Increasing Infrastructure Development Activities Driving Saudi Arabian Chiller Market
The Saudi Arabian chiller market value stood at $252.0 million in 2018, and it is predicted to surge to $291.0 million by 2024. According to the estimates of the market research company, P&S Intelligence, the market will progress at a CAGR of 2.7% from 2019 to 2024 (forecast period). The market is being propelled by the increasing number of infrastructure and construction projects and burgeoning need for chillers in the food and beverage industry in the country.
With the implementation of various government initiatives, construction and infrastructural development activities are soaring in Saudi Arabia. This is pushing up the requirement for cooling systems, especially chillers, at supermarkets, buildings, and metro stations. For example, railway projects, such as the Madinah High-Speed Railway, Makkah Metro Rail, Riyadh Dammam High-Speed Rail, and Eastern Province Municipality-Dammam Metro, are predicted to begin in the coming years. Since chillers are extensively used at metro stations and railway stations, these projects will augment their sales in the years to come.
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Besides, the booming tourism sector is also creating lucrative growth opportunities for the players operating in the Saudi Arabian chiller market. The country is actively focusing on improving the tourism sector in order to diversify its economy and reduce its economic reliance on oil and gas, under the Saudi Arabian Vision 2030 economic diversification plan. As per the World Travel and Tourism Council, the tourism industry in the country accounted for as much as 9.4% of the total gross domestic product (GDP) in 2017.
Additionally, the country is witnessing a massive rise in domestic tourism and number of international visitors. For example, inbound passengers spent nearly $26 billion in 2017, while the expenditure of domestic tourists stood at $13 billion in 2017. The Saudi Arabian chiller market is classified, on the basis of type, into screw, centrifugal, scroll, reciprocating, and absorption chillers. Out of these, the centrifugal chiller category is predicted to demonstrate faster growth in the market in the coming years.