With the launch of several massive infrastructure development projects, the demand for heating, ventilation, and air conditioning (HVAC) systems is predicted to surge in Saudi Arabia in the coming years. In recent years, the spending in the country’s infrastructure sector has increased massively and this has fueled extensive construction activities in the country. Moreover, there are many ongoing projects of metro railway and various other commercial infrastructure development. Additionally, the country aims to complete the first phase of the NEOM megacity project, which is worth $500 billion, by 2025.
Apart from the aforementioned factor, the booming tourism industry is also driving the sales of HVAC systems in Saudi Arabia. Owing to its religious significance, Saudi Arabia welcomes a large number of tourists every year. Thus, in order to cater to the requirements of the tourists, many international hotel chains are bolstering their presence in the country, which is supporting the growth of the Saudi Arabian HVAC market, owing to which, its value will grow from $2,476.1 million in 2020 to $4,821.8 million by 2030. These systems provide comfort by helping maintain the temperature in the room as per the preference of the inhabitants and hence, they are a crucial component of modern hotels and resorts.
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Thus, the development of several hotels and resorts in the country is helping the Saudi Arabian HVAC market progress at a CAGR of 8.1% between 2021 and 2030. Between HVAC services and equipment, the demand for the latter was found to be higher in the past. This is credited to the high requirement for air conditioning systems in the country, on account of extreme climatic conditions. Additionally, rapid technological advancements and innovations in HVAC systems, such as movement-activated air conditioning, antimicrobial-coated HVAC, on-demand hot water re-circulators, ice-powered HVAC, and thermally driven HVAC, are also propelling their sales in the country.
Residential, commercial, and industrial sectors are the major end users of HVAC systems in Saudi Arabia. Out of these, the use of HVAC systems is predicted to surge at the fastest pace in the industrial sector in the coming years. Under the Saudi Vision 2030 plan, the government is focusing on diversifying its economy and reduce the country’s economic reliance on oil and gas. Owing to this factor, it is making huge investments in the industrial sector. The development of factories and industrial cities is predicted to push up the demand for HVAC systems in the country.