Report Overview

Saudi Arabia HVAC Market - Industry Trends & Forecast Report, 2029

Saudi Arabia HVAC market size was estimated to be worth USD 2,821 million in 2022. During the forecast period between 2023 and 2029, the Saudi Arabia HVAC market size is projected to grow at a CAGR of 7%, reaching a value of USD 4,121 million by 2029. Major growth factors for the Saudi Arabia HVAC market include rapid infrastructural development owing to economic diversification and rising demand for commercial facilities such as hotels and airports as a result of flourishing tourism. The expanding industrial sector has also prompted the Saudi Government to invest in establishing new factories, which are anticipated to increase the demand for HVAC systems during the forecast period.

Saudi Arabia HVAC Market – Overview

Heating, ventilation, and air conditioning, or HVAC, is a system for maintaining and controlling the temperature, humidity, and purity of the air in a room or enclosed space. These systems are used in a wide range of commercial, residential, and industrial facilities, such as family homes, apartments, hotels, hospitals, trains, airplanes, and ships. Ventilation is a vital aspect of HVAC as it helps in maintaining indoor air quality, which involves the removal of moisture, odors, smoke, and dust, temperature control, and oxygen replenishment.

Saudi Arabia HVAC Market

Growth Drivers

Rising Government Investments in Infrastructure Development

The Saudi Arabian Government is significantly investing in infrastructure development in the country under its Vision 2030, to boost tourism and promote economic diversification. More than 5,200 projects with a total of $819 billion are now under construction in Saudi Arabia, making up 35% of all active GCC (Gulf Cooperation Council) project values. According to a report released by the US Saudi Business Council, the Kingdom received USD 51.3 billion worth of contracts in 2022, a 35% surge compared to the previous year. With expanding construction activities and an increasing number of buildings, the demand for HVAC systems is projected to rise during the forecast period.

Restraints

Limited Domestic Production and High Dependence on Imports

The Saudi Arabia HVAC market is highly dependent on imports to meet its demand due to limited domestic production. It imports most of its equipment and loses parts from the United States, China, and India. This escalates the price of these goods as well as giving tough competition to locally produced goods. This may act as a major restrictive factor for market growth.

Impact of COVID-19 on Saudi Arabia HVAC Market

The unprecedented COVID-19 pandemic negatively impacted the growth of the Saudi Arabia HVAC market. The implementation of the lockdown resulted in stagnation in construction activities, which caused a significant decline in the demand for HVAC systems in the Kingdom. Furthermore, restrictions on cross-border trade to prevent the spread of the virus prompted a shortage of HVAC equipment and its parts. The decline in the purchasing power of consumers also led to limited demand for retrofitting and repairs, which caused significant losses to the industry players in Saudi Arabia during the COVID-19 pandemic.

Saudi Arabia HVAC Market

Segmental Coverage

Saudi Arabia HVAC Market – By Offering

Based on offering, the Saudi Arabia HVAC market is split into equipment and services segments. The equipment segment is further divided into heating, ventilation, and cooling. The services segment is also classified into upgrade/replacement, maintenance and repair, installation, and consulting. The ventilation and cooling segment holds the largest market share. The demand for room air conditioners is the highest among all equipment, mainly owing to the climate conditions in Saudi Arabia. With 772,000 units sold in 2018, Saudi Arabia is the second-largest window unit market in the world after the United States.

Saudi Arabia HVAC Market – By Implementation Type

Based on implementation type, the Saudi Arabia HVAC market is bifurcated into new construction and retrofits segments. The new construction segment accounts for the largest share of the Saudi Arabia HVAC market owing to the extensive line of ongoing construction projects. A study by the Royal Institution of Chartered Surveyors (RICS) indicates that construction activity in Saudi Arabia is at its highest level since 2018. Several construction projects, including Riyadh Metro, Qiddi, an entertainment city, and the Red Sea Project, a luxury tourism destination, will directly influence the demand for HVAC in the Saudi Arabia market.

