The growth dynamics of Saudi Arabia water heater market have been witnessing a revolution of sorts in the recent times given the fact that the nation has embarked upon an ambitious economic diversification strategy. A drastic revamp of the power generation sector has been in the making as energy occupies a prominent spot across the initiatives rolled out by the kingdom to realign its economy. Escalating figures of electricity consumption coupled with a steady rise in population has necessitated the nation to strive harder for energy independence. As per reliable estimates, almost 11% of the total residential energy consumption amounted for water heating purposes which underscores the significance of Saudi Arabia water heater industry, strongly characterized by development of energy-efficient products. Increasing deployment of water heating equipment in industrial, commercial, and residential spaces is set to propel the commercialization scale of Saudi Arabia water heater market in the forthcoming years.
Saudi Arabia Water Heater Market Size, By Capacity (USD Million)
An increase in energy and utility requirements of any nation is directly proportional to the rise in population base. Regarded as the largest economy in the Middle East region, Saudi Arabia is estimated to record a population growth rate of 3.5% each year which will invariably lead to increase in the demand for electricity. With consumers looking for more reliable and energy-efficient water heating systems, the water heater industry leaders such as Ariston, Bosch, A.O. Smith, Vaillant, Rheem manufacturing, Saudi Ceramics, and Bradford White have been focusing on strengthening their distribution network in the country. This would ultimately lead to reduction in installation and maintenance costs of water heaters across the region.
Solar water heaters to acquire prominence among the overall product segment of Saudi Arabia water heater industry
According to reliable estimates, almost 100% energy of the Kingdom is being produced using natural gas and oil. A cursory glance through the energy generation profile of Saudi Arabia shows that the country is heavily dependent on fossil fuels which has been repeatedly described as highly unsustainable and an economic burden. In order to bring about a drastic change in its power generation abilities and lower its reliance on fossil fuels, the government plans to generate a record electricity of 9.5 GW through renewable energy sources by 2023. Needless to mention, solar power would play a vital role amongst the various alternative energy sources to successfully meet the rising electricity needs of the nation.
The world’s largest oil exporter has a favorable geographical location which can undoubtedly ensure high production of solar energy throughout the year. The region reportedly emits nearly 7KW of solar energy per square meter for more than 12 hours each day which highlights the significance of solar power in the nation’s power generation sector. Considering the aforementioned declarations, the solar water heater segment is set to leave an indelible mark on the overall Saudi Arabia water heater industry in the upcoming years. In fact, as per a research report collated by Global Market Insights Inc., the solar water heater segment of Saudi Arabia water heater market is expected register a y-o-y growth rate of more than 11% over 2018-2024.
Exhibiting a revolutionary breakthrough in Saudi Arabia water heater market, the country has set up the world’s largest district solar water heater project in 2011. Described as the first green building campus in Saudi Arabia, the Princess Noura bint AbdulRahman (PNBAR) University has been equipped with a massive solar water heater plant. Boasting of an installed capacity of around 17 MW, the facility provides sufficient hot water for all 40,000 students of the institution. Termed as a first-of-its-kind solar water heater project, the plant comprises a gigantic collector surface area of about 36,305 square meters. Apparently, the project can be described as a remarkable achievement for Saudi Arabia water heater industry given that the deployment and implementation of water heaters outside business and recreational spaces has been tedious.
Strict enforcement of energy-associated legislations across commercial and residential establishments would impel the growth prospects of Saudi Arabia water heater market in the times to come. Moreover, a steady increase in the utilization of renewable energy sources to generate sustainable power is likely to open up new business opportunities for the firms partaking in Saudi Arabia water heater market. Owing to the prolific expansion of construction sector coupled with various plans to diversify the nation’s economy, the Saudi Arabia water heater industry share is anticipated to exceed USD 500 million by 2024.