Middle East & Africa - Heating, Ventilation & Air Conditioning (Hvac) Market: Focus On Product, Equipment & Component, Application and Regions

MIDDLE EAST & AFRICA - HEATING,
VENTILATION & AIR CONDITIONING (HVAC)

MARKET: FOCUS ON PRODUCT, EQUIPMENT
& COMPONENT, APPLICATION AND REGIONS
Estimation & Forecast, 20152022
Middle East & Africa - Heating, Ventilation & Air Conditioning (HVAC) Market
BIS Research is a leading market intelligence and technology research company. BIS Research
publishes in-depth market intelligence reports focusing on the market estimations, technology
analysis, emerging high-growth applications, deeply segmented granular country-level market
data and other important market parameters useful in the strategic decision making for senior
management. BIS Research provides multi-client reports, company profiles, databases, and
custom research services.
Copyright 2015 BIS Research

All Rights Reserved. This document contains highly confidential information and is the sole
property of BIS Research. Disclosing, copying, circulating, quoting or otherwise reproducing
any or all contents of this document is strictly prohibited. Access to this information is provided
exclusively for the benefit of the people or organization concerned. It may not be accessed by,
or offered whether for sale or otherwise to any third party.
BIS Research 2
1 REPORT SCOPE
1.1 SCOPE OF THE STUDY
The scope of this report is focused to the market for the Heating, Ventilation and Air
Conditioning (HVAC) in the Middle East and Africa (MEA) region. The study includes the
analysis of products, equipments and components, applications, in addition to the market
study of the HVAC industry across different regions in the MEA. The study presents a detailed
examination of HVAC systems, end-use verticals, regulations and geography along these lines:
market volume, drivers, growth opportunity, and challenges.
This report includes the HVAC market trends and developments across the key geographic
regions of the MEA. The market size and Compound Annual Growth Rate (CAGR) have been
estimated considering and analyzing the use cases in different verticals and are discussed in
the report.
1.2 MIDDLE EAST AND AFRICA HVAC MARKET: REPORT

COVERAGE
The figure below displays the list of market coverage features which have been incorporated in
this research study.
BIS Research 3
FIGURE 1
MIDDLE EAST AND AFRICA HVAC MARKET STUDY COVERAGE AREA
HVAC Market Classification
Equipment and Application

HVAC Products Geography
Component
Heating Fan Coil Unit Commercial Middle East
Ventilation Air Handling Unit Residential Africa
Air Conditioners Heating Equipment Institutional
Cooling Equipment Industrial
Ventilation Equipment Hospitality
Other Equipments Others
Source: BIS Research Analysis
Market Analysis includes an in-depth analysis of the market drivers, opportunities, challenges,
and growth trend in HVAC systems usage, end-use verticals, and geographies. The Industry
Analysis presents detailed insights into the trend followed in the HVAC market using the
Porters Five Force analysis. It also presents an exhaustive overview of the activities being
undertaken by various stakeholders.
1.2.1 BY PRODUCTS
HVAC market is segmented into three different products, namely-heating, ventilation, and air
conditioners. In each of the HVAC type, different products, application areas, key market
trends, developments and participants have been included.
BIS Research 4
1.2.2 BY EQUIPMENT A ND COMPONENT

HVAC market is segmented into different equipments and its components. In this segment,
different equipments and its related components, application areas, key market trends,
developments, and participants have been included.
1.2.3 BY APPLICATION
HVAC market is segmented into different applications. In this segment, different applications
including commercial, residential, institutional, industrial, hospitality and others have been
discussed. The section also focuses on key market trends, developments and participants.
1.2.4 BY GEOGRAPHY
The HVAC market is segmented into Middle East and Africa. The section provides different
insights on key market trends, developments, and participants across different countries of the
above mentioned regions.
1.3 BIS RESEARCH METHODOLOGY
We exhaustively use both primary sources (in-house experts, industry thought leaders, market
players, and independent consultants) and secondary sources (a host of paid and unpaid
databases) along with analytical tools to build our forecast and predictive models.
BIS Research 5
FIGURE 2
PRIMARY AND SECONDARY RESEARCH FINDINGS
Primary Research
Vendor Feedback & Opinion Qualitative Analysis
Interviews with industry stakeholders Identifying market drivers, challenges, opportunity
Questions exploring & validating the qualitative and trends
market analysis Case studies
Questionnaires with market size and forecast Buyer Trend Analysis
validation Industrial Overview
Research
Findings

Identifying market size and estimation
Calculations and assumptions
Division of market size by each market classification
Secondary Research Thorough Secondary and Primary Research
Vendor reports and publications Quantitative Analysis
Industry reports and publications
Webinars and podcasts
Quantitative and Qualitative market analysis
Analysis of market Trends, Developments &
Participants
The figure above shows steps followed in doing primary as well as secondary research. The
research findings include both qualitative as well as quantitative analysis.
The primary sources are comprised of industry experts from the industry being tracked and
related industries as well as preferred suppliers, manufacturers, distributors, administrators,
solution providers, technology developers, alliances, standards & certification organizations
from companies, and other organizations related to the segments of this industrys value
chain. All primary sources were interviewed to obtain and verify critical qualitative &
quantitative information and assess the future prospects.
The research study involves the usage of extensive secondary sources, directories, company
websites, gold standard & silver standard websites, articles from recognized authors, white
papers and annual reports. It also makes use of databases such as Air-Conditioning, Heating
and Refrigeration Institute (AHRI), Consortium for Energy Efficiency Inc. (CEE), Saudi
Standards, Metrology and Quality Organization (SASO), Hoovers, Bloomberg, Business-week,
BIS Research 6
Factiva, and One-Source to collect useful and effective information for an extensive, technical,
market-oriented, and commercial study of the market.
1.4 RESEARCH METHODOLOGY FOR REGIONAL MARKET STUDY
FIGURE 3
DIFFERENT PHASES OF RESEARCH METHODOLOGY FOR REGIONAL

