Saudi Arabia Residential AC Market Soars as Demand for Energy-Efficient Solutions Grows
Saudi Arabia Residential AC Market Soars as Demand for Energy-Efficient Solutions Grows
Blog Article
The Saudi Arabian residential air conditioner (AC) market is witnessing rapid growth, with a projected market size of USD 917.8 million by 2030. According to a recent report by P&S Intelligence, the market was valued at USD 574.7 million in 2023, expanding at a compound annual growth rate (CAGR) of 7.2% from 2024 to 2030.
Driving this growth is the increasing demand for energy-efficient cooling systems amidst rising temperatures and humidity levels. Saudi Arabia’s hot climate, with summer temperatures frequently exceeding 43°C, has made air conditioning a necessity rather than a luxury. As the country continues to invest heavily in infrastructure, including a focus on expanding residential housing under Saudi Vision 2030, demand for residential AC units is expected to surge.
The residential sector is the fastest-growing segment, particularly with the growing number of villas and apartments. These homes often rely on central or package air conditioning systems, making up a substantial portion of the national electricity consumption. In fact, air conditioners account for 52% of the country’s residential energy use, underlining the importance of energy-efficient models. In response, the government has implemented programs like the High-Efficiency Air Conditioning (HEAC) initiative, which incentivizes households to adopt energy-efficient units with a higher energy efficiency ratio (EER).
The market is expected to see further growth with the Saudi government's commitment to sustainable housing. Investments in infrastructure and housing projects, amounting to billions of dollars, are projected to enhance the demand for residential AC units as more homes are constructed.
By 2030, the demand for energy-efficient systems is expected to rise, driven by growing environmental awareness and the cost-saving potential of modern air conditioners. Additionally, the availability of more affordable and advanced solutions continues to boost consumer confidence in purchasing new AC units.
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