Dublin, May 27, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Air Conditioners Market, By Region, Competition, Forecast & Opportunities, 2020-2030F" has been added to ResearchAndMarkets.com's offering.
The Saudi Arabia Air Conditioners Market was valued at USD 2.14 Billion in 2024, and is expected to reach USD 2.88 Billion by 2030, rising at a CAGR of 5.10%. The Saudi Arabia air conditioners market is witnessing robust growth, fueled by the country's harsh climatic conditions and rapid urban expansion. As temperatures rise, air conditioning has transitioned from a luxury to a necessity, driving increased demand across the region.
The market's expansion is further supported by large-scale infrastructure projects and the development of residential areas. Government efforts to enhance energy efficiency and sustainability are also reshaping the market landscape. In alignment with the Vision 2030 plan, the Saudi government is actively promoting the adoption of energy-efficient air conditioning systems through regulatory measures and incentives. This strategic emphasis on reducing energy consumption and minimizing environmental impact is spurring innovation within the industry.
Key Market Drivers
Climatic Conditions and Extreme Heat
Saudi Arabia's climate is marked by intense summers, with temperatures frequently surpassing 45C (113F) in certain areas. This extreme heat necessitates the widespread use of air conditioning systems, making them an indispensable part of daily life. The prolonged and sweltering summer seasons have consistently driven demand for cooling solutions, positioning them as a key driver of growth in the air conditioner market. For instance, recent findings reveal that climate change significantly intensified the heatwave during this year's Hajj pilgrimage in Saudi Arabia, contributing to the deaths of 1,300 individuals.
Rapid Urbanization and Infrastructure Development
Saudi Arabia is experiencing rapid urbanization and significant infrastructure development, with substantial government investments in new cities, transportation networks, and mega-projects like NEOM and the Red Sea Project. This urban growth has spurred the construction of residential, commercial, and industrial buildings, all requiring efficient cooling solutions. As urban centers expand, the demand for air conditioning in residential buildings, office spaces, shopping malls, and hotels has intensified.
Government Initiatives and Regulations
The Saudi Arabian government has introduced several initiatives and regulations aimed at enhancing energy efficiency and reducing environmental impact, significantly influencing the air conditioner market. For instance, in 2024, Saudi Arabia introduced a new standard for air conditioners under SASO 2663:2021. This update replaces the previous 2018 standard and focuses on improving energy efficiency through the introduction of the Seasonal Energy Efficiency Ratio (SEER) classification. The new regulations mandate that air conditioners carry updated energy labels starting from April 2022, with all products requiring compliance by July 2022. This move aligns with Saudi Arabia's commitment to energy conservation and sustainability.
Key Market Challenges
Economic Factors and Price Sensitivity
The economic environment in Saudi Arabia significantly impacts the air conditioner market. Despite the nation's considerable wealth derived from its oil reserves, economic fluctuations influence consumer behavior and purchasing patterns. In recent years, the Saudi economy has experienced volatility due to fluctuating oil prices and broader global economic conditions. These economic shifts have heightened price sensitivity among consumers, driving demand for cost-effective air conditioning solutions.
Market Competition and Technological Advancements
The air conditioner market in Saudi Arabia is highly competitive, with both local and international manufacturers striving for market share. This intense competition drives innovation, presenting both opportunities and challenges for market players. Technological advancements in air conditioning, such as enhanced energy efficiency, smart features, and superior cooling performance, offer significant benefits. However, they also create pressure on manufacturers to stay current with the latest trends.
Key Market Trends
Energy Efficiency and Sustainability
A key trend shaping the Saudi Arabia air conditioner market is the increasing focus on energy efficiency and sustainability. With the region's extreme heat and growing demand for cooling solutions, there is a heightened awareness of the environmental impact of energy-intensive air conditioning systems. In response, both consumers and regulatory bodies in Saudi Arabia are pushing for the adoption of more energy-efficient air conditioning systems. Manufacturers are meeting this demand by developing and promoting products with higher energy efficiency ratings, often certified by the Saudi Standards, Metrology, and Quality Organization (SASO).
Smart and Connected Air Conditioners
Another transformative trend in the Saudi Arabian air conditioner market is the rise of smart and connected HVAC systems. As the Kingdom embraces technological advancements, consumers are increasingly opting for intelligent air conditioning solutions that provide convenience, comfort, and energy savings. Smart air conditioners, which can be remotely controlled via smartphone apps, allow users to adjust temperatures and monitor energy consumption from anywhere.
Growth in Commercial and Industrial Applications
The increasing adoption of air conditioning systems in commercial and industrial settings is another significant trend in the Saudi Arabia air conditioner market. The rapid expansion of the retail, hospitality, and healthcare sectors has generated substantial demand for cooling solutions that ensure comfort and climate control in large spaces. Beyond traditional split and window air conditioners, there is a growing preference for centralized HVAC systems in commercial and industrial applications.
Report Scope
Key Market Players
- LG Electronics Saudi Arabia LLC
- Basic Electronics Company Ltd.
- Zamil Air Conditioners Holding Company Ltd
- Johnson Controls Arabia, Inc.
- Samsung Electronics Saudi Arabia Ltd.
- Fujitsu General (Middle East) FZE
- S.K.M. Air Conditioning LLC
- Daikin Air Conditioning Saudi Arabia LLC
- Mitsubishi Electric Saudi Ltd.
- Blue Star Limited
Saudi Arabia Air Conditioners Market, By Product Type:
- Splits
- VRFs
- Chillers
- Windows
- Others
Saudi Arabia Air Conditioners Market, By End Use:
- Residential
- Commercial/Industrial
Saudi Arabia Air Conditioners Market, By Region:
- Northern & Central
- Western
- Southern
- Eastern
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 80 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value (USD) in 2024 | $2.14 Billion |
| Forecasted Market Value (USD) by 2030 | $2.88 Billion |
| Compound Annual Growth Rate | 5.1% |
| Regions Covered | Saudi Arabia |
For more information about this report visit https://www.researchandmarkets.com/r/87t17o
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
