Saudi Arabia is witnessing a surge in infrastructure activities due to the growing government initiatives for the development of this sector. The construction of supermarkets, metro stations, and residential buildings is generating an ample demand for cooling systems, particularly chillers. For example, upcoming railway lines, such as the Madinah High-Speed Railway, Riyadh–Dammam High-Speed Rail, and Makkah Metro Rail, are expected to deploy a large number of chillers. Owing to this reason, the Saudi Arabian chiller market will witness an increase in its revenue from $252.0 million in 2018 to $291.0 million by 2024, progressing at a CAGR of 2.7% during 2019–2024.
Moreover, the expansion of the tourism sector in Saudi Arabia will fuel the demand for chillers in the coming years. The tourism industry is a major part of the Saudi Vision 2030 economic diversification plan. Apart from this sector, the food and beverage industry is deploying a large number of chillers to preserve food and drinks at a consistent temperature. Chillers are used to cool wines, sauces, and soft drinks, as well as raw meats. Screw chillers are the most common kind of chilling equipment used in the food and beverage sector.
Currently, the Saudi Arabian chiller market is observing the rising adoption of magnetic-bearing chillers. The incorporation of magnetic bearings in chillers enables compressors to function without using oil for lubrication, which decreases the energy losses caused due to friction. Due to this advantage, magnetic-bearing chillers are 40% more reliable and efficient than conventional centrifugal chillers. Moreover, the low weight and noise of magnetic-bearing chillers make them more popular than the traditional centrifugal chillers. Apart from this, the rising awareness regarding energy-efficient chillers is widening the consumer base for these systems. End-users, such as hotels, hospitals, data centers, department stores, banks, office buildings, supermarkets/hypermarkets, industrial plants, and residential units, are adopting energy-efficient chillers as they consume less energy, which is important to decrease the emission of greenhouse gases from conventional powerhouses. This is why the government is taking numerous measures to enhance energy efficiency across the kingdom.
