saudi arabia air conditioners market forecast & opportunities, 2022- brochure

M a r k e t I n t e l l i g e n c e . C o n s u l t i n g

Saudi Arabia Air Conditioners Market By Product Type, By End Use Sector, Competition Forecast & Opportunities, 2012 – 2022

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T a b l e o f C o n t e n t s

S. No. Contents

1. Air Conditioners: An Introduction

2. Research Methodology

3. Analyst View

4. Global Air Conditioners Market Overview

5. Saudi Arabia Air Conditioners Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value & Volume

5.2. Market Share & Forecast

5.2.1.By Product Type (Light Commercial Air Conditioners, Chillers, VRF, Ductable Splits

& Others)

5.2.2. By End Use Sector (Commercial, Industrial & Residential)

5.2.3. By Region

5.2.4. By Leading City

5.2.5. By Company

5.3. Saudi Arabia Air Conditioners Market Attractiveness Index

5.3.1. By Product Type

5.3.2. By Region

5.3.3. By End Use Sector

6. Saudi Arabia Light Commercial Air Conditioners Market Outlook




6.2.1. By Type (Split Air Conditioners, Window, Cassette & Concealed Ductable Split)Saudi Ara

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S. No. Contents

6.2.2. By Tonnage Capacity


6.2.4. By Company

6.3. Product Benchmarking

7. Saudi Arabia Chillers Market Outlook




7.2.1. By Type


7.2.3. By Company


8. Saudi Arabia VRF Market Outlook




8.2.1. By Single Outdoor Unit Cooling Capacity


8.2.3. By Company


9. Saudi Arabia Ductable Splits Market Outlook



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9.2.1. By Tonnage Capacity


9.2.3. By Company


10. Saudi Arabia Other Air Conditioners Market Outlook



11. Supply Chain Analysis

12. Import & Export Analysis

13. Market Dynamics

13.1. Drivers

13.2. Challenges

14. Market Trends & Developments

14.1. Emergence of Solar Power ACs

14.2. Energy Efficient Regulations and Practices

14.3. Demand for In-Built Air Purification Technology

14.4. Integration of Smart Technology

14.5. Reduction of HCFC Emissions

15. Policy and Regulatory Landscape

16. Saudi Arabia Economic Profile

17. Competitive Landscape

17.1. Competition Outlook

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S. No. Contents

17.2. Company Profiles

17.2.1. LG Shaker Co. Ltd.

17.2.2. Zamil Air Conditioners Holding Co. Ltd.

17.2.3. Gree Electrical Appliances Inc.

17.2.4. Samsung Electronics Co. Ltd.

17.2.5. Daikin Air Conditioning Saudi Arabia LLC

17.2.6. Toshiba Carrier Corporation

17.2.7. Midea Middle East

17.2.8. Fujitsu Arabia Ltd.

17.2.9. Haier Saudi Arabia

17.2.10. Hitachi Saudi Arabia, Ltd.

18. Strategic Recommendations

19. About Us & Disclaimer

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A i r C o n d i t i o n e r s : A n I n t r o d u c t i o n

Air Conditioners

Air conditioners are electrical appliances used to control humidity, ventilation, and temperature of a particular area.

Light Commercial Air Conditioners: Cassettes, high wall, window,

and concealed ductable splits are some of the types of light

commercial air conditioners. A split air conditioner consists of an

indoor unit and an outdoor unit. The outdoor unit, which is located in

the open space, houses condenser coil, compressor and capillary

tubing or expansion coil. The indoor unit is located inside the room

and contains long blower, cooling coil and air filter. Window air

conditioners are the most commonly used and cheapest type of air

conditioners. Cassette air conditioners are ceiling/suspended air

conditioners, which are used where space is limited.

Chiller: A chiller is a machine that removes heat from a liquid

via an absorption or vapor-compression refrigeration cycle. The

liquid can be circulated with the help of a heat exchanger to

cool surroundings. In air conditioning systems, chilled water is

distributed to coils or heat exchangers in air handling units or

another type of terminal devices such as fan coil units and

variable air volume, which further cools the air in respective

space(s). The water used is then re-circulated back in chillers to

be cooled again.

