The GCC HVACR Market is projected to grow at a CAGR of 5.32% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. One of the GCC region's fastest-growing industries is tourism. Countries like the UAE, Oman, and Saudi Arabia aggressively promote business & leisure travel, medical tourism, and other types of travel by offering simple visa-clearing procedures & top-notch hospitality services, among other things. As a result, these nations are experiencing a growing influx of foreign tourists. According to the Dubai Department of Economy and Tourism, the UAE received about 14.36 million visitors in 2022, an increase from about 7.28 million visitors in 2021, and the hotel occupancy rate reached more than 70% in that year. These changes have encouraged hotel chains like Ciel, Jumeriah, and others to build new hotels & resorts for business & cultural purposes, which increased demand for HVAC systems.
Saudi Arabia & Qatar have established the goal of growing their yearly visitor populations by 2030. For this, they are promoting leisure time activities & adventure sports. As a result, hotel brands like Aman Hotel & Armani Hotels are growing in these nations. According to the revelations from the Future Hospitality Summit 2023, Saudi Arabia is in the lead when it comes to building hotels. The need for centralized air conditioners would therefore increase, which would subsequently accelerate the expansion of the HVACR Market in the ensuing years.
Moreover, the development of the market is also attributable to increasing investments made in housing projects by regional real estate developers to increase house ownership rates. According to the plan to increase housing ownership to roughly 70% by 2030, the Saudi Housing Ministry approved nearly 218 projects totaling about 180,000 homes for development in several Gulf regions in 2021. In line with this, the ministry sought to address the nation's housing crisis. Additionally, the government & transportation, oil & gas, and commercial sectors all significantly contribute to the expansion of the GCC HVACR Market.
Furthermore, the plans for economic diversification to lessen reliance on hydrocarbon exports, such as the UAE Vision 2021, Saudi Vision 2030, Kuwait Vision 2035, etc., are assisting in developing the logistics industry for long-term, sustaining economic growth. The booming logistics industry in the GCC & the rising need for refrigeration systems are driving the market expansion, further states the research report, “GCC HVACR Market Analysis, 2023.”
GCC HVACR Market Segmentation Analysis
Authorized Distributors to Capture Highest Share Among Other Sales Channel
Based on sales channel the market is bifurcated into direct sales, online, and authorized distributors. The authorized distributors have amassed a sizeable portion of the GCC HVACR due to their ability to offer customers a wide range of air conditioner brand options. Another factor contributing to market growth is how easily air conditioner & refrigeration companies can sell their products without having to make significant investments to serve the region's enormous population spread across numerous geographic locations. Thus, the demand for HVACR systems from authorized distributors is anticipated to advance over the next few years as the number of residential units in the area rises.
Market in the UAE set to Surge Ahead
The UAE HVACR Market grew significantly, supported by the nation's accelerated urbanization & rising number of infrastructure development projects. The World Bank estimates that the annual urban population increased by around 1.1% in 2022 compared to 2021, leading to an upsurge in residential & industrial construction projects. In line with this, there has been a high demand for air conditioners, ventilation systems, refrigeration equipment, etc., in residential & commercial buildings. Along with this, expanding environmental worries in the UAE brought on by a proliferation in carbon emissions are pressuring HVAC manufacturers to release products that are both energy-efficient & ozone-friendly.
Additionally, as a result of growing government initiatives to support GDP growth through the service & manufacturing sectors, the nation's pharmaceutical production activities & the number of hospitality development projects are growing. These developments would create profitable avenues for the GCC HVACR Market in the years to come.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including LG Electronics, S.K.M. Air Conditioning, Carrier Corporation, Gree, Samsung, Daikin Industries, Mitsubishi, Trane Inc., Johnson Controls Inc., Zamil Air Conditioners Holding Co. Ltd., etc., are looking forward to strengthening their market position.
Key Questions Answered in the Research Report