Saudi Arabia Heat Pump Market Overview, 2029

In the heart of the Arabian Desert, amid flowing sands and contemporary wonders, the heat pump industry of Saudi Arabia shines as a beacon of invention in sustainable development. Let's talk about its cultural importance, sustainable initiatives, and governmental schemes for this important sector. Saudi culture is based on a great tradition of living in the desert, which imprints the population with a deep regard for thriftiness and adaptability. From ancient methods employed to harness natural elements to the modern interpretations of energy efficiency, cultural values infiltrate every aspect of heat pump usage and development. The industry of heat pumps in Saudi Arabia retains eminence in the fold of international sustainability. From cutting-edge technologies to renewable sources of energy, the industry seeks to cut down on carbon footprints while maximizing efficiency on a global scale toward a safer, greener future. The advances that have happened in different facets of sustainability, the heat pump industry in Saudi Arabia is faced with a unique challenge. From harsh desert conditions to radically fluctuating energy demand, this landscape requires innovative solutions and strategic planning. However, with governmental support and industry collaboration, these challenges are are viewed as opportunities for growth and advancement. The Saudi Arabian government has recognized the role of the heat pump industry in their effort to realize national sustainability goals. The government has established various schemes that would attract both investment and innovation through subsidy programs to policy frameworks that promote energy efficiency in the country, projects in the industry continue to be initiated, growing rapidly and contributing to the overall advancement of socio-economic objectives in the country. For instance, The "Green HVAC Investment Fund " is an all-inclusive initiative that seeks to spur investment in environmentally friendly HVAC, including heat pumps, in Saudi Arabia. The fund provided in terms of finance that goes a long way to support projects geared towards energy efficiency, emission of carbon, and sustainable development within the kingdom.

According to the research report "Saudi Arabia Heat Pump Market Overview, 2029," published by Bonafide Research, the Saudi Arabia heat pump market is anticipated to add to more than USD 140 Million by 2024–29.The Saudi Arabian heat pump market is experiencing growth, driven by a combination of factors like government initiatives, environmental concerns, and technology developments. The country's ambitions Saudi Vision 2030 and National Energy Efficiency Program—are striving to diversify the fuel mix, enhance energy efficiency, and curb greenhouse gas emissions. Heat pumps are acknowledged as key technology in support of these targets, offering an energy-efficient alternative for heating and cooling that can be powered by renewables. Saudi Arabian hot weather leads to rising demand for cooling systems while creating an opportunity for heat pumps to have a great share in addressing this demand. The low-temperature, high-temperature district cooling systems utilizing heat pumps are becoming popular since they possess better energy efficiency and lower water consumption when compared to traditional cooling methods. Incorporation of heat pumps with desalination plants would enhance energy efficiency and minimize the environmental impact associated with water production, therefore contributing to water scarcity initiatives in the country. The Government shall also provide funding and financing options in the form of grants and low-interest loans for the installation of heat pumps, both in residential and commercial applications. Thus, this financial help will make heat-pump-led solutions more approachable and affordable for the consumers and result in market growth. Finally, the Saudi Building Code and the guidelines on energy savings set by the Saudi Standards, Metrology, and Quality Organization (SASO) promote the adoption of heat pumps to address the requirements for attainable energy efficiency in new and existing buildings. As the heat pump market will be growing, attention will be given to human capacity development and training of installers and maintenance personnel so that good-quality installations are done, and the customers are satisfied with the installations, without which the market will not be sustainable. Solar-aided heat pumps could additionally enhance energy efficiency and sustainability, making them a very promising solution for the heating and cooling needs in the country.

