Air conditioning market in UAE was affected in the aftermath of plummeting oil prices. Perceivable decline in the market was attributed to cutbacks in project spending amidst the oil slump. As a result of major setbacks in number of infrastructure and real estate projects, sales of air conditioner units in UAE dipped in 2016. However, sentiments looming around the market remained largely positive as the country displayed great resilience despite low prices spurred by massive investments by government entities in number of building and infrastructure projects leading up to Dubai Expo 2020, Abu Dhabi Vision 2030 and 2021 National Agenda.
According to 6Wresearch, UAE Air Conditioner market revenue is projected to reach over $1.5 billion by 2023. Value of projects currently under construction amounts to $154 billion with over $629 billion worth of projects in pipeline. Expected arrival of over 25 million tourists in the country in anticipation of Dubai Expo 2020, Dubai is set to be revamped with the establishment of trade centers, hotels & hospitals as well as expansion of rail network, and airport in the country. UAE’s 2021 National Agenda and Abu Dhabi Vision 2030 aims to invests in new and prolonged projects over next 15 years, predominantly in transportation and infrastructure applications. For instance, UAE airports are investing up to $50 billion in airport development and expansion projects over the next 15 years, which in turn, is expected to provide capacity for an additional 200 million passengers per annum would fuel the market for air conditioner in the country.
According to Sathi Paul, Senior Research Analyst – IT & Electronics, Research and Consulting, 6Wresearch, “Variable refrigerant flow systems are finding greater acceptance among buyers as these are considered more environmental friendly and consume lower energy. Centralized air conditioners were the most preferred system among the contractors and consumers.”
“Government initiatives to reduce dependency on fossil fuels triggered the launch of solar VRF air conditioner system in UAE. Masdar City project in Abu Dhabi registered the deployment of solar variable refrigerant flow system air-conditioner, which was supplied as a pilot project by Gree air conditioners,” She further added.
According to Rishi Malhotra, Research Analyst – IT & Electronics, Research and Consulting, 6Wresearch, “Air conditioner sales in the commercial & retail and hospitality applications continued to remain buoyant primarily driven by vast array of newly announced infrastructure and tourism projects. With government cutting its project spending, supply of housing units remained significant with private sector stepping up to lead the segment.”
Additionally, “Government spending on travel and tourism development is expected to grow by 4.3% over the next decade. UAE room count from hotels and hotel apartments is expected to rise by 8.3% until 2020. A rise in supply would be absorbed by growth in demand as Abu Dhabi is focusing on the increasing visitors mainly for the leisure segment,” He further added.
Key contributing vendors in UAE Air Conditioner Market include – AHI Carrier Fzc, Awal Gulf Manufacturing Co.(AGMCO), Daikin McQuay Middle East and Africa FZE, Fujitsu General (ME) FZE, GREE Electric Appliances Inc., Johnson Controls (York), LG Electronics, Inc., Mitsubishi Electric Corp., Trane INC., and Zamil AC.
“UAE Air Conditioner Market (2017-2023F)” provides in-depth analysis covered in more than 110 pages. The report estimates and forecast the overall UAE Air Conditioning market by revenues, air conditioner type, applications and regions. The report also gives key insights on competitive landscape, players’ revenue share ranking by companies, company profiles, market trends, market drivers and restraints.