    16. Siemens AG
    17. Whirlpool Corporation
    18. Other Prominent Players
16. Key Strategic Recommendations
17. Research Methodology
    1.   Qualitative Research
       1.  Primary & Secondary Research
    2.   Quantitative Research
    3.   Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.   Breakdown of Primary Research Respondents, By Region
    5.   Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Middle East and Africa Air Conditioner Market Segmentation

Figure 2       Middle East and Africa Air Conditioner Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Middle East and Africa Air Conditioner Market Size, By Value (USD Billion), 2019–2029

Figure 5       Middle East and Africa Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Figure 6       Middle East and Africa Air Conditioner Market Share, By End User, By Value, 2019–2029

Figure 7       Middle East and Africa Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Figure 8       Middle East and Africa Air Conditioner Market Share, By Country, By Value, 2019–2029

Figure 9       Saudi Arabia Air Conditioner Market Size, By Value (USD Billion), 2019–2029

Figure 10     Saudi Arabia Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Figure 11     Saudi Arabia Air Conditioner Market Share, By End User, By Value, 2019–2029

Figure 12     Saudi Arabia Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Figure 13     UAE Air Conditioner Market Size, By Value (USD Billion), 2019–2029

Figure 14     UAE Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Figure 15     UAE Air Conditioner Market Share, By End User, By Value, 2019–2029

Figure 16     UAE Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Figure 17     Qatar Air Conditioner Market Size, By Value (USD Billion), 2019–2029

Figure 18     Qatar Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Figure 19     Qatar Air Conditioner Market Share, By End User, By Value, 2019–2029

Figure 20     Qatar Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Figure 21     Kuwait Air Conditioner Market Size, By Value (USD Billion), 2019–2029

Figure 22     Kuwait Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Figure 23     Kuwait Air Conditioner Market Share, By End User, By Value, 2019–2029

Figure 24     Kuwait Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Figure 25     South Africa Air Conditioner Market Size, By Value (USD Billion), 2019–2029

Figure 26     South Africa Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Figure 27     South Africa Air Conditioner Market Share, By End User, By Value, 2019–2029

Figure 28     South Africa Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Figure 29     Nigeria Air Conditioner Market Size, By Value (USD Billion), 2019–2029

Figure 30     Nigeria Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Figure 31     Nigeria Air Conditioner Market Share, By End User, By Value, 2019–2029

Figure 32     Nigeria Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Figure 33     Algeria Air Conditioner Market Size, By Value (USD Billion), 2019–2029

Figure 34     Algeria Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Figure 35     Algeria Air Conditioner Market Share, By End User, By Value, 2019–2029

Figure 36     Algeria Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2030

Figure 37     Rest of MEA Air Conditioner Market Size, By Value (USD Billion), 2019–2029

Figure 38     Rest of MEA Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Figure 39     Rest of MEA Air Conditioner Market Share, By End User, By Value, 2019–2029

Figure 40     Rest of MEA Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

List of Tables

Table 1 Middle East and Africa Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Table 2 Middle East and Africa Air Conditioner Market Share, By End User, By Value, 2019–2029

Table 3 Middle East and Africa Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Table 4 Middle East and Africa Air Conditioner Market Share, By Country, By Value, 2019–2029

Table 5 Saudi Arabia Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Table 6 Saudi Arabia Air Conditioner Market Share, By End User, By Value, 2019–2029

Table 7 Saudi Arabia Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Table 8 UAE Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Table 9 UAE Air Conditioner Market Share, By End User, By Value, 2019–2029

Table 10      UAE Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Table 11      Qatar Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Table 12      Qatar Air Conditioner Market Share, By End User, By Value, 2019–2029

Table 13      Qatar Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Table 14      Kuwait Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Table 15      Kuwait Air Conditioner Market Share, By End User, By Value, 2019–2029

Table 16      Kuwait Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Table 17      South Africa Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Table 18      South Africa Air Conditioner Market Share, By End User, By Value, 2019–2029

Table 19      South Africa Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Table 20      Nigeria Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Table 21      Nigeria Air Conditioner Market Share, By End User, By Value, 2019–2029

Table 22      Nigeria Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Table 23      Algeria Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Table 24      Algeria Air Conditioner Market Share, By End User, By Value, 2019–2029

Table 25      Algeria Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2030

Table 26      Rest of MEA Air Conditioner Market Share, By Product Type, By Value, 2019–2029

Table 27      Rest of MEA Air Conditioner Market Share, By End User, By Value, 2019–2029

Table 28      Rest of MEA Air Conditioner Market Share, By Distribution Channel, By Value, 2019–2029

Table 29      Voltas Limited Company Overview

Table 30      Voltas Limited Financial Overview

Table 31      LG Electronics Company Overview

Table 32      LG Electronics Financial Overview

Table 33      Samsung Electronics Company Overview

Table 34      Samsung Electronics Financial Overview

Table 35      Daikin Industries Company Overview

Table 36      Daikin Industries Financial Overview

Table 37      Gree Electric Appliances Company Overview

Table 38      Gree Electric Appliances Financial Overview

Table 39      Midea Group Company Overview

Table 40      Midea Group Financial Overview

Table 41      Panasonic Corporation Company Overview

Table 42      Panasonic Corporation Financial Overview

Table 43      Haier Group Company Overview

Table 44      Haier Group Financial Overview

Table 45      Hisense Group Company Overview

Table 46      Hisense Group Financial Overview

Table 47      TCL Corporation Company Overview

Table 48      TCL Corporation Financial Overview

Table 49      Carrier Corporation Company Overview

Table 50      Carrier Corporation Financial Overview

Table 51      Bosch Group Company Overview

Table 52      Bosch Group Financial Overview

Table 53      Siemens AG Company Overview

Table 54      Siemens AG Financial Overview

Table 55      Other Prominent Players Company Overview

Table 56      Other Prominent Players Financial Overview