Saudi Arabia's heat pump market is poised for solid growth in the next six years with its revenues projected to grow at a CAGR (compound annual growth rate) of 2.5 per cent by 2025, said a report by 6Wresearch.
Several upcoming government initiatives such as Saudi Arabia National Vision 2030, National Renewable Energy Program and National Transformation Plan 2020 are anticipated to strengthen the residential and commercial sectors in the country, paving the way for the growth of heat pump market over the coming years, according to the report.
The diversification of the economy along with growing hospitality and healthcare sectors would drive the kingdom's heat pump market, stated 6Wresearch in its new report titled "Saudi Arabia Heat Pump Market (2019-2025)."
The report estimates and forecast the overall Saudi Arabia heat pump market by revenue, pump types, applications, rated capacities and regions.
Moreover, immunization of non-oil sectors would lead to equitable growth in multiple sub-sectors of the economy in the country which would also propel the heat pump market in the country during 2019-25.
Upcoming commercial sector projects such as Red Sea beach resort in the hospitality segment and King Faisal Medical City in Abha in healthcare segment are expected to increase the medical as well as leisure tourist footfall in the country, thus, boosting the growth of construction, healthcare and hospitality industries across different regions of the country, said the report.
Kanchan Negi, the research analyst, research and consulting, 6Wresearch, said: "An important component of Vision 2030 is the National Renewable Energy Programme which is a long term and multifaceted strategy, designed to bring balance in domestic power mix in order to deliver long term economic stability to the country."
"As a result of these government initiatives, several heat pump manufacturing companies are bringing new technologies in their product portfolio such as combination of heat pump with thermal solar panel to make their product more environment friendly and energy efficient," he added.
Chhavi Malpani, the research analyst, research and consulting, said: "The Central and Eastern Regions of Saudi Arabia are highly potential commercial and industrial hotspots of the country."
"Several government initiatives such as Saudi Vision 2030 and National Transformation Plan 2020 have set the target to increase the private sector contribution from 40% to 60% and enhance the share of non-oil exports in the economy from 16% to 50% by 2030. The increased role of private players would lead to setting up of more private hotels and hospitals, and thus increase the demand for heat pumps in the region," he added.
Apoorva Sawhney, Research Associate, Research and Consulting, 6Wresearch, said: "Heat pump with rated capacity upto 10 kW would see high growth in near future owing to their widespread application in the residential sector."
"Further, change in government policies for Seer rating (Seasonal Energy Efficiency Ratio) would result in replacement of old and technically outdated heat pumps. Hence, this would increase the demand for lower rated heat pumps during the forecast period," he added.
