The Italian water heater systems manufacturer, Ariston Thermo, recently made its presence felt in the Middle East water heater market, with the inauguration of its new plant in the Bahrain International Investment Park. One of the prominent leaders in the water heating industry, Ariston Thermo as of 2017, had a turnover of €1.57 billion, selling 7 million products in over 150 countries across the world. The company’s decision to establish a plant in Bahrain thus, vividly indicates the developments prevalent in the Middle East water heater market currently.
Middle East Water Heater Market Size, By Application, 2016 & 2024 (USD Million)
Numerous governments across the Middle Eastern countries have also lately been aiming to promote the development of green energy generation, taking advantage of the region’s ample supply of land and sunshine to make a foray into the renewable energy, especially solar energy. This may perhaps be another contributing factor for companies like Ariston thermo to invest in the Middle East, as the firm focuses on developing energy efficient solutions which draw power from renewable resources. Incidentally, the new plant at Bahrain would be manufacturing storage electric water heaters to be marketed in Middle East and North Africa and is projected to have a production capacity of up to 250,000 electric water heaters per year.
Speaking of sustainable plant models and government initiatives to curb greenhouse gas emissions, it is worthy to mention that rising emission constraints have encouraged Middle Eastern policy makers to introduce energy efficient guidelines in consumer products like water heaters. Furthermore, the region has been witnessing a surge in the construction of smart cities and green buildings that has necessitated the adoption of renewable sources for excess power generation. In consequence, this is expected to have a positive impact on Middle East water heater market trends in the ensuing years.
The countries across the Middle East have witnessed a commendable transformation in the recent years in terms of economic growth – a factor that has quite appreciably contributed toward augmenting Middle East water heater market outlook. The rapid urbanization in the region has led to a change in consumer lifestyles that now demand amenities for a luxurious daily regime, leading to a surge in the requirement of amenities like water heaters. Indeed, estimates by The World Bank claim that 64.96% of the population of the Middle East will be residing in urban areas in 2020. Quite overtly, this trend will increase the deployment of water heaters across residential and commercial arenas, stimulating Middle East water heater market size to quite an extent.
As per reliable statistics, Middle East water heater market share from the residential sector is projected to witness a CAGR of 3% over 2017-2024, driven chiefly by the strong demand for immediate access to hot water. Investments towards the development of green buildings and retrofitting of older systems will also contribute to the growth of Middle East water heater market share from the residential sector. Speaking along similar lines, Saudi Arabia is one of the many regions that is expected to emerge as a core revenue pocket for Middle East water heater market as far as the residential sector is considered. The region’s growth in residential applications can be attributed to the government’s myriad initiatives to construct upgraded residential establishments for the ever-expanding populace. Indeed, in 2016, the housing ministry of Saudi Arabia launched the New Housing Program with an aim to increase the proportion of house ownership in Saudi 70% by 2030. Driven by initiatives of a similar nature, Middle East water heater market size from Saudi Arabia will hit $1 billion by 2024.
The Middle East is one of the prominent hubs for tourism subject to the presence of architectural wonders in the region. According to the United Nations World Tourism Organization, in 2014 1.1 billion people travelled overseas, 50 million among which visited the Middle East. This has naturally propelled the demand for advanced water heaters in hotels and other establishments, driving Middle East water heater market size from commercial applications. The Gulf states have put themselves on to the world tourism map within a remarkably short period of time through the means of focused destination strategies and world-class infrastructure, extending the scope for Middle East water heater market.
Having recognized the immense potential that the Middle East offers, notable companies such as A.O. Smith, Bosch, Jaquar, Whirlpool, Haier, Hubbell, Ferroli, Himin Solar, Rheem Manufacturing, Rinnai Corporation, Saudi Ceramics and Vaillant have made considerable investments in heating appliances, propelling Middle East water heater market size. Powered by the rapid expansion of the tourism sector in the region in tandem with the slew of government initiatives for enabling sustainable energy generation and deployment, Middle East water heater industry size is projected to surpass $2.5 billion by 2024.