Saudi Arabia's HVAC-R market to hit $7 bln by 2024: report
The heating, ventilation, air-conditioning and refrigeration (HVAC-R) sector in Saudi Arabia is poised for solid growth over the next five years, said a report by Research And Markets.
With the market growing at a compound annual growth rate (CAGR) of 11.9 percent during 2019-2024, the Saudi HVAC-R sector is set to hit $7.1 billion by 2024, owing to the growing demand from the residential building construction and tourism industries.
Moreover, the increasing need to reduce food wastage is expected to aid the refrigeration market in Saudi Arabia.
“To cater the increasing demand for HVAC-R systems, the market players are expanding their product portfolio in the country,” the statement added.
The study also noted that key factors such as the increasing demand to reduce energy consumption and extreme climate conditions are likely to drive the Saudi Arabian HVAC-R market.
Additionally, growing urbanization rate in cities is resulting in the development of smart buildings, which require efficient HVAC-R systems, thereby strengthening its demand in Saudi Arabia, it stated.
The Northern and Central regions are likely to exhibit the fastest growth in the Saudi Arabian market during 2019-2024, on the back of the increasing demand for HVAC-R systems from the growing residential and commercial sectors in areas such as Riyadh and Eastern Region.
However, alarming pollution levels and stringent laws introduced by the government to curb pollution are expected to hinder the market growth in the coming years, it stated.