How Is Growing Hospitality Sector Driving Middle East and Africa Chiller Market?

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science-technology

Summary

The growing construction sector and the increasing investment in the oil and gas sector are expected to propel the market growth during the forecast period.

Press Release

The end user segment of the chiller market in MEA is categorized into commercial, industrial, and residential. Among these, the industrial category is projected to observe significant growth during the forecast period. This can be attributed to the expansion of oil and gas projects due to the surging investments in the industry. For instance, Saudi Arabia is expected to invest around $20 billion to expand its oil production capacity. Moreover, the U.A.E. is also observing huge investments in the oil and gas refinery projects to enhance the production capacity.

Additionally, the Middle East and Africa chiller market is classified into screw, reciprocating, scroll, centrifugal, and absorption, on the basis of type. Among these, the screw category accounted for the largest market share in 2018, owing to the increasing installation of such systems in the commercial and industrial sectors. Further, the growing hospitality sector in the region due to the upcoming mega events, such as the Dubai Expo 2020, is leading to the construction of several hotels, where screw chillers are widely used.

Based on country, the chiller market in the U.A.E. is projected to record a CAGR of 5.9% during the forecast period. This can be primarily attributed to the rising number of hotel projects in the country. Tourist attractions are being built across Dubai, which include the Heart of Europe, Dubai Creek Harbour, Jewel of the Creek, Marsa Al Arab, and Marasi Business Bay. These attractions are projected to boost the tourism sector in the city, which, in turn, will drive the demand for chillers in the country.

Thus, the growing construction sector and the increasing investment in the oil and gas sector are expected to propel the market growth during the forecast period.