Middle East & Africa Air Conditioner (AC) Market Outlook, 2028

The Middle East and Africa (MEA) region, known for its diverse climate and fast-paced urbanisation, is experiencing a remarkable surge in demand for air conditioning solutions. As temperatures soar to scorching levels in the Middle East and the need for indoor comfort continues to grow across both regions, the MEA air conditioner market is witnessing significant growth and transformation. The MEA region encompasses a wide range of climates, from the arid deserts of the Middle East to the tropical zones of Africa. High temperatures, especially during the summer months, have become the norm, making air conditioning a necessity rather than a luxury. The scorching summers in countries like Saudi Arabia, the UAE, and Qatar have led to a substantial demand for cooling solutions, driving the growth of the air conditioner market. Urbanisation rates in the MEA region are among the highest in the world. Rapid urban expansion brings with it a growing demand for air conditioning in residential, commercial, and industrial settings. In bustling metropolises like Dubai, Cairo, and Nairobi, air conditioners are integral to maintaining comfortable indoor environments in homes, offices, shopping malls, and transportation hubs. The MEA air conditioner market is not only growing but also evolving technologically. Consumers in the region are embracing smart and connected air conditioning systems that can be controlled remotely through smartphones and other devices. These systems often feature advanced sensors, energy-saving modes, and air quality monitoring, enhancing the overall user experience. Manufacturers can introduce a wide range of products catering to different climates and customer preferences, including portable units, ductless systems, and energy-efficient models. Governments in the MEA region are increasingly investing in sustainable infrastructure and offering incentives for energy-efficient appliances, creating a favorable environment for market growth.

According to the research report, “Middle East and Africa Air Conditioner Market Outlook, 2028,” the Middle East and Africa Air Conditioner Market is anticipated to cross above USD 21 Billion in market size by 2028. The MEA region experiences extreme temperatures, including scorching summers with high heat and humidity levels. As a result, air conditioning is essential for maintaining indoor comfort, driving significant demand for cooling systems. MEA countries are undergoing rapid urbanisation, with a growing number of people moving to cities. Urban areas typically have higher temperatures due to the urban heat island effect, leading to increased demand for air conditioners in residential, commercial, and industrial settings. Economic development and rising incomes in several MEA countries have increased consumers' purchasing power. This has led to higher demand for home appliances, including air conditioners, as consumers seek to improve their quality of life. The construction of new buildings and infrastructure projects across the region often includes the installation of air conditioning systems. This boosts demand for cooling solutions in both residential and commercial spaces. In the Middle East and Africa, Dubai is home to a flourishing hospitality industry, boasting world-class hotels, resorts, and restaurants. These establishments prioritise guest comfort and rely heavily on efficient air conditioning systems to provide a welcoming and enjoyable environment for guests. Dubai is famous for its extravagant shopping malls, entertainment complexes, and indoor attractions. These venues require extensive air conditioning to maintain pleasant conditions for visitors, encouraging the adoption of advanced cooling systems. While Dubai has many outdoor activities and desert adventures, tourists often seek refuge from the scorching sun and heat. Air-conditioned spaces are essential for offering respite, making air conditioning integral to desert tourism. Dubai attracts tourists throughout the year due to its diverse offerings, from shopping festivals to cultural events. The demand for cooling solutions remains constant, ensuring a steady market for air conditioners.

Based on the report, the major countries covered in this report include the UAE, Saudi Arabia, South Africa, and the rest of the Middle East and Africa. Among them, Saudi Arabia has the highest market share. Saudi Arabia experiences extremely high temperatures during the summer months, with some regions reaching temperatures exceeding 120°F (49°C). The scorching heat makes air conditioning a necessity for maintaining indoor comfort, driving substantial demand for cooling solutions. Saudi Arabia has a rapidly growing population, and urbanisation rates are high. The increasing concentration of people in urban areas, coupled with rising incomes, has led to a surge in the demand for air conditioning in both residential and commercial spaces. The Saudi government has launched initiatives to promote energy efficiency and sustainability. Regulations and incentives encourage consumers to choose energy-efficient and environmentally friendly air conditioning systems, contributing to market growth. Saudi Arabia is undergoing extensive infrastructure development, including the construction of new buildings, shopping malls, hotels, and commercial complexes. These projects often include the installation of air conditioning systems, boosting demand.

In terms of product types, they are segmented into Window Ac, Portable Ac, Ductless Multi Split Ac, Packaged Ac, Floor Mounted Ac, Central Ac, Variable Refrigerant Ac, and Others. Among them, the Ductless Multi Split Ac leads the market. Ductless multi-split systems are known for their high energy efficiency. They offer the flexibility to cool individual zones or rooms separately, allowing users to avoid cooling unused spaces. This zonal cooling minimizes energy waste and reduces electricity consumption, which is particularly appealing in regions with hot climates and high energy costs. MEA countries experience varying climate conditions, from extreme heat to milder temperatures. Ductless multi-split systems can adapt to these changing needs by adjusting cooling capacity for specific zones or rooms, ensuring comfort and energy savings. Ductless multi-split ACs allows users to control the temperature of individual rooms or zones independently. This level of control is highly valued in MEA households and commercial spaces, where preferences for comfort can vary widely. Ductless multi-split systems are space-efficient, both in terms of indoor and outdoor units. This is advantageous in urban areas with limited space for outdoor condenser units and in homes or businesses where space is at a premium. As consumers become more aware of the benefits of ductless multi-split ACs, they are increasingly choosing these systems for their homes and commercial properties.

