Oman Air Conditioner Market to Hit Valuation of US$ 747.95 Million by 2033 | Astute Analytica
Oman’s air conditioner market is rapidly evolving, driven by extreme heat, technological innovations, and regulatory advancements. With a focus on energy efficiency and smart solutions, the industry is poised for explosive growth, transforming comfort while supporting sustainable development in the region.
New Delhi, March 03, 2025 (GLOBE NEWSWIRE) — As per the newest research from Astute Analytica, the Oman air conditioner market was valued at US$ 447.55 million in 2024 and is anticipated to reach US$ 747.95 million by 2033, growing at a CAGR of 5.98% during the forecast period 2025–2033.
Oman’s climate has been undergoing significant changes in recent years, with temperatures reaching unprecedented levels. In 2023, the country experienced its hottest summer on record, with temperatures in Muscat soaring to 49.6°C, surpassing the previous record by 1.2°C. This extreme heat has led to a surge in air conditioner market growth, with the average Omani household now running their AC units for 18 hours a day during peak summer months, up from 14 hours in 2020. The intensity of heatwaves has also increased, with Oman experiencing 37 days of temperatures above 45°C in 2023, compared to an average of 23 days per year in the previous decade.
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The rising temperatures have not only affected coastal areas but have also impacted inland regions. The city of Nizwa, for instance, recorded its highest-ever temperature of 48.8°C in July 2023, prompting a 22% increase in air conditioner sales compared to the previous year. This trend has led to a shift in consumer behavior, with 68% of Omani households now considering air conditioning as essential rather than a luxury, up from 52% in 2020. The demand for cooling solutions has extended beyond residential use, with commercial and industrial sectors seeing a 15% year-on-year increase in AC installations in 2023. Additionally, the healthcare sector has reported a 30% rise in heat-related illnesses over the past five years, further emphasizing the critical role of air conditioning in maintaining public health and safety. As Oman continues to grapple with rising temperatures, the air conditioner market is poised for sustained growth, with projections indicating a 7.5% annual increase in unit sales through 2028
Key Findings in Qatar Air Conditioner Market
| Market Forecast (2033) | US$ 747.95 million |
| CAGR | 5.98% |
| By Type | Ductless AC (64.10%) |
| By Technology | Variable Refrigerant Flow Systems (VRFs) (40%) |
| By Capacity | 1 to 3 Ton (~34.5%) |
| By Mode of Operation | Conventional (57.7%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Technological Innovations: Smart Cooling Solutions for the Omani Market
The Omani air conditioner market is witnessing a rapid transformation driven by technological advancements and changing consumer preferences. Smart air conditioning systems have gained significant traction, with 42% of new AC installations in 2023 featuring IoT connectivity, up from just 18% in 2021. This shift towards smart cooling solutions is supported by Oman’s increasing internet penetration, which reached 95.2% in 2023, providing a robust foundation for connected devices. The adoption of AI-powered AC units has shown promising results, with users reporting an average energy savings of 23% compared to traditional models.
The integration of renewable energy with air conditioning systems is another emerging trend in Oman. Solar-powered AC units have seen a 35% year-on-year growth in sales in the air conditioner market, driven by government incentives and increasing environmental awareness. These eco-friendly systems have proven particularly popular in rural areas, where 28% of new AC installations in 2023 were solar-powered, compared to just 7% in urban centers. The market has also witnessed innovation in cooling technologies, with the introduction of magnetic cooling systems that are 30% more energy-efficient than conventional vapor compression units. This technology is expected to capture 5% of the Omani AC market by 2026. Furthermore, the development of locally adapted cooling solutions has gained momentum, with Omani engineers creating a prototype for a sand-resistant AC unit that shows a 40% improvement in performance under dusty conditions. As the market continues to evolve, consumer awareness of these technologies is growing, with 63% of Omani consumers now considering energy efficiency as the most important factor when purchasing an AC unit, up from 45% in 2020.