Saudi Arabia HVAC Market – By End User

Based on end users, the Saudi Arabia HVAC market is segmented into residential, commercial, and industrial. The commercial segment dominates the Saudi Arabia HVAC market. The Saudi government is giving the service and tourism sectors considerable assistance in an effort to lessen its reliance on the oil trade. According to the Saudi Gazette, the Kingdom would invest $800 billion in the sector over the ensuing ten years, according to Tourism Minister Ahmed Al-Khateeb. Therefore, the need for HVAC products and services is growing in the commercial sector along with the increase in hotels, resorts, and office buildings.

Competitive Landscape

Major players operating in the Saudi Arabia HVAC market include Johnson Controls International plc, LG Electronics Inc., Mitsubishi Electric Corporation, Gree Electric Appliances Inc. of Zhuhai, Trane Technologies plc, Danfoss A/S, Carrier Global Corporation, Midea Group Co. Ltd., Daikin Industries Ltd., Zamil Air Conditioners, and S.K.M. Air Conditioning LLC.

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 January 2023 – Carrier, a global HVAC solutions provider, exhibited its latest HVAC solutions, including variable refrigerant flow (VRF) for residential and small commercial buildings, in Riyadh, Saudi Arabia.

Scope of the Report

By Offering

• Equipment

1. Heating

• Heat Pumps

1. Air-source

2. Water-source

3. Ground-source

• Furnaces

1. Gasoline
2. Propane
3. Electric

• Boilers

1. Water-tube

2. Fire-tube

• Unitary heaters

2. Ventilation

• Air-Handling Units (AHUs)

1. Terminal units

2. Makeup air units

• Ventilation Fans

1. Centrifugal fans

2. Axial fans

3. Domestic exhaust fans

4. Power roof fans

• Fan Coil Units (FCUs)

1. Two-pipe

2. Four-pipe

• Humidifiers/dehumidifiers
• Air cleaners

1. Type 1: High-efficiency particulate air (HEPA) + carbon

2. Type 2: HEPA + carbon + ionizer

3. Type 3: HEPA + carbon + ultraviolet (UV)

4. Type 4: HEPA + carbon + ionizer + UV

5. Type 5: Other technologies

3. Cooling

• Room air conditioners (ACS)

