Increasing purchasing power coupled with rising temperature and boom in construction sector to drive air conditioners sales in UAE
According to recently published TechSci Research report "UAE Air Conditioners Market Forecast & Opportunities, 2020", air conditioners market in the UAE is projected to grow at a CAGR of 8% during 2015-20. Growth in the market is anticipated on account of growing population, increasing purchasing power, high temperatures and upcoming construction projects in the country. Further, various technological advancements such as development of air conditioners with built-in air purifiers, coupled with introduction of energy-efficient air conditioners are also propelling growth in UAE air conditioners market.
UAE has the seventh highest per capita income in the world. Increasing purchasing power of consumers in the country is consequently resulting in higher urbanization. To cater to increasing housing demand of the growing urban population and large number of expatriates in the country, various construction projects are anticipated to start over the next few years, which will bring a noteworthy addition to the demand for air conditioners in the UAE. Moreover, on account of upcoming events such as World Expo 2020, and growth in the hospitality and tourism sector, the demand for air conditioners is expected to increase during the forecast period.
There are two types of air conditioners available in the market, namely, central air conditioners (VRF, chillers & others), and room air conditioners (split & window). UAE air conditioners market is dominated bycentral air conditioners, which held the majority revenue share in the market in 2014. On account of increasing construction activities in the country, this segment is expected to maintain its dominance over the next five years as well. Presently, residential sector accounts for the largest market share in the country's air conditioners market, followed by commercial and industrial sectors.
"Owing to the enforcement of various energy efficiency labeling standards by the government, the demand for energy efficient air conditioners in the UAE is growing at a significant pace, which will help the country in making significant savingsin the overall electricity consumption over the next five years. In addition, awareness regarding the adverse effects of using non-certified products which release harmful gases is increasing the demand for air conditioners with built-in air purifiers in the country.", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
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