The increasing residential supply in the UAE has resulted into an increased demand for HVAC in the country. Moreover, the rising awareness among customers regarding periodic maintenance and AMC’s has helped the HVAC aftermarket to grow. Most of the companies usually offers 1 to 3 years’ warranty on its products and also offers services options such as extended warranty, free services, etc., to gain extra revenues, which is further adding to the growth of HVAC after-market across residential sector. Also, due to the continuous operations of the air conditioners, consumer from residential sector are also adopting the proactive and preventive maintenance to avoid reactive maintenance.
According to MarkNtel Advisors’ research report “UAE HVAC After Market Analysis, 2020”, the HVAC after market is projected to grow at a CAGR of around 3% during 2020-25. The UAE HVAC industry is gradually switching towards energy efficiency technologies with high priority set towards minimal operating costs. In 2015, the UAE government banned R22 refrigerant, categorizing its sales as illegal across UAE. Few of the manufacturer are now utilizing this government standard to boost up their market by replacing AC’s with R22, thus making the end consumers to invest on HVAC after-market services. Moreover, the residential customers are engaged into periodic maintenance to avoid choking of filters, coils and blowers with dust. The commercial customers are also involved into servicing of commercial units’ time to time so as to avoid major issues occurring due to non-maintenance of AC’s, which is a major reason for companies investing a huge amount in periodic maintenance of AC’s.
As per MarkNtel Advisors’ study, the commercial sector grabbed the highest market share in the UAE HVAC after market in 2019. The introduction of energy efficient air conditioners is strongly contributing to the growth of HVAC after-market industry. With the introduction of few mandate regulation regarding energy efficiency, the companies are forced to upgrade their existing technology. Majority of the FM (Facility Management) companies are managing the entire HVAC system in commercial and Retail sector. So, these companies adopt the proactive maintenance to minimize sudden breakdown.
The major players who has grabbed a considerable market share in the UAE HVAC after-market include Carrier, Aftron, Trane, Daiken, LG, Mitsubishi, etc. in order to gain a competitive edge in the industry, the companies are increasingly signing agreements to provide their services. In 2018, Etihad energy services company signed a deal to retrofit the Dubai International Airport in an effort to make it more energy efficient. This project is projected to take around 7 years in getting completed. This project is estimated to have a reduction of 23% in annual energy bill.
"UAE HVAC After Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decision, hotspots and opportunities available for HAVC after-market firms across the globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.
1. By Type (Service, Spare Parts & Retrofit)
2. By End Users (Residential, Commercial & Retail, Healthcare, Government & Transportation, Hospitality, Oil & Gas, Others)
3. By Geographic Region (Dubai, Abu Dhabi & Al Ain, Northern Emirates & Sharjah)
4. By Competitors (Johnson Control, Carrier, Trane, US Chillers, Daiken, SKM, Others)
Key questions answered in the study:
1. What are the current and future trends of the UAE HVAC after market?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. What are the future plans and customer expectations of end-users across the country?
4. How the competition has been shaping across the countries followed by their comparative factorial indexing?
5. What are the key growth drivers and challenges for the UAE HVAC after market?
6. What are the customer orientation, purchase behavior, and expectations from the HVAC after market companies across various regions?