Gree Appliances eyes GCC market for growth
Gree Appliances, the Chinese giant in the heating, ventilation and air-conditioning (HVAC) industry, has registered a solid growth in its annual sales which hit 40,000 units in the first year of operation
Gree Appliances, the Chinese giant in the heating, ventilation and air-conditioning (HVAC) industry, has registered a solid growth in its annual sales which hit 40,000 units in the first year of operation, mainly driven by demand from Saudi Arabia and the UAE.
With over 800 million users in 213 countries, today Gree is one of the largest specialised air conditioner manufacturers in the world.
In the UAE, the Chinese firm sell sits unit in partnership with NIA Limited.
According to Gree, the GCC accounts for over 50 per cent of the total air conditioner units sold in Mena region, with UAE and Saudi Arabia being the biggest markets.
In 2015, the total number of units exported from China to Saudi Arabia were in excess of 2.8 million, of which Gree’s share exceeded 909,000 units. While the UAE consumed 907,000 units in total during the same period, with the company servicing 213,000 units of the total demand.
According to recent reports, the GCC market is projected to grow at a compounded annual growth rate (CAGR) of 7.4 per cent until 2016. Extreme climatic conditions, rising disposable income, growing construction activities in both commercial and residential sectors, coupled with various government initiatives aimed at improving energy efficiency, are key drivers spurring growth.
On Gree’s regional presence, Zakir Ahmed, the managing director of NIA Limited UAE, said: "We expect continuity in growth, despite the current soft landing across economies, since Gree serves the tier-2 segment of the Mena market. This will be crucial to our performance, especially as the current market sentiments will entail more discerning clients with greater price differentiation."
Founded 22 years ago, the young China-based Company is today recognized as a major ‘fully integrated’ manufacturing player in the industry.
Not only does the Middle East constitute one of the largest HVAC markets in the world, it also generates the highest demand, stated Kevin Bai, the deputy general manager for Gree Global Sales.
“With the global HVAC market expected to generate over $68.93 billion at an estimated CAGR of 4.34 per cent from 2016 to 2022², our aim is to dominate the global air conditioning market by pursuing ‘technology-oriented diversified development, with focus on energy efficiency,” he added.