United Arab Emirates (UAE) Air Conditioner (AC) Market Overview, 2028

The UAE's climate, characterised by scorching desert temperatures and high humidity, places air conditioning at the centre of daily life. Air conditioners are not just a comfort; they are essential for maintaining a livable environment, whether in homes, offices, shopping malls, or vehicles. Due to the extreme heat experienced in the UAE, air conditioners are used year-round. They provide cooling relief during the blistering summers and also serve as heating systems during the relatively cooler winter months, ensuring comfort throughout the seasons. In many upscale residential and commercial developments, centralised cooling systems are preferred. These systems provide efficient cooling for large buildings and are managed by district cooling companies, reflecting the UAE's commitment to sustainable urban planning. Architectural designs in the UAE often incorporate considerations for efficient cooling. Buildings are designed with optimal insulation, shading, and ventilation to reduce reliance on air conditioning and conserve energy. The UAE is home to a wide range of tourist attractions, including iconic landmarks like the Burj Khalifa, Palm Jumeirah, and the Sheikh Zayed Grand Mosque. Tourists spend significant time outdoors exploring these attractions, making it crucial for hotels, restaurants, and public spaces to provide climate-controlled environments for comfort. The UAE's hospitality sector is renowned for its luxurious hotels and resorts. To maintain high standards and meet the expectations of international travellers, these establishments invest in advanced air conditioning systems to ensure guests' comfort and well-being. According to the research report "UAE Air Conditioner Market Overview, 2028," published by Bonafide Research, the UAE Air Conditioner market was valued at more than USD 1.40 billion in 2022. While the summer season sees a surge in tourism due to events like the Dubai Shopping Festival, the UAE attracts tourists throughout the year. The ability to provide climate control year-round is essential for the tourism industry. Tourists often engage in outdoor activities such as desert safaris, water sports, and adventure tourism. After a day of outdoor adventures, tourists seek refuge in air-conditioned accommodations and restaurants to cool down and relax. The UAE is known for its harsh desert climate, characterised by extremely hot temperatures, especially during the summer months. Air conditioning is not just a luxury but a necessity for residents and businesses to maintain a comfortable indoor environment. The UAE has witnessed rapid urbanisation and infrastructure development, including the construction of residential complexes, commercial buildings, hotels, shopping malls, and entertainment venues. These developments require efficient air conditioning systems to provide comfort to residents, employees, and visitors. The UAE's strong economy has led to increased disposable income levels among its residents. This has translated into higher consumer spending on air conditioning systems for homes and businesses. The UAE government has implemented regulations and standards to ensure the energy efficiency and environmental performance of air conditioning systems. These regulations encourage the use of high-efficiency models.

Based on the product types, they include window AC, portable AC, ductless multi-split AC, packaged AC, floor-mounted AC, central AC, variable refrigerant AC, and others. In the UAE, the Ductless Multi Split Ac has the highest market share. Ductless multi-split systems are known for their energy efficiency. These systems use inverter technology to adjust the compressor's speed based on cooling demand. As a result, they consume less energy compared to traditional ducted systems, which is highly appealing in a region with high electricity costs. Ductless multi-split systems allow for precise zoning and individual temperature control in different rooms or zones within a building. Users can set different temperatures in various areas, optimising comfort and energy savings. The indoor units of multi-split systems are compact and aesthetically pleasing. They can be mounted on walls or ceilings, adding to the overall aesthetics of the space. According to the report, the technology types are segmented into inverter and non-inverter; among them, the non-inverter is a growing market. In some cases, consumers and businesses have a preference for traditional fixed-speed air conditioners due to familiarity or past positive experiences with such systems. They may be hesitant to switch to inverter technology. Non-inverter air conditioners can still find applications in commercial settings, such as warehouses, storage facilities, and certain industrial spaces, where precise temperature control and energy efficiency may not be as critical as in residential areas. In terms of the end user, they are segmented into commercial, industrial, and residential; among them, residential is leading the air conditioner market. Air conditioners are used year-round in the UAE. They provide cooling during the hot summers and are often used for heating during the relatively cooler winter months, ensuring continuous demand for residential cooling and heating solutions. The UAE has experienced rapid urbanisation, with a growing number of residential complexes, apartment buildings, and housing developments. These new residential properties require efficient and effective air conditioning systems to provide residents with comfortable living conditions. The compact design of indoor units in ductless systems allows for easy installation in residential spaces without the need for extensive ductwork. This minimises disruption during installation. Based on the tonnage types, they include up to 2 tonnes, 2 tonnes to 5 tonnes, 5 tonnes to 10 tonnes, and more than 10 tonnes. More Than 10 Tonne is a growing market in the UAE. The UAE is home to numerous large-scale commercial and industrial facilities, including shopping malls, hotels, convention centres, airports, data centres, manufacturing plants, and warehouses. These facilities require high-capacity air conditioning systems to maintain comfortable indoor environments for occupants and efficient operations. The UAE's thriving tourism and hospitality industry includes luxury hotels and resorts, which often feature expansive lobbies, banquet halls, and large guest rooms. These spaces demand air conditioning systems with high cooling capacities to provide a comfortable experience for guests, even during the hottest months. The UAE has experienced rapid urbanisation and continues to develop residential and commercial real estate projects. These developments often incorporate large and spacious structures that require powerful air conditioning solutions to meet cooling demands.

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Manmayi Raval

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In terms of the distribution channel, which includes multi-brand stores, exclusive stores, online, and other channels, among them in the UAE, multi-brand stores are the leading market. Multi-brand stores typically offer a wide range of air conditioner brands, models, and types, catering to a diverse customer base with varying preferences, budgets, and requirements. This diversity allows customers to compare and choose from an extensive selection of products. Customers value the ability to compare different brands and models side by side, enabling them to make informed decisions based on factors such as price, features, energy efficiency, and brand reputation. Multi-brand stores often engage in price competition, offering competitive pricing and special promotions to attract customers. Price-conscious shoppers can find affordable options and discounts in such stores. Considered in this report: • Geography: UAE • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report: • UAE Air Conditioner market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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By Product types • Window Ac • Portable Ac • Ductless Multi Split Ac • Packaged Ac • Floor Mounted Ac • Central Ac • Variable Refrigerant Ac • Others By Tonnage Types: • Up to 2 Ton • 2 Ton to 5 Ton • 5 Ton to 10 Ton • More Than 10 Ton By Technology • Inverter ACs • Non-Inverter ACs By End Users • Residential • Commercial • Industrial By Distribution Channel • Multi-brand Stores • Exclusive Stores • Online • Other Channels The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Air Conditioner industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.