Saudi Arabia is witnessing a surge in infrastructure activities due to the growing government initiatives for the development of this sector. The construction of supermarkets, metro stations, and residential buildings is generating an ample demand for cooling systems, particularly chillers. For example, upcoming railway lines, such as the Madinah High-Speed Railway, Riyadh–Dammam High-Speed Rail, and Makkah Metro Rail, are expected to deploy a large number of chillers. Owing to this reason, the Saudi Arabian chiller market will witness an increase in its revenue from $252.0 million in 2018 to $291.0 million by 2024, progressing at a CAGR of 2.7% during 2019–2024.
Moreover, the expansion of the tourism sector in Saudi Arabia will fuel the demand for chillers in the coming years. The tourism industry is a major part of the Saudi Vision 2030 economic diversification plan. Apart from this sector, the food and beverage industry is deploying a large number of chillers to preserve food and drinks at a consistent temperature. Chillers are used to cool wines, sauces, and soft drinks, as well as raw meats. Screw chillers are the most common kind of chilling equipment used in the food and beverage sector.
Read Full Report: Saudi Arabia Chiller Market Revenue Estimation and Growth Forecast Report
Currently, the Saudi Arabian chiller market is observing the rising adoption of magnetic-bearing chillers. The incorporation of magnetic bearings in chillers enables compressors to function without using oil for lubrication, which decreases the energy losses caused due to friction. Due to this advantage, magnetic-bearing chillers are 40% more reliable and efficient than conventional centrifugal chillers. Moreover, the low weight and noise of magnetic-bearing chillers make them more popular than the traditional centrifugal chillers.
Apart from this, the rising awareness regarding energy-efficient chillers is widening the consumer base for these systems. End-users, such as hotels, hospitals, data centers, department stores, banks, office buildings, supermarkets/hypermarkets, industrial plants, and residential units, are adopting energy-efficient chillers as they consume less energy, which is important to decrease the emission of greenhouse gases from conventional powerhouses. This is why the government is taking numerous measures to enhance energy efficiency across the kingdom.
The type segment of the Saudi Arabian chiller market is categorized into scroll, screw, reciprocating, centrifugal, and absorption. The scroll category is further bifurcated into water-cooled and air-cooled. In 2018, the air-cooled category held the larger market share due to the widescale adoption of such variants in small industrial plants, medium-sized buildings, and luxury villas, where a smaller cooling capacity is needed. Furthermore, the centrifugal category is expected to display the fastest growth during the forecast period. This can be ascribed to the large-scale deployment of centrifugal chillers for space cooling in the manufacturing, oil and gas, and commercial sectors.
According to P&S Intelligence, the Western region of the country will display the fastest growth in the installation of chillers in the coming years. This can be ascribed to the presence of cities such as Madinah, Jeddah, Tabuk, and Makkah in the region, where much of the infrastructure development is expected to take place. For instance, the development of the NEOM City in the Tabuk region, Red Sea Project, and Jeddah Downtown residential complex will support the adoption of chillers in the Western region in the coming years.
Thus, the growth of the infrastructure sector and tourism industry in Saudi Arabia will fuel the demand for chillers in the country.
