District Cooling Market

Market Synopsis

Global District Cooling Market is valued at USD 26.55 Billion in 2022 and is projected to reach a value of USD 42.96 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 6.20% over the forecast period.

District Cooling systems provide chilled water and space cooling to customers. Some locations having District Cooling systems include homes, shopping centers, hotels, restaurants, cold storage facilities, workplaces, companies, campuses, and military complexes. The need for District Cooling is being driven by the rising population in developing nations, the growth of new residential construction, a rise in disposable income, and the quickening growth of the real estate market. A significant element anticipated to fuel demand for District Cooling systems is growth in urbanization and industrialization. Due to its advantages over alternative cooling technologies, including cost-effectiveness, energy efficiency, and operational simplicity, District Cooling is favored. Municipalities and building owners can benefit exclusively from district cooling, which improves the structure's functionality. The adoption of sustainable technologies will be encouraged by growing worries about global warming and by regulatory initiatives specifically geared toward energy efficiency. Strict government standards and regulations will fuel the industrial need to minimize greenhouse gas (GHG) emissions and climate change and adopt plans and strategies to assure energy efficiency. Strong investments in the creation of sustainable technology and a change in attitudes toward the use of renewable resources will have a favorable impact on market statistics.

Market Segmentation

The District Cooling Market is segmented on Application, Product Technique, and Region. Based on Production Techniques, the market is further segmented into Electric Chillers, Free Cooling, and Absorption Cooling. In addition, based on the Applications, the market is further bifurcated into Commercial, Residential and Industrial. Furthermore, based on the Region, the Global District Cooling Market is further divided into North America, Europe, Asia Pacific, Latin America, Middle East & Africa.

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Based on Application

The commercial category dominated the market in 2021

Based on application, the market is segmented as Commercial, Residential and industrial. The commercial segment holds the largest share in the market. District Cooling systems will become increasingly in demand across the business sector because of rapid industrialization, urbanization, and increased investments in new manufacturing facilities. Along with the continued construction of offices and hotels, the growing demand for space cooling across SEZs, colleges/universities, and government buildings will also impact the industry's growth. Additionally, deploying green building structures and establishing strict building emission regulations would encourage the use of products in commercial applications.

Based on Production Technique

The electric Chillers category dominated the market in 2021

Based on product type, the market is segmented as Electric Chillers, Free Cooling, and Absorption Cooling. The District Cooling industry's electric chillers market is anticipated to be the largest over the anticipated time frame. When combined with thermal energy storage, electric chillers can use renewable energy to store chilled water for large-scale operations (TES). The District Cooling Market's electric chillers segment is anticipated to increase because of these factors.

Based on Regional Analysis

North America is expected to register a significant share in the market during the forecast period.

North America is estimated to dominate the market with the highest CAGR during the forecast period. The industry statistics will increase due to the widespread use of commercial building constructions and increased efforts to use energy-efficient DC systems. Rising investments will further aid product penetration in the region through sustainable technology and ongoing government initiatives to integrate renewable energy sources and decarbonize the energy sector. However, the market revenue will be supported by implementing government programs to encourage the use of district energy systems.

Competitive Landscape

The key players in the District Cooling Market include- Emirates Central Cooling System Corporation (UAE), National Central Cooling Company PJSC (UAE), Emirates District Cooling LLC (UAE), Shinryo Corporation (Japan), ADC Energy Systems LLC (UAE) and others.

Recent Development

· In January 2017, Tab reed announced the acquisition of a District Cooling plant from International Capital Trading. The acquisition will enable Tab reed to strengthen its portfolio and add 11,500 RT to its existing production capacity.

· In April 2016, empower plans to construct a third District Cooling facility in Dubai’s Business Bay neighborhood through a USD 50.6 million contract with Gulf District Cooling. This development is expected to increase the company’s production capacity.

Segmentation of District Cooling Market