MENA HVAC Solutions Market: Current Analysis and Forecast (2023-2030)

HVAC (Heating, Ventilation, and Air Conditioning) solutions refer to a range of products and services that are designed to regulate the temperature, humidity, and air quality within a building or structure. These solutions typically include heating systems, cooling systems, ventilation systems, air purification systems, and control systems that work together to maintain a comfortable and healthy indoor environment.

The MENA HVAC solutions Market is expected to grow at a strong CAGR of 6.6% during the forecast period (2023-2030). The MENA region has been experiencing significant urbanization over the past few decades, with rising environmental concerns and the high cost of energy in the region. According to the World Bank in 2021, the Middle East and North Africa (MENA), is already 64% urbanized. Furthermore, the MENA region is characterized by harsh climate conditions, with scorching summers and cold winters in some areas which have fueled the demand for HVAC solutions. Moreover, the construction industry in the MENA region has been experiencing robust expansion, with numerous infrastructure and real estate projects underway. The Arab Monetary Fund (AMF) reported that the Arab construction sector has recovered from the impacts of the COVID-19 pandemic, with its contribution to GDP increasing to around USD 186.8 billion in 2021, compared to USD 178.3 billion in 2020.

Based on the product, the market is segmented into heating, ventilation, and cooling. Heating is expected to grow with a significant CAGR during the forecast period (2023-2030). The MENA region is predominantly characterized by hot and arid climates, there are specific areas where heating is necessary during the colder months. In countries like Turkey, Iran, and some northern regions of the MENA countries, winters can be quite cold. Therefore, the demand for efficient heating solutions has been steadily increasing.

By end-use, the market is segmented into residential, commercial, and industrial. Residential held a significant share of the market in 2022. Residential experiences extreme temperatures, with scorching summers and sometimes chilly winters. This drives the need for effective climate control systems in residential buildings. Additionally, rising incomes and urbanization have led to increased construction of residential properties, both high-rise apartments and individual homes. This construction boom has directly contributed to the growth of the HVAC industry, as modern dwellings increasingly incorporate these systems for comfort and energy efficiency.

For a better understanding of the market adoption of the HVAC solutions industry, the MENA market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Egypt, Kuwait, and the Rest of MENA. The United Arab Emirates (UAE) is expected to grow with a significant CAGR during the forecast period. The growing awareness of environmental concerns and energy efficiency presents a substantial opportunity for HVAC providers in the UAE, as customers increasingly seek greener options to combat rising energy costs. Moreover, the rising infrastructure investments in end-use and the surge in the tourism industry drive the growth of HVAC solutions. Additionally, the expansion of retail spaces and offices is propel the growth of the market. According to the International Trade Administration, in 2022, The UAE's construction sector is expected to see a solid recovery in the next five years, with construction industry value growing between 3.7-4.7% according to experts.

Some of the major players operating in the market include: Carrier; DAIKIN INDUSTRIES, Ltd.; Johnson Controls; LG Electronics; Zamil Air Conditioners; Fujitsu; Mitsubishi Electric Corporation; Samsung Electronics; Trane; Midea.