GCC is one of the most potential markets in Middle-East region across major industry verticals. Majority of the government revenues in GCC countries are predominantly derived from oil & gas sector, where these revenues are utilized for development activities. Over the past decade, GCC region exhibited surge in government spending towards construction industry. Although, during 2014-16, GCC countries registered a prolonged oil price slump and has indubitably affected their economies resulting into sharp decline in government spending towards construction industry. Declining construction industry recorded major drop in project value for new contracts during the same period. Construction industry has played a vital role in overall shaping air conditioner market in GCC region. Due to weakening construction industry, air conditioner market witnessed negative growth rate during 2014-16. However, in the coming years, air conditioner market is projected to grow in GCC countries owing to recovering of oil prices.
According to 6Wresearch, GCC Air Conditioner market is projected to grow at a CAGR of 7% from 2017 to 2023. Upcoming events such as Dubai Expo 2020 in UAE and FIFA World Cup 2022 in Qatar, infrastructure development activities and government initiatives towards providing housing units are some of the major drivers for growth in GCC air conditioner market. Additionally, Government developmental strategies such as Abu Dhabi Vision 2030, Saudi Arabia Vision 2030, Kuwait Vision 2035, Qatar Vision 2030, Oman Vision 2020 and Bahrain Vision 2030 are further expected to fuel the growth of construction market. In order to fulfill the vision and to prepare for the upcoming events, government is increasing their spending on construction industry resulting into construction of mega projects which would boost air conditioner market in GCC region. For instance, Qatar government is planning to spend $100 billion on infrastructure projects over the next five years. Kuwait Ministry of Public Work announced development of 13 infrastructure projects worth $11 billion under its current development plan.
According to Prijo Samuel, Assistant Manager, 6Wresearch, "From the last quarter of 2016, construction market of GCC reported positive growth owing to improvement in oil sector. As a result, air conditioner market in GCC region is anticipated to recover in the coming years.
Further, government initiatives regarding construction of housing units for the growing population, expansion of airports, metros, establishment of SMEs and construction of modern retail stores would drive the air conditioner market during the forecast period," Prijo Samuel concluded.
According to Sathi Paul, Research Analyst, Research and Consulting, 6Wresearch, "Centralized air conditioner segment accounted for major revenue share in the overall GCC AC market. Within centralized segment, VRF sub-segment registering highest growth rate attributed to increasing demand for energy efficient air conditioners. The VRF sub-segment market is expected to grow at significant rate during 2017-23.
In end user application market, residential accounted for major share and is expected to maintain its dominance in the coming years as well. Other sectors such as hospitality and government & transportation are also posting growth owing to growing tourism industry and infrastructure development projects in GCC countries," Sathi concluded.
"GCC Air Conditioner Market (2017-2023)" provides in-depth analysis with 382 figures and 66 tables covered in more than 450 pages. The report estimates and forecast overall GCC Air Conditioners market by revenue, by types of air conditioners, by countries (including Saudi Arabia, UAE, Kuwait, Qatar, Bahrain and Oman) and end user segment such as residential, hospitality, government & transportation, retail, commercial offices and others. The report also gives the insights on competitive landscape, market share by companies, company profile, recent trends and developments, opportunities, market drivers and restraints.