The Saudi Arabian HVAC market is growing on account of the rising infrastructure spending and expanding hospitality sector in the country. In 2018, the sale of such systems generated an estimated revenue of $1.9 billion, which is expected to rise to $2.4 billion by 2024 at a CAGR of 4.5% during 2019–2024 (forecast period).
HVAC systems cool or heat a closed space, maintain the flow of fresh air and remove contaminants, either as standalone devices or integrated ones.
When segmented by type, the Saudi HVAC market is divided into cooling, ventilation, and heating systems.Among all these, cooling systems dominated the market throughout the historical period (2014–2018) in terms of value and volume, and will continue doing so in the forecast period, wherein this division is also predicted to grow the fastest. This is because of the perpetually hot regional weather, which necessitates the installation of such devices in buildings and various other enclosed spaces.
One of the primary reasons for the growth of Saudi Arabia HVAC market is the increase in the number of infrastructure projects in the country. For instance, the metro system is being constructed in Riyadh at a cost of around $23.0 billion to be completed by 2021; the system will have 85 stations over 109 miles of route length.
Similarly, the under-construction Jeddah Metro will consist of 46 stations. All these stations will be equipped with HVAC systems for cooling and ventilation purposes, thereby boosting the market progress.
Therefore, as the number of tourists, hotel rooms, and civic infrastructure projects increase further inthe nation, so will the sale of HVAC systems.