The rapid and extensive development of Saudi Arabia’s major cities in the last decade has already put them as one of the leading consumers of air conditioning units. According to a recent report however, this growth is expected to rise even further and exceed $25 billion by the year 2019.
A Number of Factors
The report, called ‘Saudi Arabia Air Conditioner Market Forecast & Opportunities’ created by TechSci Research, has attributed this future boom to a number of factors. The first being the country’s hot and extreme climate, which during the peak of summer can see temperatures reaching upwards of 55 degrees Celsius. Furthermore, the Middle East’s summer season is said to dominate the year lasting up to 9 months.
Another contributing factor is the substantial amount of building projects being put forward by a number of wealthy investors to be put into development as soon as possible. These projects include the construction of: more residential properties and high-end hotels to cope with the country’s increasing tourism; schools and educational facilities; as well as more offices and commercial developments in the country’s major cities.
A Bright Future
Based on this information the report has indicated the demand for air conditioning units will see significant growth over the next four years. A Research Director for TechSci Research, Karan Chechi offered his views on the bright future for air conditioning companies investing in this development:
‘Major Saudi Arabian cities such as Riyadh, Jeddah and Makkah are witnessing rapid infrastructural development, thereby providing a huge growth opportunity for air conditioner companies to offer complete air conditioning solutions to their customers in these cities.’
He went on to comment on the importance of having such units when he said: ‘Moreover, as Saudi Arabia experiences a very hot climate for the majority of the year, air conditioners have become more of a necessity product rather than a luxury item, and with growing income levels, the demand would continue to grow over the next five years.’
The extent of this boom will reveal itself over the next five years; there are hopes that the demand will only continue to rise after this as the country becomes more developed. Further to this, there’s the potential for other neighbouring countries in the Middle East to follow a similar path as Saudi Arabia. Dubai and Qatar are two examples that have already a number of developments – the latter beginning their preparations for the World Cup in 2022.