Dubai, UAE: The slump in crude oil prices has not completely deterred the government and the industries from investing in the development of infrastructure in the GCC region, primarily because of the upcoming mega events – Dubai Expo 2020 and 2022 FIFA World Cup in Qatar. One such sector that is gaining from such a development is the compressors market. Often referred to as “the heart of the system”, industry players analyse the factors contributing to the growth:
Biju Kannan, Senior Sales Manager – Key Accounts, Commercial, Compressor and Refrigeration Controls at Danfoss FZCO, says that the real estate and construction sectors are pushing the growth in the region. He explains: “For this part of the world, everything is linked to real estate… more buildings, more demand. Therefore, it is directly linked to [the growth of] air conditioning compressors. And it is indirectly linked to [the growth of] refrigeration compressors; the food chain process would bring in more demand for refrigeration.”
Government legislation and initiatives, too, are driving the growth of compressors. Hassan Younes, the Technical Director and Partner at Griffin Consultants, says that the legislation for equipment efficiency and environmentally friendly refrigerants will drive the improvement in the sector, while Kannan adds energy efficiency to the list.
Providing another analysis of the growth, Younes explains that government initiatives, such as the retrofitting programme, will increase sales. He says: “The current existing building efficiency is being looked at in the UAE and GCC. Dubai, through its DIES 2030 plans, has announced it will be retrofitting 30,000 buildings. Most of the compressors in those buildings will be replaced with new compressors, which will also boost the compressors market.”
(The writer is the Online Writer of Climate Control Middle East.)