There are various infrastructure development projects underway in different regions of Saudi Arabia, such as for metro railway and other commercial settings. One of the largest ones is the NEOM megacity project, which is worth $500 billion and will see the completion of its first phase by 2025. According to P&S Intelligence, such initiatives will lead to a massive increase in the Saudi HVAC market value to $4,821.8 million by 2030 from $2,476.1 million in 2020, at an 8.1% CAGR over this decade.
Additionally, the religious significance of Saudi Arabia is driving its hospitality industry, already making it one of the most-visited destinations in the world. The rising count of visitors has offered various international and domestic hotel chains an opportunity to increase their presence in the country. Heating, ventilation, and air conditioning (HVAC) systems play a vital role here as they offer comfort by controlling the temperature in a room according to the requirement, which is why they have become an integral part of modern hotels.
In addition, the Saudi capital, Riyadh, has opened the world’s largest turnkey metro project, worth $23 billion, which features a cooling system that is adaptable to external heat. This is also the reason that among all users, the commercial sector has been installing the largest number of HVAC systems in this Middle Eastern kingdom. HVAC systems are important for attracting people to not only hotels, but all kinds of commercial spaces, such as shopping complexes, movie theaters, and restaurants.
Essentially, Saudi Arabia’s arid climate, due to its location in the Arabian Desert, has made air conditioning a necessity, rather than a luxury. As a result, between equipment and services, the actual systems have been witnessing the higher demand in the kingdom. Furthermore, HVAC appliances are being integrated with better compressors and smart controls in order to reduce their energy consumption. Saudi depends strongly on oil and gas, and the energy efficiency and infra development measures are steps toward lowering its reliance on these fossil fuels.