Press release
MEA HVAC Market to Benefit from Increasing Investment in Large-Scale Infrastructure Projects
According to the latest market research study published by P&S Intelligence, the Middle East and Africa (MEA) HVAC market is poised for significant growth, with the market size expected to reach USD 13,267.7 million by 2030, up from USD 9,445.5 million in 2023, growing at a CAGR of 5.1% during the forecast period (2024-2030).This growth is driven by the increasing adoption of split units known for their energy efficiency, as well as the growing demand from commercial, industrial, and residential sectors. Key drivers include a surge in urbanization, rising construction activity, and a high standard of living among the growing urban population. Moreover, investments in large-scale infrastructure projects such as airports, railway stations, and commercial complexes are expected to fuel HVAC system demand in the region.
Technological advancements in HVAC systems, particularly the development of energy-efficient and environmentally friendly solutions, are further accelerating market expansion. Governments in the MEA region are also incentivizing the adoption of eco-friendly refrigerants and energy-efficient HVAC solutions to meet sustainability goals. These factors combined with the rapid pace of urban development make the MEA HVAC market a promising sector for future growth.
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Key Insights
Market Growth and Segmentation:
The MEA HVAC market is divided into three main segments: Heating, Ventilation, and Cooling. Among these, the cooling segment holds the largest market share, driven by the widespread use of ducted split/packaged units in high-rise buildings in countries like Saudi Arabia and the UAE.
Ducted split/packaged units are particularly popular due to their efficient performance in large-scale facilities such as manufacturing plants and data centers.
The cooling segment's dominance is also fueled by the growing number of commercial and residential buildings, especially in hot climates where air conditioning is essential.
End-User Market Dynamics:
The commercial sector is the dominant segment, expected to experience the fastest growth due to the increasing need for air conditioning, ventilation, and cooling in office spaces, malls, and retail environments.
The IT sector's growth has led to higher HVAC system adoption in office buildings and commercial spaces, with a notable rise in energy-efficient cooling solutions.
Significant investments in infrastructure projects such as malls, airports, and educational institutions contribute heavily to the demand for HVAC systems in commercial buildings.
Regional Insights:
Saudi Arabia holds the largest share of the MEA HVAC market, accounting for approximately 25% of the total revenue. This dominance is attributed to government regulations promoting energy efficiency and green energy investments.
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The Saudi government's push for environmentally friendly refrigerants and energy-efficient HVAC systems is supporting market expansion. For example, the country's ongoing green hydrogen projects, such as ACWA Power's $8,400 million green hydrogen plant, are anticipated to foster further growth in the HVAC sector.
Technological Advancements:
The growing adoption of Variable Refrigerant Flow (VRF) systems is shaping the future of the MEA HVAC market, particularly in high-rise buildings. VRF systems offer flexible installation and lower utility costs, providing a reliable solution for large commercial spaces with multiple tenants.
Additionally, advancements in ducted systems and the integration of energy-efficient features are increasingly important in meeting the region's stringent energy efficiency regulations.
Competitive Landscape:
Key players in the MEA HVAC market include major global corporations such as Johnson Controls International PLC, Ingersoll-Rand plc, Daikin Industries Ltd., Mitsubishi Electric, and Toshiba Carrier Corporation, among others.
These companies are expanding their presence in the region through strategic partnerships, manufacturing facilities, and distribution networks. Their focus on introducing energy-efficient and environmentally friendly HVAC solutions is a key factor in driving the competition.
Investment Opportunities:
The expansion of infrastructure and urban development projects across MEA countries offers numerous opportunities for HVAC system providers. In particular, large-scale commercial and residential developments, like the Elitz 2 project in Dubai, create substantial demand for HVAC solutions.
The increasing adoption of VRF systems in high-rise buildings, along with government support for green energy initiatives, positions the MEA HVAC market as an attractive segment for investors seeking growth in the construction and energy-efficient technology sectors.
About P&S Intelligence
P&S Intelligence offers custom and syndicated market research and consulting services to clients across the globe. Our team of young and dynamic researchers, guided by mentors with years of experience, create data-rich reports tailored to the needs of MNCs as well as startups and SMEs. We remain in a perennial quest to offer exhaustive insights into every aspect of the market, allowing businesses of all sizes to seize even the smallest of opportunities and tackle even the biggest of challenges.
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