Regulatory Landscape: Shaping a Sustainable Cooling Future for Oman
Oman’s government has taken significant steps to regulate the air conditioner market, focusing on energy efficiency and environmental sustainability. In 2023, the Omani Authority for Electricity Regulation (AER) implemented new Minimum Energy Performance Standards (MEPS) for air conditioners, requiring all units sold in the country to have an energy efficiency ratio (EER) of at least 11.5, a 15% increase from the previous standard. This regulation has had a profound impact on the market, with 78% of AC models available in Oman now meeting or exceeding these standards, compared to just 45% in 2021. The government has also introduced a mandatory energy labeling system, which has increased consumer awareness, with 85% of Omani consumers now recognizing and understanding these labels, up from 60% in 2020.
To further promote energy efficiency, the Omani government launched the National Energy Efficiency Program (NEEP) in 2022, which includes incentives for the adoption of high-efficiency air conditioners. Under this program, consumers in the air conditioner market can receive rebates of up to 25% on the purchase of AC units with an EER above 13, leading to a 40% increase in sales of these high-efficiency models in 2023. The regulatory framework has also addressed the issue of refrigerants, with Oman committing to phase out hydrochlorofluorocarbons (HCFCs) by 2030. As a result, 62% of new AC units sold in 2023 used environmentally friendly refrigerants, a significant increase from 30% in 2020. The government’s focus on sustainable cooling has extended to the construction sector, with new building codes requiring all commercial structures over 5,000 square meters to incorporate district cooling systems, resulting in a 30% reduction in energy consumption for these buildings. Additionally, the Oman Environmental Services Holding Company (be’ah) has implemented a comprehensive AC recycling program, which has successfully processed 85% of discarded units in 2023, up from 60% in 2021, significantly reducing the environmental impact of the AC industry.
Consumer Behavior: Evolving Preferences in Oman’s Cooling Market
The Omani consumer’s approach to air conditioner market has undergone a significant transformation in recent years, driven by a combination of climatic pressures, economic factors, and increasing environmental awareness. A 2023 survey revealed that 72% of Omani households now prioritize energy efficiency when purchasing an AC unit, a substantial increase from 53% in 2020. This shift in preference has been accompanied by a growing willingness to invest in higher-quality systems, with the average spend on AC units increasing by 18% in 2023 compared to the previous year. The demand for multi-split systems has surged, particularly in urban areas, with sales growing by 25% year-on-year as consumers seek more flexible and efficient cooling solutions for their homes.
The rise of smart home technology has also influenced consumer behavior in the AC market. In 2023, 55% of AC units sold in Oman featured smart connectivity, allowing for remote control and integration with home automation systems, up from 32% in 2021 This trend is particularly pronounced among younger consumers, with 68% of Omanis under 35 expressing a preference for smart AC systems The increasing focus on indoor air quality has led to a 40% year-on-year growth in sales of AC units with built-in air purification features in the Oman air conditioner market. Consumer awareness of the environmental impact of air conditioning has also grown, with 60% of Omani consumers now considering the type of refrigerant used in AC units as an important factor in their purchasing decision, compared to just 25% in 2020 This heightened environmental consciousness has contributed to a 30% increase in the adoption of inverter technology AC units, which offer superior energy efficiency. As Omani consumers become more sophisticated in their AC preferences, the market is responding with a wider range of specialized products, including units designed for specific room sizes and usage patterns, leading to a 15% improvement in overall customer satisfaction with AC purchases in 2023 compared to the previous year.