The adoption of heat pumps, although nascent, has started, and a variety of heat pumps for deployment across different sectors are visible. Air-to-air heat pumps are sold mainly for cooling purposes in residential and commercial buildings in Saudi Arabia. Air-to-water heat pumps are newly adopted in the residential and commercial building sectors for space cooling and hot water production in Saudi Arabia. Companies like Daikin and Nibe provide air-to-water heat pump solutions adapted for the Saudi Arabian climate. Water source heat pumps are mainly used in larger commercial and industrial applications in Saudi Arabia, in cases where access to water sources, such as lakes or groundwater, can be managed. The King Abdullah Petroleum Studies and Research Center (KAPSARC) in Riyadh has implemented a water-source heat pump system for cooling and heating its facilities. Ground source heat pumps, or geothermal heat pumps, are also relatively nascent in adoption in Saudi Arabia. However, there are considerable—though nascent—efforts to promote and implement such systems in the country, particularly through commercial and industrial projects. For example, the King Fahd University of Petroleum and Minerals (KFUPM) based in Dhahran has had a system installed for ground source heat pumps for cooling and heating its buildings. This shows the potential that this technology would look like in the Saudi market. Hybrid heat pump systems are being partially introduced to the Saudi market, combining heat pump technology with traditional air conditioning or cooling systems. For instance, Carrier markets its AquaForce 30XA hybrid heat pump system, which marries the efficiency of an air-to-water heat pump with a conventional cooling system to provide effective cooling parameters at reduced energy usage.

The Saudi Arabian heat pump market is influenced by the hot desert climate, quick urbanization, and the growing concern for energy efficiency and sustainability. By capacity, the market can be divided into categories, where each one caters to respective applications and needs. Heat pump capacities up to 10 kW are generally used in residential applications, such as villas and apartments, for air conditioning and water heating. As Saudi Arabia stays under high-temperature conditions throughout the year, the demand for energy-efficient cooling solutions leads to this section having more value. These policies to promote energy efficiency, including but not limited to the Saudi Building Code and the Minimum Energy Performance Standards for appliances, have encouraged the market for heat pumps to adopt the same along the capacity and application range extension. The capacities from 10 to 20 kW and 20 to 30 kW are used in larger residential compounds and small- to medium-sized commercial buildings. In all these commercial applications, heat pumps ensure both cooling and water heating, making comfort and energy saved a reality. The investments in technologies that are increasing due to the vision help diversify the economy and reduce its reliance on the cheaply available fossil fuels. Heat pumps over the capacity of 30 kW are normally applied in large commercial and industrial applications. The Saudi government has been involved in various initiatives and programs to help in propagating energy efficiency and sustainability in the nation. The Saudi Energy Efficiency Program (SEEP) and the Saudi Renewable Energy Program (K.A.CARE) encourage the actual adoption of energy-efficient technologies, among them heat pumps, within many sectors.

The market is growing, and this is suitable because Saudi Arabia is modernizing its existing infrastructure to support and enhance better energy efficiency and reduce greenhouse gases as it seeks to fulfill its commitment under the Paris Agreement and the Saudi Vision 2030. Heat pump applications in Saudi Arabia can generally be divided into three main end-user segments, namely residential, commercial, and industrial. The Residential Segment is a growing market for heat pumps. Heat pumps are increasingly being applied in private homes, rental apartments, and residential communities for air conditioning, heating, and water heating. Additional heat pumps are used for different applications, among which the most popular are in the residential sector for air conditioning and water heating applications. The population continues to grow and urbanize in Saudi Arabia. Programs such as the National Housing Program of the government and the Saudi Green Initiative that create urban communities support the use of heat pumps in the residential sector. Air-to-air and air-to-water heatings are commonly used in the residential sector due to their efficiency and convenience in use for the hot climate in Saudi Arabia. The heat pumps used in industrial applications are characterized by high capacity or power and, in some cases, high temperature. The industrial sector consists of manufacturing plants, industrial facilities, and district cooling. The provision of heat pumps in industrial processes enhances energy efficiency and reduces environmental impact through efficient heating, cooling, and waste heat recovery solutions. In addition to the aforementioned industries, another crucial sector in the spectrum of heat pump applications is the industrial section. NIDLP is a program by the Saudi government to achieve sustainable and internationally competitive industrial sectors in the country as part of the Saudi Vision 2030, which thus influences the demand for heat pumps in industrial applications. Ground-source and hybrid systems are normally applied in high-temperature and customized heat pump solutions bound for industrial use.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029



Aspects covered in this report
• Heat Pump market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Air-to-Air Heat Pump
• Air-to-Water Heat Pump
• Water Source Heat Pump
• Ground Source Heat Pump
• Hybrid Heat Pump

By Capacity
• Up to 10 kW
• 10–20 kW
• 20–30 kW
• Above 30 kW

By End User
• Residential
• Commercial
• Industrial

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Heat Pump industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.