MARKET
Geographical
Analysis
Demand Side &

Data Synthesis &
Supply Side
Bridging
Analysis
1.4.1 GEOGRAPHICAL ANALYSIS

The Geographical Analysis of the report covers the region-wise trends in the market. The
market statistics for each of the major geographies include the Middle East and Africa. The
major countries covered in the Middle East region are Saudi Arabia, United Arab Emirates
(UAE), Qatar, Kuwait and Rest of the Middle East. Africa region covers North Africa and South
Africa geography. Besides identifying the key growth enablers in the market based on a
BIS Research 7
detailed push and pull forces analysis, the chapter also undertakes extensive qualitative
analysis.
In estimating and forecasting the geographical market size (value) and potential, purchasing
power parity GDP (Gross Domestic Product) estimates for the benchmark year (2014) is
derived from a host of sources such as the national income and products accounts from the
Organization for Economic Co-Operation and Development (OECD), the European Bank for
Reconstruction and Development (EBRD), the World Bank, GCC Statistical Center (GCC-STAT),
UAE National Bureau of Statistics, Ministry of Development Planning and Statistics (MDPS,
Qatar)and individual countries' statistical bureaus. The GDP data for individual countries are
then converted to the U.S. dollars by valuing each country's output at the U.S. prices for the
benchmark year, thereby addressing the issue of fluctuating exchange rate.
1.4.2 DEMAND SIDE & SUPPLY SIDE ANALYSIS

As the goal of the study was to estimate demand and identify growth opportunity in the
market segment, a thorough analysis of demand side dynamics was undertaken. In this
process various suppliers were interviewed and probed to understand the buying behavior
across different demography. With detailed analysis (both primary and secondary) of suppliers
(manufacturers, integrators, and channel partners) the supply side dynamics were understood,
to get a complete picture of the market and triangulate the market data.
For each of the HVAC product, equipment and component, application and geography, a
detailed secondary and primary (suppliers) research was done to understand the dynamics of
the industry leading players. Both, the organized and unorganized sector were interviewed and
researched upon. Some of the key factors that were probed during this process include market
size (value), market share (by HVAC product, by equipment and component, by application
and by geography), market channels and key segments, and regulations among others.
1.4.3 DATA SYNTHESIS & BRIDGING

Following comprehensive market engineering which involves calculations of market statistics,
market crackdown, market size estimations, market share analysis, market forecast, and data
triangulation further primary research was undertaken to gather missing information, verify,
BIS Research 8
and validate the critical numbers arrived at industry trends, and key players of each type of
product and application market.
For the complete market engineering done for the total market crackdown, top-down and
bottom-up approaches are used extensively along with several data triangulation methods to
perform market estimation and market forecast for the overall segment and sub-segment
markets listed in the research scope. Extensive qualitative and further quantitative analysis are
also undertaken from all the numbers arrived at in the complete market engineering process,
in order to list key information throughout the study.
Secondary research was employed to obtain crucial information about the industrys value
chain, markets monetary chain, total pool of key players, and end-use verticals. It also
assisted in market classification and segmentation according to industry trends to the bottom-
most level, geographical markets and important developments from both market and
technology oriented perspectives.
1.4.4 REPORT DESCRIPTION

The Heating, Ventilation and Air Conditioning (HVAC) market growth in the Middle East and
Africa (MEA) region is propelled by increasing demand for HVAC products and equipments in
the commercial and residential applications. Commercial and residential applications are
observed (currently) and expected (forecasted) to push the growth of HVAC market in the MEA
region. However, continuing research and development (R&D) programs by the HVAC
manufacturers aim to provide much better products across different applications.
As global warming and other environmental concerns are increasing, the government bodies
are attempting to regulate the manufacturing standards of the Heating, Ventilation and Air
Conditioning (HVAC) units in the Middle East and Africa (MEA) region. The major aim of these
regulations is to make the HVAC products and equipments more environmental friendly and
energy efficient.
The consumers/end users are benefitted indirectly by these regulations as their energy
spending is reduced. Energy usage has increased significantly and many companies have
BIS Research 9
started manufacturing and promoting the HVAC products which are running on renewable
energy like geothermal and solar energy.
Other factors such as harsh (warm) weather conditions and reduction of energy consumption,
among others have also created a demand for HVAC products in the region.
While highlighting the key driving and restraining forces for this dynamic market, the report
also provides a comprehensive section of the government regulations and their involvement in
the Heating, Ventilation and Air Conditioning (HVAC) industry of the MEA region.
The research tries to answer various aspects of the HVAC market in the Middle East and Africa
(MEA) region, such as the factors driving the HVAC market, its threats that can possibly slow
down the market growth and the current growth opportunities that are going to shape the
HVAC market expansion. The research incorporates Porters Five Force Model for in-depth
analysis of the market and an assessment of the factors governing it.
Our study includes overview and analysis of the HVAC market in the MEA region by HVAC
product market types, HVAC equipment and component market types, different applications,
HVAC market regulations, and geographical regions, allowing the research to develop a
comprehensive outlook of the market. The application verticals are categorized into six major
categories, viz. commercial, residential, institutional, and industrial in the report. Further,
these segments describe different use cases which cover the scope of the value chain from
manufacturers to the end users.
Major geographical regions covered in the report include the Middle East region and Africa
(MEA) region. The Middle East region is further segmented into countries including Saudi
Arabia, United Arab Emirates (UAE), Qatar, Kuwait and Rest of the Middle East. The Africa
region is further segmented into North Africa (including East Africa and West Africa) and South
Africa. The MEA region has been covered in terms of the market penetration in the HVAC
market as well as revenue generation to understand and utilize business opportunities. The
report also includes the profiles of major players in the industry that shall allow its reader to
get an insight into the industry trends.
BIS Research 10
Towards the end of the report, the readers will have a clear understanding of the market
dynamics, major drivers and the underlying threats and challenges that the global HVAC
industry is subjected to, including the estimation of the industrys growth in terms of
production and revenue.
TABLE 1
SOME OF THE LEADING COMPANIES IN THE MIDDLE EAST AND

