UAE Air Conditioner Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2025-2034)

The UAE air conditioner market size reached approximately USD 1.00 billion in 2024. The market is assessed to grow at a CAGR of 6.20% between 2025 and 2034 to attain a value of around USD 1.83 billion by 2034.

Key Trends in the Market

An air conditioner (AC) refers to a system that is used to create and maintain a specific temperature by removing heat from an enclosed space. It can also control humidity, airflow, and air quality in enclosed spaces such as homes, and plays an integral role in enhancing the comfortability of occupants, especially during summers and arid climatic conditions.

• The UAE has an arid climate as well as hot, humid, and dry summers, with temperatures typically ranging from 32°C to 37.2°C. This is surging the utilisation of air conditioners to maintain a comfortable temperature level in indoor spaces, enhance the comfort of occupants, and reduce sinus and other respiratory problems.
• Some of the UAE air conditioner market trends include rising living standards and growing disposable incomes, driving the usage of ACs in residential and commercial areas. In addition, a growing focus on optimal air quality is anticipated to drive the demand for air conditioners integrated with air purification systems that can neutralise bacteria, pathogens, and allergens.
• As a substantial amount of energy is used to power air conditioners, key players are developing air conditioners with enhanced energy efficiency. The trend of sustainability and the UAE government’s aim to achieve net zero carbon emissions by 2050 are expected to further propel the demand for energy-efficient air conditioners in the residential, commercial, and industrial sectors.

Market Segmenation

The report titled “UAE Air Conditioner Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Window AC
• Split AC
• Packaged AC
• Ducted Split AC
• Cassette AC
• Floor Standing AC
• Centralised AC

Market Breakup by End Use

• Residential
• Commercial and Retail
• Healthcare
• Hospitality
• Government and Transportation
• Industrial

Market Breakup by Region

• Dubai
• North Emirates
• Abu Dhabi

Market Share by End Use

There is a surging demand for air conditioning units in the commercial and retail sectors owing to rising investments in infrastructural development and construction activities. The UAE air conditioner market is also being fuelled by favourable government initiatives aimed at boosting commercial development, along with the increasing number of offices in the country.

In the hospitality sector, the usage of air conditioners is expected to substantially increase to enhance the comfort levels of guests and prevent the risk of bacteria and mould growth to keep the property in good condition. Hotels are increasingly preferring air conditioners with advanced features such as dehumidifiers, in-built heaters, sleep mode, and auto clean functions, among others, to meet evolving customer demands.

Market Share by Region

Dubai accounts for a significant share in the UAE air conditioner market as it is one of the wealthiest cities in the Middle East and Africa and boasts a high ultra-high-net-worth population. Surging commercial and residential construction activities, coupled with the robust growth of the tourism sector, are further boosting the demand for air conditioners in the city.

In addition, the development of climate-controlled highways, indoor theme parks, shopping malls, and wellness centres, among others, is anticipated to drive the utilisation of air conditioners in Dubai in the coming years.

Competitive Landscape

Carrier Global Corporation

Carrier Global Corporation is a prominent cold chain and building solutions company that aims to promote the safety and health of indoor spaces and extend and preserve medicine and food supply chains. Established in 1915, the company owns over 75 brands and markets and sells its products across the globe. It is headquartered in Florida, the United States.

S.K.M Air Conditioning LLC

S.K.M Air Conditioning LLC is one of the largest manufacturers of HVAC equipment in the Gulf. Its portfolio includes high-quality products that can ensure optimal indoor environment quality in the harshest conditions. Its solutions are also used for blue chip projects for organisations, companies, and government agencies.

DAIKIN INDUSTRIES, Ltd.

DAIKIN INDUSTRIES, Ltd., headquartered in Osaka, Japan, is a leading air conditioner company. The company was founded in 1924, and its products and solutions are sold and marketed in over 170 countries across the world.

Other UAE air conditioner market players include LG Electronics Inc., Trane Technologies Company, LLC, Mitsubishi Electric Corporation, Johnson Controls International Plc (York), Super General Company LLC, GREE Electric Appliances, Inc., and Samsung Electronics Co., Ltd., among others.