Key Highlights

• The Saudi Arabia HVAC market was valued at USD 2,810.2 million in 2023, and it will increase to USD 4,970.4 million, powering at more than 8% compound annual growth rate, by 2030.

• This growth can be primarily ascribed to the rising infrastructure expenditure, the flourishing hospitality sector, and the requirement to reduce food wastage.

• The rising fondness for smart HVAC systems is a major trend being observed in this industry. To decrease power consumption and toughen sustainability, many consumers are choosing smart HVAC technologies.

• Smart HVAC systems provide greater controls, smart thermostats, and better monitoring systems. These systems also offer greater temperature variability and deliver cleaner air than traditional HVAC systems. Real-time performance monitoring capabilities are also offered to the users as well.

• Smart HVAC systems generate less noise compared to other systems. As a result, because of the rising need for advanced and power-effective technologies in the nation, smart HVAC systems are trending.

• Food loss and waste (FLW) have a substantial environmental, social, and economic impact. It is a main concern for Saudi Arabia because the nation imports most agricultural goods for consumption.

• To reduce food losses, the region's environmental conditions require the creation of appropriate and suitable cold-chain storage facilities for stable distribution over the cold-storage transport facilities along the food supply chain.

Market Insights

The equipment category accounted for the largest share of the industry in 2023, of approximately 75%. The nation’s robust need for novel equipment is because of its severe climate. The increase in the count of commercial and various other construction projects boosts the sales of HVAC systems in this kingdom.

The services category is likely to advance at a higher compound annual growth rate, of 8.8%, in the years to come.

The commercial category was the largest contributor to the industry in 2023, with approximately 45% share. The Saudi government is offering substantial support to the hospitality and corporate sectors to reduce its dependence on the oil trade.

With the rising count of resorts, office buildings, and hotels, the requirement for these equipment and services in the commercial sector is growing.

The infrastructure funding by the private and government bodies also boosts the development of this industry.

The residential will propel at the highest rate, of 9.2%, in the years to come. There are numerous continuing residential projects in this nation.

The residential skyscraper projects comprise Diamond Tower, Al Zamil Residential Tower, and Jeddah Tower, which are either under construction/in the pipeline and will aid in creating high requirements for HVAC systems in the coming years.

The Saudi Arabia HVAC industry is competitive and nearly fragmented, with the existence of many local and global HVAC providers.

Factors including the rising building construction, developing tourism sector, and increasing infrastructure expenses are creating new opportunities for the industry players in this nation and have resulted in a rise in the competition among the companies.

Competitiveness in this market mainly relies on factors like system and service performance, energy efficiency, quality, brand reputation, design, price, goodwill, application engineering capability, construction or project management expertise, and technology.

Source: P&S Intelligence