Driven by extreme climatic conditions, rising income levels and rapidly growing infrastructure, Saudi Arabia’s air-conditioners (AC) market is set to cross the $2.5-billion mark by 2019, a report said.

Over the past few years, Saudi Arabia's air conditioner market has witnessed a significant growth in demand across diverse sectors, added the Saudi Arabia Air Conditioner Market Forecast & Opportunities 2019, released by TechSci Research, a global market research and consulting company.

Rising number of housing units, expansion of commercial and institutional spaces and extreme weather are the major growth drivers for the country's air-conditioner market, it noted.

In Saudi Arabia, summers stretch to around nine months in a year with maximum temperatures reaching 55 deg C in some parts of the country.

The report reveals that centralised air-conditioning units such as chiller and VRF (variable refrigerant flow) systems are expected to gain a stronger foothold in Saudi Arabia over the next five years. However, the share of window air-conditioners is expected to witness a decline during the same period, it said.

Government and private companies have announced various mega development projects such as educational institutions, hotels, office spaces, and expansion and development of cities in the country, which is expected to create a lucrative market for air-conditioner manufacturers and suppliers over the next five years.

A rapidly expanding affluent population base in the country is increasingly opting for luxury housing units, which is boosting the demand for centralised air-conditioning units in the country's residential sector. In addition, the booming hospitality and tourism industry in the country is also anticipated to trigger the demand for air-conditioners in Saudi Arabia during 2014-19, the report said.


"Major Saudi Arabian cities such as Riyadh, Jeddah and Makkah are witnessing rapid infrastructural development, thereby providing a huge growth opportunity for air-conditioner companies to offer complete air-conditioning solutions to their customers in these cities,” said Karan Chechi, research director with TechSci Research.

“Moreover, as Saudi Arabia experiences very hot climate for the majority of the year, air-conditioners have become more of a necessity rather than a luxury item, and with growing income levels, the demand would continue to grow over the next five years,” he added. – TradeArabia News Service