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A i r C o n d i t i o n e r s : A n I n t r o d u c t i o n

Variable Refrigerant Flow (VRF): It is an HVAC

technology invented by Daikin, a Japan-based company,

in 1982. Like ductless minisplits, VRFs use refrigerants

as the cooling and heating medium. They are mainly

used in large shopping complexes, malls, office

buildings, etc. VRF uses refrigerant as cooling/heating

medium, and allows one outdoor condensing unit to be

connected to multiple indoor evaporators, each

individually controllable by the user. VRFs can be

compared with chillers as they both provide centralized

cooling.

Ductable Splits: In ductable splits, cooling effect runs in

the ducts from inside cooling units to different locations

through the outlet. Ductable splits are commonly used in

shopping malls for mass cooling. Some of the other major

applications of ductable splits include banks, offices,

entertainment centers, departmental stores, restaurants,

multiplexes, fast food centers, computer rooms,

residences, telephone exchanges, auditoriums, hospitals,

theaters, conference halls, control rooms and factories.

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Baseline Methodology

Our dedicated team of industry experts has monitored and analyzed different aspects of Saudi Arabia air

conditioners market. The team has analyzed the outlook of various segments of this market and speculated a

positive future for this industry, while considering the major influencing factors such as rising population, increasing

construction activities, and booming hospitality sector backed by growing tourism. The study includes market

forecasting, which would enable our clients to take better decisions while planning their strategies for operating in

Saudi Arabia air conditioners market.

Methodology Followed for Calculation of Market Size:

Market Size by Value: Market size, in value terms, for 2016 was calculated through exhaustive primary surveys,

across various key opinion leaders such as air conditioners manufacturers (both international & domestic),

distributors, importers, retailers, etc.

The team interviewed more than 10 manufacturers/contract manufacturers/importers, 50 distributors/dealers/

retailers and 10 industry experts for obtaining the market size during 2012-2016, using the Delphi technique.

Taking standard deviation into consideration, market size figures were averaged out to arrive at the market size

figures for 2012 to 2016.

R e s e a r c h M e t h o d o l o g y

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Respondents were asked about the current and future growth rates, market share by company, by region, by

product type as well as end user sector. Removing the outlier responses, geometric mean of growth estimates

and product wise revenue shares generated across various applications was taken, to arrive at the final revenue

shares. Revenue shares generated across various application areas were further triangulated from distributors,

retailers and other stakeholders, depending on the usage of various products. Manufacturers and suppliers were

asked about average selling prices of air conditioners of their respective companies.

Final average selling prices of air conditioners were deduced by taking weighted average, which was calculated

by taking into account their revenue contribution in the overall market and average selling prices of various

products. During the process, sales of best air conditioners sold by various suppliers and manufacturers were

also taken into consideration.

Methodology Followed for Calculation of Market Shares:

Market share by company, by product type and by region was calculated based on the responses received

through primary surveys with industry experts, in which respondents were asked about market share or revenue

generated from various distribution channels. The final data was calculated by taking geometric mean of the

responses gathered from over 70 key opinion leaders, after eliminating the outliers.


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Methodology Followed for Forecasting:

TechSci Research performed periodical checks on the data collected through surveys with logic checks and

analyzed survey results in SPSS/Tableau Software and data generated through its proprietary database.

TechSci Research applied data triangulation technique to fill gaps and present a meaningful picture of the

market. In order to forecast Saudi Arabia air conditioners market, TechSci Research used various forecast

techniques such as:

❖ Moving Average

❖ Time Series Analysis

❖ Regression analysis

❖ Econometric and Judgmental Analysis

TechSci Research used its own forecast tool, based on growth of various distribution channels in Saudi Arabia.

TechSci Research also used impact analysis during short, medium and long term to estimate the demand and

arrive at accurate market figures.


Partial List of Companies

Interviewed

Zamil Air Conditioners Holding Co. Ltd., Gree Electrical Appliances Inc., Samsung

Electronics Co. Ltd., Daikin Air Conditioning Saudi Arabia LLC, Toshiba Carrier

Corporation, Midea Middle East, Haier Saudi Arabia, Hitachi Saudi Arabia, Ltd., Fujitsu

Arabia Ltd. and LG Shaker Co. Ltd.

Secondary Sources

Company Annual Reports, Saudi Arabia Customs, Ministry of Civil Services of Saudi

Arabia, World Bank, Industry Magazines, Industry Reports, News Dailies, Electricity &

Cogeneration regulatory authority of Saudi Arabia, etc.

