The size of the Saudi Arabia HVAC market was over $2,390 million in the year 2021, and it will grow at a rate of over 8% in the coming years to reach a value of about $4,822 million by 2030. The industry is mostly driven by snowballing infra spending, the necessity to lessen food wastage, and the increasing hospitality sector.
The increasing acceptance of ground-source HVAC systems will dig out numerous prospects in Saudi Arabia. These systems make use of environment-friendly approaches to heat and cool abodes, using the energy stowed in the ground, thus conserving natural resources like coal and fuel, for electricity generation at power plants. These geothermic systems also help to save a lot of energy.
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Also, these systems do not release carbon monoxide or other GHG gases, which further adds to air pollution. As the government of the nation heartens energy-efficient products, these systems contemporary an attractive potential for players in the Saudi Arabia HVAC market.
In 2021, the commercial HVAC systems have the largest demand, of over 40%. The government of Saudi is providing substantial support to the corporate and hospitality sector with the purpose of minimizing its reliance on the trade of oil. Consequently, with the growing count of hotels, resorts, and offices, the commercial sector's demand for this equipment and services is growing. Infra investments by the private and government parties increase the demand for these systems.
For instance, projects like the $26.6-billion expansion of Mecca's Grand Mosque and the $16.5-billion Haramein high-speed rail linking Mecca and Medina are underway. These expansions are intended to increase religious tourism in the nation, with 25 million visitors will visit the holy places every year by 2025. Therefore, rising infra developments in the commercial sector will be a major driver for the growth of demand in the kingdom.
The strong demand for new equipment in the nation is because of its harsh climate. Also, the incessant rise in the count of commercial spaces and other construction projects is pushing up the sales for HVAC systems. For example, the Qiddiya project in Riyadh started in 2019 and will be finalized in 2022.
This project, which is about 45 km from Riyadh, will become the "capital of entertainment, arts, and sports." It has already got a funding of $8 billion and plans to host 17 million visitors annually by 2035. More projects are scheduled in the future as part of the nation's economic zone development plans.
Because of the vast scale of infra development, the western region grew significantly in the recent past. The western region of the kingdom has some of its prominent cities like Jeddah, Mecca, and Medina. NEOM City and Amaala are amongst the megaprojects going on in the region that will surge the requirement for these systems and related services once they are complete. The main reason for most of this development is the Saudi Vision 2030, the plan of the government to diversify the economy of the nation for reducing its dependence on the oil and gas sector.
The plans of the government to spend more on infra development are boosting the demand for HVAC systems in the country, and it will grow from strength to strength in the future.
