GCC HVACR Market Research Report: Forecast (2025-2030)

Market Definition

HVACR stands for Heating, Ventilation, Air Conditioning, and Refrigeration, which describes the industry & technology related to the design, installation, and maintenance of systems that control indoor environmental conditions, including temperature, humidity, air quality, and refrigeration. These systems are used in various settings, such as residential, commercial, and industrial buildings, as well as in vehicles, to provide thermal comfort & regulate air quality.

Market Insights & Analysis: GCC HVACR Market (2025-30):

The GCC HVACR Market size was valued at around USD 6.79 billion in 2024 and is projected to reach USD 8.93 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 4.67% during the forecast period, i.e., 2025-30. The market growth is attributed to the increasing investments by the local real estate developers in housing schemes to enhance home-ownership rates, coupled with rising government spending on the tourism sector. Saudi Arabia is planning to pump nearly 4.8 billion Saudi riyals ($1.28 billion) into new housing projects in 2025 within an ongoing drive to boost housing supply for citizens. The new projects in various parts of the Gulf kingdom include nearly 16,000 houses, apartments, and villas, according to the Municipal Affairs and Housing Ministry.  In addition, the commercial, oil & gas, and government & transportation sectors are major contributors to the growth of the GCC HVACR Market.

Moreover, the surging demand for air conditioners in the region is encouraging manufacturers to launch technologically advanced ACs, like those that consume less electricity, are integrated with image sensor technology, and have 4D swing functions, among others. Besides, the rising demand for energy-efficient air conditioners is leading to increasing collaborations among competitors to develop energy-efficient residential ACS to reduce energy consumption, which, in turn, is creating lucrative opportunities for the HVACR Market growth.

Besides, economic diversification plans like the UAE Vision 2021, Saudi Vision 2030, Kuwait Vision 2035, etc., to reduce the economy's dependence on hydrocarbon exports are contributing to the expansion of the logistics sector for long-term sustained economic growth. Thus, the increasing need for refrigeration systems in the GCC, owing to the flourishing logistics sector, is spurring the HVACR Market growth in the region.

GCC HVACR Market Scope:

GCC HVACR Market Driver:

Expansion of Tourism Sector to Augment the Market Growth – Tourism is one of the fastest-growing sectors in the GCC region. Countries like the UAE, Oman, and Saudi Arabia, actively encourage medical tourism, business & leisure travel, etc., by providing easy visa clearance, world-class hospitality services, etc. Consequently, there's a mounting influx of foreign visitors to these countries. These developments have been encouraging the establishment of new hotels & resorts for commercial & cultural purposes by hotel groups like Ciel, Jumeriah, and others, thereby pushing the demand for HVAC systems, eventually aiding in enhancing the GCC HVACR Market share.

Furthermore, Saudi Arabia & Qatar have set the target of increasing their tourist footfall annually by around 100 million & 6 million, respectively, by 2030 & for it, they are encouraging leisure activities, adventure sports, etc. As a result, Aman Hotel, Armani Hotels, etc., are expanding their hotel chains in these countries.

Also, as per the announcements from the Future Hospitality Summit 2024, Saudi Arabia’s $110 billion development pipeline is targeting over 362,000 new hotel rooms by 2030. The event also catalyzed significant business, with over $1.1 billion in business opportunities and 17 major deals announced in 2024, confirming its importance as a deal-making platform. It would then amplify the demand for centralized air conditioners and, in turn, fuel the HVACR Market growth in the upcoming years.

GCC HVACR Market Opportunity:

Growth of Food Processing Activities to Generate Higher Demand for Refrigeration – GCC is an import-driven region in terms of food products. It relies heavily upon countries like the US, Brazil, the Netherlands, India, etc., to fulfill its domestic food requirements. The region witnessed a massive shortfall in its domestic food supply, driven by supply chain disruptions due to the COVID-19 pandemic. Therefore, the UAE & Saudi Arabia announced their aims to ensure food security for their citizens by locally producing food products, thus creating opportunity for the GCC HVACR Market.

Governments are acting proactively to attract private players & foreign investments to establish food processing units in the region. The Saudi government announced that it aims to attract nearly USD20 billion in investment by 2035 to develop food processing plants in the country. This is a lucrative prospect for manufacturers of large refrigerators like Everest Industrial Co., Zecorp, etc., as these food processing plants require constant refrigeration & freezing to ensure product freshness.

Since frozen food products are mandatorily kept at -18 degree Celsius or lower to ensure quality food, it would positively impact the demand for industrial refrigerators in the region over the coming years. Hence, the growing establishment of food processing units in the region is creating a conducive environment to boost the GCC HVACR Market during 2025-30.