AFRICA (MEA) HVAC MARKET
1 Zamil Air Conditioners
2 Carrier Corporation (UTC Building & Industrial Systems Company)
3 LG Electronics
4 Samsung Electronics
5 Daikin
6 Panasonic
7 Johnson Controls
8 Mitsubishi Heavy Industries, Ltd. (MHI)
9 Trane (Ingersoll Rand)
10 Gree Electric Appliances Inc.
11 Hitachi
12 Fujitsu
14 Leminar Air Conditioning
15 National Central Cooling Company PJSC (Tabreed)
16 Emirates Central Cooling Systems Corporation (EMPOWER)
17 SKM Air Conditioning LLC
BIS Research 11
2 EXECUTIVE SUMMARY
FIGURE 4
MEA: HVAC MARKET SIZE, BY PRODUCT, 2014-2022

(MILLION UNITS & $MILION)
2014 2015 2017 2019 2021 2022
The figure above shows volume (million units) of the HVAC market, by product, in the Middle
East and Africa (MEA) region.
Air conditioners (ACs) products are expected to be the leader in the MEA HVAC market over
the forecasted period (2015-2022). As of year 2014, ACs share of HVAC units was XX million
units which is expected to reach XX million units at a CAGR of XX% from 2015-2022.
The figure above also shows the value ($ million) of the HVAC market, by product, in the
Middle East and Africa (MEA) region.
BIS Research 12
As of year 2014, ACs share of HVAC units was $XX billion which is expected to reach $XX
billion at a CAGR of XX% from 2015-2022.
The growth of HVAC products is forecasted because of surge in residential, industrial,

commercial and institutional projects in the MEA region by leading real estate developers as
well as government projects.
FIGURE 5
MEA: HVAC MARKET SIZE, BY EQUIPMENT AND COMPONENT, 2014-

2022, (MILLION UNITS & $MILION)
2014 2015 2017 2019 2021 2022
The figure above shows the volume (million units) of the HVAC market, by equipment and
component, in the Middle East and Africa (MEA) region.
Cooling equipments are expected to be the leader in HVAC units over the forecasted period
(2015-2022). As of year 2014, cooling equipments share of HVAC units was XX million units
which is expected to reach XX million units at a CAGR of XX% from 2015-2022.
BIS Research 13
The figure above also shows the value ($ million) of the HVAC market, by equipment and
As of year 2014, cooling equipments share of HVAC units was $XX billion which is expected to
reach $XX billion at a CAGR of XX% from 2015-2022.
The growth of HVAC equipment and component is forecasted because of demand from global
as well as regional HVAC manufacturers and MEP (Mechanical, Engineering and Plumbing)
contractors.
FIGURE 6
MEA: HVAC MARKET SIZE, BY APPLICATION, 2014-2022

(MILLION UNITS & $MILION)
2014 2015 2017 2019 2021 2022
The figure above shows volume (million units) of the HVAC market, by application, in the
Residential applications are expected to be the leader in usage for HVAC units over the
forecasted period (2015-2022). As of year 2014, the residential application share of HVAC
BIS Research 14
units was XX million units which is expected to reach XX million units at a CAGR of XX% from
2015-2022.
The figure above also shows the value ($ million) of the HVAC market, by application, in the
As of year 2014, the residential application share of HVAC units was $XX billion which is
expected to reach $XX billion at a CAGR of XX% from 2015-2022.
This growth is forecasted because of upcoming urban housing projects providing high end
luxury apartments, residential towers, villas, rooms, and dormitories in religious places.
FIGURE 7
MEA:HVAC MARKET SIZE, BY GEOGRAPHY, 2014-2022

(MILLION UNITS & $MILLION)
2014 2015 2017 2019 2021 2022
BIS Research 15
3 MIDDLE EAST AND AFRICA HVAC MARKET

DYNAMICS
3.1 MARKET OPPORTUNITY
This section identifies the opportunities in the HVAC market across the Middle East and Africa
(MEA) region. HVAC market possesses a lot of opportunities across the MEA region which is
untapped. These opportunities come at a time when there is rise in urban population and
unprecedented growth in infrastructure developments. Though there are also certain
challenges in the region for the HVAC market players but the opportunities are expected to
overpower the challenges.
The market opportunity discussed in the following section include shift towards renewable
sources of energy.
3.1.1 SHIFT TOWARDS RENEWABLE S OURCES OF ENERGY

Renewable energy resources will soon become indispensable across the Middle East and Africa
(MEA) region. The region is famous for its rich oil reserves and the growing economy because
of high revenue generations by exporting oil worldwide.
However, the current trends of energy consumption in the region suggest that in future,
countries across the MEA region need to develop alternate sources of energy (renewable) to
fulfill its growing energy demands as the current oil prices are rising and reserves are
depleting.
One such alternate source is solar energy; the other alternate source is geothermal
energy. Moreover, the cost of utility-scale solar installations is declining continuously and thus
solar power in Saudi Arabia has achieved great parity which can produce electricity at costs
comparable to conventional sources.
BIS Research 16
4 MIDDLE EAST AND AFRICA HVAC COMPETITIVE

