Middle East & Africa Chiller Market Outlook, 2029

The market for chillers in the Middle East and Africa is dynamic, influenced by a variety of industrial, climatic, and economic factors. The region is rapidly becoming more urbanised and industrialised, and as cooling technologies are being adopted by more industries, there is a noticeable increase in demand for chillers. As essential parts of air conditioning and refrigeration systems, chillers are used extensively in commercial, industrial, and residential settings to meet a variety of needs, from process cooling in manufacturing plants to comfort cooling in buildings. The region's high temperatures and humidity levels, along with other factors, highlight the importance of effective cooling solutions and increase demand for chillers.

Additionally, initiatives towards sustainable development and energy efficiency have spurred the adoption of eco-friendly and energy-efficient chillers, aligning with global efforts to mitigate environmental impact. Amidst evolving market dynamics and technological advancements, key players in the Middle East and Africa Chillers market are continually innovating to offer advanced solutions tailored to the specific needs of the region, thereby fostering competition and fueling market growth. District cooling systems are gaining traction in the Middle East, particularly in urban centres like Dubai and Abu Dhabi. These centralised cooling systems use chillers to provide cooling to multiple buildings through a network of underground pipes, offering greater efficiency and reliability compared to traditional individual cooling units. An increasing number of chiller systems are being equipped with renewable energy sources, such as solar power, in order to increase sustainability. The growing popularity of hybrid chillers, which can use both traditional electricity and renewable energy, is indicative of the area's dedication to environmental initiatives.

According to the research report 'Middle East and Africa Chillers Market Outlook, 2029,' the Middle East and Africa Chillers Market is expected to reach a market size of more than USD 1 Billion by 2029. The need for chillers is being driven by the region's increasing urbanisation, which results in a concentration of infrastructure and buildings that need cooling solutions. Chillers are in demand because large-scale infrastructure projects, such as those in airports, shopping centres, hospitals, and business complexes, need efficient cooling systems. The expanding industrial sector necessitates chillers for process cooling applications, such as in manufacturing, petrochemicals, and food processing, driving demand from industrial users.

Because of the year-round high temperatures and humidity, there is a constant need for cooling solutions, which is why chillers are crucial for a variety of industries to preserve goods and maintain comfortable indoor environments. 759,000 products were seized by Saudi Arabia's customs team in 2017 for breaking the Saudi Energy Efficiency Center's standards. Strict government regulations like these encourage MEA to adopt energy-efficient HVAC chillers.

Among the main HVAC-related regulations in the MEA are the GCC Standardisation Council (GSO), the Arab Energy Efficiency Building Regulations, and the Leadership in Energy and Environmental Design (LEED) certification. The expansion of the commercial, industrial, and building sectors is anticipated to drive growth in the HVAC chiller market in the area. Additional driving forces behind the HVAC chillers market are the growing R&D efforts of major players and the rising green building projects being constructed, like Saudi Arabia's King Abdullah Financial District (KAFD), a new financial hub.

Market Drivers

Industrial Growth and Manufacturing: Significant industrial growth has been taking place in the Middle East and Africa region in a number of industries, including petrochemicals, food processing, and manufacturing. Chillers are essential to these industries because they keep processes running at their best, guarantee product quality, and boost output. Chillers are essential tools for maintaining perishable goods, regulating temperature during chemical reactions, and giving employees comfortable cooling. The need for chillers is anticipated to increase as industrial activities continue to grow, which will propel the Middle East and Africa's chiller market's expansion.

Extreme Climate Conditions: Extreme climate conditions are typical of the Middle East and Africa, where summer temperatures frequently rise above 40°C (104°F). Effective cooling solutions are required in a variety of sectors, including commercial, residential, and industrial, due to the harsh environmental conditions. Chillers ensure comfortable indoor environments, protect delicate equipment, and support vital processes by providing dependable and efficient cooling even in the face of intense heat. Because the region's climate is intrinsically linked to the need for chillers, these devices are vital resources for both individuals and businesses looking to escape the unbearable heat and humidity.

Market Challenges

Water Scarcity: Water scarcity is one of the major issues confronting the Middle East and Africa Chillers markets. Water resources are scarce in many parts of the Middle East and Africa, which makes water-intensive cooling systems - like water-cooled chillers - unsustainable. The use of water in traditional cooling systems for heat exchange and cooling increases the demand for already limited water supplies. As a result, there is an increasing demand for creative cooling solutions that reduce water usage or make use of different cooling technologies. Increasingly, producers are creating hybrid systems and air-cooled chillers that lessen the need for water, addressing the issue of water scarcity while still satisfying the region's cooling needs.

High Energy Costs: The high cost of energy in the Middle East and Africa is another major obstacle facing the market for chillers in that region. Chiller operations can use a lot of energy, especially in colder climates. This can result in high operating costs for both consumers and businesses. The high cost of energy not only makes chillers less affordable, but it also raises the total cost of end-user cooling solutions. In response to this challenge, the chiller market is placing an increasing focus on sustainability and energy efficiency. Energy-efficient chillers with variable-speed drives, smart controls, and high-efficiency compressors are being developed and marketed by manufacturers. The goal is to reduce energy consumption without sacrificing cooling efficiency.

Based on the report, there are two types of chillers covered in the report: air-cooled chillers and water-cooled chillers. In terms of the report, there are types that are segmented into screw chillers, scroll chillers, centrifugal chillers, and others.

In the Middle East and Africa, air-cooled chillers lead the market. Many countries in the Middle East and Africa face water scarcity issues, making water-intensive cooling solutions less viable. Air-cooled chillers do not require water for cooling purposes, making them more suitable for regions where water resources are limited or costly to access. This aligns with the sustainability goals of many businesses and governments in the region. The Middle East and Africa experience extreme temperatures, especially during the summer months. Air-cooled chillers are well-suited to operate efficiently in hot climates, as they do not rely on water for cooling and can effectively dissipate heat using ambient air.

