As per P&S Intelligence, the rampant construction activities will likely take the Saudi Arabian heating, ventilation, and air conditioning (HVAC) market value from $2,476.1 million in 2020 to $4,821.8 million in 2030, at an 8.1% CAGR between 2021 and 2030. This is because, occupying a major part of the Arabian Desert, the kingdom witnesses perpetually hot and dry weather, which makes air conditioning important. Earlier ventilated by traditional wind catchers, Saudi buildings are now being equipped with modern HVAC systems.
With the rapid economic growth, cities are expanding, which is leading to increasing infrastructure spending to sustain the booming urban population. For instance, $23 billion are being spent to construct Riyadh Metro, which will have six lines and 85 stations. Similarly, Jeddah Metro will have 46 stations across three lines. HVAC systems are one of the biggest requirements at metro stations, underground tunnels, and inside trains, which is why the demand for such systems is rising in the kingdom.
With the rapid economic growth, cities are expanding, which is leading to increasing infrastructure spending to sustain the booming urban population. For instance, $23 billion are being spent to construct Riyadh Metro, which will have six lines and 85 stations. Similarly, Jeddah Metro will have 46 stations across three lines. HVAC systems are one of the biggest requirements at metro stations, underground tunnels, and inside trains, which is why the demand for such systems is rising in the kingdom.
In the same way, Vox Cinemas, which opened its first movie theatre in the kingdom in May 2019, is planning to have 600 screens in Saudi Arabia by 2023, investing $500 for this expansion. Essentially closed spaces, theatres and other such venues have multiple HVAC systems. Moreover, the first phase of the $500-billion NEOM City was completed that year, which saw massive HVAC sales for a differentiated array of buildings. With more phases of the project taking shape, the demand for such equipment will increase further.
Another key sector that is propelling the Saudi Arabian HVAC market is district heating and cooling (DHC). It has been considered better to have a centralized heating and cooling system for a group of buildings than to have individual systems for every building. This is because DHC systems consume up to 50% less energy than individual HVAC units in individual buildings. With the mounting energy prices and widespread environmental concerns, the usage of DHC is rising here.
Moreover, HVAC systems are themselves becoming smart with the integration of automatic functions, connected sensors, and better controls. Moreover, ground-source HVAC systems, which use the heat contained within the ground to perform heating and cooling, are helping reduce the consumption of fossil fuels at power plants by requiring lesser electricity from the grid. To further boost this cause, solar-powered HVAC systems are becoming the trend in the kingdom. All such efforts can be credited, in part, to the Saudi Vision 2030, which aims to reduce the country’s dependence on the oil trade.
Hence, with economic growth, the installation of HVAC systems, especially air conditioners, will burgeon in Saudi Arabia.
Another key sector that is propelling the Saudi Arabian HVAC market is district heating and cooling (DHC). It has been considered better to have a centralized heating and cooling system for a group of buildings than to have individual systems for every building. This is because DHC systems consume up to 50% less energy than individual HVAC units in individual buildings. With the mounting energy prices and widespread environmental concerns, the usage of DHC is rising here.
Moreover, HVAC systems are themselves becoming smart with the integration of automatic functions, connected sensors, and better controls. Moreover, ground-source HVAC systems, which use the heat contained within the ground to perform heating and cooling, are helping reduce the consumption of fossil fuels at power plants by requiring lesser electricity from the grid. To further boost this cause, solar-powered HVAC systems are becoming the trend in the kingdom. All such efforts can be credited, in part, to the Saudi Vision 2030, which aims to reduce the country’s dependence on the oil trade.
Hence, with economic growth, the installation of HVAC systems, especially air conditioners, will burgeon in Saudi Arabia.
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