SUMMARY
4.1 COMPETITIVE LANDSCAPE
The) heating, ventilation, and air conditioning (HVAC) industry in the Middle East and Africa
(MEA) region is proving to be a market full of opportunities for global as well as regional
players. This is mainly because of the rise in infrastructure projects which require building,
designing and operating HVAC units for various applications.
The governmental institutions across the region are also implementing essential regulations
and encouraging HVAC manufacturers, developers and system integrators to develop energy
efficient HVAC units for various commercial, residential, institutional and industrial projects.
FIGURE 8
KEY MARKET DEVELOPMENT STRATEGIES
XX%
A
XX%
B
XX%
C
D
XX%
BIS Research 17
4.2 PORTERS FIVE FORCES ANALYSIS
4.2.1 BARGAINING POWER OF BUYER

Industry concentration relative to buyers concentration: The number of buyers in the
HVAC market of the Middle East and Africa is definitely more than the number of suppliers. The
difference is not very high because Middle East and Africa has both local and international
companies providing HVAC solutions with a range of prices suiting the needs of the customers.
However, it is expected that due to the climate and growing population the number of buyers
will only increase, relative to the number of suppliers. Hence, the industry concentration
relative to buyers concentration will change from medium to low.
Buyer's switching cost: Any HVAC system has a product lifecycle of 15-20 years. Installing
an HVAC system requires a considerable amount of cost input; therefore, it will be difficult to
switch from one supplier to another.
Brand Identity: HVAC market in Middle East and Africa is dominated by strong global market
players such as Zamil Air Conditioners, Shaker Group, LG, Ingersoll Rand, and Johnson
Controls among others. These are established brand names and therefore the buyers have
relatively lesser bargaining power.
Buyer information about suppliers product: Generally, buyers are concerned with the
output and performance of an HVAC system. Very few are concerned about the technicalities of
it like the cost required for its maintenance etc. Therefore, the information about the product is
perhaps on the medium-lower side among the buyers.
Product Differentiation: HVAC systems that are currently available in Middle East and Africa
market are more or less similar in nature; therefore, there is very small product differentiation
in HVAC systems provided by different suppliers. Hence, buyers have more bargaining power
in terms of product differentiation.
Presence of substitutes: There are hardly any substitutes present in Middle East and Africa
market for HVAC systems. However, due to the increasing energy consumption and related
BIS Research 18
factors, renewable energy based HVAC units such as solar energy based HVAC systems and
geothermal systems are gaining popularity.
BIS Research 19
5 HVAC EQUIPMENT AND COMPONENTS MARKET
5.1 INTRODUCTION
5.1.1 MARKET STATISTICS
TABLE 2
HVAC MARKET IN MEA, BY EQUIPMENT AND COMPONENT, VOLUME,

2014-2022, (MILLION UNITS)
CAGR%
Equipment and
2014 2015 2017 2019 2021 2022 (2015-
Component
2022)
Fan coil unit XX XX XX XX XX XX XX
Air handling unit XX XX XX XX XX XX XX
Heating equipment XX XX XX XX XX XX XX
Cooling equipment XX XX XX XX XX XX XX
Ventilation equipment XX XX XX XX XX XX XX
Other equipments XX XX XX XX XX XX XX
Total XX XX XX XX XX XX XX
The table above shows volume (million units) of the HVAC market, by equipment and
As per the table, cooling equipments are expected to be the leader in HVAC units over the
forecasted period (2015-2022). As of year 2014, cooling equipments share of HVAC units was
XX million units which is expected to reach XX million units at a CAGR of XX% from 2015-
BIS Research 20
2022. This rate of growth is on account of surge in industrial and commercial projects in the
MEA region by leading developers which are awarding big HVAC contracts to global as well as
regional HVAC manufacturers and MEP (Mechanical, Engineering and Plumbing) contractors.
This growth trend of HVAC units is followed by air handling unit (AHU). As of year 2014, AHU
share of HVAC units was XX million units which is expected to reach XX million units at a CAGR
of XX% from 2015-2022.
As of year 2014, FCU share of HVAC units was XX million units which is expected to reach XX
million units at a CAGR of -XX% from 2015-2022. A major trend that can be seen from the
table is that fan coil units (FCUs) are expected to show a decline in demand over the
forecasted period as more advanced air handling units (AHUs) will take over them in different
functions of modern HVAC units. Heating equipment, ventilation equipment and other
equipments are expected to show a growth trend over the period (2015-2022).
FIGURE 9
HVAC MARKET IN MEA, BY EQUIPMENT AND COMPONENT,

VALUE, 2014-2022 ($MILLION)
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
2014 2015 2017 2019 2021 2022
Fan coil unit Air handling unit
Heating equipment Cooling equipment
Ventilation equipment Other equipments
BIS Research 21
The figure above shows the value ($Million) of the HVAC market, by equipment and
5.1.2 FAN COIL UNIT
FIGURE 10
FAN COIL UNIT: HVAC MARKET IN MEA, BY PRODUCT TYPE,

XX
XX
($Million)
XX
XX
XX
XX
2014 2015 2017 2019 2021 2022
Heating Ventilation Air Conditioners
The figure above shows HVAC value ($Million) of fan coil units (FCUs) in the MEA region by
product types.
As of year 2014, FCUs share in ACs was $XX million which is expected to decline to $XX million
at a CAGR of -XX% from 2015-2022. This is followed by a decline in heating and ventilation
products over the forecasted period (2015-2022).
5.1.2.1 Market Trends
The recent market trend in the fan coil unit (FCU) market in the Middle East and Africa region
has been on introducing energy efficient FCUs that can be used for both residential and
BIS Research 22
commercial HVAC projects. Some of the leading manufacturers have got global recognitions
also for implementing latest FCUs in the next generation green buildings.
For example, as on July 2015, UTC Building & Industrial Systems Middle East and Turkey was
awarded the U.S. Green Building Council Leed (Leadership in Energy and Environmental
Design) Gold certification for using latest FCU units in its office complex. The XX-sq-ft office on
Sheikh Zayed Road (Dubai) includes group companies such as Carrier Middle East, Otis, and
UTS Carrier and Kidde. All the units are part of United Technologies Corp.
BIS Research 23
6 MEA HVAC PRODUCTS MARKET
6.1 HEATING
TABLE 3
HEATING PRODUCTS: HVAC MARKET IN MEA, BY APPLICATION,

