With construction sector currently accounting for 5-6% of the GDP, slump in oil prices triggered delay in the proposed building & infrastructural projects which have earlier given most of the contractors a healthy book order positions in 2016.Value of new contract awards in Oman reached $12,243 million in 2016.
Oman's construction industry outlook remains healthy and is set to drive the sales of air conditioning systems over the coming years as there exist a constant flow of public projects as well as sustained demand for high-quality private real estate projects.
According to 6Wresearch, Oman Air Conditioner market is projected to grow at a CAGR of 5.8% during 2017-23. To decrease its dependency on oil, the sultanate is making provisions against ongoing or further drop in oil prices by investing more than $50 billion on infrastructural projects over the next 15 years, with $20 billion amount earmarked for the transportation sector alone.
Additionally, government's push for Public-Private Partnerships (PPPs) is likely to increase private sector investments in the infrastructural development activities. As per government's ninth five year development plan (2016-2020) under the Vision 2020, private investments in infrastructure is estimated to be around 29%. The investment expenditure is further likely to grow at an average growth rate of 23% during 2016-2020.
Targeted projects for private sector include Oman railway, tourism structures within Port Sultan Qaboos, Port Khasab, South Batinah Logistics Area, Ad Dhahirah Economic Area and Shinas Port.
According to Sathi Paul, Senior Research Analyst - IT & Electronics, Research and Consulting, 6Wresearch, "In contrast with centralized and split air conditioner systems, with centralized leading the pack, contractors have confirmed an increasing trend towards variable refrigerant flow air conditioner systems within the centralized air conditioner segment."
"New air conditioner system, with state of art technology is being introduced in Oman market and is applicable to a wide variety of building applications while using environment friendly refrigerant," Sathi further added
According to Rishi Malhotra, Research Analyst - IT & Electronics, Research and Consulting, 6Wresearch, "Though government spending on housing development declined by 7.2% in 2016, however, priority developments across prime locations around Muscat such as the Wave, Madinat Qaboos, Qurum, Shatti Al Qurum and Muscat Hills, exhibited utilization of private investments leading to significant revenue contribution from residential applications."
Additionally, "as a result of volatility in oil prices, the government's push for PPPs is likely to be a key contributing factor increasing private sector investments in infrastructure. With flurry of activities in the commercial & retail and hospitality applications, air conditioner market in Oman is anticipated to experience a significant boost over the coming years," Rishi further quoted.
Key contributing vendors in Oman Air Conditioner Market include - AHI Carrier Fzc, Daikin McQuay Middle East and Africa FZE, Fujitsu General (ME) FZE, GREE Electric Appliances Inc., Johnson Controls (York), LG Electronics, Inc., Mitsubishi Electric Corp., Samsung Electronics Co. Ltd. Trane INC. and Zamil AC.
"Oman Air Conditioner Market (2017-2023F)" provides in-depth analysis with 87 figures covered in more than 120 pages. The report estimates and forecast the overall Oman Air Conditioning market by revenues, air conditioner type, applications and governorates. The report also gives key insights on competitive landscape, players' revenue share, market trends & drivers, company profiles and restraints.