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Industr

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I n d u s t r y B r i e f

Air Conditioner Market in Saudi Arabia to Cross $ 3.4 Billion by 2022

According to TechSci Research report, “Saudi Arabia Air Conditioners Market By Product Type, ByEnd Use Sector, Competition Forecast & Opportunities, 2012 – 2022”, the country’s airconditioners market is projected to surpass $ 3.4 billion by 2022. Growth in the market is attributed toextremely high temperatures during peak summer season, coupled with rising demand from residential,commercial and hospitality sectors of the country. Over the last decade, the country has witnessed asignificant rise in the number of international as well as domestic tourists. According to World Travel andTourism Council, in 2016, the tourism industry in Saudi Arabia accounted for 3.3% of the total GDP. Thishas prompted the government to increase its focus on the hospitality sector by setting up more hotelsand leisure destinations, thereby creating more demand for air conditioners. Moreover, constructionprojects worth $ 1.1 trillion in the country, according to MEED Projects, continue to be among the majordemand drivers for air conditioners in Saudi Arabia.

LG Shaker Co. Ltd., Zamil Air Conditioners Holding Co. Ltd., Gree Electrical Appliances Inc., SamsungElectronics Co. Ltd., Daikin Air Conditioning Saudi Arabia LLC are the five leading air conditioner playersoperating in Saudi Arabia. In terms of regions, Western region has dominated the market with over one-third of the market share in 2016. The region is expected to generate significant demand for airconditioners in the coming years as well, and thereby anticipated to remain dominant through 2022 onaccount of high population, increasing tourist footfall, and rising investments for the upcomingcommercial projects in the region.

Based on product type, Saudi Arabia air conditioners market can be broadly categorized into LightCommercial air conditioners, VRF, Ductable Splits, Chillers and Others. Light commercial air conditionersdominated the market in 2016 due to their extensive applications in commercial as well as residentialsectors. “With booming construction activities, growing hospitality sector and prevalence of extremeweather conditions in the country, demand for air conditioners is expected to continue exhibiting agrowing trend in Saudi Arabia over the next five years. Moreover, introduction of increasingly innovativeproduct offerings and rising consumer inclination towards adopting energy efficient air conditioners isexpected to positively impact the market demand in the foreseeable future.” said Mr. Karan Chechi,Research Director with TechSci Research, a research based global management consulting firm.

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Sam

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Data

-Snapshot

S a m p l e D a t a - S n a p s h o t

Global Air Conditioners Market Share, By Region, By Value,

2016

North America, 10.00%

Europe, 20.00%

South America, 30.00%

Middle East & Africa, 40.00%

Global Air Conditioners Market Share, By Product Type,

By Value, 2016Light Commercial Air Conditioners,

10.00%

Chillers, 15.00%

VRF, 20.00%

Ductable Split, 25.00%

Others, 30.00%

Figure 1: Saudi Arabia Air Conditioners Market Size, By Value (USD

Million), By Volume (Thousand Unit), 2012–2022F

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2012 2013 2014 2015 2016 2017E2018F2019F2020F2021F2022F

By Value (USD Million) By Volume (Thousand Unit)

CAGR 2012-2016

By Value: X%

By Volume: X%

CAGR 2017E-2022F

By Value: X%

By Volume: X%

20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%

30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30%

50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

2012 2013 2014 2015 2016 2017E2018F2019F2020F2021F2022F

Commercial Residential Industrial

Figure 4: Saudi Arabia Air Conditioners Market Share, By End Use

Sector, By Value, 2012-2022F

LG, 10.00%

Zamil, 15.00%

Gree, 20.00%

Samsung, 25.00%

Daikin, 30.00%

Others, 35.00%

Figure 8: Saudi Arabia Air Conditioners Market Share,

By Company, By Value, 2016Figure 16: Saudi Arabia Urban Population, 2012-2016(As a % of Total

Population)

Source: XXXXXNote: These are dummy figures; please purchase our report for actual data

80.00%81.00%

82.00%83.00% 84.00%

2012 2013 2014 2015 2016

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About U

s &

Dis

cla

imer

A b o u t U s & D i s c l a i m e r

About Us

TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research

provides market research reports in a number of areas to organizations. The company uses innovative business models that focus on

improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of

both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country,

regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a

uniquely rich evaluation of the opportunities available in the market.

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Disclaimer

The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is madethat it is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from varioussources including which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completenessof any information and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especiallystates that it has no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates andforecast, can change without notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internalconsumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.

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