VOLUME, 2014-2022, (THOUSAND UNITS)
CAGR%
Application 2014 2015 2017 2019 2021 2022 (2015-
2022)
Commercial XX XX XX XX XX XX XX
Residential XX XX XX XX XX XX XX
Institutional XX XX XX XX XX XX XX
Industrial XX XX XX XX XX XX XX
Hospitality XX XX XX XX XX XX XX
Others XX XX XX XX XX XX XX
The table above shows volume (thousand units) of the HVAC heating products in the Middle
East and Africa (MEA) market, by application.
As per the table, heating products are expected to be the leader in industrial applications over
the forecasted period (2015-2022). As of year 2014, heating product share of industrial
applications was XX million units which is expected to reach XX million units at a CAGR of XX%
BIS Research 24
from 2015-2022. This rate of growth is on account of large demand for heating products in
industrial projects.
This is followed by demand from hospitality applications. As of year 2014, heating product
share of hospitality applications was XX thousand units which is expected to reach XX thousand
units at a CAGR of XX% from 2015-2022.
Commercial, residential, institutional and other applications also follow a growing demand for
heating products over the forecasted period (2015-2022).
FIGURE 11
HEATING PRODUCTS: HVAC MARKET IN MEA, BY APPLICATION,

XX
XX
XX
($Million)
XX
XX
XX
XX
XX
2014 2015 2017 2019 2021 2022
Commercial Residential Institutional Industrial Hospitality Others
The figure above shows value ($Million) of the HVAC heating products in the Middle East and
Africa (MEA) market, by application.
BIS Research 25
As per the figure, heating products are expected to be the leader in industrial applications over
the forecasted period (2015-2022). As of year 2014, heating product share of industrial
applications was $XX million which is expected to reach $XX billion at a CAGR of XX% from
2015-2022. This rate of growth is on account of large demand for heating products in industrial
projects.
BIS Research 26
7 MEA HVAC MARKET BY APPLICATION
7.1 RESIDENTIAL
The HVAC market in the residential sector is also witnessing a major growth across the Middle
East and Africa region, owing to various upcoming urban housing projects providing high end
luxury apartments, residential towers, villas, rooms, and dormitories in religious places and
energy efficient product launches for the high end and low end residential buildings.
TABLE 4
RESIDENTIAL APPLICATION: HVAC MARKET IN MEA, BY PRODUCT

TYPE, VOLUME, 2014-2022, (THOUSAND UNITS)
CAGR%
Product Type 2014 2015 2017 2019 2021 2022 (2015-
2022)
Heating XX XX XX XX XX XX XX
Ventilation XX XX XX XX XX XX XX
Air Conditioners XX XX XX XX XX XX XX
The table above shows HVAC volume (thousand units) in residential applications in the MEA
region by product types.
As per the table, air conditioners products are expected to be the leader in residential
applications over the forecasted period (2015-2022). As of year 2014, air conditioners share
was XX million units which is expected to reach XX million units at a CAGR of XX% from 2015-
BIS Research 27
2022. This rate of growth is on account of various activities happening to develop large
residential projects in the region which will drive the demand for HVAC units. This growth trend
of HVAC units is followed by ventilation and heating products.
FIGURE 12
RESIDENTIAL APPLICATION: HVAC MARKET IN MEA, BY PRODUCT

TYPE, VALUE, 2014-2022 ($MILLION)
XX
XX
XX
($Million)
XX
XX
XX
2014 2015 2017 2019 2021 2022
Heating Ventilation Air Conditioners
The figure above shows HVAC value ($Million) in residential applications in the MEA region by
region.
As per the figure, air conditioners products are expected to be the leader in residential
applications over the forecasted period (2015-2022). As of year 2014, air conditioners share
was $XX billion which is expected to reach $XX billion at a CAGR of XX% from 2015-2022. This
rate of growth is on account of various activities happening to develop large residential
projects in the region which will drive the demand for HVAC units. This growth trend of HVAC
units is followed by ventilation and heating products.
BIS Research 28
TABLE 5
RESIDENTIAL APPLICATION: HVAC MARKET IN MEA, BY REGION,

VOLUME, 2014-2022 (MILLION UNITS)
CAGR%
Region 2014 2015 2017 2019 2021 2022 (2015-
2022)
Middle East XX XX XX XX XX XX XX
Africa XX XX XX XX XX XX XX
The table above shows HVAC volume (million units) in residential applications in the MEA
region by region.
As per the table, Middle East region is expected to be the leader in residential applications over
the forecasted period (2015-2022). As of year 2014, Middle East share was XX million units
which is expected to reach XX million units at a CAGR of XX% from 2015-2022. This rate of
growth is on account of various activities going on in developing big real estate projects in the
region which will drive the demand for HVAC units.
As of year 2014, the share of Africa region was XX million units which is forecasted to reach XX
million units at a CAGR of XX% from 2015-2022.
BIS Research 29
FIGURE 13
RESIDENTIAL APPLICATION: HVAC MARKET IN MEA, BY REGION,

XX
XX
XX
XX
($Million)
XX
XX
XX
XX
XX
2014 2015 2017 2019 2021 2022
Middle East Africa
The figure above shows HVAC value ($Million) in residential applications in the MEA region by
region.
As per the figure, Middle East region is expected to be the leader in residential applications
over the forecasted period (2015-2022). As of year 2014, Middle East share was $XX billion
which is expected to reach $XX billion at a CAGR of XX% from 2015-2022. This rate of growth
is on account of various activities going on in developing big real estate projects in the region
which will drive the demand for HVAC units.
As of year 2014, the share of Africa region was $XX billion which is forecasted to reach $XX
billion at a CAGR of XX% from 2015-2022.
Some of the key developments in the residential sector which have helped the growth of HVAC
players across the region are discussed under the key developments section.
BIS Research 30
7.1.2 KEY MARKET DEVELOPMENTS
TABLE 6
RESIDENTIAL APPLICATION: KEY MARKET DEVELOPMENTS

