The air conditioners market in the UAE is projected to grow at a CAGR (compounded annual growth rate) of 8 per cent during 2015-20, a report said.

Growth in the market is anticipated on account of growing population, increasing purchasing power, high temperatures and upcoming construction projects in the country, added the recently published report "UAE Air Conditioners Market Forecast & Opportunities, 2020” by TechSci Research, a global market research and consulting company.

Further, various technological advancements such as development of air conditioners with built-in air purifiers, coupled with introduction of energy-efficient air conditioners are also propelling growth in UAE air conditioners market.

UAE has the seventh highest per capita income in the world. Increasing purchasing power of consumers in the country is consequently resulting in higher urbanization, the report said.

To cater to increasing housing demand of the growing urban population and large number of expatriates in the country, various construction projects are anticipated to start over the next few years, which will bring a noteworthy addition to the demand for air conditioners in the UAE.

Moreover, on account of upcoming events such as World Expo 2020, and growth in the hospitality and tourism sector, the demand for air conditioners is expected to increase during the forecast period.

The UAE air conditioners market is dominated by-central air conditioners, which held the majority revenue share in the market in 2014, according to the report.

On account of increasing construction activities in the country, this segment is expected to maintain its dominance over the next five years as well. Presently, residential sector accounts for the largest market share in the country's air conditioners market, followed by commercial and industrial sectors.

"Owing to the enforcement of various energy efficiency labelling standards by the government, the demand for energy efficient air conditioners in the UAE is growing at a significant pace, which will help the country in making significant savings in the overall electricity consumption over the next five years,” said Karan Chechi, research director with TechSci Research.

“In addition, awareness regarding the adverse effects of using non-certified products which release harmful gases is increasing the demand for air conditioners with built-in air purifiers in the country,” he noted. – TradeArabia News Service