Posted On: 2021-05-26
Commercial sector acquired the largest revenue share in Nigeria HVAC systems Market - 6Wresearch.
Nigeria HVAC systems market is anticipated to grow on account of demand from the rising construction market, where upcoming new projects under commercial, government and tourism segments, new hotels, resorts, entertainment parks domains coupled with an influx of FDI in the commercial and retail sectors. The growing number of COVID-19 cases put a halt to the various economic activities in the country. However, Infrastructure projects and investment through foreign institutional investors would propel other industries where HVAC systems are installed and utilized. Additionally, the adoption of HVAC systems advanced technologies by the businesses and government sector, establishing the regulatory framework to reduce carbon emissions in the upcoming years, would provide ample opportunities for Nigeria's HVAC system market to grow. However, a downward trajectory in the market revenues was witnessed during the year 2020 due to the Coronavirus outbreak all across the globe. The sudden halt to the economic activities ranging from construction activities to industrial manufacturing had resulted in a decline in investments across various sectors of the Nigerian economy.
According to 6Wresearch, Nigeria HVAC Systems Market size is projected to grow at a CAGR of 11.9% during 2021-27. The reduced oil prices, irregular lockdowns and curfews during the pandemic, and depleting foreign exchange reserves serve as an indirect reason for reduced revenues in 2020 for the Nigerian HVAC systems industry. However, the gradual recovery and resumption of construction projects in the country, such as the Abuja world trade center project, would boost the demand for air-conditioners in the market.
According to Navneet Aggarwal, Senior Research Analyst, 6Wresearch, among the product segments, the cooling segment acquired a major share in the overall HVAC systems market revenues in 2020 based on the increased demand for air-conditioners air-chillers, dehumidifiers from residential and commercial verticals. In the forecast period, the cooling segment would contribute further and would register higher growth rates.
According to Ramit Behl, Research Associate, 6Wresearch, by application, the commercial sector holds the huge market share in the country due to the growing urbanization and increasing construction activity in the region, such as construction of industrial parks, tech-parks, SEZs, the Abuja World Trade Center project these activities would open up more avenues for this market in the upcoming years. Additionally, consumers' preference to improve their lifestyle would be another driving factor for the growth of the HVAC systems market.
According to Aviral Khare, Research Associate, 6Wresearch, "the Nigerian road to recovery is on track, regions of the Nigerian HVAC system market has been segmented into Northern, Western, Mid-Eastern and Eastern states. The Northern and Western states acquired a major share in the overall Nigeria HVAC systems market revenues. They would take the lead to maintain its pre-eminence over the coming period as well. The primary reason cited for the dominance of these regions is the upcoming construction projects launched by the tourism ministry in cities such as Benin city and Abonnena Awka project in the real estate sector. Further, the adoption of advanced technologies in HVAC systems and the bilateral agreements with American and Chinese companies and their governments would augment the exchange of technical know-how to Nigerian manufacturers of HVAC systems, increasing the demand for Nigeria HVAC systems in the upcoming years.
Nigeria HVAC system Market (2021-2027F) report provides an in-depth analysis with 14 figures and 7 tables, covered in 74 pages. The report estimates and forecasts the Nigeria HVAC systems market by types, regions and verticals. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers, which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.