Iraq Air Conditioner Market Research Report: Forecast (2022-27)
Market Overview
Rapidly changing living standards, improving economic conditions, & increasing purchasing power of people across Iraq have led to the increasing adoption of convenient appliances like air conditioners to enhance comfort across end-users like residential, commercial, retail, healthcare, hospitality, government & transportation, etc.
As a result, several companies are bringing an extensive range of air conditioners like the window, split, floor standing, cassette, packaged, ducted split, and centralized, among others, to Iraq and contributing to the expansion of the Heating, Ventilation, and Air Conditioning (HVAC) industry in the country.
Market Insights
The Iraq Air Conditioner Market is projected to witness less than 5% CAGR during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the increasing number of large-scale construction projects associated with shopping malls, hotels, residential buildings, & office complexes due to the growing government focus on the diversification of the economy away from oil through initiatives like Iraq Vision 2030. It, in turn, is making a direct impact on the demand for air conditioners and driving the Air Conditioner Market.
Besides, the country is witnessing a rapidly expanding religious tourism, i.e., projecting a growing need for air conditioners at commercial places like hotels to facilitate the infrastructure for the pilgrims. As a result, the expanding tourism sector is another crucial aspect projected to play a prominent role in fueling the overall market growth through 2027.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 5% |
| Key Companies Profiled | Carrier, York, LG, Samsung, Trane, Mitsubishi, Gree, Daikin, Aux Air, Tosot, Midea, Others |
| Unit Denominations | USD Million/Billion |
In addition, the increasing number of stadiums, metro & railway stations, airports, etc., owing to various international events in the country, are other prominent aspects encouraging air conditioner manufacturers to spur their production capacities to meet the burgeoning end-user demands. For instance:
Key Trend in the Iraq Air Conditioners Market
With mounting carbon emissions in the environment, where air conditioners are amongst the prominent contributors, the government of Iraq is encouraging companies to manufacture energy-efficient air conditioners with advanced technologies like voice control, temperature sensors, etc., and address the alarming environmental concerns. In addition, the growing awareness among people about the benefits of these ACs, such as less power consumption & smart features, is also propelling their demand and driving the Iraq Air Conditioner Market.
Impact of Covid-19 on the Iraq Air Conditioner Market
The advent of Covid-19 in 2020 had a decelerating effect on most industries across Iraq, where the Air Conditioner Market was no exception. The imposition of stringent movement restrictions & frequent lockdowns led to hampered supply chain, increased demand & supply gaps, unavailability of raw materials & labor, shut down of manufacturing units, disruptions in imports & exports, and, in turn, massive financial losses for the leading market players. In addition, delays in the delivery of pre-produced products due to the disrupted transportation & logistic sector further showcased a decline in the growth of the Iraq Air Conditioners Market amidst the crisis.
Besides, the requirement for air conditioners witnessed a decline also since the corporate sector adopted work-from-home policies. Moreover, border closures & travel bans played a critical role in bringing catastrophe to the tourism sector & entirely hampering the hospitality sector, thereby directly impacting the demand for air conditioners.
Market Segmentation
Based on End-Users:
Of them all, Commercial buildings acquired the largest share in the Iraq Air Conditioners Market, and the same trend is likely to be followed in the coming years. It attributes principally to the growing government focus on infrastructure developments, i.e., displaying an increasing number of construction projects like Baghdad Metro, Railway line (Baghdad-Kut-Umara-Basra), New Karbala City, Mosul International Airport, Bismayah construction project, and Nasiriya International Airport in the commercial sector. As a result, it is instigating manufacturers to escalate their production capacities and meet the burgeoning demand for air conditioners to facilitate these developments.
On the other hand, the Retail sector is expected to contribute significantly to the market growth during 2022-27. It owes principally to the growing number of retail shops, supermarkets, departmental stores, etc., in the country, i.e., propelling the demand for air conditioners for ventilation & cooling purposes.
Based on the Type:
Here, split air conditioners are anticipated to dominate the Iraq Air Conditioner Market with the largest share during 2022-27. It owes to the mounting demand for these air conditioners, especially across the residential sector, due to the rising awareness about their benefits like efficient energy consumption, easy installation & operation, cost-effectiveness, ease of maintenance, and features like air purification, among others. These aspects are stimulating the demand for split ACs across Iraq, which would fuel the overall growth of the air conditioner industry through 2027.
Market Dynamics:
Key Driver & Opportunity: Integration of the Internet of Things (IoT) into Air Conditioners
With constant technological developments, the integration of IoT into air conditioners is swiftly gaining momentum across Iraq. The leading players in the Air Conditioners Market across the country are utilizing technologies to incorporate building automation to facilitate a comfortable environment for end-users by delivering features like temperature detection, energy efficiency, air purification, real-time monitoring, remote diagnosis, preventive maintenance, & remote appliance control, among others. As a result, the demand for air conditioners is increasing rapidly, which would generate significant growth opportunities for the leading players in the Iraq Air Conditioners Market through 2027.
Possible Restraint: Warfare Situation & Poor Management of Funds
Growing cycles of warfare, increasing conflicts between countries, entwined with a volatile economy of Iraq might restrain developments in its Air Conditioner Market and hinder its growth during 2022-27. In addition, security concerns over borders are keeping investors away from the country, i.e., impacting the overall economy & also the market growth.
Besides, mismanagement of funds by local manufacturers and minimal participation of the private sector in the Iraq Air Conditioners Market might also play a crucial role in hampering the market expansion in the years to come.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Iraq Air Conditioner Market is projected to grow at a CAGR of less than 5% during 2022-27.
A. The Commercial sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the Iraq Air Conditioners Market through 2027.
A. The integration of IoT into air conditioners to facilitate a comfortable environment in the space & incorporating them with building automation is anticipated to generate growth opportunities for the Iraq Air Conditioner Market during 2022-27.
A. In the coming years, the introduction of new air conditioners with upgrades & other features are likely to augment their adoption across different end-user industries in Iraq and, in turn, lead to steady growth for the Air Conditioner Market.
