GCC emerges as key region for global AC market
DUBAI, January 22, 2016
GCC region has become one of the most important regions for global air conditioner market players by rising investments, surging infrastructures and host region of international events, according to a report.
The host region of international events such as Fifa World Cup 2022 and World Expo 2020 would significantly spur the market in the coming years, said the 6Wresearch report.
Additionally, rising population of expatriates is also driving the demand especially in residential application, it said.
The GCC air conditioner market has been projected to grow at an average growth rate of 8.62 per cent during 2016-22.
Among all air conditioners, centralised air conditioners led the market and would contribute majorly during the forecast period.
In GCC region, market for window air conditioners is expected to decline significantly due to changing building architecture and increasing penetration of air conditioners such as split, ducted and packaged units.
Rajat Kharbanda, senior consultant, Research and Consulting, 6Wresearch, said: “Saudi Arabia and UAE are the leading revenue generating countries in GCC’s air conditioner market, where Saudi Arabia alone captured more than 45 per cent of the overall market revenues.
“However, in the forecast period, higher growth in Qatar is anticipated owing to upcoming Fifa World Cup 2022. More than $300 billion is expected to be invested to build the infrastructures for the sporting event. Construction of hotels, malls, stadiums and public infrastructures such as airport and metro would bolster the air conditioners market demand.”
Avishrant Mani, senior research analyst, Research and Consulting, 6Wresearch, said: “Residential, retail, hospitality and government & transportation applications accounted for key share of the market pie.
"Rising number of tourists and initiatives taken by the government to reduce the dependency on oil would encourage establishment of new industries, which would fuel the infrastructure development across various sectors.”
“Contribution from Oman and Bahrain is lower than other GCC countries, but possesses immense opportunities for the air conditioner market players. Air conditioners are either imported or assembled in the region due to lack of manufacturing ecosystems; however, this trend is likely to change in the forecast period,” Mani added. - TradeArabia News Service
