Situated on the eastern edge of the Arabian Desert, the U.A.E. is a perpetually hot country, where pleasant weather is nothing short of a fantasy. In summers, average temperatures regularly exceed 45 °Celsius; therefore, coolness needs to be artificially created, which is why the sale of air conditioners and chillers is rather high here. Similarly, hot and humid air blows from the Gulf of Oman inward during summers, which makes the weather extremely unpleasant, thus leading to a strong requirement for ventilation.

Thus, PS Intelligence credits the unfavorable climate while forecasting a 5.2% CAGR for the U.A.E. HVAC market during 2020–2030. At this rate, the revenue generated by the sale of such systems will increase to $2,774.7 million by 2030 from $1,873.1 million in 2019. The other reason for the growing HVAC sales in the country is the rampant infrastructure development, much of it under the government initiatives to reduce its reliance on the oil trade and boost other sectors.

With such a high installation rate of these appliances, the country’s electricity consumption and, in turn, greenhouse gas (GHG) emissions, will surge massively. This is why smart HVAC systems are trending here as they monitor their operations and optimize them themselves, to save energy. The internet of things (IoT) sensors embedded in them generate real-time data on their operations, which can be used to fine-tune their various functions. Similarly, the use of systems that draw the energy stored in the ground (geothermal energy) is burgeoning.

Moreover, large HVAC systems are now being deployed for district heating and cooling (DHC), wherein one system takes care of the heating and cooling needs of an entire community or group of buildings. This negates the need for individual appliances, which, combined with the fact that DHC systems often source the waste heat from industrial plants, further reduces the consumption of electricity. Another kind of system that can reduce energy consumption is variable refrigerant flow (VRF), just one of which can heat and cool different rooms simultaneously.

Presently, Dubai contributes the highest revenue to the U.A.E. HVAC market as it is the country’s financial and cultural heart. In addition, due to the thousands of tourists coming here every month, it is home to a large number of hotels, malls, performance venues, and other arenas, all of which have HVAC systems by default. Moreover, Dubai Creek Residences, an 872-house project, was recently opened near Dubai Creek Harbor, which drove the demand for HVAC systems.

Therefore, the rampant infrastructure development in the country is propelling the sale of HVAC appliances.