(2014-2015)
Company/
Date Development
Organization
Zamil Central Air Conditioners (ZAC), a wholly-owned subsidiary of

Zamil Industrial Investment Company, had a contract with partner
Al Fouzan Trading & General Construction Co. ($XX million) to
provide 80 custom water-cooled centrifugal chillers (total cooling
Zamil Central Air
capacity of XX tons of refrigeration), for the project, being
April 2015 Conditioners
developed by the Saudi Real Estate Development Company.
(ZAC)
The Chiller package will include chiller plant management systems,

refrigerant pump systems, automatic tube cleaning systems, and
inverters.
Samsung launched latest VRF (Variable Refrigerant Flow)

technology based air conditioning products for the African booming
residential market.
Samsung Electronics introduced third generation Digital Variable

Multi System (DVMS) for price conscious East African residential
April 2015 Samsung
market (Nairobi, Kenya).
The product supports XX square meters of cooling, 43 per cent less

building space, and consumes up to 30 per cent less energy. The
product is best suited for high rise residential buildings (and smaller
commercial outlets).
Arabian Air Arabian Air Conditioning Company Limited and Carrier Saudi
April 2015
Conditioning Service Company Limited (joint venture between Carrier and E.A.
BIS Research 31
Company/
Date Development
Organization
Company Juffali & Brothers Limited) launched energy efficient HVAC products
Limited and (Xpression Pro Hi Wall unit with a unique ionizer filtration system
Carrier Saudi and the DesertMaster roof top package units) for the regions
Service residential (and light commercial) markets.
Company
Limited Both the latest products work on Puron, the R-410A, non-ozone
depleting refrigerant and complies with the latest Saudi Arabian
Standards Organization (SASO) regulations.
Al Shirawi Electrical and Mechanical Engineering (UAE) won luxury

residential project, 118 at Downtown Dubai (earlier known as
Downtown Burj Dubai), UAE.
The company will provide MEP systems such as the HVAC (heating,
ventilation and air-conditioning), electrical systems, plumbing and
firefighting, and building management for the project.
Al Shirawi
Electrical and The Downtown will provide unique package of 27 spacious, full-floor
November
Mechanical unfurnished residences. The mega project is divided into 11
2014
Engineering projects. The major project includes Dubai Mall, Burj Park Island,
(UAE) Burj Khalifa, the Address Downtown Dubai hotel, and Dubai
Fountain.
The company will be providing HVAC services (including other MEP

facilities) to various low-rise residential buildings (such as The Old
Town and The Old Town Island) and high-rise residential buildings
(such as Emaar Boulevard, The Residences and South Ridge).
Japanese company Daikin was allowed the Emirates Quality Mark

October (EQM) certification by the Emirates Authority for Standardization
Daikin
2014 and Metrology (ESMA) for supplying residential air conditioners in
UAE and other Middle Eastern markets.
July 2014 Saudi Arab Saudi Arab (Madinah) government launched a $XX billion housing
BIS Research 32
Company/
Date Development
Organization
(Madinah) project that will comprise of 100 residential towers with four-star to
government five-star hotels.
project
The project will cover an area of around XX million square meters
and the towers have the capacity to accommodate more than
120,000 people.
The project will also create an extra 40,000 rooms close to the
Prophets Mosque in Madinah to serve the requirements of visitors
to the holy place.
LG introduced LG GEN COOL Inverter V Air Conditioner for the

Nigerian residential martket. The product is specifically designed for
July 2014 LG Electronics
use with small capacity generators as per the consumer demand in
Nigeria.
One of the leading HVAC players in the Middle East and African
market, LG Electronics introduced fourth-generation Multi V VRF
May 2014 LG Electronics (Variable Refrigerant Flow) series for big residential developments
such as Baniyas Investment and Development (Bawabat Al Sharq
23 apartments and 129 villas), Abu Dhabi (UAE).
Dubai based district cooling service provider, National Central

Cooling Company PJSC (Tabreed) signed a contract with Qatari Cool
(Qatar) to develop fourth district cooling plant in the State of Qatar.
National Central
Cooling The project is expected to get completed by 2016.
May 2014
Company PJSC
(Tabreed) The cooling plant will provide XX tons of cooling (an energy saving
of approximately XX% compared to traditional cooling methods) to
residential towers (and commercial towers) in West Bay, one of
Dohas most high end developments.
BIS Research 33
8 HVAC REGULATIONS IN MIDDLE EAST AND AFRICA
8.1 GLOBAL (OR QATAR) SUSTAINABILITY ASSESSMENT

SYSTEM
Gulf Organization for Research and Development (GORD) launched the Global Sustainability
Assessment System (GSAS) on June 2012, as the standard for excellence on sustainability in
the MENA region (Qatar).
It is a green building certification system build up for the State of Qatar. The prime purpose of
GSAS/QSAS is to create a sustainable built atmosphere that lessens ecological impact while
addressing the detailed regional requirements and environment of Qatar.
The complete GSAS rating system determines and estimates every project on eight key
aspects or categories that have a direct impact on easing environmental pressure. Each
category is allocated a weight based on Analytical Hierarchy Process (AHP).
One of the eight categories is indoor environment (IE) having a weightage of XX%. This
includes IE3 which is for Natural Ventilation, IE4 is for mechanical ventilation and IE5 is for
Indoor Chemical and Pollutant Source Control.
8.2 EMIRATES AUTHORITY FOR STANDARDIZATION AND

