Indeed, a rapidly growing population, increasing urbanization and religious tourism are considered key drivers of this trend, which are expected to strongly contribute to the expansion of the Saudi HVACR market in the next five years. "The demand for HVAC equipment in Saudi Arabia will keep growing steadily, boosted by the Government's construction projects valued at around USD80 billion," ?Firas Abou Ltaif, HVACR Expo Saudi Project Manager, commented. Saudi Arabia's construction sector is already one of the largest global markets in value terms, contributing to around 8 percent of the national GDP. According to the report, it is expected to grow at 7.8 percent between 2016 and 2021.
According to the report, the refrigeration market grew at a CAGR of around 11.80 percent during 2010-14, and is projected to grow at a CAGR of around 12.27 percent over the next five years in Saudi Arabia. Also, building insulation is projected to grow at a CAGR of around 7.39 percent during 2015-20, mainly on account of increasing concerns regarding energy saving.
Rising power demand and stringent energy efficiency regulations developed by the Saudi Government are among the key challenges faced by the HVACR industry in the country. This is why, according to the report, the district cooling technology is the number one emerging trend in Saudi Arabia. Cost-effective and energy efficient, district cooling consumes 50 percent lesser power compared to regular HVAC systems, while providing better cooling. "Currently, about 70 percent of electricity consumption in the Kingdom is used to power air conditioners. If more sustainable solutions are not implemented, energy consumption will soon double, as half million new homes are needed to meet Saudi Arabia's growing population demand," Abou Ltaif warned. "This is why district cooling is not only feasible in this country: it is necessary."
Organized by dmg events Middle East, Asia & Africa, HVACR Expo Saudi 2017, which was held in January, explored current trends, challenges and opportunities in the Kingdom's growing HVACR market. "The Saudi market presents many opportunities for HVACR manufacturers. With key developments of airports, metros, and housing projects, the drive towards digitization and smart solutions, and the increasing focus on sustainability, we already offer sustainable, highly efficient products that are in line with the 2030 Vision of the Kingdom," commented Rachad Abdallah, Head of Marketing and Quality at Arabian Air-Conditioning Company, exclusive distributor of Carrier in Saudi Arabia, and a subsidiary of United Technologies Corp.
Source:
dmg events Middle East, Asia & Africa
Web: www.dmgeventsme.com
