Saudi Arabia HVAC Market Size to Surpass USD 6.22 Billion by 2033, at a CAGR of 7.98%

Saudi Arabia HVAC Market Overview

Market Size in 2024: USD 3.01 Billion

Market Size in 2033: USD 6.22 Billion

Market Growth Rate 2025-2033: 7.98%

According to IMARC Group's latest research publication, "Saudi Arabia HVAC Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Saudi Arabia HVAC market size was valued at USD 3.01 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 6.22 Billion by 2033, exhibiting a CAGR of 7.98% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia HVAC Market

● Revolutionizing Energy Optimization: AI-powered HVAC systems are transforming energy consumption patterns through predictive analytics and real-time monitoring, reducing energy usage by 25-30% while maintaining optimal indoor climate control, supporting Saudi Arabia's Vision 2030 sustainability goals and addressing the challenge where air conditioning accounts for nearly 70% of residential electricity consumption.

● Enabling Predictive Maintenance Solutions: Machine learning algorithms are revolutionizing maintenance strategies through IoT sensor integration and predictive failure detection, reducing unplanned equipment breakdowns by 35-40% and extending HVAC system lifespans while minimizing operational costs across residential, commercial, and industrial applications in the Kingdom.

● Enhancing Smart Building Integration: AI-integrated building management systems are optimizing HVAC performance through automated climate control, occupancy-based adjustments, and real-time air quality monitoring, improving user comfort by 45-50% while seamlessly coordinating with lighting, security, and energy systems in mega-projects like NEOM, Red Sea Project, and Qiddiya.

● Optimizing Load Forecasting and Demand Response: Advanced AI models are transforming energy demand management through precise cooling load predictions, peak demand optimization, and dynamic pricing response, reducing grid strain during extreme temperature events exceeding 50°C while enabling more efficient resource allocation across Saudi Arabia's expanding urban infrastructure.

● Facilitating Intelligent Remote Management: AI-driven cloud-based platforms are enabling remote HVAC system monitoring, automated fault detection, and mobile app-based control, improving operational efficiency by 30-35% and providing building owners with real-time insights into system performance, energy consumption patterns, and maintenance requirements aligned with smart city initiatives.

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Saudi Arabia HVAC Market Trends & Drivers:

Saudi Arabia's HVAC market is experiencing robust growth driven by the government's ambitious Vision 2030 mega-projects, with the Kingdom's construction market valued at USD 70.33 billion in 2024 and expected to reach USD 91.36 billion by 2029, creating unprecedented demand for advanced cooling and climate control systems. Major infrastructure developments including NEOM, Red Sea Project, Qiddiya, and King Abdullah Economic City are fueling massive HVAC installations across residential, commercial, and industrial segments, with over 50,000 new hotel rooms planned to support the target of attracting 30 million visitors annually.

The extreme climate conditions and rising temperatures are driving demand for reliable and efficient HVAC systems, with summer temperatures frequently exceeding 50°C and climate projections indicating heatwaves lasting 4,242% longer by 2030 according to the G20 Climate Risk Atlas. This creates sustained demand for advanced cooling solutions, particularly as the population surpassed 37.4 million in 2024 with urbanization projected to reach 97.6% by 2030, with Riyadh's population expected to grow to 8.2 million residents requiring comprehensive climate control infrastructure.

Energy efficiency regulations and sustainability initiatives are reshaping market dynamics, with the Saudi Energy Efficiency Center implementing stricter standards for HVAC systems and launching the nationwide "Estbdal" initiative in September 2024 to replace outdated air conditioners with energy-efficient models through partnerships with 30+ retailers, 350 showrooms, and 4 local factories. The integration of smart technologies and IoT-enabled systems is accelerating, with Variable Refrigerant Flow (VRF) systems gaining prominence through partnerships like ROSHN's February 2025 agreement with Johnson Controls Arabia to enhance energy efficiency and promote local manufacturing aligned with Vision 2030's goal to manufacture 90% of HVAC products locally and expand exports to regional markets.

Saudi Arabia HVAC Industry Segmentation:

The report has segmented the market into the following categories:

Equipment Insights:

● Cooling Equipment
● Chillers
● DX Cooling Systems
● Room Air Conditioners
● VRF Systems
● Ductable Splits
● Ducted Split Systems
● Heating Equipment
● Ventilation Equipment

Implementation Type Insights:

● New Constructions
● Retrofits

End Use Insights:

● Residential
● Commercial
● Industrial

Breakup by Region:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

The competitive landscape includes major players such as Zamil Air Conditioners, Johnson Controls Arabia Inc., ControlTap General Contracting, Carrier Saudi Arabia, Quality Leaders Group, Daikin Saudi Arabia, Golden Obelisk, Trane Saudi Arabia, Al Salem YORK, LG Electronics, and AMFCO.

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Recent News and Developments in Saudi Arabia HVAC Market

● September 2025: LG Electronics partnered with Shaker Group and DATAVOLT to supply advanced thermal management and cooling solutions for AI data centers at NEOM's Oxagon industrial hub, marking a significant milestone in the 30-year partnership and positioning AI data center cooling as a new growth engine within LG's HVAC business in the Middle East.

● March 2025: TAQA Geothermal Energy and EDF Saudi Arabia signed a strategic MoU to collaborate on geothermal energy solutions including electricity generation and HVAC applications across Saudi Arabia, sealed at the PIF Private Sector Forum and supporting Vision 2030's move towards cleaner, sustainable energy with emphasis on geothermal and compressed air storage technologies.

● February 2025: ROSHN signed an agreement with Johnson Controls Arabia to introduce Variable Refrigerant Flow (VRF) technology, enhancing energy efficiency and promoting local manufacturing with the goal to manufacture 90% of HVAC products locally and expand exports, while LG Electronics Saudi Arabia and Shaker Group celebrated 30 years of partnership with the Riyadh factory producing advanced systems like the AI-powered LG Multi V I.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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