GCC HVACR Market Challenge:

Shortage of Semiconductor Chips is Hampering HVACR Imports – The global shortage of semiconductors, especially initiated during COVID-19 due to the reduction in wafer fabrication units, hampered the growth of the HVACR Market in GCC. Most companies involved in wafer fabrication of semiconductor chips, such as Global Foundries, United Microelectronics Corporation (UMC), etc., paused their production processes due to reduced demand, which, in turn, negatively affected AC manufacturing worldwide, as semiconductor chips are their integral part.

Semiconductor demand is also being created from a diversified range of product categories, including smartwatches, remotely accessible medical devices, etc., due to a structural change in consumer behavior, which, in turn, is causing delivery delays. Hence, the diversification of semiconductors in different product categories, coupled with the existing shortage in their supply, is creating a demand-supply gap. Consequently, delaying deliveries across the GCC region further creates a challenge for the GCC HVACR Market growth.

GCC HVACR Market Trend:

Preference for VRFs Over Chillers in the Commercial Buildings – With growing concerns over climate change & the optimum utilization of the available resources, there is a shift towards sustainability, i.e., encouraging the adoption of energy-efficient products like VRF for air cooling purposes. Along with this, the high energy consumption in commercial buildings of the GCC region, such as hotels & office complexes, is also elevating the demand for energy-efficient HVACs and, in turn, pushing the adoption of VRFs.

According to Kuwait Institute for Scientific Research, HVAC & lighting systems consume almost 65% of the annual electricity generation and about 85% of the yearly peak load. Hence, GCC’s commercial sector is witnessing the increasing adoption of VRFs as they are almost 30% more energy efficient than air-cooled chillers & packaged & mini-split systems. Therefore, the rising demand for energy-efficient HVAC systems is set to augment the GCC HVAC Market revenue growth in the years ahead.

GCC HVACR Market (2025-30): Segmentation Analysis

The GCC HVACR Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2025–2030 at the regional level. Based on the analysis, the market has been further classified as:

Based on End User:

• Residential
• Commercial Buildings
• Retail
• Healthcare
• Hospitality
• Government & Transportation
• Oil & Gas
• Industrial Facilities
• Other Developing Industries (Hydrofarms, etc.)

The residential sector accounted for a considerable market share owing to the mounting expansion of residential buildings in countries like the UAE, Saudi Arabia, etc., backed by the upgrade in the expatriate population. Further, governments have prioritized the development of more & more housing units for their employees, which would boost the demand for air conditioners in these countries.

Increased government efforts toward attracting expatriates are likely to positively impact the establishment of new residential units in the country. Also, the government of Saudi Arabia has taken several initiatives like the Housing Program Vision 2030, the Sakani Program, and the Ministry of Housing Infrastructure Program, which has heightened the establishment of new residential units in the country. Hence, these new policies & initiatives are anticipated to increase the number of housing units across the region & further the demand for HVACR systems in the years to come.           

Based on Sales Channel:

• Direct Sales
• Online
• Authorized Distributors

Authorized Distributors captured a significant share of the GCC HVACR Market during the historical period as they provide customers with numerous brand options in air conditioners. Moreover, the ease with which air conditioner & refrigeration companies can sell their products without incurring large investments to cover the region's vast population spread across various geographical locations is another aspect that contributed to supplementing the market growth. The increase in the number of residential units in the region is thus set to push the demand for HVACR systems from authorized distributors in the coming years.

GCC HVACR Market (2025-30): Regional Projection

Geographically, the GCC HVACR Market expands across:

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

The UAE HVACR Market witnessed notable growth in the past, which was backed by rapid urbanization & an increased number of infrastructure development projects in the country. According to the World Bank, the annual urban population growth rate was nearly 3.94% in 2024, compared to 2023, which resulted in a rise in residential & industrial construction projects. As a result, the demand for air conditioners, ventilation units, refrigeration equipment, etc., in residential & commercial buildings was high in the previous few years.

Along with this, growing environmental concerns in the UAE associated with rising levels of carbon emissions are pushing HVAC manufacturers to introduce energy-efficient & ozone-friendly products. Moreover, the ever-increasing pharmaceutical production activities & the rising number of hospitality development projects in the country, driven by increasing government initiatives toward promoting GDP growth through the service & manufacturing sector, would also create growth opportunities for the HVACR Market in the years to come.

GCC HVACR Industry Recent Development:

• 2025: LG Electronics joins hands with Saudi Arabia to develop heating, ventilation, and air conditioning (HVAC) solutions for regions prone to extreme heat.
• 2024: Daikin Industries, a leading manufacturer of Heating, Ventilation, Air Conditioning & Refrigeration (HVAC-R) solutions, is set to participate in Gulfood Green 2024. This global exhibition and summit for food systems, agritech, and farm-to-fork solutions will feature Daikin’s comprehensive range of HVAC-R solutions. To address the increasing sustainability demands in the entire food ecosystem, Daikin will showcase its newest innovations that cover every phase of the food supply chain, from production and storage to retail, including the region’s growing indoor farming segment.

Gain a Competitive Edge with Our GCC HVACR Market Report

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

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