Growth is minuscule in light of the size of the region’s HVACR industry
By Fatima de la Cerna

For the year 2013, the global market size for variable speed drives (VSDs) was USD 839.4 million. This figure, the author of a market intelligence report published by BSRIA has predicted, could increase by 28.8% and reach USD 1081.2 million by 2018, as a result of relevant legislation and more widespread awareness of the need for energy efficiency.

In the Middle East and Africa, however, interest in VSDs is not as evident, Gambi Chiang, the author, has said. Chiang is Senior Manager for Special Projects at BSRIA. According to the report, in terms of VSD sales for HVACR application, fewer than 60,000 units are sold per year, which translates to around USD 33 million in annual sales and an annual growth rate of 5.6% — small numbers considering how big the HVACR industry in the region is. If current behaviour continues, the report has forecasted that the market size of the region in 2018 would only be USD 44 million.

By comparison, Europe, the largest market for 2013, saw its sales hit USD 304.2 million and is expected to see that number grow to USD 390 million by 2018.

In the report, Chiang has cited the Middle East’s and Africa’s high ambient temperatures as a factor affecting the implementation of drives and has observed that “standard products may, in fact, not be suitable for the specific environment”.

In her report, Chiang has said that though the Middle East and Africa are lagging behind, the UAE, Saudi Arabia and South Africa are showing considerable concern for efficiency-related issues.

Chiang has expressed optimism about the sector’s future in the region. During an exclusive telephone conversation with Climate Control Middle East, she said that while VSD penetration was lowest in the Middle East and in Africa, the region should not be dismissed. “The market is not huge there at the moment,” she said, “but the region’s sizeable HVACR industry gives it a lot of potential.”

Other than industry size, Chiang said during the interview, she had identified new development projects as another possible growth driver. “Opportunities,” she said, “can be found in the niche new high-end developments that aim for Green Building certificates, such as the LEED Certification or the Pearl Rating System.”