Report Overview

Saudi Arabia Air Conditioner Market- Industry Trends & Forecast Report 2028

The Saudi Arabia air conditioner market is anticipated to grow at the CAGR of 4.0% in the forecast period. The prevailing hot climatic conditions of Saudi Arabia and its impact on health of the citizens are emerging as the major driving factor for the market growth. Furthermore, the high disposable income of the consumers in this region along with increasing number of residential and commercial buildings is anticipated to fuel the market growth in this region.

Air Conditioner - Overview

An air conditioner is a system or device which removes the heat and controls the humidity in an enclosed space. These air conditioners use various methods such as passive cooling and ventilative cooling for the purpose. They come in various sizes such as small units that are most commonly used in vehicles and single rooms, and massive units that are used for cooling large buildings. There are different types of air conditioners available such as mini-split and multi-split systems, ducted central systems, portable units, etc.

Saudi Arabia Air Conditioner Market Forecast and Trends

Growth Drivers

Harsh Climatic Conditions of Saudi Arabia

Since Saudi Arabia is a desert region, it shows a semi-arid climate. According to the Climate Knowledge Portal, summers in Saudi are extremely hot and dry, with temperatures ranging from 27°C to 38° C in coastal areas. However, the temperature of its dessert can also rise up to 55°C in the summer. Due to this, most, if not every, house and commercial facilities are equipped with air conditioners, which is significantly driving the growth of the Saudi Arabia air conditioner market.

Increasing Launches of New Products

The air conditioners companies are increasingly launching new products in this region owing to the high demand for these consumers' good products in this market. This is allowing consumers to access a wide range of products with different features along with keeping the price competitive. The companies are also integrating advanced technologies such as IoT, AI, Wi-Fi technology, remote controlling technology, self-cleaning features, etc. These factors are anticipated to drive the market growth in the forecast period.

Restraints

High Maintenance Cost of Air Conditioners

The price of air conditioners system used at homes ranges around USD 300 to USD 1,000 in Saudi Arabia, which is already high in itself. However, the maintenance costs that come along with it act as a huge restraining factor for the Saudi Arabia air conditioners market. The chances of mechanical failures are extremely high. It can cause coil problems, cracks, leaks in ventilation and pipe, cooling fan failure, etc., which will demand component change and professional services.

Impact of COVID-19 on Saudi Arabia Air Conditioner Market

The Saudi Arabia air conditioner market was negatively impacted by the unprecedented COVID-19 pandemic outbreak. This is because the major distribution channels for multi-brand stores and exclusive stores were closed during the lockdown period. The imports of air conditioners were also temporarily halted due to government regulations and domestic production was also hindered. Furthermore, the lowering of the purchasing power of consumers due to economic distress that the pandemic brought upon the country also contributed to the restricted growth of the Saudi Arabia air conditioner market.

Saudi Arabia Air Conditioner Market - By Product

Based on product, the Saudi Arabia air conditioner market is segmented into the window, split and multi-split, packaged air conditioner (PAC), variable refrigerant flow (VRF), and others. The split and multi-split systems account for the largest market share. These systems are divided into two individual units; one indoor and one outdoor. The split and multi-split systems are most prominently used in residential sectors, which is propelling its market growth.

Saudi Arabia Air Conditioner Market - By Distribution Channel

Based on the distribution channel, the Saudi Arabia air conditioner market is segmented into multi-brand stores, exclusive stores, online, and other channels. The multi-brand stores hold the largest share in the market owing to the availability of a wide range of products of various brands. The consumers can visit the site to check price and compare them with products having other features according to their needs. However, the online sales channels are projected to register the highest growth rate post the COVID-19 period.

Saudi Arabia Air Conditioner Market - By End-User

Based on end-user, the Saudi Arabia air conditioner market is segmented into residential and commercial. The residential segment accounts for the largest market share in the Saudi Arabia air conditioner market. This is because of the hot climatic conditions of this region along with the high purchasing power of consumers. However, the commercial segment is also witnessing substantial growth owing to the increasing investment in commercial facilities such as hotels, shopping malls, office buildings, etc.

Competitive Landscape

The leading market players of the Saudi Arabia air conditioner market are AHI Carrier FZC, Airedale Air Conditioning, Al Salem Johnson Controls (York), Zamil Air Conditioner (ZAC), Daikin Air Conditioning Saudi Arabia LLC, Samsung Saudi Arabia, Fujitsu General (Middle East) FZE, S.K.M Air Conditioning LLC, LG Electronics Gulf FZE, and other prominent players.

The market is slightly consolidated with the presence of both multinational corporations and regional players. However, the consumers are more inclined towards multinational corporations such as LG and Samsung due to their longer warranties and higher quality. The companies constantly launch new products to grab consumer attention. They also significantly invest in advertising and marketing to create brand awareness. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Recent Development

• In May 2021, LG Electronics and Al Hassan Ghazi Ibrahim Shaker Co., a Saudi Arabian air conditioner wholesaler and manufacturer company, announced their joint venture for new investment in an air conditioner (AC) production facility in Riyadh, Saudi Arabia.

