Etihad Rail, the developer and operator of the national railway network of the U.A.E., started the construction of tracks under Stage Two of the National Rail Network in 2021. This upcoming rail track of 605 kilometers will run from Ghuweifat to Fujairah. After its completion, the new network will connect the U.A.E. with Saudi Arabia through rail. Additionally, the U.A.E. government plans to strengthen its airline sector through the ‘Abu Dhabi 2030 Plan’. Abu Dhabi is an ideal location for airports as it is within the reach of major world capitals of Asian, African, and European countries.
Thus, the expanding railway and airline sectors are expected to propel the U.A.E. heating, ventilation, and air conditioning (HVAC) market at a CAGR of 5.2% during 2020–2030. The market was valued at $1,873.1 million in 2019 and it is projected to generate $2,774.7 million revenue by 2030. Moreover, the mounting infrastructure investments in the residential, industrial, and commercial sectors will also accelerate the adoption of HVAC systems in the U.A.E.
Besides, the booming tourism sector, on account of the soaring government support toward this industry and escalating focus of government on diversifying its economy by reducing dependency on the oil and gas industry, is also expected to result in the widescale installation of HVAC equipment. The U.A.E. Cabinet approved the creation of the Emirates Tourism Council, in January 2021, to strengthen the tourism portfolio by establishing an exhaustive national tourism information database, attracting investments, and supporting small and medium-sized enterprises (SMEs) operating in this sector.
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Currently, Midea Group Co. Ltd., S.K.M. Cooling LLC, Mitsubishi Electric Corporation, Danfoss A/S, Johnson Controls International plc, Zamil Air Conditioners, Daikin Industries Ltd., LG Electronics Inc., and Gree Electric Appliances Inc. of Zhuhai are providing heating, ventilation, and cooling equipment and consulting, maintenance and repair, upgradation/replacement, and installation services to commercial, industrial, and residential structures in the U.A.E. In the upcoming years, the commercial sector will emerge as a significant user of such equipment and services due to the implementation of government initiatives such as the National Strategy for Higher Education 2030.
According to P&S Intelligence, Dubai led the U.A.E. HVAC market in the preceding years. This was on account of the rising construction activities and the increasing focus of the government on reducing dependency on the oil and gas industry and diverting their resources toward the tourism sector and infrastructure development. For instance, upcoming infrastructure projects like Burj Jumeirah, The Heart of Europe, Meydan One, Mall of the World, Dubai Creek Tower, Deira Islands, and Marsa Al Arab will create a huge requirement for HVAC equipment in Dubai.