METROLOGY (ESMA)
The origin of this standard is United Arab Emirates (UAE). The two major clauses in the
standard that include energy efficiency and labeling requirements include UAE .S 5010 -1:
2014 and UAE .S 5010 5: 2014, among others.
As per the standard, UAE .S 5010 -1: 2014 addresses energy-efficiency-labeling requirements
for single-package and split-system, non-ducted air conditioners (ACs).
BIS Research 34
9 COMPANY PROFILES
9.1 CARRIER
9.1.1 SUMMARY
Particular Specific (as of 2015)
Website www.carrier.com
Carrier World Headquarters

Contact Details One Carrier Place Farmington,
Conneticut 06034-4015 U.S.
Year of Establishment 1902
Ownership Type Public
Company Type Manufacturer
Number of Employees 124,000
Parent Company United Technologies
Arabian Air Conditioning Company Limited, Carrier Saudi

Subsidiaries Service Company Limited (Joint Venture between Carrier and
E.A. Juffali & Brothers Limited)
Johnson Controls, Samsung, Panasonic, LG Electronics,

Competitors Lennox International, Trane Inc., Daikin Industries Ltd., and
Zamil Air Conditioners, among others
Source: Carrier Corporation Website, LinkedIn, BIS Research
9.1.2 PRODUCT PORTFOLIO

Under the Carrier brand name (part of UTC Climate, Controls & Security business segment
which falls under UTC Building & Industrial Systems, a unit of United Technologies Corporation
(UTC) group). Carrier provides high-technology heating, air conditioning and refrigeration
BIS Research 35
solutions for residential, commercial, industrial and transportation markets. The product
portfolio of the Carrier brand includes four categories as shown in the following figure:
FIGURE 14
CARRIER PRODUCTS SNAPSHOT
UTC Building
& Industrial
Systems
UTC Climate,
Controls &
Security
Carrier Brand
Home Building Transport Commercial

Comfort Solutions Refrigeration Refrigeration
Home Comfort category provides residential heating and air conditioning solutions. This
includes furnaces, air conditioners, central air conditioners, heat pumps and ductless systems
along with others.
Building Solutions category offers long term solutions in air conditioning, heating, building
automation and energy services for a variety of building types and applications including Green
Buildings.
Commercial Refrigeration category includes refrigerated multi desks, wall sited cases, vertical
freezers, and refrigeration system and controls.
BIS Research 36
Transport Refrigeration category provides refrigeration solutions that allow for precise control
of temperature and humidity, preserving all types of perishable cargo.
9.1.3 FINANCIALS
FIGURE 15
UNITED TECHNOLOGIES CORPORATION (UTC) OVERALL

FINANCIALS, 2012-2014 ($BILLION)
XXXX
XXXX
XXXX
XXXX XXXX
XXXX XXXX
XXXX XXXX
Source: UTC Annual Report, BIS Research Analysis
BIS Research 37
FIGURE 16
UNITED TECHNOLOGIES CORPORATION (UTC): FINANCIALS,

BY BUSINESS SEGMENT, 2012-2014 ($BILLION)
XXXX
XXXX XXXX
FIGURE 17
UNITED TECHNOLOGIES CORPORATION (UTC): FINANCIALS,

BY REGION, 2012-2014 ($BILLION)
XXXX
XXXX
XXXX
XXXX XXXX
XXXX XXXX
XXXX XXXX
XXXX XXXX XXXX

Note: Others include Middle East Region HVAC Market Revenue
BIS Research 38
9.1.4 KEY DEVELOPMENTS
Date Strategy Description
UTC Building & Industrial Systems, Middle East and

Turkey (Dubai office), was awarded the U.S. Green
Building Council Leed (Leadership in Energy and
July Environmental Design) Gold certification.
Certification
2015
The office includes Carriers (UTC Building &

Industrial Systems company) high-efficiency chilled
water fan coil units.
Arabian Air Conditioning Company Limited and Carrier

Saudi Service Company Limited (joint venture between
Carrier and E.A. Juffali & Brothers Limited) launched
April 2015 Product Launch energy efficient HVAC products (Xpression Pro Hi Wall
unit with a unique ionizer filtration system and the
DesertMaster roof top package units) for the regions
residential (and light commercial) markets.
Carrier introduced AquaForce 30XAV air-cooled variable-

speed screw chiller, AquaFlow VWV family and the
Carrier Floor Standing series air conditioning solutions
for light commercial and residential market (including
April 2015 Product Launch
Middle East and Africa).
The AC products were launched at the 2015 China

Refrigeration Exhibition in Shanghai.
Carrier introduced latest system, ChillerVu for

January, 2015 Product Launch
monitoring operations in a chiller plant.
Carrier introduced an energy efficient air ventilation

January, 2015 Product Launch system, EnergyX and SystemVu controller,
WeatherMaker for rooftop units.
Product Carrier introduced Infinity Series systems for providing

January, 2015
Development upgraded ductless solution to commercial and residential
BIS Research 39
applications.
Alarko Carrier introduced latest air conditioning

August
Product Launch equipments, systems and apparature for public and
2014
private hospitals across Turkey.
Carrier 39HQ air handling units, manufactured at Alarko

Gebze Plant were selected for the Dubai International
April Airport project (Concourse 4).
Contract
2014
The total AHUs order cost for the project was $XX
million.
Carrier (UTC Building & Industrial Systems) was

awarded a contract for the Midfield Terminal Complex at
December, 2014 Contract
the Abu Dhabi International Airport for supplying 16
expanded-capacity chillers
Carrier wins patent rights for Infinity Series technology

September,
Patent Rights against lawsuit filed against Goodman Manufacturing
2014
Company for patent breach.
Carrier introduced latest anti-tamper refrigerant seal

system that guaranteed an advanced level of refrigerant
May 2014 Product Launch
reliability and traceability for container refrigeration
systems
Carrier released redesigned perimeter induction terminal

unit, the ActivAIR 361U that featured improved energy
January 2014 Product Launch
efficiency and performance along with providing
increased value and benefit to the building owner.
Carrier announced newest AquaSnap chiller, the 30RB