1. Mini splits

2. Window ACs

• Split units
• Ducted splits

1. Water-cooled condensers

2. Air-cooled condensers

• Packaged units

1. Water-cooled condensers

2. Air-cooled condensers

• Variable refrigerant flow (VRF) systems

1. Heat Pump Systems

2. Heat Recovery Systems

• Chillers

1. Centrifugal
2. Screw
3. Scroll
4. Absorption
5. Reciprocating

• Service

1. Upgradation/replacement
2. Maintenance and repair
3. Installation
4. Consulting

By Implementation Type

1. New Constructions
2. Retrofits

By End User

1. Residential
2. Commercial
3. Industrial

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia HVAC Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing Preference Toward Smart HVAC Systems
         2. Rising Investment in Sustainable Energy Technologies
      2. Restraints
         1. Phasing out of HCFC Refrigerant
      3. Opportunities
         1. Increasing Infrastructure Spending
         2. Growing Hospitality Industry
      4. Challenges
         1. High Initial Cost of HVAC System Installation And Maintenance
         2. Lack of Experienced Labor
   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. Saudi Arabia HVAC Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Offering
         1. Equipment
            1. Heating
               1. Heat Pumps
                  1. Air-source
                  2. Water-source
                  3. Ground-source
               2. Furnaces
                  1. Gasoline
                  2. Propane
                  3. Electric
               3. Boilers
                  1. Water-tube
                  2. Fire-tube
               4. Unitary heaters
            2. Ventilation
               1. Air-Handling Units (AHUs)
                  1. Terminal units
                  2. Makeup air units
               2. Ventilation Fans
                  1. Centrifugal fans
                  2. Axial fans
                  3. Domestic exhaust fans
                  4. Power roof fans
               3. Fan Coil Units (FCUs)
                  1. Two-pipe
                  2. Four-pipe
               4. Humidifiers/dehumidifiers
               5. Air cleaners
                  1. Type 1: High-efficiency particulate air (HEPA) + carbon
                  2. Type 2: HEPA + carbon + ionizer
                  3. Type 3: HEPA + carbon + ultraviolet (UV)
                  4. Type 4: HEPA + carbon + ionizer + UV
                  5. Type 5: Other technologies
            3. Cooling
               1. Room air conditioners (ACS)
                  1. Mini splits
                  2. Window ACs
               2. Split units
               3. Ducted splits
                  1. Water-cooled condensers
                  2. Air-cooled condensers
               4. Packaged units
                  1. Water-cooled condensers
                  2. Air-cooled condensers
               5. Variable refrigerant flow (VRF) systems
                  1. Heat Pump Systems
                  2. Heat Recovery Systems
               6. Chillers
                  1. Centrifugal
                  2. Screw
                  3. Scroll
                  4. Absorption
                  5. Reciprocating
         2. Service
            1. Upgradation/replacement
            2. Maintenance and repair
            3. Installation
            4. Consulting
      2. By Implementation Type
         1. New Constructions
         2. Retrofits
      3. By End User
         1. Residential
         2. Commercial
         3. Industrial
5. Competitive Landscape
   1. List of Key Players and Their Range
   2. Saudi Arabia HVAC Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
6. Impact of Covid-19 on Saudi Arabia HVAC Market Industry
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, SWOT Analysis)
   1. Johnson Controls International plc
   2. LG Electronics Inc.
   3. Mitsubishi Electric Corporation
   4. Gree Electric Appliances Inc. of Zhuhai
   5. Trane Technologies plc
   6. Danfoss A/S
   7. Carrier Global Corporation
   8. Midea Group Co. Ltd.
   9. Daikin Industries Ltd.
   10. Zamil Air Conditioners
   11. S.K.M. Air Conditioning LLC
   12. Other prominent players
8. Key Strategic Recommendations
9. 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
   5. Assumption & Limitation

*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       Saudi Arabia HVAC Market Segmentation

Figure 2       Saudi Arabia HVAC Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Saudi Arabia HVAC Market Size, By Value (USD Million), 2019–2029

Figure 5       Saudi Arabia HVAC Market Share, By Offering, By Value, 2019–2029

Figure 6       Saudi Arabia HVAC Market Share, By Implementation Type, By Value, 2019–2029

Figure 7       Saudi Arabia HVAC Market Share, By End User, By Value, 2019–2029           

List of Tables      

Table 1        Saudi Arabia HVAC Market Size, By Offering, By Value, 2019−2029

Table 2        Saudi Arabia HVAC Market Size, By Implementation Type, By Value, 2019−2029

Table 3        Saudi Arabia HVAC Market Size, By End User, By Value, 2019−2029

Table 4        Johnson Controls International plc Company Overview

Table 5        Johnson Controls International plc Financial Overview

Table 6        LG Electronics Inc. Company Overview

Table 7        LG Electronics Inc. Financial Overview

Table 8        Mitsubishi Electric Corporation Company Overview

Table 9        Mitsubishi Electric Corporation Financial Overview

Table 10      Gree Electric Appliances Inc. of Zhuhai Company Overview

Table 11      Gree Electric Appliances Inc. of Zhuhai Financial Overview

Table 12      Trane Technologies plc Company Overview

Table 13      Trane Technologies plc Financial Overview

Table 14      Danfoss A/S Company Overview

Table 15      Danfoss A/S Financial Overview

Table 16      Carrier Global Corporation Company Overview

Table 17      Carrier Global Corporation Financial Overview

Table 18      Midea Group Co. Ltd. Company Overview

Table 19      Midea Group Co. Ltd. Financial Overview

Table 20      Daikin Industries Ltd. Company Overview

Table 21      Daikin Industries Ltd. Financial Overview

Table 22      Zamil Air Conditioners Company Overview

Table 23      Zamil Air Conditioners Financial Overview

Table 24      S.K.M. Air Conditioning LLC Company Overview

Table 25      S.K.M. Air Conditioning LLC Financial Overview