UAE is one of the prime revenue contributing countries in GCC air conditioner market, led by factors such as government initiatives and developing infrastructure on the back of World Expo 2020.
As per Abu Dhabi Economic Vision 2030, the government is taking initiatives to increase the non-oil share dependency to 64% by 2030 by intensively investing in the areas of real-estate, retail, hospitality, manufacturing, infrastructure and transportation. These initiatives would drive the construction of public and private infrastructures resulting in rise in demand for air conditioners in the country.
According to 6Wresearch, UAE Air Conditioner market is projected to grow at a CAGR of 6.1% from 2016 to 2022. Despite a decline in the construction industry due to unstable oil prices, air conditioner market growth rate remained positive with steady growth registered in in the year 2015 and 2016. With the aim of successful World Expo 2020, the Government of UAE is encouraging public & private investments to build the infrastructure for the upcoming event. Further, booming tourism industry as well as budding residential, commercial & retail verticals would excel the demand for air conditioning systems in the country.
According to Rajat Kharbanda, Senior Consultant, 6Wresearch, "In UAE, centralized air conditioning system has captured major revenue share in the overall air conditioner market. Centralized air conditioning systems are highly deployed in wide range of verticals such as residential, hospitality, healthcare, public infrastructure, retail and industrial."
"In the centralized segment, VRF market is growing at a significant rate and is expected to surpass chiller market demand in the coming years. This would be predominantly attributed to government initiatives along with stringent regulation to use energy saving air conditioning systems in the country." Rajat concluded.
According to Sathi Paul, Research Analyst, Research and Consulting, 6Wresearch, the Residential vertical has captured major revenue share in the overall UAE air conditioner market, followed by commercial & retail vertical. Key growth is expected particularly in the areas of hospitality sector owing to development of new hotels, which is expected to fuel the demand for air conditioners in UAE.
"Additionally, sectors such as government & transportation is anticipated to register significant growth during the forecast period due to public infrastructure projects in the areas rail and air transportation," Sathi further added.
Media Source: India Infoline