Kuwait’s air conditioning and refrigeration market hits KD 85 million
The growth of the country’s air conditioning market is driven by rising demand for energy-efficient solutions, and strong government support, creating significant opportunities for innovation and expansion.
• The size of the air conditioning market in the country will approach about $415 million by 2033, reflecting a compound annual growth rate of about 4.95% over the next seven years.
The air conditioning and refrigeration market in Kuwait is set for significant growth, with Astute Analytica research noting a shift in consumer behavior driven by climate change and the growing trend towards energy savings in the coming years, as reported by Al-Seyassah.
The report predicts that the size of the air conditioning market in Kuwait will approach KD 130 million (approximately $415 million) by 2033, up from an estimated KD 85 million (around $271.28 million) in 2024, reflecting a compound annual growth rate of about 4.95% over the next seven years.
The report attributes the growth of the air conditioning market in Kuwait primarily to the harsh climate, rapid urban expansion, and increasing demand for smart, energy-efficient cooling solutions. It also highlights that the market is strongly supported by government initiatives, strong growth, and the construction boom, which provide unparalleled opportunities for innovation and market expansion.
The report confirms that the air conditioning market in Kuwait is heavily influenced by the country’s harsh climate, where cooling systems are a necessity rather than a luxury.
Kuwait experiences a very dry, semi-tropical desert climate, with summer temperatures often exceeding 45°C and reaching a record 54°C, the highest ever recorded in Asia. As a result, air conditioning is essential for maintaining comfort and safety indoors.
Air conditioning accounts for nearly 67% of total energy consumption in Kuwait, according to a 2020 study, highlighting its critical role in the country’s energy landscape. Additionally, cooling systems consume 58.4% of the total electricity supplied to residential areas during peak summer days, the report said.
The report also notes that the heavy reliance on cooling systems not only underscores the importance of air conditioning in Kuwait but also presents a significant opportunity for manufacturers to offer energy-efficient solutions.
With the air conditioning market driven by harsh climatic conditions, there is a clear demand for innovative and sustainable cooling technologies that can meet the needs of the Kuwaiti population while reducing energy consumption.
Three trends in local cooling systems market
The report identified three key trends in Kuwait’s cooling market that will drive demand and operations over the next seven years:
- Growing preference for smart home technology and remote-controlled cooling systems.
- Shift towards energy-saving and environmentally friendly air conditioning products.
- Integration of radiant cooling with indirect evaporative cooling for homes and buildings.
Four current challenges
- Heavy reliance on fossil fuels to generate electricity for air conditioners.
- Resistance to energy policy reforms that hinder the adoption of sustainable cooling solutions.
- Supply chain vulnerabilities due to heavy dependence on international component suppliers.
- Consumer shift towards efficiency and smart technology in purchasing decisions.