In terms of tonnage, they are segmented into Up to 2 tonnage, 2 tonnages to 5 tonnages, 5 tonnages to 10 tonnages and More Than 10 tonnage. Among them in the region, Up to 2 tonnages have the highest market share. Many residential and commercial spaces in the MEA region have relatively smaller room sizes compared to larger Western homes and buildings. Air conditioners with up to 2 tonnes of cooling capacity are well-suited for cooling these smaller spaces efficiently. Smaller air conditioning units are often more energy-efficient when cooling smaller spaces. They can reach and maintain the desired temperature more quickly and with less energy consumption than larger units, which is essential in regions with high energy costs. Smaller air conditioners are suitable for cooling individual offices, shops, cafes, and small businesses in the MEA region. They offer localised cooling and cost-effective solutions for these establishments. Consumer preferences and market demand in the MEA region favour smaller air conditioners that are effective, energy-efficient, and cost-conscious. Smaller air conditioning units are easier to install, especially in residential settings. They typically require less complex ductwork or piping, reducing installation time and costs.

Based on the end user being segmented into residential, commercial, and industrial in the Middle East and Africa, commercial has the second highest market share. The MEA region has experienced significant economic growth in recent years, leading to increased investments in commercial infrastructure. Expanding economies have driven the construction of new commercial spaces, including offices, retail stores, hotels, restaurants, and shopping malls, all of which require efficient air conditioning systems. The MEA region is witnessing rapid urbanisation, with more people moving to urban areas for job opportunities and improved living standards. Urbanisation has led to the development of commercial properties to cater to the growing population, further boosting the demand for air conditioning. The MEA region attracts a substantial number of tourists, particularly from countries like the United Arab Emirates, Saudi Arabia, Egypt, and Morocco. The hospitality sector, including hotels, resorts, and restaurants, relies heavily on air conditioning to provide comfort and a welcoming environment to tourists. The commercial sector encompasses a wide range of businesses, including entertainment venues, theatres, cinemas, and event spaces. These establishments require effective air conditioning to enhance the overall experience for customers and guests. Commercial enterprises understand the importance of providing employees and customers with a comfortable and healthy indoor environment. Proper air conditioning contributes to improved indoor air quality, which in turn enhances productivity and well-being.

According to the report, the technology is segmented into inverter ACs and non-inverter ACs. In the region, non-inverter ACs will grow at the highest capacity rate. Non-inverter air conditioners are generally more affordable than inverter models. In regions where cost is a primary concern for consumers, non-inverter units may remain a preferred choice. Non-inverter air conditioners are straightforward in terms of operation and maintenance. They are often perceived as more user-friendly, making them suitable for areas with a less tech-savvy population. In some parts of the MEA region, there may be issues with grid stability and frequent power fluctuations. Non-inverter air conditioners can better withstand these conditions and continue to operate reliably. In certain scenarios, such as cooling server rooms or industrial facilities, non-inverter air conditioners may be preferred due to their ability to provide consistent and precise cooling without the need for frequent temperature adjustments. In some residential or commercial settings with small spaces, non-inverter air conditioners may provide sufficient cooling without the need for the advanced features offered by inverter models.

Based on the distribution channel, which includes multi-brand stores, exclusive stores, online stores, and other channels, In the Middle East and Africa, multi-brand stores are the leading distribution channel in the region. Multi-brand stores offer a wide variety of AC brands and models under one roof. This allows consumers to compare different products, features, and price points, making it easier to find an AC that suits their specific needs and budget. MEA consumers often have diverse preferences when it comes to AC brands and features. Multi-branded stores cater to these preferences by stocking products from various manufacturers, providing consumers with the freedom to choose based on their brand loyalty or specific requirements. The presence of multiple brands in multi-branded stores fosters healthy competition. This competition can lead to competitive pricing, promotions, and discounts, benefiting consumers who are looking for affordable options.

Companies Covered in this Report:

Samsung Electronics, Panasonic Holdings Corporation , Haier Group Corporation, Whirlpool Corporation , Havells India Limited, Daikin Industries, Ltd, LG Corporation, Electrolux AB, Robert Bosch GmbH, Rheem Manufacturing Company, Gree Electric Appliances Inc., Midea Group, Fujitsu General Limited and Sharp Corporation.

Considered in this report:

• Geography: Middle East and Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Middle East and Africa Air Conditioner market Outlook with its value and forecast along with its segments
• Country-wise Air Conditioner market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country Covered in this report:

• UAE
• Saudi Arabia
• South Africa

By Product types

• Window Ac
• Portable Ac
• Ductless Multi Split Ac
• Packaged Ac
• Floor Mounted Ac
• Central Ac
• Variable Refrigerant Ac
• Others

By Tonnage Types:

• Up to 2 Ton
• 2 Ton to 5 Ton
• 5 Ton to 10 Ton
• More Than 10 Ton

By Technology

• Inverter ACs
• Non-Inverter ACs

By End Users

• Residential
• Commercial
• Industrial

By Distribution Channel

• Multi-brand Stores
• Exclusive Stores
• Online
• Other Channels

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Air Conditioner industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.