A number of factors, such as the increasing requirement for energy-efficient heating, ventilation, and air conditioning (HVAC) systems, expanding construction industry, rising number of strict government regulations, growing tourism sector, and upcoming major events, are projected to boost the growth of the Middle East and Africa (MEA) HVAC market at a CAGR of 4.9% in the forecast period (2019–2024). At this growth rate, the market size is expected to reach $10.1 billion by 2024 from $7.8 billion in 2018.
The Middle East and Africa HVAC market is witnessing the increasing need for energy-efficient HVAC systems, as these are very crucial to control the greenhouse gas emission and limit the impact of global warming. Moreover, the Gulf Cooperation Council (GCC) countries are introducing sustainable development policies and have strict regulations for energy-efficient solutions. Hence, to obey the regulations and support policies, market players are introducing energy-efficient systems in the region. For instance, due to violating the standards of Saudi Energy Efficiency Center, the customs department of Saudi Arabia seized 759,000 products in 2017.
The primary factor improving the market growth prospects is the growing construction industry. International events like the World Expo 2022 in the U.A.E. and the FIFA World Cup 2022 in Qatar are projected to fuel the tourism sector, which, in turn, drives the construction industry. For instance, as per the Ministry of Development Planning and Statistics, Qatar, eight football stadiums are under construction, which are likely to be completed by 2022. Thus, with the increasing construction activities, the demand for HVAC systems is surging in the region.
The type segment of the Middle East and Africa HVAC market is classified into heating, ventilation, and cooling. Among these, the cooling category held the largest market share in 2018. This is attributed to the fact cooling systems are required in almost all commercial and residential facilities. This category is further classified into ducted split/packaged unit, chiller, split unit, room air conditioner (AC), and variable refrigerant flow (VRF). Of these, the VRF category is expected to witness the fastest growth during the forecast period, owing to its economical nature and wide usage in commercial spaces.
Additionally, the Middle East and Africa HVAC market is categorized into residential, commercial, and industrial, on the basis of end user. Among these, the commercial category accounted for the largest market share in 2018. This is due to the rising number of commercial facilities, surging hospitality industry, increasing infrastructure investments in the region. For instance, the Saudi Government has invested $26.6 billion for the expansion of the grand mosque in Mecca and $16.5 billion for the Haramein high speed railway, connecting Mecca and Medina.
Furthermore, based on country, Saudi Arabia accounted for the largest share in 2018 in the Middle East and Africa HVAC market. This is due to the increasing number of construction projects, with a focus on green buildings, in the country. King Abdullah Financial District (KAFD), a new financial hub in Saudi Arabia, is a key example of the green building project. The rising construction of green buildings is pushing the demand for high-efficient HVAC systems in the nation.
Thus, the growing construction industry and the increasing demand for HVAC systems in MEA are expected to propel the growth of the market during the forecast period.
