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

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

The North Africa Air Conditioner Market is anticipated to grow at a CAGR of around 5.35% during the forecast period, i.e., 2023-28. The key driver for the market growth is the hot & arid climates in the region, which create a strong demand for air conditioners across both residential & non-residential sectors. In addition, the ever-increasing infrastructural development activities due to rapid urbanization and economic growth are other significant aspects driving the market.

The air conditioner market in North Africa is dominated strongly by local manufacturers, mainly due to a 'high custom duty' on imported products, i.e., around 40% of the product value. Most major international air conditioner brands have national partners in a few North Africa countries that either manufacture their technology, assemble the equipment, or simply just supply & import the technologies, especially for small AC equipment like split systems, cooling coils, fans, & AHUs. Besides, countries like Egypt also has a local presence of Daikin & Samsung.

• On 28 June 2023, the Egyptian Parliament approved Presidential Resolution No. 32 of 2023 regarding the approval of the Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer, aiming to keep pace with the global trend in the field of technology modernization within the framework of preserving the environment while achieving sustainable development.

The amendment provides for the inclusion of HFCs (Hydrofluorocarbons) used in some refrigeration & air-conditioning devices within the schedules of substances subject to the control of the Montreal Protocol, coupled with the gradual reduction of the consumption of these substances as these are potent greenhouse gases that cause global warming, especially since there exist several environmentally-friendly alternatives that achieve efficiency & minimize energy consumption.

In view of this, many AC manufacturers have started working on bringing technological advancements to their product offerings, including energy-efficient systems, smart thermostats, & eco-friendly refrigerants, which would result in enhanced efficiency, cost-effectiveness, & environmental sustainability of AC solutions, making them more attractive to consumers and, consequently, spurring growth in the North Africa Air Conditioner Market over the forecast years.

North Africa Air Conditioner Market Opportunity

Ever-Increasing Need for Energy-Efficient Air Conditioners - North Africa is witnessing rising energy prices, i.e., compelling end-users to reduce electricity consumption and achieve energy cost savings. Moreover, in order to reduce carbon footprints, governments are taking active measures toward promoting sustainability practices and offering tax rebates & subsidies to end-users on the purchase of energy-efficient products. Hence, the notably increasing demand for environment-friendly & energy-efficient AC solutions in the region is a promising growth opportunity for the companies operating in the North Africa Air Conditioner Market to widen their consumer base and generate significant revenue in the future.

North Africa Air Conditioner Market (2023-28): Segmentation Analysis

The North Africa Air Conditioner Market study from MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment and includes predictions for the period 2023–2028 at the country levels. Based on the analysis, the market has been further classified as:

Based on Product Type:

• Single Split
• Window
• Floor Standing
• Cassette
• Packaged
• Ducted Split
• Condensing units/VRF
• Chillers
• AHU/FCU

Among all, single split systems strongly dominate the North Africa Air Conditioner Market and are adopted mainly by residential buildings & some small commercial spaces like office & retail buildings, owing to their cost-effectiveness and ease of installation, which makes them more convenient for consumers, especially in countries where professional installation services may be limited or expensive. Moreover, the significantly rising number of housing development projects and the expansion of the hospitality sector are other crucial factors projected to accelerate the market growth for split air conditioners in North Africa over the coming years.

On the other hand, chillers, most of which are imported in North Africa, are gaining traction, particularly in Egypt, for new large commercial buildings, such as hotels, shopping malls, supermarkets, & hospitals, owing to their low maintenance costs, long lifespan, the availability of cheap natural gas, and higher electricity prices. Besides, VRF systems, which are imported entirely, are expected to witness relatively strong growth in the forecast years. The growing number of VRF systems in the North African air conditioner market owes to their high efficiency, making them appealing to consultants & suppliers for new single-family housing, new office buildings, hotels, & educational buildings.

Based on End-User:

• Residential
• Commercial

While the residential sector dominates the North Africa Air Conditioner Market, backed by economic growth, extreme weather conditions, and new housing development projects, the commercial sector is projected to create notable revenue growth for the market during 2023-28. It owes to the rapidly expanding construction sector on account of increasing government investments in infrastructure development.

The recent construction boom, accompanied by the development of new & large cities, is creating market growth opportunities for air conditioners in the commercial sector, especially for DC (District Cooling), i.e., starting to be adopted. In addition, various ongoing projects associated with the construction of shopping malls, supermarkets, healthcare facilities, hotels, & educational infrastructure, among others, coupled with the growing tourism sector, would further benefit the North Africa Air Conditioner Market growth across the commercial sector in the years to come.

North Africa Air Conditioner Market Country Projection:

• Egypt
• Sudan
• Libya
• Algeria
• Morocco

Of all countries in North Africa, Egypt is the largest Air Conditioner Market, owing to the strong government focus on infrastructure development as a key driving force for urban growth & economic stability, coupled with massive investments in the New Administrative Capital, i.e., one of the economic development projects and a part of Egypt Vision 2030, and the onset of the construction of the Middle East's largest private integrated medical city project, CAPITALMED, in Badr City on the east of Cairo. Like this, many mega projects have been planned in Egypt for the coming years due to the New Administrative Capital's development, i.e., creating opportunities for the production & sales of air conditioning solutions in the country.

More & more building owners are willing to make their facilities more cost-efficient & environmentally friendly by adopting the latest air conditioning solutions like thermally driven units to increase efficiency and reduce utility costs while overcoming the challenges of temperature & air quality conditions. The air conditioner market in Egypt is poised for continued expansion in the coming years, owing to the mounting implementation of district cooling in several projects, coupled with the transition toward sustainable cooling technologies & natural refrigerants, which will create opportunities for manufacturers to bring more energy-efficient products to the market.

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