Market Research Report

GCC Air Conditioner Market Research Report: Forecast (2023-2028)

By Type (Window AC [Upto 1 Ton, 1.1 to 2 Ton, Above 2 Ton], Split AC [Upto 1 Ton, 1.1 to1.5 Ton, 1.6 to 2 Ton], Floor Standing AC [Upto 2 Ton, Above 2 Ton], Cassette AC, Packaged A...C, Ducted Split AC, Centralized AC [FCU/AHU, Chillers, VRF]), By End User (Residential, Commercial), By Sales Channel (Direct Sales, Online, Authorized Distributors) By Country (Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, UAE), By Company (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., Others) Read more

  • Environment
  • Aug 2023
  • 157
  • PDF, Excel, PPT

Market Definition

Nowadays, air conditioners have become a necessity more than a luxury, especially across the GCC, majorly due to the improving economic conditions, growing purchasing power of people, and changing living standards. It has immensely surged the demand for air conditioners across sectors like residential, commercial, industrial, etc. Moreover, their easy availability on different platforms, such as exclusive dealerships, e-commerce stores, social media sites, etc., is further contributing to their increasing production & sales across many GCC countries.

Market Insights & Analysis: GCC Air Conditioner Market (2023-28)

The GCC Air Conditioner Market is projected to grow at a CAGR of around 5% during the forecast period, i.e., 2023-28. The market growth would be driven primarily by extremely high temperatures & harsh climatic conditions in the region, coupled with rapid urbanization and the increasing number of infrastructural development projects, backed by the growing government focus on diversifying the economy away from the oil & gas sector. Consequently, massive investments in construction activities across the residential, commercial, industrial, healthcare, & hospitality sectors are creating an immense demand for air conditioners and driving the market. Besides, the booming construction sector of the GCC region owing to increasing Greenfield investments is also playing a crucial role in fueling the market growth.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 5%
Country Covered Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, UAE
Key Companies Profiled 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., Others
Unit Denominations USD Million/Billion

 

With increasing awareness of environmental sustainability and rising energy costs, a large number of consumers & organizations across the GCC region are showing increasing interest in energy-efficient air conditioning solutions that reduce electricity consumption and have a lower environmental impact. Even governments of different countries in the region have been making active efforts and implementing several regulations toward promoting energy efficiency to reduce the alarming levels of carbon emissions. These initiatives include energy labeling programs, building codes, and policies that encourage the use of energy-efficient ACs.

Moreover, the surging influx of tourists & migrants in many GCC countries are stimulating rapid developments across the commercial & residential sectors for better hospitality and, in turn, propelling the sales of air conditioners. Additionally, the increasing development of smart cities and the rising adoption of facility management services are other prominent aspects projecting lucrative prospects for the GCC Air Conditioner Market through 2028.


GCC Air Conditioner Market Research Report: Forecast (2023-2028)

GCC Air Conditioner Market Trend:

Rising Affinity for Energy-Efficient & Smart Air Conditioners: As the awareness of excessive carbon emissions associated with rapid technological advancements continues to intensify, air conditioners, the prime contributors to these emissions, have undergone significant upgrades by manufacturers. The most recent trend is the advent of energy-efficient & smart air conditioners, i.e., extensively backed by numerous government initiatives toward promoting the utilization of sustainable solutions. For instance:

  • In May 2023, Daikin Middle East and Africa FZE hosted a "Towards a Sustainable Future" event in the UAE to showcase the company's latest innovative solutions for energy efficiency and IAQ. With this event, Daikin aims to decarbonize the country's cooling while strengthening the UAE partners' confidence in sustainable solutions.

This shift primarily ascribes to the growing demand for air conditioners that facilitates cleaner air while ensuring better controls, monitoring, and temperature maintenance, among others., which is why the demand for energy-efficient air conditioners is gaining traction, particularly across the GCC countries.

Along similar lines, the integration of advanced technologies such as IoT (Integration of Things) in the latest ACs, has become apparent, swiftly catering to the numerous end users, such as commercial buildings, retail, oil, and gas, etc., that are constantly raising the need for automation and remote & real-time monitoring, in turn driving the demand for smart air conditioners.

