Cooling Equipment Leads Saudi Thermal Products Market as Urban Growth Fuels Demand

According to the latest market research study published by P&S Intelligence, the Saudi Arabia thermal products market is projected to grow steadily, reaching an estimated USD 429.1 million in 2024, with a CAGR of 3.0% leading to USD 509.7 million by 2030. These products—ranging from cooling and heating equipment to compressors, thermal interface materials, and heat-transfer components—are key to managing temperature across high-growth sectors such as oil & gas, construction, IT & telecom, and consumer electronics.

Driven by rapid infrastructure expansion and intensified oil & gas operations in regions like Riyadh (the largest province) and Makkah (fastest-growing), the market benefits from supportive government investments and rising demand for energy-efficient thermal systems. Additionally, technological advancements in cooling equipment are enabling improved thermal management in critical facilities, aligning with Saudi Arabia’s Vision 2030 goals to enhance industrial efficiency and reduce energy consumption.

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Key Insights

• The market is fragmented, with no single powerhouse dominating the landscape and numerous small-to-mid-sized players competing on pricing and performance.
• Segmentation reveals cooling equipment as the largest product category, reflecting strong demand in HVAC systems across residential and commercial infrastructure.
• The product mix also includes liquid cooling systems, thermoelectric cooling, compressors, heating equipment, thermal interface materials, and heat transfer components, catering to diversified industrial and consumer applications.
• Regional breakdown:
• Al‑Riyadh stands out as the largest market, suggesting concentrated industrial and urban cooling needs.
• Makkah shows the fastest growth, likely driven by seasonal demand spikes and hospitality infrastructure expansion.
• Government regulation—such as energy efficiency standards—and rising awareness of carbon reduction targets are pushing manufacturers to offer more sustainable and low‑GWP (global warming potential) thermal solutions.
• Technology trends: innovation in cooling systems (e.g., advanced liquid-cooling and thermoelectric modules) is enhancing thermal control in high-density data centers and telecommunications sectors.
• Competitive dynamics: Companies are optimizing their value chains through partnerships, pricing strategies, and localized production to strengthen market foothold.
• Future opportunities:
• Increasing energy demand in mega‑projects (e.g., NEOM, Red Sea Development) opens doors for customized thermal systems.
• Rising need for thermal interface materials in electronics manufacturing and oil & gas plant modernization.
• Potential growth in service and maintenance segments for installed cooling/heating systems.