UAE Chiller Market Research Report: Forecast (2025-2030)

Market Definition

A chiller is a machine that removes heat using a liquid or air as a medium to cool a system or machinery. Chillers are the core of many industrial procedures and large-scale air-conditioning systems.

Market Insights & Analysis: UAE Chiller Market (2025-30):

The UAE Chiller Market size was valued at around USD 124.9 million in 2024 and is projected to reach around USD 181.5 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 6.3% during the forecast period, i.e., 2025-30. The growth in the chiller market of the UAE is driven by the increasing construction and real estate projects in the country. There is an estimated USD 400 billion worth of commercial real estate in the UAE that is either under construction or in the planning stage in 2024 states CBRE. Given the region’s geography, the expanding commercial real estate will need an efficient cooling system such as a district cooling system. This will boost the demand for chillers in the UAE.

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Additionally, the UAE is seeing a rapid expansion in its healthcare sector. This is driven by the increasing focus of the government on establishing the country as a regional healthcare hub. This has resulted in a rise in UAE’s healthcare budget and an increase in its healthcare facilities. Abu Dhabi and Dubai are in particular at the forefront of this. In 2023, there was a huge influx of requests associated with the new healthcare facility registration amounting to 26,279 according to Dubai Health Authority. As the country goes through an increasing requirement for cooling with the expansion of its various sectors the demand for the chiller in the country will see a healthy growth over the foreseeable future.

UAE Chiller Market Driver:

Expansion of Residential Sector – The UAE is witnessing a burgeoning boom in its residential real estate especially in the high-rise residential homes and apartments. This is because of the government of UAE's plan to attract rich foreign people and businesses to enhance the spending and enterprise environment of the country. The UAE remains among the top destination choices for migrating wealthy individuals. More than 6,700 millionaires will migrate to the UAE by the end of 2024 states the Henley & Partner. The impact of this was seen in the rising of residential property prices. Moreover, Dubai Urban Master Plan 2040 aims to enhance infrastructure driving the construction work in Dubai. In 2024 Dubai is estimated to make around 64,000 residential units. This expansion of the residential sector will drive the chiller demand in the country for efficient cooling purposes thereby driving the market growth.

UAE Chiller Market Opportunity:

Growing Tourism Sector Offering Growth Opportunities – The UAE government wants to augment its tourism industry to diversify its revenue flow as it steadily shifts away from the oil sector. These growing efforts by the government in this path have resulted in fast growth in the country’s tourism industry. The government plans to bring investments of around USD 27 billion in the tourism industry to raise its GDP contribution to around USD 122 billion by the end of 2031. The unfolding of these scenarios will bring about the improvement of hotels, commercial malls, event venues, etc. All these factors are increasing the demand for cooling systems and ultimately of the chillers in the UAE.

UAE Chiller Market Challenge:

High Cost of Chillers to Hinder Market Growth – The UAE Chiller Market has to face a major challenge related to high costs including initial cost which comes along with the purchase and installation of advanced chillers which is stopping the small and medium enterprises from investing in these systems. Moreover, the chiller systems are complex and require very high technical knowledge for operations and maintenance. This will increase the operational costs of the chillers. Also, the fluctuations in the prices of the raw materials contribute to the rise of chiller prices. This can restrain the growth of the chiller industry in the UAE over the projected period.

UAE Chiller Market Trend:

Increasing Adoption of Internet of Things (IoT) Based Chillers – There is a large usage of cooling machines in the UAE due to the frequent upward push of temperatures to over 50°C in this vicinity. Moreover, 70% of the whole energy consumption goes into air conditioning in Dubai, thus raising the demand for efficient cooling systems. Therefore, the adoption of IoT-based chillers become increasingly important. These IoT-based chillers have advanced sensors that will collect data which gets analyzed using data analytics tools to understand the various patterns. These patterns provide the critical insights that are necessary to optimize the working of these chillers and also lead to an increase in the efficiency of the overall cooling system. The increasing electricity usage for cooling systems due to industrial expansion in the UAE will boost the demand for IoT-based chillers over the forecasted period.

UAE Chiller Market (2025-30): Segmentation Analysis

The UAE Chiller Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025-2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Product:

• Air-Cooled
• Water-Cooled

The water-cooled chiller is the leading segment in the UAE Chiller Market. Compared to air-cooled chillers, water-cooled chillers are greater efficient. Moreover, water is a greater medium of heat transfer compared to the air. This is in particular actual for the reason that the air is already dry and saturated from the heat in this region. Moreover, because the country makes use of a major portion of its available energy source for air conditioning purposes, the government in the UAE is making plans to deploy energy-efficient solutions. Hence, water-cooled chillers currently dominate the UAE Chiller Market and will continue to provide wholesome revenue growth during the forecast period as well.

Based on End Users:

• Oil & Gas
• Chemicals
• Food & Beverage
• Healthcare
• Commercial
• Residential
• Power Utilities
• Others (Government & Transportation, etc.)

The commercial sector holds the largest share of the UAE Chiller Market. Commercial real estate and tourism contribute significantly to the UAE’s GDP. The expansion of real estate will fuel the deployment of district cooling in the country. These district cooling systems extensively use water for cooling purposes. The use of chillers further increases the efficiency of these cooling systems by introducing the reusability of the water. Empower (Emirates Central Cooling Systems Corporation PJSC) world's largest district cooling provider, reported that it saw an increase of 20% in the first half of 2024 due to an increase in consumption from its customers. This increase is due to the high occupation rates in the commercial spaces and their further expansion in the UAE.

At the WETEX 2024 exhibition, Empower highlights that in the future they will add a capacity of 451,540 Refrigeration Tons in the foreseeable future with the introduction of nine district cooling plants. This development highlights the growth in commercial real estate boosting the installation capacity of the district cooling system which fuels the demand for the chillers in UAE.

UAE Chiller Market (2025-30): Regional Projections

Geographically, the UAE Chiller Market expands across:

• Dubai
• Abu Dhabi & Al Ain
• Sharjah & Northern Emirates

Based on the Regional segment it is further bifurcated into Dubai, Abu Dhabi & Al Ain, Sharjah & Northern Emirates. Dubai has the largest share of the UAE Chiller Market. This is primarily due to growth in the commercial sector of Dubai which contributes significantly to its GDP respectively. The growth in this sector led to the expansion of the real estate properties in the emirate. The massive commercial real estate in Dubai extensively uses district cooling systems. These district cooling systems use chillers to perform efficiently. Office and retail spaces make up a significant portion of the country's commercial sector and there is an ongoing expansion of them in Dubai. This will boost the need for a cooling system thereby augmenting the demand for chillers in Dubai.

UAE Chillers Industry Recent Development:

• September 2024: Daikin entered into a partnership with Softlogic in the UAE to capitalize on the opportunity in the country's booming chillers and air conditioning market.
• December 2023: Johnson Controls launched Abu Dhabi’s first “Cooling as a Service” (CaaS) project in collaboration with Aldar Properties.

Gain a Competitive Edge with Our UAE Chiller Market Report

1. The UAE Chiller 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.
2. 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.
3. The UAE Chiller 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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