EXPO 2020 and FIFA World Cup 2022 will lead to a demand for HVAC technology, said Anilesh Kumar, CEO, Levtech Consulting, while elaborating on the market dynamics in the Middle East. The two events will lead to a rise in demand for HVAC technology, and the consistent growth in demand — in both commercial and residential building segments will lead to the expansion of the HVAC market, he said.
Dubai, in particular, he added, is witnessing development in the construction and real estate sector. Elaborating, he said that the increase in awareness on the relative effectiveness of diverse cooling systems, the costs associated with energy consumption and other considerations are factors that contribute to a mature market for air-cooling systems in the region. Highlighting a recent report, Kumar said that the global HVAC market is expected to generate over USD 68.9 billion at an estimated CAGR of 4.3 percent from 2016 to 2022. “We expect GCC countries to reflect this growth, as well,” he added. Saudi Arabia presently has the strongest air conditioning industry in the GCC region, followed by the UAE, Kumar added.
Highlighting Levtech’s contribution to the HVAC sector as a Microsoft business application partner, Kumar said that the company works closely with HVAC business players in the Middle East, helping them re-engineer and automate their business process. Automation drives efficiencies, especially across the entire value chain of the HVAC industry – including manufacturers, distributors and service organizations, he said. Smart HVAC management has a huge potential for cost-saving, and we know that the energy associated with cost in commercial buildings is in a constant state of flux. Elaborating on the use of HVAC mechanics and installers, Kumar said: “The use of HVAC mechanics and installers have increased at a growth rate of 2.5 percent per year, from 2000 to 2016.”
Kumar also highlighted the need to leverage AI and IoT technologies and enhance the profitability and productivity of these organizations. “The idea is to gain continuous control over energy efficiency, predictive maintenance, and other operational elements,” he added. Elaborating on the direction the HVAC industry is taking today in terms of technology, Kumar said that while building automation systems have been there for decades, we are now shifting to an era, where the focus is on systems and processes that are smart.