United Arab Emirates (UAE) Chiller Market Research Report, 2029

The UAE chiller market is enjoying strong expansion, this expansion is mostly due to many key demand drivers. To begin, government policies aimed at diversifying the economy away from dependency on oil and gas have accelerated growth, particularly in the tourist and hospitality industries, resulting in a greater demand for chillers in hotels and commercial areas. Second, Dubai's ambitious development projects, notably those related with Expo 2020, necessitate robust cooling systems, which drives up demand for chillers. Furthermore, the growing demand for energy-efficient cooling systems has sparked interest in innovative chiller technology across a variety of industries. However, in addition to these factors, the market faces difficulties that have the potential to hamper its growth trajectory. One important barrier is the initial high cost of installing sophisticated chillers over standard versions, which may deter some potential purchasers. Furthermore, ensuring a sufficiently skilled workforce to install, maintain, and operate these sophisticated systems is a key concern that must be solved in order to effectively sustain market growth. The competitive environment in the UAE chiller market is defined by the dominance of major competitors, with Dubai emerging as a focus point due to its concentration of high-rise buildings and hospitality facilities. However, new companies are entering the market, offering innovative and energy-efficient chiller systems, hence increasing competition and pushing further market evolution. According to the research report “United Arab Emirates Chiller Market Research Report, 2029," published by Actual Market Research, the United Arab Emirates Chiller market is expected to grow with more than 8.50% CAGR from 2024 to 2029. In recent years, the emphasis on energy efficiency has grown, resulting in stronger restrictions and government programs to promote sustainable cooling practices. This transition has been especially noticeable in the UAE, where growing worries about the environment have prompted attempts to reduce energy use and carbon emissions. As a result, there has been a noticeable trend toward the adoption of eco-friendly chillers and cooling solutions, fueled in part by the need to comply with new rules and, more broadly, by a rising understanding of the benefits of sustainable technologies. Simultaneously, higher oil and gas prices have encouraged a larger rethink of the energy sources used to power cooling systems, with a noticeable trend toward alternative and renewable sources. This transition reflects both economic considerations, as traditional fuel prices rise, and environmental ones, as stakeholders work to minimise reliance on fossil fuels and combat climate change. Furthermore, rising demand for data centres in the UAE has emerged as a major driver of growth in the chiller industry. As these facilities grow to support the increasing volume of digital data and services, there is a greater demand for high-capacity cooling systems to assure peak performance and dependability. This trend is expected to continue in the future years as the digital economy expands and demand for data centre services increases.

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In terms of product types, there are two main categories of chillers: air-cooled and water-cooled chillers. Air-cooled chillers work by transferring heat from a process fluid to the surrounding air using fans and heat exchangers, while water-cooled chillers use water as a cooling medium, circulating it through a closed loop system to absorb and dissipate heat. Within these categories, various types of chillers exist, such as screw chillers, scroll chillers, and centrifugal chillers. Screw chillers utilise rotary screw compressors, scroll chillers employ scroll compressor technology, and centrifugal chillers use centrifugal force to compress refrigerant and remove heat. These different types of chillers cater to diverse cooling requirements in applications ranging from commercial buildings to industrial processes. Additionally, the end-users of chillers can be categorised into commercial and industrial sectors, where commercial users may include businesses, offices, and retail spaces, while industrial users encompass manufacturing plants, factories, and other industrial facilities. By understanding the nuances of these product types and end-user segments, chiller manufacturers can tailor their offerings to meet the specific needs of various industries and applications, thereby optimising efficiency and performance while addressing cooling requirements effectively. Screw and scroll chillers are now the dominant product categories and growing trends in the market because of their efficiency and adaptability for commercial and industrial applications. Nonetheless, there is a noticeable shift toward alternate types, such as centrifugal chillers for large-scale projects like district cooling plants, and absorption chillers, which use waste heat to cool, portraying them as sustainable options. With the largest and most modern chiller market in the GCC, the UAE is a clear leader. This dominance is largely due to the UAE's continuous focus on infrastructural development and a strong tourism industry. The country's dedication to creating cutting-edge facilities and supporting its thriving tourism economy has fueled demand for chillers. However, neighbouring countries like Saudi Arabia and Qatar are not far behind in this trend. They, too, are seeing significant growth in their respective chiller markets, driven by comparable causes such as infrastructural investment and tourism development. The cumulative expansion of these regional peers reflects the Gulf region's overall trend of increased demand for chillers, which is being driven by expanding urbanisation, economic diversification, and a growing emphasis on sustainability. The COVID-19 pandemic had a temporary impact on the chiller market, especially in 2020, as supply networks were disrupted and construction activity stalled. However, the market has since recovered, owing to increased economic activity and continuous expenditures in infrastructural construction. Looking ahead, the UAE chiller market is expected to grow further, spurred by a variety of factors, including impending mega-events such as Expo 2025 in Osaka, Japan, which may have an impact on tourism infrastructure development in the UAE. Furthermore, rising investments in sustainable technologies and smart building solutions are likely to boost demand for advanced chiller systems with higher energy efficiency and integration capabilities. 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

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Kripa Shah

Senior Analyst

By Product Type • Air Cooled Chiller • Water Cooled Chiller By Type • Screw Chiller • Scroll Chiller • Centrifugal Chiller • Others By End User • Commercial • Industrial

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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.