How is Growing Construction Industry Driving U.A.E. Chiller Market?
Infrastructural development represents a country’s economic growth, since with an enhanced infrastructure, the nation is able to provide better facilities to the general public. Attributed to this, developing and developed countries, including U.A.E., are investing heavily in their construction sector.
The construction industry in the U.A.E. is predicted to witness a 5.5% CAGR during 2019–2024, and the construction activity in Dubai is one of the most important factors for this growth, as the city is registering increased construction activities on account of Expo 2020. In addition to this, the construction industry is expected to witness further growth in the coming years because of the development of smart cities on the country.
Ascribed to these factors, the demand of chiller in the U.A.E. is predicted to increase in the near future as well, as all the newly constructed building will require air conditioning. While an A/C unit is effective for cooling a room or at most a small building, chillers are centralized systems which are utilized for cooling large buildings in both commercial and residential sectors. Cold water is generated by chillers which is then utilized for providing air conditioning in buildings.
According to a P&S Intelligence, the U.A.E. chiller market reached a value of $134.7 million in 2018 and is further projected to generate a revenue of $186.4 million by 2024, progressing at a 5.9% CAGR during the forecast period (2019–2024). There are five types of chillers namely, reciprocating, screw, centrifugal, scroll, and absorption.
The demand for absorption chillers is predicted to rise significantly in the near future as the consumers are increasingly shifting toward solar-powered absorption chillers. Even though, the initial cost of these chillers is higher than those powered by electricity, their long-term cost is almost near to zero.