The United Arab Emirates (UAE) is one of the most attractive countries in the world, all thanks to its luxurious lifestyle, modern facilities, mesmerising skyscrapers and grand shopping centres. One noteworthy thing about this country is that despite being a desert land with extremely high temperatures, UAE manages to attract a large crowd of expats and tourists. It spends heavily on keeping the in-house atmosphere cool and pleasant as many visitors to the country come from cooler regions like the Americas and Europe. As a result, UAE has emerged as one of the leading air conditioner market in the Gulf Cooperation Council (GCC) region.
The Air Conditioner market in the UAE is estimated to register a CAGR of 6.1% during the forecast period (2016-2022). In terms of revenue share, the UAE AC market was dominated by the centralised AC segment in the year 2015. Latest studies suggest that the ducted AC segment will show a strong growth rate during the forecast period.
Major factors contributing to the growth of the AC market in the UAE include rising number of skyscrapers (including both commercial and residential complexes), development of the World Expo 2020, heavy traffic of high-end expats and tourists, and growth of the hospitality sector. Moreover, the UAE government is actively working on expanding its dependency on non-oil sectors to 64% by 2030, under the Abu Dhabi Economic Vision 2030. The country is investing smartly in sectors like hospitality, manufacturing, transportation, infrastructure, real-estate, retailing, etc. All these factors are likely to encourage demand for and supply of air conditioners in the UAE.
However, because of more number of innovative products and services in the AC market, the room AC segment and the window AC sub-segment are estimated to see drop in their growth rate.
