GCC Air Conditioner Market Research Report: Forecast (2022-27)

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

The GCC Air Conditioner Market is projected to grow at a CAGR of around 5% during the forecast period, i.e., 2022-27. The growth of the market is driven primarily by rapid infrastructural development projects across different countries in the GCC region due to the mounting focus on the diversification of the economy away from oil, i.e., leading to massive investments in construction activities across the residential, commercial, industrial, healthcare, & hospitality sectors.

It, in turn, is projecting a growing demand for air conditioners across facilities to create a comfortable environment for people. Besides, the mounting greenfield investments across GCC playing a crucial role in boosting the construction industry are also positively influencing the air conditioner market. 

Moreover, the exponentially rising population and 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.

Furthermore, the increasing construction of smart cities and the growing adoption of facility management services are other prominent aspects projecting an optimistic prospect for the GCC Air Conditioner Market through 2027.

Impact of Covid-19 on the GCC Air Conditioner Market

The Covid-19 pandemic in 2020 had a decelerating impact on most industries across the GCC, where the Air Conditioner Market was no exception. With the imposition of stringent movement restrictions & frequent lockdowns by governments of different countries in the region to curb the spread of this dreadful disease, the leading players in the market witnessed several unprecedented challenges associated with the development & distribution of air conditioners.

Since most operations were suspended, the demand for air conditioners observed a severe decline across commercial, industrial, corporate, and manufacturing sectors. Besides, the market players faced several challenges like disruptions in the supply chain of raw materials, labor shortage, delayed deliveries, reduced production, etc., which caused them significant financial losses.

However, as most industries adopted work-from-home policies, the market observed a temporary hike across the residential sector during the pandemic. Nonetheless, with the gradually declining Covid-19 cases, the governments of different countries across the GCC uplifted the restrictions and allowed the recommencement of business operations.

As a result, presently, companies are seeking growth opportunities to expand their production capacities to meet the burgeoning end-user requirements for air conditioners and recover from the financial losses that occurred amidst the lockdown.

Market Segmentation

Based on End-Users:

• Residential
• Commercial Buildings
• Retail
• Health Care
• Hospitality
• Government & Transportation
• Oil & Gas

Amongst all end-users, the commercial sector is projected to dominate the GCC Air Conditioner Market with the largest share during 2022-27. 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 2027.

Country Landscape

Geographically, the GCC Air Conditioner Market expands across:

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

Of all countries across GCC, the UAE is likely to dominate the Air Conditioner Market with the largest share during 2022-27. 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.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the GCC Air Conditioner Market?
2. What are the country-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the GCC Air Conditioner Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the GCC Air Conditioner Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the GCC Air Conditioner Market study?

Frequently Asked Questions