The GCC air conditioner market reached a value of D 3.85 billion in 2024 . The market is further estimated to grow at a CAGR of 3.90% in the forecast period of 2025-2034 to reach a value of around USD 5.64 billion by 2034 .
The increasing installation of air conditioners on a large scale can be attributed to the need for cooling amidst GCC's hot and humid climate and the surge in residential and commercial construction activities owing to rising disposable income. The expanding hospitality sector in the region is resulting in the increased demand for air conditioners in hotels and restaurants to provide thermal comfort to the guests. Additionally, the rapid development of energy-efficient air conditioners to meet the sustainability goals of the region is driving the GCC air conditioner market growth. For instance, in June 2023, an agreement was signed between Strata UAE, Hyperganic, and EOS GmbH to develop the world's most energy-efficient residential air conditioning (AC) unit as a step towards UAE’s efforts to achieve net-zero carbon emissions by 2050.
The strong presence of the market players in the region and their initiatives towards offering different types of air conditioners that meets the customer expectations are aiding the market growth. Over the forecast period, the development of smart and technologically advanced air conditioners that are equipped with Wi-Fi and can be controlled via smartphones is expected to aid the market.
Rising Demand for Centralised Air Conditioners to Aid the Market Growth in the GCC Region
Based on type, the demand for centralised air conditioners, owing to their exceptional benefits, is significantly increasing in the GCC region. Centralised AC plays a critical role in cooling the indoor area while lowering moisture levels and offers thermal comfort to the occupants, thereby increasing its adoption in the residential sector. Additionally, it can operate efficiently for years with minor routine maintenance, offers consistent temperature, and is convenient to use owing to the presence of a single control panel. These air conditioners provide space-saving options as they require no duct, and they combine the central heating system and the central air system in one cabinet, therefore eliminating the need for a separate indoor furnace. Further, the advanced filters in centralised air conditioners enable clean air circulation and eliminate airborne contaminants. These air conditioners provide a quieter operation as the compressor-bearing unit is mounted outside the building, resulting in their increased installation over window units. These factors are contributing to the growth of the GCC air conditioner market.Market Segmentation
An air conditioner is utilised to cool and control the humidity of an inside space. The air conditioner takes the air of a space into the ducts through a vent, and the heat is removed from the air through the cool gas in the evaporator, which is then sent back into the enclosed space.The market for air conditioner, by type, is divided into
- Window
- Split
- Packaged
- Ducted Split
- Cassette
- Floor Standing
- Centralised
Based on end use, the market is segmented into
- Residential
- Commercial and Retail
- Healthcare
- Hospitality
- Government and Transportation
- Industrial
Market Breakup by Region
- Saudi Arabia
- United Arab Emirates
- Oman
- Qatar
- Kuwait
- Bahrain
The increasing installation of air conditioners on a large scale can be attributed to the need for cooling amidst GCC's hot and humid climate and the surge in residential and commercial construction activities owing to rising disposable income. The expanding hospitality sector in the region is resulting in the increased demand for air conditioners in hotels and restaurants to provide thermal comfort to the guests. Additionally, the rapid development of energy-efficient air conditioners to meet the sustainability goals of the region is driving the GCC air conditioner market growth. For instance, in June 2023, an agreement was signed between Strata UAE, Hyperganic, and EOS GmbH to develop the world's most energy-efficient residential air conditioning (AC) unit as a step towards UAE’s efforts to achieve net-zero carbon emissions by 2050.
The strong presence of the market players in the region and their initiatives towards offering different types of air conditioners that meets the customer expectations are aiding the market growth. Over the forecast period, the development of smart and technologically advanced air conditioners that are equipped with Wi-Fi and can be controlled via smartphones is expected to aid the market.
Key Players in the GCC Market for Air Conditioner
The report gives a detailed analysis of the following key players in the GCC air conditioner market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:- Carrier Global Corporation
- Daikin Industries, Ltd.
- Mitsubishi Electric Corporation
- LG Electronics Inc.
- Fujitsu General Limited
- Toshiba Corporation
- Trane Technologies Company, LLC
- YORK
- GREE Comfort
- Zamil Air Conditioner
- S.K.M. Air Conditioning LLC
- Awal Gulf Manufacturing Co.
- Others
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 GCC Air Conditioner (AC) Market Analysis
6 Regional Analysis
7 Market Dynamics
8 Trade Data Analysis (HS Code - 84151)
12 Competitive Landscape
Companies Mentioned
- Carrier Global Corporation
- Daikin Industries, Ltd.
- Mitsubishi Electric Corporation
- LG Electronics Inc.
- Fujitsu General Limited
- Toshiba Corporation
- Trane Technologies Company, LLC
- YORK
- GREE Comfort
- Zamil Air Conditioner
- S.K.M. Air Conditioning LLC
- Awal Gulf Manufacturing Co.
