What is the size of this market Investment in the Kingdom? What are his future expectations and where are his investment opportunities? Can it be produced locally?


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In 2021, after two years of growth, there was a decline in the Kingdom’s air conditioning market, when its value fell by -9.3% to $1.2 billion. Overall consumption showed strong growth since 2007 – 2021 and the market reached a maximum of $1.3 billion in 2020.

The market is expected to continue an upward trend of consumption over the next decade. The market performance is expected to slow, with the expansion of an expected CAGR + 5.4% for 2021-2030, which is expected to reach 404 million units by the end of 2030.

In 2021, there was a large trade deficit (a difference between imports and products domestically) of 251 million units, equivalent to $1 billion. This trade deficit reflects the fact that the market is still dependent on imports, which are likely to continue in the medium term.

In 2021, China (219 million units) accounted for the largest supplier of air conditioning devices to the Kingdom, accounting for 85% of total imports. Moreover, Thailand (13 million units). Bahrain was third in this ranking (11 million units) with a share of 4.2%.

The best investment opportunities lie in the maintenance, services and consumer products of these conditioners, for example:

Trade in links, including brass and insulation, amounted to $2,430 million, and intake air filters ($242 million).

China (2,763 million units), Japan (662 million units), Thailand (272 million units), the United States (238 million units) and Turkey (136 million units) are the most productive countries of various types.

Average annual growth rates for production were particularly notable in the United States (+ 43.0%), Canada (+ 13.8% to 49 million units), Slovakia (+ 13.8% to 17 million units), Egypt (+ 8.1% to 62 million units) and China (+ 6.9%) from 2007 to 2021.

It can manufacture conditioners locally and successful models in the Kingdom Zamil Company. But one of the most significant challenges is the difficulty of competing at prices with Chinese imports in particular.

Nevertheless, the opportunity for the industry to grow locally is significant in light of the high import costs and the field is fertile for innovations, especially in the provision of energy consumed.

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