Harnessing the global trend of energy efficiency and optimized space heating, Middle East water heater market is emerging as one of the most profitable investment grounds in the global energy space. Given the region’s effective geographical positioning for harnessing solar & wind energy, the countries across this belt have been trying to make significant investments away from their dominant O&G-derived ones. The countries across the Middle East are also witnessing rapid urbanization and transformation in their economic growth in the recent years which have propelled the growth of Middle East water heater industry.

UAE Water Heater Market Size, By Application, 2017 & 2024 (USD Million)

The recent instance of Ariston Thermo, an Italian company producing heating systems, that has inaugurated its very first water heater manufacturing plant in the Middle East, validates the popularity of this belt as a viable region for investments. According to reports, the water heater production facility located in the Bahrain International Investment Park (BIIP) will have a production capacity of 250,000 electric water heaters every year. The company has further unveiled that the water heaters that will be manufactured at the plant will be chiefly marketed in the Middle East and North Africa.

If industry analysts are to be believed, the company’s decision in establishing a manufacturing plant in BIIP throws light on the fact that Middle East water heater industry is not only exhibiting robust product demand but is also tendering the competitive advantage the region has to offer to the global companies. The plant’s opening further reinforces the region’s position as the ideal hub to serve the growing demand for water heaters.

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Speaking of the regional demand, the World Bank claims that more that 64% of the population in the Middle East will be migrating and residing in urban areas by 2020. The rising construction spending across the Middle East countries to develop commercial establishments such as stadiums, hotels, shopping malls, commercial spaces, and hospitals will significantly drive the regional industry growth. The construction output of Saudi Arabia, one of the largest countries in the Middle East, amounted to over USD 40 billion in 2015, according to Statista. UAE construction output, with Dubai at its forefront further accounted for USD 36 billion for the same year.

It has also been reported that the UAE government is expected to invest USD 8.4 billion toward the development of hotels across the nations. The data significantly highlights that the surge in construction spending and development of smart cities has necessitated that adoption of necessary appliances, in turn having a positive impact on the commercial Middle East water heater market outlook.

Kuwait is another eminent region of the Middle East water heater market that is poised to witness significant investment potential for global companies. According to the estimates provided by the World Population Review, in 2018, around 98% of the population in the region is urbanized with a remarkable urbanization rate of 2.1% per year. Infrastructure development, rise in disposable incomes, and improvement in standard of living have indeed complemented the product demand. The Kuwait government is also investing USD 160 billion in the island development project over the next two decades that will encompass the construction of hotels, new amusement parks, shopping & business centers. Estimates claim that Kuwait being a key region of Middle East water heater market, will exceed the deployment of 750,000 units by 2024.

The robust product demand across the Middle East has also impelled the industry players to bring about a pathbreaking innovation in water heater mechanism and sustainability credentials. The regional governments are further supporting the green growth strategies that is fueling the demand for solar water heaters in the Middle East. ECOTHERM, Emitech, Linuo Ritter, Rheem Manufacturing, Hubbell, and Himin Solar among others are some of the prominent Middle East water heater industry players that have taken note of the sustainable energy shift and are upgrading water heaters technology. Characterized by such competitive scenario the Middle East water heater market is anticipated to surpass valuation of USD 1.5 billion in 2024, with annual deployment slated to surpass 9 million units in the coming seven years.

Author Name : Ojaswita Kutepatil