JEDDAH – The Saudi air conditioning market has remained robust even when the demand of air conditioners witnessed downfall globally, a recently published report by TechSci Research “Saudi Arabia Air Conditioners Market Forecast & Opportunities, 2017” said. Saudi air conditioning market is the biggest market in the Middle East and North Africa region. In most of the regions around the world, air conditioners can be considered as a luxury product whereas in Saudi Arabia they are the necessity for everyone due to hot climatic conditions. The real estate market is also booming in Saudi Arabia which is acting as a catalyst for the growth of air conditioning market. The report said air conditioner market in Saudi Arabia is expected to witness compounded annual growth rate of around 8.7 percent during 2012-2017. It is forecast that Saudi air conditioners market will reach $2 billion (SR7.5 billion) revenues by 2017 due to rising temperature levels along with the high per capita income as well growing population of the Kingdom which is making the future of air conditioners much more promising. The domestic production of air conditioners has gradually increased in the Kingdom due to several factors such as tax incentives, governmental support, etc, along with export benefits in Gulf Cooperation Council countries which has further fueled the demand of air conditioners, the report added. The average temperature in Saudi Arabia during summer hovers around 40 Degree Celsius, the report noted. Currently in Saudi Arabia, around 10 percent of all electricity generated and 25 percent of distribution infrastructure, are used for just 400 hours per year, that's around 5 percent of the time - a time known as peak load. Peak demand forecast is expected to grow by over 60 percent between 2011 and 2021. Much of that growth is driven by industrial and residential sectors. Even a small reduction in peak load can result in savings of billions of dollars in infrastructure investment. New technologies promise to provide much needed relief in this area by better informing customers of how they can reduce their demand in peak load times, and of the tangible immediate benefits they can receive financially and environmentally in terms of lower bills and improved air quality. It is estimated that due to increasing demand of split air conditioners the market share of window air conditioners is expected to witness almost 10 percent drop in next five years. “The dynamics of air conditioning market in Saudi Arabia have changed with time. Earlier Japanese ruled this market in Saudi Arabia but now the Thai and Korean companies have captured a majority share of the market as they have price advantage over Japanese companies. At present, LG and Samsung together accounts for more than 60 percent of the air conditioners market share. In the near future, Chinese players are expected to impact the market share of the Korean and Thai players as their products are more competitively priced” said Karan Chechi, Research Director at TechSci Research. – SG/QJM
