Oil, deserts, Mecca and Medina, and tall skyscrapers are the first things that come to mind when someone thinks of Saudi Arabia. While Muslims eagerly look forward to their pilgrimages to the holy cities of Mecca and Medina all their lives, tourists and expats often have second thoughts before visiting the kingdom, thanks, in no small part, to its extremely hot and dry weather.
However, these fears are put to rest the moment they read up in detail on the internet or magazines about ‘Land of the Two Holy Mosques’. This is not because their fears were unfounded and the country, in reality, boasts a climate that would make even Europeans and North Americans envious.
Instead, this is because almost every building in the country is equipped with cooling and ventilation systems, which protect the inhabitants from the desert heat and the might of the Sun and ensure they remain cool on the outside and inside. Heating, ventilation, and air conditioning (HVAC) systems not only keep the building interiors cool and comfortable but also remove internal airborne contaminants and the odors emitted from furnishings, which, in turn, ensures that residents live comfortably.
Therefore, it is no wonder that these life-saving systems sell like hot cakes in the country. Therefore, the size of the Saudi Arabian HVAC market will grow from $2,476.1 million in 2020 to $4,821.8 million by 2030. Furthermore, the market is predicted to advance at a CAGR of 8.1% from 2021 to 2030.
Surging Construction Activities Adding Wings to HVAC Demand
Besides the hot and dry climate, the increasing construction activities, on account of the soaring investments being made by the government on infrastructure development, are fueling the sales of HVAC systems in the country. Currently, there are numerous ongoing projects for metro rail and commercial infrastructure. Moreover, the country aims to complete the first phase of the $500-billion NEOM megacity project by 2025, which would arguably make HVAC suppliers in the kingdom rich.
Booming Hospitality Sector also Augmenting HVAC Demand in Kingdom
As the country is home to two of the holiest cities in Islam — Mecca and Medina — it witnesses a huge influx of pilgrims and tourists every year. Muslims all over the world eagerly look forward to visiting these holy cities, widely considered to be the home of Islam, the Holy Quran, and the Ka’ba, which was the first house ever built for the worship of Allah. According to various reports, more than 2 million pilgrims visit Mecca and more than 750,000 people participate in the Umrah or Hajj every year.
The country is also a popular destination among tourists and backpackers, primarily due to its velvety deserts, spectacular Red Sea beaches, towering mountains of Asir, historic buildings, ancient mosques, rich culture, and scrumptious cuisine. Due to the increasing tourist footfall, many international hotel chains, such as Intercontinental Hotel Group, Radisson, and Hilton Worldwide, are expanding their operations in the country. As HVAC systems are highly essential in modern hotels on account of their ability to provide comfort by controlling the room temperature, the expanding hospitality industry is fueling the demand for them massively.
No Wonder, HVAC Equipment Sales Boomed in Western Saudi Arabia in 2020!
The booming hospitality industry, on account of the religious significance of the cities of Mecca and Medina, and the launch of several mega infrastructure development projects were the primary factors behind the soaring sales of HVAC systems in the western region of the country till 2020. In addition to this, Jeddah is a major commercial and economic center in the Middle East, and it also welcomes a huge number of tourists every year with its attractions such as the majestic Naseef House in Al-Balad, which is a 2,500-year-old city, the Floating Mosque in the middle of the Red Sea, King Fahd Fountain, and Makkah Gate.
Mushrooming Installation of HVAC Systems Driving Demand for Maintenance Services
As noted previously, due to the extreme climatic conditions, the country is recording a sharp surge in the sales of air conditioning systems. Moreover, rapid technological advancements have led to the development of movement-activated air conditioning, on-demand hot water re-circulation, ice-powered HVAC, thermally driven HVAC, and antimicrobial-coated HVAC systems. As these systems require regular maintenance for proper functioning, their growing usage is fueling the demand for HVAC services in the country.
Demand for Industrial HVAC Systems To Boom in Coming Years
Commercial, residential, and industrial sectors are the major end users of HVAC systems in the country. Out of these, the demand for these systems and the associated services is predicted to surge sharply in the industrial sector in the coming years. This is attributed to the expansion of this sector on account of the huge investments being made by the government under the Saudi Vision 2030 program.
With this program, the government wants to diversify its economy and reduce the country’s dependence on the oil and gas industry, especially since ‘renewable energy’ is trending across the globe. Hence, it is supporting the development of factories and industrial cities and also the utilities sector, which is, consequently, pushing up the demand for HVAC systems and services in the kingdom.
Popularity of District Cooling Equipment Exploding in Kingdom!
District cooling systems are rapidly becoming a major trend in Saudi Arabia. These systems produce chilled and hot water at a central facility and distribute the energy to several buildings and establishments for cooling and heating, thereby eliminating the need for separate equipment for each building. Furthermore, these systems consume nearly 50% less electricity than the conventionally used cooling equipment, which helps consumers reduce their overall energy expenditure.
As air conditioning systems consume around 70% of the power in Saudi Arabia, the rising requirement for energy-efficient air conditioning systems is fueling the demand for district cooling equipment in the country.
Hence, it is safe to say that the sales of HVAC systems will boom in Saudi Arabia in the upcoming years on account of the fact that they ensure optimum comfort in the scorching and unrelenting heat and make the country livable for not only locals but also those coming from the cooler regions on pilgrimage, holiday, or business.
