Satyendra Pathak
Doha
Rapid infrastructural development activities coupled with expanding consumer base will lead Qatar's air conditioner market to grow at a compound annual growth rate (CAGR) of 5.9 percent during the 2018-24 period, Research and Markets has said in its latest report.
The ResearchAndMarkets.com report, which thoroughly covers the air conditioner market by types, applications, and regions, said that demand for air conditioners in Qatar is anticipated to grow owing to ongoing and upcoming construction projects coupled with rapid expansion of tourism sector and development of world class infrastructure for upcoming the 2022 FIFA World Cup.
According to the report, the construction industry in Qatar is expected to boom with the government planning to spend around 47 percent of the national budget on major infrastructure projects, thereby attracting foreign direct investment into the country.
Further, the report said, the government is planning to develop the nation's higher education capabilities and is expected to construct new schools with a total cost of around $1.9 billion across the country over the coming years.
Construction of centrally air-cooled stadiums and auditoriums are anticipated to spur the market for air conditioners in the country, the report said.
Additionally, the population in Qatar grew at a rapid pace over the past few years resulting in the construction of several residential societies and expansion of public & private infrastructures in the retail, transportation, entertainment & leisure, and hospitality sectors.
"The residential, commercial and retail applications garnered maximum revenue share from air conditioner sales due to growth in residential construction projects in the country," the report said.
Qatar is standing at the forefront of emerging as one of the fastest growing economies in the GCC region, the report said adding the country's infrastructure sector and housing projects registered healthy investments worth $27 billion annually since 2010.
"These investments included a variety of projects, among which were the development of economic zones, stadiums, hotels and other public and private infrastructure to host the World Cup in 2022. The event has been the major reason for Qatar not restricting its investments as compared to its neighbouring countries in the wake of low oil prices," the report said.
In a similar report earlier, 6Wresearch said that soaring temperature and new regulations would pave the way for the growth of energy efficient air conditioners in Qatar.
"Demand for energy efficient air conditioners has significantly increased despite higher pricing as compared to traditional models. Split air conditioners are further likely to foresee higher adoption primarily in the residential application," 6Wresearch said in the report.
With Qatar diversifying its economy and focusing on achieving viable growth by fostering private sector, the report said, substantial amount of sales for air conditioning units is anticipated primarily from the residential, commercial and retail applications.
"Moreover, the growing tourism and hotel development in the southern region of Qatar have led to the growth of air conditioner market in the country," it said.
With mega infrastructure projects being implemented across the country, the report said, the centralised air conditioning system is also expected to witness higher adoption over the coming years.