This reliability in extreme climates makes air-cooled chillers a preferred choice for many applications, including commercial buildings, data centres, and industrial facilities. Air-cooled chillers offer greater flexibility in terms of installation location compared to water-cooled systems. They do not require proximity to a water source or the installation of cooling towers, allowing for easier integration into existing infrastructure or buildings. This flexibility makes air-cooled chillers a practical choice for retrofit projects and applications where space is limited or where water-based cooling solutions are impractical.

In terms of the types of scroll chillers that contribute to the market, scroll compressors used in scroll chillers are known for their high energy efficiency. They are designed to modulate capacity based on cooling demand, leading to energy savings compared to traditional reciprocating compressors. In a region where high energy costs are a concern, the energy efficiency of scroll chillers makes them an attractive option for businesses seeking to reduce operational expenses. While scroll chillers may have a slightly higher initial investment compared to some other types of chillers, their energy efficiency and reliability can lead to lower overall lifecycle costs. The reduced energy consumption and maintenance requirements of scroll chillers translate to long-term savings for end-users, making them a cost-effective cooling solution in the Middle East and Africa markets.

Furthermore, the end users are segmented into commercial and industrial groups.

In the commercial market, which is growing, significant infrastructure development and urbanisation are occurring throughout the MEA region, especially in major commercial centres like Johannesburg, Riyadh, Dubai, and Abu Dhabi. Due to this expansion, new commercial structures, such as shopping centres, office buildings, hotels, and entertainment venues, are being built. All of these require effective cooling solutions in order to keep their occupants comfortable. The MEA region is a popular destination for tourism and hospitality, with a thriving hospitality industry encompassing luxury hotels, resorts, restaurants, and entertainment facilities.

Chillers are essential for maintaining comfortable indoor temperatures and humidity levels in these establishments, ensuring a pleasant experience for guests and patrons. As the hospitality sector continues to expand, so does the demand for chillers. The retail sector in the MEA region is experiencing rapid growth, driven by increasing consumer spending, urbanization, and the proliferation of shopping centers and malls. Chillers are integral to maintaining optimal temperatures for perishable goods, such as food and beverages, as well as creating comfortable shopping environments for customers. The expansion of the retail sector fuels the demand for chillers to support refrigeration and air conditioning needs.

With the growth of commercial activities and the establishment of regional headquarters for multinational corporations, there is a rising demand for office space in major cities across the MEA region. Chillers are essential for providing climate control in office buildings, ensuring comfortable working conditions for employees, and optimising the operation of electronic equipment. As businesses continue to expand and modernise, the demand for chillers in commercial office spaces grows correspondingly.

Based on the report, the major countries covered include the UAE, Saudi Arabia, South Africa, and the rest of the Middle East and Africa.

Saudi Arabia Saudi Arabia contributes the highest market share; it boasts one of the largest economies in the region, driven primarily by the oil and gas sector. The country's robust economic growth has led to extensive infrastructure development, including commercial and industrial projects that require efficient cooling solutions, thus driving the demand for chillers. As part of its Vision 2030 initiative, the Saudi Arabian government has been making significant investments in infrastructure projects with the goal of diversifying the economy and lowering its reliance on oil earnings.

These investments include the development of residential and commercial complexes, hospitals, and tourist attractions - all of which need chillers for cooling and air conditioning. The construction, manufacturing, and petrochemical industries are the main drivers of Saudi Arabia's robust industrial sector. Chillers are necessary to support production efficiency, guarantee product quality, and maintain ideal operating conditions in industrial processes. The demand for chillers in Saudi Arabia is largely driven by the country's industrial expansion.

The Saudi Arabian government has implemented regulations and standards to promote energy efficiency and environmental sustainability. These regulations drive the adoption of energy-efficient chillers that comply with stringent efficiency requirements, fostering market growth and encouraging innovation in the sector. Saudi Arabia's strategic location at the crossroads of Europe, Asia, and Africa positions it as a key trade hub in the region. The country's status as a trade hub attracts businesses from various sectors, further driving the demand for chillers to support commercial activities, logistics, and transportation infrastructure.

The global market is highly competitive on account of the presence of global and local manufacturers. Companies are engaged in expansion through mergers & acquisitions and joint ventures. These companies offer a wide range of systems that are sold through multiple channels, including distributors, company-owned websites, retailers & their websites, and e-commerce websites. For instance, in May 2023, Trane acquired MTA, an Italian manufacturer and distributor specializing in industrial refrigeration and air conditioning equipment. This strategic acquisition is expected to enhance Trane's commercial HVAC capabilities, particularly in key markets, by incorporating MTA's process chillers and expanding the rental and services business.

With manufacturing sites located in Tribano and Conselve and a workforce of approximately 500 employees, MTA has an annual production capacity of 13,500 systems. Market growth stage is medium, and pace of the market growth is accelerating. The chillers market is characterized by highly consolidated owing to presence of several established players, which makes it difficult for small-scale manufactures to compete with global players. The market is also characterized by a high degree of product innovation, for instance, many manufacturers are developing chillers that use low GWP refrigerants, such as HFOs or natural refrigerants like CO2. Chiller systems are becoming more intelligent and energy-efficient with advancements in technology.

Recent Developments

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Chillers market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type

• Air Cooled Chiller
• Water Cooled Chiller

By Type

• Screw Chiller
• Scroll Chiller
• Centrifugal Chiller
• Others

By End User

• Commercial
• Industrial

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone 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 making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

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


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