This Special Report examines the growing demand for energy-efficient HVAC systems in the region. Buildings consume 53% of the world’s electricity today and this consumption is expected to grow to 80% by 2040. With the increased cost of energy in most countries, existing building owners are looking for solutions to reduce their energy bills.
As one of the contributors to this Special Report puts it: “Energy efficiency is the buzzword. There is increased demand for energy-efficient and high-quality products as customers are hoping not only to reduce power consumption but also abide by energy regulations of the respective countries. Clients on the other hand, are pushing for fast track completion of projects with shorter delivery time.”
What happens with the oil price and Saudi Arabia, the region’s biggest construction market, will have a huge impact on demand in this regard, however other countries are making moves to incentivize the market with their own green initiatives. According to 6Wresearch, UAE’s air conditioner market is projected to grow at a CAGR of 6.1% during 2016-22.
The country is one of the prime revenue contributing countries in the GCC air conditioner market, led by factors such as government initiatives and developing infrastructure on the back of Dubai Expo 2020. Additionally, as per Abu Dhabi Economic Vision 2030, the government is taking initiatives to increase the non-oil share dependency to 64% by 2030 by intensively investing in the areas of real-estate, retail, hospitality, manufacturing, infrastructure and transportation. These initiatives would drive the construction of public and private infrastructures resulting in a rise in demand for air conditioners in the country.
Kevin Cha, president, Middle East and Africa, LG Electronics, believes the HVAC sector is only going to get bigger.
Cha says: “Companies are investing in research and development and designing new products that have better energy ratings and result in lower emissions and utility bills. With such a proactive approach by industry players, including us, the HVAC industry looks set to experience robust growth in the coming years in response to increasing demand.”