A number of factors, such as the rising installation of chillers for district cooling systems and growing construction sector due to the increasing spending on infrastructure by governments are projected to drive the growth of the Middle East and Africa (MEA) chiller market at a CAGR of 3.6% during the forecast period (2019–2024). According to P&S Intelligence, the market generated revenue of $1.1 billion in 2018, which is expected to grow to $1.3 billion by 2024. Currently, the market is witnessing the trends of magnetic-bearing chillers and smart connected chillers.
One of the prime factors aiding the Middle East and Africa chiller market advance is the growing construction sector. Chillers are increasingly being deployed for cooling purposes in transportation networks like metro stations and railways, offices and buildings, and supermarkets. For instance, the construction industry in the MEA grew by 7.5% year-over-year (Y-o-Y) in 2019, and it is projected to witness an average growth of 6.8% till 2022. This is ascribed to the rising spending on infrastructure by the regional governments for several big events like the FIFA World Cup 2022 and Dubai Expo 2020.
Browse detailed – Middle East and Africa Chiller Market Revenue Estimation and Growth Forecast Report
Moreover, the growing awareness about inverter-based chillers offers extensive opportunities to the market players. These chillers are highly efficient when compared to conventional air conditioning systems. The inverter in the chiller regulates the power operations automatically, depending upon the actual necessity, which removes the need for manual on/off operations. Thus, inverter-based chillers offer several benefits such as electricity bill reduction of up to 50%, stable temperature, no sound disturbance, quick cooling, and longer life. Therefore, major players in the market have been involved in product launches to stay ahead in the competition.
The end user segment of the Middle East and Africa chiller market is categorized into commercial, industrial, and residential. Among these, the industrial category is projected to observe significant growth during the forecast period. This can be attributed to the expansion of oil and gas projects due to the surging investments in the industry. For instance, Saudi Arabia is expected to invest around $20 billion to expand its oil production capacity. Moreover, the U.A.E. is also observing huge investments in the oil and gas refinery projects to enhance the production capacity.
Additionally, the Middle East and Africa chiller market is classified into screw, reciprocating, scroll, centrifugal, and absorption, on the basis of type. Among these, the screw category accounted for the largest market share in 2018, owing to the increasing installation of such systems in the commercial and industrial sectors. Further, the growing hospitality sector in the region due to the upcoming mega events, such as the Dubai Expo 2020, is leading to the construction of several hotels, where screw chillers are widely used.
Based on country, the chiller market in the U.A.E. is projected to record a CAGR of 5.9% during the forecast period. This can be primarily attributed to the rising number of hotel projects in the country. Tourist attractions are being built across Dubai, which include the Heart of Europe, Dubai Creek Harbour, Jewel of the Creek, Marsa Al Arab, and Marasi Business Bay. These attractions are projected to boost the tourism sector in the city, which, in turn, will drive the demand for chillers in the country.
Thus, the growing construction sector and the increasing investment in the oil and gas sector are expected to propel the market growth during the forecast period.