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Economic Impact: Air Conditioning’s Role in Oman’s Development
The air conditioner market has become a significant contributor to Oman’s economy, playing a crucial role in the country’s diversification efforts. In 2023, the AC sector accounted for 3.2% of Oman’s non-oil GDP, representing a 0.5 percentage point increase from 2020 The industry has also become a major employer, with the number of jobs in AC manufacturing, installation, and maintenance growing by 15% year-on-year, now employing over 25,000 people across the country. Local manufacturing of air conditioners has seen substantial growth, with domestic production now meeting 35% of Oman’s AC demand, up from 22% in 2020, reducing reliance on imports and contributing to the country’s industrial development
The economic impact of the AC industry extends beyond direct contributions, influencing various sectors of the Omani economy. The construction sector, for instance, has seen a 12% increase in projects incorporating advanced cooling systems, driving innovation in building design and energy management. The tourism industry in the air conditioner market has also benefited, with hotels reporting a 20% improvement in guest satisfaction scores related to room comfort following upgrades to more efficient AC systems. The growth of the AC market has spurred research and development activities, with Omani universities seeing a 30% increase in enrollment for HVAC-related engineering programs over the past three years This focus on innovation has led to the development of locally adapted technologies, such as sand-resistant filters and solar-powered cooling systems, which have potential for export to other Gulf countries. The energy sector has also felt the impact, with the implementation of energy-efficient AC systems contributing to a 7% reduction in peak electricity demand during summer months, easing pressure on the national grid Furthermore, the recycling and proper disposal of old AC units have created a new sub-sector within the waste management industry, generating an additional 500 jobs in 2023 and contributing to Oman’s circular economy goals
Future Outlook: Challenges and Opportunities in Oman’s AC Market
As Oman’s air conditioner market continues to evolve, it faces both challenges and opportunities that will shape its future trajectory. One of the primary challenges is the increasing strain on the country’s electricity infrastructure, with AC usage accounting for up to 70% of peak electricity demand during summer months. To address this, the government has set ambitious targets to improve overall energy efficiency, aiming to reduce energy consumption per capita by 30% by 2030 compared to 2020 levels This goal presents significant opportunities for the AC industry to innovate and develop ultra-efficient cooling solutions. The market for energy management systems integrated with AC units is expected to grow by 25% annually through 2028, offering potential for new entrants and existing players to expand their offerings
Climate change poses another significant challenge, with projections indicating that Oman could experience an additional 20-30 days of extreme heat per year by 2050. This scenario underscores the critical need for resilient and adaptive cooling technologies. The market for heat-resistant outdoor AC units is expected to grow by 35% annually, driven by increasing demand from industrial and commercial sectors. Additionally, the push for sustainability is opening new avenues for growth, with the market for eco-friendly refrigerants projected to double by 2027 The integration of renewable energy with cooling systems presents another area of opportunity, with solar-powered AC installations expected to grow by 40% annually over the next five years. As Oman continues to invest in smart city initiatives, the demand for IoT-enabled AC systems is set to surge, with projections indicating that 80% of new commercial AC installations will be smart-enabled by 2028 The government’s focus on localization of manufacturing presents opportunities for domestic companies to capture a larger share of the market, with local production expected to meet 50% of Oman’s AC demand by 2030 These trends, coupled with ongoing research into innovative cooling technologies such as geothermal and phase-change materials, suggest a dynamic and evolving future for Oman’s air conditioner market, balancing the need for comfort with sustainability and economic development.
Oman Air Conditioner Market Key Players:
- Daikin Industries Ltd.
- Blue Star International
- LG Electronics
- Samsung Electronics Co., Ltd.
- Hisense
- Panasonic Corporation
- Gree
- Carrier
- Midea Group
- Haier Group
- Hitachi
- Other Prominent Players
Key Segmentation:
By Component
- Compressor
- Evaporator
- Expansion Valve
- Drier/Receiver
- Condenser
- AHU (CHW&DX)
- FCU
- Chillers
- Others
By Type
- Ducted AC
- Split Central Air Conditioners
- Packaged Central Air Conditioners
- Ceiling Concealed Air Conditioners
- Rooftop Air Conditioners
- Ductless AC
- Floor Mounted Mini-Splits
- Wall Mounted Mini Splits
- Single Zone Mini Splits
- Multi-Zone Mini Splits
- Window Air Conditioners
- Portable Air Conditioners
- Cassette Air Conditioner
By Technology
- Variable Refrigerant Flow Systems (VRFs)
- Precision Air Conditioning System (PAC)
- Air-To-Water Systems (ATWs)
- Membrane Based Air Conditioning
- Thermally Driven Air Conditioning
- Hybrid Air Conditioners
By Capacity
- Up to 1 Ton
- 1 Ton to 3 Ton
- 3 Ton to 5 Ton
- 5 Ton to 10 Ton
- 10 Ton to 15 Ton
- 15 Ton to 20 Ton
- 20 Ton to 25 Ton
- 25 Ton to 30 Ton
- 30 Ton and Above
By Mode of Operation
- Conventional
- Smart
By End User
- Residential
- Commercial
- Retail
- Corporate Buildings
- Education
- Healthcare
- Others
- Government
- Industrial
By Distribution Channel
- Online
- Brand Websites
- E-commerce Websites
- Offline
- Multi-Brand Stores
- Exclusive Stores
- Distributors
- Others
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