GCC Air Conditioner Market (2023-28): Segmentation Analysis

The GCC Air Conditioner Market study from MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–28. Based on the analysis, the market has been further classified as:

Based on Type:

  • Window AC
  • Split AC
  • Floor Standing AC
  • Cassette AC
  • Packaged AC
  • Ducted Split AC
  • Centralized AC
    • FCU/AHU
    • Chillers
    • VRF

Of them all, split & window ACs continue to dominate the GCC Air Conditioner Market. These ACs perfectly suit the smaller spaces within residential buildings such as apartments while exhibiting easy installation & minimal modifications to the existing structure. Being practical & cost-effective solutions for compact homes, their demand is more prevalent than cassette or centralized AC systems. Besides, benefits like hassle-free cleaning and easy repair & maintenance further contribute to the massive adoption of split & window ACs in Gulf countries.

On the other hand, cassette & centralized AC systems are gaining traction in the GCC region owing to their rapidly growing adoption in office buildings, retail spaces, & restaurants, among others, i.e., backed by their remarkable benefits in terms of zoning capabilities, cooling efficiency, & centralized control, which make these variants highly suitable for commercial establishments.

Based on End-Users:

  • Residential
  • Commercial

Among all end-users, the commercial sector is projected to dominate the GCC Air Conditioner Market with the largest share during 2023-28. It owes principally to the increasing establishment of several multinational companies & start-ups in the region due to favorable government policies for attracting Foreign Direct Investments.

It is leading to the development of more & more corporate spaces and a burgeoning need for facility management services, which, consequently, is positively influencing the sales of air conditioners. Besides, the growing focus of governments of different regional countries on infrastructural developments, i.e., leading to the development of various facilities like airports, metros & railways, educational institutes, shopping malls, etc., is also surging the demand for air conditioners across the commercial sector and fueling the overall market growth.

On the other hand, the Hospitality sector is expected to witness the fastest market growth in the coming years, owing principally to the rapidly expanding tourism sector, leading to increasing developments of hotels, resorts, & other such facilities. It, in turn, is soaring the demand for air conditioners to enhance the hospitability services for people and projecting lucrative growth opportunities for the market through 2028.

GCC Air Conditioner Market Regional Projection:

Geographically, the GCC Air Conditioner Market expands across:

  • Saudi Arabia
  • UAE
  • Qatar
  • Bahrain
  • Kuwait
  • Oman

Of all countries in the GCC region, the UAE is likely to dominate the Air Conditioner Market with the largest share during 2023-28. It attributes principally to the increasing government support through favorable policies & initiatives for the market players to manufacture energy-efficient air conditioners equipped with advanced technologies.

Moreover, the growing establishment of multinational companies & start-ups across the UAE entwined with the massive tourist influx is further augmenting the demand for air conditioners across the commercial, corporate, & hospitality sectors and, in turn, fueling the market growth across the country.

In addition, since the UAE hosts major events and has projects like Dubai Tourism Strategy & Higher Education 2030, the commercial sector in the country is swiftly expanding and observing massive government funding in transportation & connectivity. Hence, it shall also play a crucial role in propelling the air conditioners market in the UAE over the forecast years.

GCC Air Conditioner Industry Recent Developments:

  • In May 2023, LG Electronics (LG), as a part of its 'Life is Cool with DUALCOOL' campaign, announced the launch of its latest air conditioner line-up for 2023 in the UAE. Equipped with the most advanced cooling system, these ACs endure the hot & humid weather conditions in Gulf countries while providing maximum comfort, even at temperatures up to 65°C.
  • In December 2022, LG Electronics made a new supply agreement with Al Hassan Ghazi Ibrahim Shaker Co., Saudi Arabia's top importer, manufacturer, and distributor of air conditioners and home appliances, seeking a long-term strategic partnership.
  • In October 2022, Daikin Industries announced the inception of its first factory in Saudi Arabia as a part of the firm’s five-year integration and industrial growth agenda for Saudi Arabia & the region.

Gain a Competitive Edge with Our GCC Air Conditioner Market Report

  1. GCC Air Conditioner Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
  2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
  3. GCC Air Conditioner Market report aids in assessing and mitigating risks associated with entering or operating in the market.
  4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.

Frequently Asked Questions

   A. The GCC Air Conditioner Market is projected to grow at a CAGR of around 5.0% during 2023-28.

   A. The growing government focus on developing the commercial & hospitality sectors is the key growth opportunity projected to drive the GCC Air Conditioner Market through 2028.

