Saudi Arabia Air Conditioner Market Research Report: Forecast (2025-2030)

Market Definition

Air conditioners are machines that remove warm air from a defined area and replace it with cooler air through a refrigeration cycle.

Market Insights & Analysis: Saudi Arabia Air Conditioner Market (2025-30):

The Saudi Arabia Air Conditioner Market size was valued at around USD 3.21 billion in 2024 and is expected to reach USD 4.87 billion in 2030. Along with this, the market is estimated to grow at a CAGR of around 7.20% during the forecast period, i.e., 2025-30. The growing commercialization, along with the diversification of the economy due to extensive development in residential, commercial, hospitality, and industrial sectors, is one of the few factors expected to drive the Saudi Arabia Air Conditioner market growth through 2030. In addition, this drift towards infrastructural development has attracted substantial investment from the government and the private market players, leading to more installation of air conditioners in the coming years. In addition to this, Saudi Arabian government has introduced widespread initiative focusing energy efficiency and reducing environmental impacts, significantly influencing the air conditioner market.

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For instance: In 2024, Saudi Standards, Metrology and Quality Organization (SASO) introduced the updated SASO 2663:2021 standard, replacing the earlier 2018 guidelines. This revised framework marks a significant shift in performance evaluation by mandating the adoption of the Seasonal Energy Efficiency Ratio (SEER) classification—an internationally recognized metric designed to provide a more accurate and realistic assessment of energy performance over varying seasonal temperatures. By integrating SEER into its compliance requirements, Saudi Arabia is aligning its regulatory architecture with best practices, particularly relevant for its extreme climatic conditions where cooling demand is both critical and continuous.

Moreover, the initiatives like Saudi Vision 2030, aiming to reinvigorate the dipping economy, might further boost the kingdom's economy, swiftly hinting at more infrastructural advancements across Saudi Arabia in the coming years. Such robust improvements, paired with mounting sustainability concerns, particularly in the commercial and residential sectors, might encourage the need for more energy-efficient and smart air conditioners between 2025 and 30, ultimately boosting the Air conditioner industry across Saudi Arabia.

Saudi Arabia Air Conditioner Market Driver:

Integration of Smart and Energy-Efficient Technology– Many clients are shifting to smart and energy-efficient technology in order to minimize energy consumption and enhance sustainability. Due to its improved monitoring and smart thermostats, the inbuilt system has gained traction over conventional systems, as the modern ones facilitate better temperature variability and cleaner air. Also, users can monitor these systems' performance in real-time using a mobile app. Backed by these benefits, the inclination for energy-efficient and advanced air conditioners has accelerated in the past few years and is likely to propel the industry forward in the forecast period.

Saudi Arabia Air Conditioner Market Opportunity:

Ever-Expanding Religious Tourism in The Kingdom– The rapidly growing focus of the government on religious tourism has attracted a large influx of funds for numerous related projects. As a result, there are now ongoing projects like the $26.6 billion Grand Mosque expansion in Mecca and the $16.5 billion Haramein high-speed rail link between Mecca and Medina. With 25 million people projected to visit the holy sites annually by 2025, these enhancements are meant to increase religious tourism in the nation. Thus, religious tourism is likely to emerge as an opportunistic area for the leading players impacting the AC installment in the coming years.

Saudi Arabia Air Conditioner Market Challenge:

High Energy Consumption and Rising Electricity Costs – The primary challenge restricting the growth of the Saudi Arabia ac market is the high energy consumption of air conditioning systems, which leads to escalating electricity costs for both consumers and businesses. In Saudi Arabia’s extreme climate, air conditioning accounts for nearly 70% of total electricity consumption in the residential sector, placing immense pressure on the national power grid and raising concerns about long-term energy sustainability. This issue is compounded by the government’s gradual reduction of energy subsidies as part of its Vision 2030 economic diversification strategy, resulting in increased electricity tariffs and higher operational costs for end-users.

Saudi Arabia Air Conditioner Market Trend:

Shift Towards Energy Efficient and Smart Air Conditioning Solutions – The most significant trend driving the growth of the Saudi Arabia air conditioner market is the accelerated adoption of energy-efficient and smart air conditioning systems, propelled by robust government policy incentives and sustainability initiatives. With Saudi Arabia facing extreme heat and a rapidly urbanizing population, energy consumption from cooling has become a national concern. In response, the government has launched targeted programs such as the Saudi Energy Efficiency Center’s “Estbdal” initiative, which offers financial incentives, free delivery, and installation to encourage the replacement of outdated units with modern, energy-saving models. These measures are removing barriers for consumers and accelerating the replacement cycle, directly reducing household electricity usage and promoting sustainable living.

Saudi Arabia Air Conditioner Market (2025-30): Segmentation Analysis

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

Based on Type:

• Window AC
• Split AC
• Cassette AC
• Packaged AC
• Ducted Split AC
• Centralized AC
• Others (Floor Standing/Portable AC, etc.)

Amongst all, the Split Air Conditioner captured the highest share in the Air Conditioner Market in Saudi Arabia in the historical years. The maximum claim by the category is attributed to the establishment of various residential buildings, small corporate offices, and retail shops under the Saudi Vision 2030. These buildings called for the instalments of Split AC in significant numbers. Besides, several companies such as Samsung and Trane are discontinuing the production of the window air conditioner segment, instigating the demand for split air conditioners for residential purposes.

Based on End User:

• Residential
• Commercial Buildings
• Retail
• Health Care
• Hospitality
• Government & Transportation
• Oil & Gas
• Others (Religious Institutions, etc.,)

The industry's residential, commercial & retail sectors acquired the majority market share. In addition, the government's extensive initiatives, including King Abdullah Economic City and Jazan Economic City, and numerous housing projects to upgrade the country's infrastructure have recently augmented the demand for air conditioners. However, it is predicted that this demand shall scale up the price of air conditioners in the nation's hospitality sector. Further, the authority's initiatives to relax travel visa restrictions by facilitating the issuance of e-visas and visas on arrival for visitors from 49 countries would drive an increase in demand for new hotels, particularly medium-budget hotels, over the upcoming years.

Saudi Arabia Air Conditioner Industry Recent Development:

• 2025: Ceer signed a strategic collaboration with Zamil Central Air Conditioners at the PIF Public Sector Forum. This collaboration marks a significant milestone in the localization of HVAC components specifically tailored for electric vehicles within the Kingdom.
• 2024: Carrier, a leader in HVAC solutions, announced a landmark collaboration with Alat, a newly established public investment fund based in Riyadh, to set up a state-of-the-art manufacturing and research facility in Saudi Arabia. This initiative is a significant step in Carrier’s strategy to localize production and innovation within the Kingdom and the broader MENA region.

Gain a Competitive Edge with Our Saudi Arabia Air Conditioner Market Report

• Saudi Arabia Air Conditioner 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.
• Saudi Arabia Air Conditioner 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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