January 2014 Product Launch with Greenspeed intelligence that enabled higher
efficiency and optimized performance.
Product Carrier redesigned Airstream 42V Vertical Floor Fan Coil

January 2014
Development to enhance performance and serviceability.
BIS Research 40
Carrier introduced new comfort series energy recovery

September 2013 Product Launch ventilator provided with compact design and easy
installation
Carrier released Performance 80 58C TW two-stage,

variable-speed gas furnace, which offers unmatched
September 2013 Product Launch
comfort in its class with Comfort Heat Technology and
up o XX% Annual Fuel Utilization Efficiency
Carrier earned coveted Partners Of Choice Award from

July 2013 Event David Weekly Homes marking the first time the
company had been honored for this distinction
Carrier expanded its Geothermal Water Source Heat

Product
January 2013 Pumps to include a 100 percent dedicated outdoor air
Development
application from XX to XX tons
Carrier introduced ADVANTE3C optimized central plant

January 2013 Product Launch solutions that reduced cooling energy consumptions up
to XX%
Source: Carrier Corporation Website, BIS Research Analysis

Daikin Industries Ltd.
BIS Research 41
DISCLAIMER
BIS Research provides valuable market intelligence to an exclusive group of customers in

response to orders. The report is licensed for the customer's internal use only and is subject to
restrictions set henceforth. This document and its contents are confidential and may not be
further distributed, published or reproduced, in whole or in part, by any medium or in any form
for any purpose, without the express written consent of BIS Research. Customer will not
disclose the contents of the report, whether directly in any media or indirectly through
incorporation in a database, marketing list, report or otherwise, or use or permit the use of
Information to generate any statistical or other information that is or will be provided to third
parties; or voluntarily produce Information in legal proceedings.
Market reports are based on expectations, estimates and projections as of the date such
information is available. Any recommendation contained in this report may not be suitable for
all investors or businesses. The market conclusions drawn are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by BIS Research as of
the date of such statements, are inherently subject to market fluctuations and business,
economic and competitive uncertainties and contingencies
For more details regarding permission, please contact us:

Email: sales@bisresearch.com
Tel: +1 650 228 0182
BIS Research 42

Middle East & Africa - Heating, Ventilation & Air Conditioning (Hvac) Market: Focus On Product, Equipment & Component, Application and Regions

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Middle East & Africa - Heating, Ventilation & Air Conditioning (Hvac) Market: Focus On Product, Equipment & Component, Application and Regions

Uploaded by

Copyright:

Available Formats

MIDDLE EAST & AFRICA - HEATING,

VENTILATION & AIR CONDITIONING (HVAC)

Estimation & Forecast, 20152022

Copyright 2015 BIS Research

Estimation & Forecast, 20152022

1.1 SCOPE OF THE STUDY

1.2 MIDDLE EAST AND AFRICA HVAC MARKET: REPORT

Estimation & Forecast, 20152022

MIDDLE EAST AND AFRICA HVAC MARKET STUDY COVERAGE AREA

HVAC Market Classification

Equipment and Application

Heating Fan Coil Unit Commercial Middle East

Ventilation Air Handling Unit Residential Africa

Air Conditioners Heating Equipment Institutional

Cooling Equipment Industrial

Ventilation Equipment Hospitality

Other Equipments Others

Source: BIS Research Analysis

Estimation & Forecast, 20152022

1.2.2 BY EQUIPMENT A ND COMPONENT

1.3 BIS RESEARCH METHODOLOGY

Estimation & Forecast, 20152022

PRIMARY AND SECONDARY RESEARCH FINDINGS

Source: BIS Research Analysis

Estimation & Forecast, 20152022

1.4 RESEARCH METHODOLOGY FOR REGIONAL MARKET STUDY

DIFFERENT PHASES OF RESEARCH METHODOLOGY FOR REGIONAL

Demand Side &

Source: BIS Research Analysis

1.4.1 GEOGRAPHICAL ANALYSIS

Estimation & Forecast, 20152022

1.4.2 DEMAND SIDE & SUPPLY SIDE ANALYSIS

1.4.3 DATA SYNTHESIS & BRIDGING

Estimation & Forecast, 20152022

1.4.4 REPORT DESCRIPTION

Estimation & Forecast, 20152022

Estimation & Forecast, 20152022

SOME OF THE LEADING COMPANIES IN THE MIDDLE EAST AND

1 Zamil Air Conditioners

2 Carrier Corporation (UTC Building & Industrial Systems Company)

8 Mitsubishi Heavy Industries, Ltd. (MHI)

9 Trane (Ingersoll Rand)

10 Gree Electric Appliances Inc.

14 Leminar Air Conditioning

15 National Central Cooling Company PJSC (Tabreed)

16 Emirates Central Cooling Systems Corporation (EMPOWER)

17 SKM Air Conditioning LLC

Estimation & Forecast, 20152022

MEA: HVAC MARKET SIZE, BY PRODUCT, 2014-2022

2014 2015 2017 2019 2021 2022

Source: BIS Research Analysis

Estimation & Forecast, 20152022

The growth of HVAC products is forecasted because of surge in residential, industrial,

MEA: HVAC MARKET SIZE, BY EQUIPMENT AND COMPONENT, 2014-

2014 2015 2017 2019 2021 2022

Source: BIS Research Analysis

Estimation & Forecast, 20152022

MEA: HVAC MARKET SIZE, BY APPLICATION, 2014-2022

2014 2015 2017 2019 2021 2022

Source: BIS Research Analysis

Estimation & Forecast, 20152022

MEA:HVAC MARKET SIZE, BY GEOGRAPHY, 2014-2022

2014 2015 2017 2019 2021 2022