Scope of the Report

By Product Type

• Window
• Split and Multi-Split
• Packaged Air Conditioner (PAC)
• Variable Refrigerant Flow (VRF)
• Others

By Distribution Channel

• Multi-brand Stores
• Exclusive Stores
• Online
• Other Channels

By End User

• Residential
• Commercial

1. Research Framework
   1. Research Objective
   2. Type Overview
   3. Market Segmentation
2. 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. Assumption & Limitation
3. Executive Summary
4. Saudi Arabia Air Conditioner Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   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
5. Saudi Arabia Air Conditioner Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Window AC
         2. Split AC
         3. Floor Standing AC
         4. Cassette AC
         5. Others
      2. By Application
         1. Residential
         2. Commercial Building
         3. Retail
         4. Healthcare
         5. Hospitality
         6. Others
      3. By Region
         1. Northern Saudi Arabia
         2. Southern Saudi Arabia
         3. Eastern Saudi Arabia
         4. Western Saudi Arabia
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership.)
7. Impact of COVID-19 on Saudi Arabia Air Conditioner Market Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
   1. LG - Shaker Co. Ltd
   2. Fujitsu General (Middle East) FZE
   3. Carrier Saudi Services Company Ltd
   4. S.K.M. Air Conditioning LLC
   5. Al Salem Johnson Control (York)
   6. GREE - BASIC ELECTRONICS COMPANY LTD.
   7. Daikin Air Conditioning Saudi Arabia LLC
   8. Zamil Air Conditioner Holding Company Ltd.
   9. Dallah Trading Co. (Trane)
   10. Petra Engineering Industries
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1     Saudi Arabia Air Conditioner Segmentation

Figure 2     Saudi Arabia Air Conditioner Market Value Chain Analysis

Figure 3     Porter’s Five Forces Analysis

Figure 4     Company Market Share Analysis, 2021

Figure 5     Saudi Arabia Air Conditioner Market Size, By Value (USD Million), 2018-2028

Figure 6     Saudi Arabia Air Conditioner Market Size, By Volume (Thousand Units), 2018-2028

Figure 7     Saudi Arabia Air Conditioner Market Share, By Type, By Value, 2018-2028

Figure 8     Saudi Arabia Air Conditioner Market Share, By Type, By Volume, 2018-2028

Figure 9     Saudi Arabia Air Conditioner Market Share, By Application, By Value, 2018-2028

Figure 10   Saudi Arabia Air Conditioner Market Share, By Application, By Volume, 2018-2028

Figure 11   Saudi Arabia Air Conditioner Market Share, By Region, By Value, 2018-2028

Figure 12   Saudi Arabia Air Conditioner Market Share, By Region, By Volume, 2018-2028

List of Tables

Table 1      Saudi Arabia Air Conditioner Market Size, By Type, By Value, 2018-2028

Table 2      Saudi Arabia Air Conditioner Market Size, By Type, By Volume, 2018-2028

Table 3      Saudi Arabia Air Conditioner Market Size, By Application Industry, By Value, 2018-2028

Table 4      Saudi Arabia Air Conditioner Market Size, By Application Industry, By Volume, 2018-2028

Table 5      Key Players and their Offerings

Table 6      Competitive Benchmarking, By Operating Parameters

Table 7      Merger Acquisition, Partnership, Joint-Ventures etc.

Table 8      LG - Shaker Co. Ltd. Company Overview

Table 9      LG - Shaker Co. Ltd. Financial Overview

Table 10     Fujitsu General (Middle East) FZE Company Overview

Table 11     Fujitsu General (Middle East) FZE Financial Overview

Table 12     Carrier Saudi Services Company Ltd Company Overview

Table 13     Carrier Saudi Services Company Ltd Financial Overview

Table 14     S.K.M. Air Conditioning LLC Company Overview

Table 15     S.K.M. Air Conditioning LLC Financial Overview

Table 16     Al Salem Johnson Control (York) Company Overview

Table 17     Al Salem Johnson Control (York) Financial Overview

Table 18     GREE - BASIC ELECTRONICS COMPANY LTD Company Overview

Table 19     GREE - BASIC ELECTRONICS COMPANY LTD Financial Overview

Table 20     Daikin Air Conditioning Saudi Arabia LLC Company Overview

Table 21     Daikin Air Conditioning Saudi Arabia LLC Financial Overview

Table 22     Zamil Air Conditioner Holding Company Ltd. Inc. Company Overview

Table 23     Zamil Air Conditioner Holding Company Ltd. Inc. Financial Overview

Table 24     Dallah Trading Co. (Trane) Company Overview

Table 25     Dallah Trading Co. (Trane) Financial Overview

Table 26     Petra Engineering Industries Company Overview

Table 27     Petra Engineering Industries Financial Overview