Saudi Arabia HVAC Market Size to Worth USD 6.3 Billion Million by 2034 | With a 7.58% CAGR

Saudi Arabia HVAC Market Overview

Market Size in 2025: USD 3.3 Billion

Market Size in 2034: USD 6.3 Billion

Market Growth Rate 2026-2034: 7.58%

According to IMARC Group's latest research publication, "Saudi Arabia HVAC Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Saudi Arabia HVAC market size was valued at USD 3.3 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 6.3 Billion by 2034, exhibiting a CAGR of 7.58% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia HVAC Market

● AI-powered predictive maintenance systems transform HVAC operations by monitoring equipment performance in real time, detecting potential failures before they occur, and reducing costly downtime across commercial facilities.

● Machine learning algorithms optimize energy consumption patterns through intelligent climate control, automatically adjusting cooling and heating output based on occupancy levels and environmental conditions in Saudi buildings.

● AI-driven smart thermostats and building management systems enhance operational efficiency by learning user preferences and adapting temperature settings, significantly lowering electricity costs in residential and commercial spaces.

● Artificial intelligence enables demand forecasting and load balancing in HVAC systems, helping facility managers optimize energy usage during peak periods and integrate renewable energy sources effectively across the Kingdom.

● Intelligent automation platforms streamline HVAC installation and commissioning processes through digital twins and simulation tools, reducing project timelines and improving system performance in Vision 2030 mega-projects.

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How Vision 2030 is Transforming Saudi Arabia HVAC Industry

Saudi Arabia's Vision 2030 is transforming the HVAC industry by emphasizing energy efficiency, sustainability, and smart building technologies across large-scale infrastructure projects. Mega-developments like NEOM, The Red Sea Project, KAFD, and Qiddiya are driving strong demand for advanced climate control solutions. Mandatory green building standards and strict efficiency regulations are accelerating the adoption of eco-friendly HVAC systems such as VRF technologies, smart thermostats, and IoT-enabled automation. Programs by the Saudi Energy Efficiency Center, including Estbdal, are encouraging the replacement of old units with high-efficiency alternatives, reducing national energy consumption. Partnerships with global HVAC manufacturers are boosting local production and job creation, lowering import reliance. Overall, Vision 2030 is positioning the HVAC sector as a key enabler of sustainable urban development and renewable energy goals while ensuring optimal indoor comfort in extreme climates.

Saudi Arabia HVAC Market Trends & Drivers:

Saudi Arabia's HVAC market is experiencing robust growth, driven by extreme climatic conditions and prolonged summers creating essential demand for reliable cooling and ventilation systems across residential, commercial, and industrial sectors. The rapid urbanization and population growth are accelerating infrastructure development, with major cities like Riyadh, Jeddah, and Dammam witnessing extensive construction activities including smart cities, commercial complexes, and residential developments requiring advanced HVAC installations. The government's Vision 2030 initiative has catalyzed massive investments in large-scale projects including economic cities, free zones, healthcare facilities, and hospitality infrastructure, all demanding sophisticated climate control solutions to ensure comfort and comply with modern building standards.

The focus on sustainable and energy-efficient solutions is significantly influencing market dynamics, with both government and businesses adopting stringent environmental regulations aimed at reducing energy consumption and lowering carbon emissions. The construction market's substantial growth is playing a crucial role in driving HVAC demand, with emphasis on energy-efficient systems as construction of new residential, commercial, and industrial spaces continues to expand. Rising concerns over climate change and the need to mitigate environmental impact are contributing to increased demand for HVAC systems that prioritize sustainability and operational efficiency, aligning with the Kingdom's commitment to reduce its carbon footprint.

Saudi Arabia HVAC Industry Segmentation:

The report has segmented the market into the following categories:

Equipment Insights:

● Heating
● Heat Pumps
● Furnaces
● Unitary Heaters
● Boilers
● Others
● Ventilation
● Air Handling Units
● Air Filters
● Humidifiers/Dehumidifiers
● Others
● Cooling
● Unitary Air Conditioners
● VRF Systems
● Chillers
● Room Air Conditioners
● Coolers
● Others

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 of the industry has also been examined along with the profiles of the key players.

Access the Latest 2026 Data & Forecasts: https://www.imarcgroup.com/checkout?id=20961&method=1315

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 long-standing partnership and positioning AI data center cooling as a new growth engine within the HVAC business in the Middle East.

● May 2025: Mada Gypsum Company introduced its ASTM C-compliant HVAC ductwork boards in Saudi Arabia, enhancing construction flexibility and durability with products designed for both interior and exterior use, strengthening the market with fire-resistant and moisture-proof building solutions.

● April 2025: AFICO adopted Nanoprecise Sci Corp's AI-driven Energy-Centered Predictive Maintenance solution for HVAC systems, integrating real-time monitoring to track ductwork performance and enabling companies to identify energy consumption inefficiencies while optimizing operations and reducing downtime.

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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