Market Trends of Middle-East Fans and Blowers Industry
This section covers the major market trends shaping the Middle-East Fans & Blowers Market according to our research experts:
Oil and Gas Industry to Witness Significant Growth
- The Middle East region's oil and gas industry is anticipated to witness a significant increase in demand for fans and blowers in the coming years on account of robust growth in infrastructure. The industries in the oil and gas sector, such as exploration and production, are growing healthy in the Middle Eastern region, and the growth is likely to continue in the coming years.
- The fans and blowers in the region are imported majorly from countries, such as China, India, Italy, Germany, and the United States. The significant companies supplying fans and blowers in the region include Howden, Gardner Denver, and Jeddah Filters.
- The governments in the region, especially in Saudi Arabia and the United Arab Emirates planned to diversify the industrial sector to reduce the dependency of the economy on the upstream oil and gas sector, which is likely to result in the development of industrial projects, thereby leading to surge in demand for fans and blowers.
- In 2021, the state-owned firm in Saudi Arabia, Saudi Aramco, planned to invest more than USD 100 billion in the development of new refining and chemicals projects over the next decade, as the company envisages balancing its business between upstream and downstream operations. This is expected to result in massive augmentation in refinery and petrochemical infrastructure in Saudi Arabia, thus, bolstering the demand for fans and blowers.
- The oil and gas production in the Middle Eastern region has been growing considerably over the years. However, the OPEC agreements artificially produced oil and gas, which has decreased production. According to BP Statistical Review of World Energy 2022, the crude oil production n in the Middle Eastern region accounted for 28,156 thousand barrels per day in 2021, i.e. decrease of about 2% when compared to the previous year's value (27,609 thousand barrels per day).
- Therefore, based on the factors mentioned above factors, the oil and gas industry is expected to witness significant growth in the Middle East fans and blowers market during the forecast period.
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United Arab Emirates to Witness Significant Growth
- The United Arab Emirates is estimated to hold the 7th largest proven oil and natural gas reserves globally and a significant producer of natural gas, ranking 10th in the world in overall production as of 2021.
- As of 2021, the United Arab Emirates was the sixth-largest crude oil producer and the fourth-largest petroleum liquids producer in the Organization of the Petroleum Exporting Countries (OPEC). The oil and gas sector is critical to the United Arab Emirates economy, contributing significantly to the country's revenue. According to OPEC Annual Statistical Bulletin 2022, the crude oil production in the country accounted for about 2,718 thousand barrels per day in 2021, i.e., a decrease of about 2.2% compared to the previous year's value (2,779 thousand barrels per day).
- With the growing demand for natural gas for power generation, the country, through its national oil company, ADNOC, developed a 2030 Integrated Strategy, which aims at providing a cost-effective method for increasing exports. With the company strategizing to increase the export, the demand for natural gas refining plants is expected to increase, thereby, likely propelling the market growth.
- Furthermore, ADNOC plans to invest in the downstream sector as part of the 2030 Integrated Strategy. It has embarked on an ongoing effort (USD 45 billion) to upgrade its downstream operations, leveraging its pre-existing assets and new downstream investments to strengthen its market share and enhance corporate sustainability.
- ADNOC plans to grow its joint venture with Borealis and the Abu Dhabi Polymers Company Ltd (Borouge). The joint venture of these three companies is expected to construct one of the world's largest mixed-feed crackers at Borouge's integrated polyolefins facility, which is projected to expand the production capacity from 4.5 million t/y in 2016 to an estimated 14.4 million t/y by 2025.
- The UAE mining industry is very much confined to the exploration of rocks and sand for manufacturing building rocks and cement for construction purposes. The mining sector in the United Arab Emirates has the potential to attract investors for its long list of minerals, ranging from copper mines and gypsum to the extraction of metals and valuable stones.However, these potential investments are expected to present an excellent opportunity for the fans and blowers market players during the forecast period.
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