The World Expo 2020 has emerged as the biggest growth driver of the construction market in the UAE, said an expert.
"With 25 million visitors expected for the forthcoming event in the country, a sharp rise in public infrastructure, hospitality, transportation, leisure and entertainment and retail is anticipated," stated Avishrant Mani, a senior research analyst at leading research and consulting group 6Wresearch.
Significant growth would be exhibited especially in the areas of hospitality, transportation and leisure and entertainment. By 2016, in the UAE about 140 new hotels are expected to come up, he added
All these developments have resulted in a major demand for air-conditioners in the country.
According to him, the UAE air-conditioners market is estimated to reach $1.02 billion in 2015, thanks to the increasing construction activities in the country with the expansion of airports, metros, growing hospitality sector coupled with increasing investments on account of upcoming World Expo 2020.
During 2010-12, the UAE air-conditioners market recorded sluggish demand for air-conditioners due to weaker economic conditions, depreciating US dollars, declining oil prices, and low investments in the country, said Mani.
However, in 2013, the market recovered significantly but remained flat in 2014. A similar trend as to previous year is anticipated in 2015, he added.
Over the next six years, growth of the air-conditioning market would be witnessed owing to more than $200 billion investments, which would be invested to build new and expand various public and private infrastructure.
"Centralised air-conditioning systems have generated the majority of the market revenues in the UAE's air-conditioner market. Rise in mega infrastructure would be the prime driver for further expansion of centralised air-conditioner market share through the forecast period," noted Mani.
According to him, the UAE air-conditioners market is highly fragmented, where many local and international players are catering to the country's demands.
Some of the key players are Carrier, York, LG, Trane, Zamil, Fujitsu General, Daikin, and Samsung.
Media Source: Trade Arabia