   A. The prominent players anticipated to stiffen the competition are LG Electronics, S.K.M. Air Conditioning, Carrier Corporation, Gree, Samsung, Daikin Industries, Mitsubishi, Trane Inc., Johnson Controls Inc., and Zamil Air Conditioners Holding Co. Ltd.

   A. The commercial sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the GCC Air Conditioner Market through 2028.

   A. In the GCC region, the UAE would provide lucrative prospects to the Air Conditioner Market in the coming years.

   A. Rising affinity for energy-efficient & smart air conditioners is a promising trend projected to shape the GCC Air Conditioner Market during 2023-28.

GCC Air Conditioner Market Research Report (2023-2028) - Table of Contents

 

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. GCC Air Conditioner Market Trends & Developments
  5. GCC Air Conditioner Market Dynamics
    1. Drivers
    2. Challenges
  6. GCC Air Conditioner Market Porter’s Five Forces Analysis
  7. GCC Air Conditioner Market Regulations, Norms, & Product Standards
  8. GCC Air Conditioners Imports & Exports Statistics
  9. GCC Air Conditioners Market Winning Strategies, 2022
    1. Investment Scenario
    2. Hotspots
  10. GCC Air Conditioners Supply Chain & Stakeholder Margin Analysis
  11. GCC Air Conditioner Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
      2. Unit Sold (Thousand Units)
    2. Market Share & Analysis
      1. By Type
        1. Window AC
          1. Upto 1 Ton
          2. 1.1 to 2 Ton
          3. Above 2 Ton
        2. Split AC
          1. Upto 1 Ton
          2. 1.1 to1.5 Ton
          3. 1.6 to 2 Ton
        3. Floor Standing AC
          1. Upto 2 Ton
          2. Above 2 Ton
        4. Cassette AC
        5. Packaged AC
        6. Ducted Split AC
        7. Centralized AC
          1. FCU/AHU
          2. Chillers
          3. VRF
      2. By End User
        1. Residential
        2. Commercial
      3. By Sales Channel
        1. Direct Sales
        2. Online
        3. Authorized Distributors
      4. By Country
        1. Saudi Arabia
        2. Oman
        3. Qatar
        4. Bahrain
        5. Kuwait
        6. UAE
      5. By Company
        1. Revenue Shares & Analysis
        2. Competition Characteristics
  12. Saudi Arabia Air Conditioner Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type
      2. By End User
      3. By Sales Channel
      4. By Region
    3. Pricing Analysis
      1. Price Trend
      2. Competitor Wise Product Pricing
  13. Oman Conditioner Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type
      2. By End User
      3. By Sales Channel
      4. By Region
    3. Pricing Analysis
      1. Price Trend
      2. Competitor Wise Product Pricing
  14. Qatar Air Conditioner Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type
      2. By End User
      3. By Sales Channel
      4. By Region
    3. Pricing Analysis
      1. Price Trend
      2. Competitor Wise Product Pricing
  15. Bahrain Air Conditioner Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type
      2. By End User
      3. By Sales Channel
      4. By Region
    3. Pricing Analysis
      1. Price Trend
      2. Competitor Wise Product Pricing
  16. Kuwait Air Conditioner Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type
      2. By End User
      3. By Sales Channel
      4. By Region
    3. Pricing Analysis
      1. Price Trend
      2. Competitor Wise Product Pricing
  17. UAE Air Conditioner Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. Market Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type
      2. By End User
      3. By Sales Channel
      4. By Region
    3. Pricing Analysis
      1. Price Trend
      2. Competitor Wise Product Pricing
  18. Competitive Benchmarking
    1. Competition Matrix
      1. Product Portfolio
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
      6. Strategic Initiatives
    2. Company Profiles (Business Description, Product Offering, Strategic Alliances or Partnerships, etc.)
      1. LG Electronics
      2. S.K.M. Air Conditioning
      3. Carrier Corporation
      4. Gree
      5. Samsung
      6. Daikin Industries
      7. Mitsubishi
      8. Trane Inc.
      9. Johnson Controls Inc.
      10. Zamil Air Conditioners Holding Co. Ltd.
      11. Others
  19. Disclaimer


GCC Air Conditioner Market Segmentation