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 (compound annual growth rate) of 9.4 per cent during 2015-21, a report said.
The kingdom’s building automation market is highly fragmented where a large number of domestic and international players are active, added the new study titled “Saudi Arabia Building Automation and Control Market (2015-2021)” from 6Wresearch, a top market intelligence and advisory centre.
Driven by the need for energy management, increasing infrastructure spending, demand for advanced electronic security systems, and growing awareness of the need have led to the adoption of building automation and control systems.
Rajat Kharbanda, senior consultant, Research and Consulting, 6Wresearch, said: “Residential, hospitality and healthcare and retail are the major revenue contributing verticals in the overall market. Also, increasing demand for energy management in the residential vertical would further stimulate the growth of the market.”
“The increasing tourist numbers has driven the need to construct new hotels across the country, which is resulting in the deployment of physical security systems, air-conditioning units, elevators, etc,” Kharbanda added.
Shefali Goel, research associate, Research and Consulting, 6Wresearch, said: “The central and western regions are the key revenue-generating regions in the building automation and control market. Increasing investments, rise in infrastructure, the growing IT sector, and establishment of several industries in these regions have contributed to their growth.”
“Air-conditioners, elevators and escalators, fire and 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 a relatively higher CAGR than other segments,” Goel concluded.