Mideast Commercial AC sector to hit $4bn
Manama, December 8, 2011
The Middle East region’s annual commercial air conditioning (CAC) market volume is expected to reach approximately $4 billion in 2014, a 35 percent growth from 2010, a report said.
In 2010, the region’s annual CAC market volume reached $2.95 billion, a figure which is expected to increase to $3.21 billion for 2011, said the report from LG Electronics.
The importance and size of the global CAC market has grown to prominence in recent years, gradually evading the shadow of the residential air conditioning (RAC) market. Such growth has not been limited by tempering market conditions in the traditional CAC strongholds of North America, Europe, and Middle East. With demand for CAC products accelerating in other parts of the world, other regions have now entered the fray, it said.
Regional construction boom and increasing investments from China have boosted the growth. Another factor is the 2022 Qatar World Cup, which has greatly increased construction in Qatar in preparation for the mega event in the region. This directly translates to a need for CAC in a region that experiences hot and humid conditions for most of the year.
LG, a relatively new player in this emerging market, has engaged in a heated competition for a piece of this pie. The company’s advanced technologies and aggressive marketing initiatives have strategically placed it in a position primed for future growth, it said.
VRF Systems and Multi V III
The heating, ventilation and air conditioning (HVAC) industry has moved steadily beyond simple air conditioning units for households and into more intricate and sustainable systems that cover entire buildings. Riding the wave of this trend, variable refrigerant flow (VRF) air-conditioning systems have proliferated widely.
Despite their humble beginnings more than 20 years ago, VRF systems have now evolved into advanced air conditioning systems that provide customisable temperature control for all occupants within a building or building complex, LG said.
VRF sales in 2011 grew 500 per cent compared to the overall single air conditioning market’s 21 per cent growth. The sales of this system continue to grow steadily as the expansion of the Middle East CAC market, it said.
According to research conducted by LG Air Conditioning and Energy Solution Company, the VRF systems market will reach a staggering $7.3 billion by 2013, a 40 per cent jump from last year’s total.
“LG’s overall technological prowess and innovations in CAC products will form the foundation of LG’s potential for growth in the Middle Eastern market. In particular, the impressive energy efficiency of LG’s CAC products should prove to be central in LG’s growth, as the region’s governments become increasingly stricter when it comes to government regulations associated with energy consumption. Our Multi V III is a product that is well acclimated to meet the demanding market conditions in the region,” said Paik
The introduction of refrigerant R410a, the European standard refrigerant, into the Middle East is placing great demand to meet requirements comparable to Europe. For instance, Kuwait has adopted regulations that have been equated to European regulations. In Iran, a 10 fold increase in electricity costs has spurred the popularity of energy efficient products, LG said. - TradeArabia News Service