The economy of Kuwait is dependent on oil more than other Gulf countries. The sector accounts for 90% of export earnings, 80% of treasury revenues and more than 50% of nominal GDP. During 2014-16, the country has taken a hit due to the plunge in oil prices. In the light of slump in oil prices, the government spending was severely affected, scraping up major new projects which was expected to hit the market. Projects in the country registered significant delay due to administrative and technical challenges. Kuwaiti Authority for Partnership Projects were supposed to move ahead with several Public-Private Partnership (PPP) projects in 2016. However, these projects were delayed from being awarded impeding the growth of air conditioning market in Kuwait.
According to 6Wresearch, Kuwait Air Conditioner market is expected grow at a CAGR of 6% during 2017-23. Growth in Kuwait air conditioner market is likely to follow with the revamp of construction activities in the country predominantly on account of government’s initiatives to boost infrastructural development and support private sector with the expected recovery of oil prices.
A series of contract awards and accelerated implementation of Kuwait developmental plan is expected to support activities in non-hydrocarbon sector. Kuwait earmarked more than $103 billion to realize its long term 2035 vision and development plan. The government’s 2035 Economic Vision focuses heavily on economic diversification through investments in infrastructural development in order to reduce oil dependency by transforming Kuwait into a commercial and financial hub.
Development plan, on the other hand is set to provide a welcome boost to the country’s private sector, thereby, providing opportunities to international investors by seeking active participation of private sector through PPP.
According to Sathi Paul, Senior Research Analyst – IT & Electronics, Research and Consulting, 6Wresearch, “Substantial growth was observed in centralized air conditioner system over conventional split air conditioner system. Increased product offerings in ducted-split segment encouraged the manufacturers to highly prefer ceiling concealed and package air conditioning units for installation among new apartment buildings, implying significant revenue contribution from their end.”
“VRF air conditioning systems poised to exhibit healthy demand in near-future; Building configurations are evolving with consumer demand for more sustainable buildings. To meet a wide array of building needs and provide customers greater flexibility in new construction and renovation projects market vendors are expanding their line-up of VRF solutions,” She further quoted.
According to Rishi Malhotra, Research Analyst – IT & Electronics, Research and Consulting, 6Wresearch, “Sales of air conditioning units were more noticeable in the residential as well as commercial & retail applications; both occupying a healthy revenue share of air conditioner market.” Kuwait’s residential market witnessed development of properties built under government housing program. In an attempt to meet the strong demand for housing and commercial space, private sector efforts to deliver new housing and development projects, also led to significant demand in residential and commercial applications.”
Additionally, “overall housing units in Kuwait is currently undersupplied; however the sector is ripe for development with demand for the government funded housing units, which is likely to reach 175,000 units by 2020. However, Kuwait Development plan striving for active participation of the private sector through PPP and is likely to boost the sales for air conditioners in the residential application,” He further added.
Key contributing vendors in Kuwait Air Conditioner Market include – AHI Carrier Fzc, Coolex General Trading and Contracting Company WLL, Daikin McQuay Middle East and Africa FZE, Fawaz Refrigeration & Air Conditioning, Fujitsu General (ME) FZE, GREE Electric Appliances Inc., Johnson Controls (York), LG Electronics, Inc., Mitsubishi Electric Corp. and S.K.M Air Conditioning LLC.
“Kuwait Air Conditioner Market (2017-2023)” provides in-depth analysis covered in more than 120 pages. The report estimates and forecast the overall Kuwait Air Conditioner market by revenues, air conditioner type, applications and regions. The report also gives key insights on competitive landscape, players’ revenue share, company profiles, market trends, market drivers and restraints.