HVAC after-market is the industry providing after-sales services, such as repair, maintenance, spare parts, etc., for the HVAC systems installed. Stakeholders like OEMs, Facility Management Companies, and In-house Maintenance play a crucial role in the market.
The Kuwait HVAC After-Market is projected to grow at a CAGR of around 12.7% during the forecast period, i.e., 2021-26, says MarkNtel Advisors. The market is driven primarily by the increasing investments in the commercial & hospitality sectors, coupled with various government initiatives toward building Smart cities across Kuwait. Moreover, with new servicing methods, the number of participating companies increased, thereby driving the market.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Carrier Kuwait Air Conditioning K.S.C, Trane, Daikin Middle East & Africa FZE, SKM Refrigeration, Air Conditioning & Contracting Co. Ltd., United Facility Management, EFS Facilities Services, Fawaz Group, Ecovert FM Kuwait|
|Unit Denominations||USD Million/Billion|
COVID-19 Outbreak Minimally Impacted the Kuwait HVAC After-Market
Last year, the Covid-19 pandemic had a minimal impact on the Kuwait HVAC After-Market industry. The imposition of lockdown and movement restrictions halted the servicing of HVAC systems across the hospitality & commercial sectors. However, HVAC systems being an absolute necessity in the country, revenue losses got covered with the ease of norms and lockdown upliftment.
Based on type, the Kuwait HVAC After-Market bifurcates into:
Of both, Service & Retrofit are expected to account for the highest CAGR, i.e., more than 12.7%, during 2021-26. It owes to multiple services offered to consumers, such as Annual Maintenance Contract (AMC), predictive maintenance, on-call servicing, retrofitting for chillers, cites MarkNtel Advisors in their research report, "Kuwait HVAC After-Market Analysis, 2021."
Commercial & Retail Sectors Accounted for the Largest Market Share
The burgeoning developments in the commercial & retail sectors predict the future growth & the highest share in the overall market. Under the Kuwait Vision 2035, the government aims to diversify the economy & develop state-art-of-the-art infrastructure for the tourism industry. The Blue Water Mall development plans with an investment of around USD 99.5 million would act as a catalyst for the expansion of commercial & retail sectors in the overall Kuwait HVAC After-Market.
Al Ahmadi & Al Farwaniya Attained Highest Market Share
Al Ahmadi & Al Farwaniya held the highest share of more than 25% each in Kuwait HVAC After-Market during 2016-2020 and is likely to continue their dominance in the forecast period. Al Ahamdi is among the country’s largest hubs of the oil & gas sector, and Al Farwaniya is amongst the highly developed & populated regions. The rising construction activities & infrastructure developments in these regions would thrive the HVAC After-Market during 2021-26. The mounting demand for comfortable & unhindered air cooling & ventilation, which, in turn, leads to better HVAC services and fuels the overall market growth.
Positive Change in Consumer Attitudes Toward Preventive Maintenance
To avoid the sudden breakdown of HVAC systems, the customers have now been focusing on the preventive maintenance of the tools & equipment. Since the swift working of HVAC systems being crucial in Kuwait weather conditions, periodic servicing is also essential. The pressing need for seamless HVAC systems has led to customers being active in system servicing, replacements, retrofitting, etc., thereby driving the market.
Soaring Steel Prices
Kuwait has faced a 50% increase in steel prices from KD 170(USD 561) to KD 254(USD 838) in 16 months, i.e., from February 2020 to May 2021. The HVAC equipment has a heavy requirement of sheet metal for multiple parts of the HVAC system. Steel, being a necessity for spare parts manufacturing, such as sheet metal ducting fabrication and other accessories, the prices for replacement of spare parts would increase & push consumers to buy low-quality products imported mainly from China. It creates a challenge for companies to place themselves before the substandard parts and lure consumers for authentic spare parts
According to MarkNtel Advisors, the major leading players in the Kuwait HVAC After-market are Carrier Kuwait Air Conditioning K.S.C, Trane, Daikin Middle East & Africa FZE, SKM Refrigeration, Air Conditioning & Contracting Co. Ltd., United Facility Management, EFS Facilities Services, Fawaz Group, Ecovert FM Kuwait, etc.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Kuwait HVAC After-market is forecast to grow at a CAGR of around 12.7% during 2021-26.
A. Service & Retrofit are projected to attain the highest CAGR in the Kuwait HVAC After-Market during the forecast period.
A. Al Ahmadi shall continue to grow at the highest CAGR during 2021-26 and present immense opportunities to the key leaders in the Kuwait HVAC After-Market.
A. The paradigm shifts of consumers from transactional to contractual form of services is the major factor driving the market during 2021-26.