Saudi Arabia’s rising infrastructure in the residential, hospitality and retail segments will play a key role in driving the kingdom’s automation and control market to grow at a CAGR of 9.4 per cent during 2015-21, a report said.
Saudi Arabia building automation market is highly fragmented where large number of domestic and international players are providing their products in the country, added the new study titled “Saudi Arabia Building Automation and Control Market (2015-2021)” from 6Wresearch, a top market intelligence and advisory center.
Driven by need for energy management, increasing infrastructure spending, demand for advanced electronic security systems, and growing awareness have led for adoption of building automation and control systems.
Rajat Kharbanda, senior consultant, Research and Consulting, 6Wresearch, said: “Residential, hospitality & healthcare and retail are the major revenue contributing verticals in the overall market. Saudi Arabia is witnessing significant infrastructure development activities in these verticals, which has spurred the market. Also, increasing demand for energy management in the residential vertical would further stimulate the growth of the market.”
“Moreover, increasing number of foreign tourists has driven the construction of new hotels across the country, which is resulting into deployment of physical security systems, air conditioning units, elevators, etc. With the changing government policies, many new companies from different industries are entering in the country to explore business opportunities, which is leading to the construction business parks and industrial hubs,” Kharbanda added.
Shefali Goel, research associate, Research and Consulting, 6Wresearch, said: “Central and western regions are the key revenue generating regions in the building automation and control market. Increasing investments, rise in infrastructure, growing IT sector, and establishment of several industries in these regions have contributed for their growth. Riyadh, Jeddah, Makkah and Madinah have led for the growth of these regions.”
“In building automation market, air conditioners, elevators & escalators, fire & safety and video surveillance segments have dominated the market and would lead through the forecast period. Over the next six years, segments such as video surveillance systems and lighting controls are expected to grow with relatively higher CAGR than other segments,” Goel concluded.
Some of the companies in Saudi Arabia building automation and control market include – Axis Communication, Bosch Security System, Pelco, Honeywell, Zamil Air Conditioners, Al Salem Johnson Controls (YORK), KONE Areeco, Schindler Olayan, ThyssenKrupp AG, Mitsubishi, Tyco Fire & Security, United Technologies, SFFECO and Naffco, according to the report.