Saudi Arabia's air conditioners market revenues are set to grow at a CAGR (compound annual growth rate) of more than nine per cent over the next five years, said a report.

Growing construction of residential and commercial units, extreme climatic conditions, high population growth and increasing urbanisation are the key factors driving the market growth, according to a report by the global management consulting firm TechSci.

In addition, the boom in tourism sector is resulting in an increase in the number of hotels and resorts in the country, further driving the demand for air conditioners in the kingdom, the company stated in its report, "Saudi Arabia Air Conditioners Market Forecast & Opportunities, 2020.

Air conditioner sales in the country are being driven primarily by cities such as Riyadh, Madinah and Jeddah, due to high population density and increasing infrastructural development in these cities.

Further, with increasing purchasing power, demand for advanced air conditioners equipped with new features such as air purification, app control, etc., is also growing it added.

The air conditioning market is mainly divided into two segments - residential (Split and Window air conditioners) and commercial (VRF air conditioners and Chillers).

While growing urbanisation and tourism are fueling the market for residential air conditioners, the demand for commercial air conditioners in the country is emanating from commercial complexes and industrial units, the report stated.

Further, government infrastructure development projects are the other major drivers of the country's air conditioners market, it added.

Karan Chechi, the research director with TechSci Research, said the demand for air conditioners was on the rise in Saudi Arabia.

"Long summers with high temperatures continue to boost air conditioner sales in the country. In terms of revenue contribution, residential air conditioning systems dominated the market in 2014," stated Chechi.

"The segment is expected to maintain its dominance through the forecast period, however, its share is likely to decline on account of high anticipated growth of commercial air conditioning systems, particularly chillers, in the country," he added.-TradeArabia News Service