In terms of revenue, the Global District Cooling Market is expected to reach USD 37.2 Billion by 2028, growing at a CAGR (Compound Annual Growth Rate) of 6.20% from 2022 to 2028.
A centralized cooling energy distribution system is called District Cooling. It is primarily utilized for space cooling in workplaces, residences, and commercial buildings. Insulated pipes are used to distribute chilled water around buildings to cool their interior spaces. The demand for energy-efficient refrigeration technology among enterprises and rising environmental awareness are two factors contributing to the market growth for district heating.
Key Developments in the Industry
· In February 2022, the Peninsula, the largest mixed-use development in Business Bay, Dubai, will get 10,915 RT (RT) of DC electricity thanks to a contract between Select Group and Emirates Central Cooling Systems Corporation (Empower), the largest cooling service provider in the world.
· For the Punggol Digital Area (PDD), Singapore's first smart enterprise and operate district that combines a national university, business park, and community facilities, JTC Corporation (JTC) selected ENGIE South East Asia to design, develop, and own an underground DC System (DCS). The DCS plant will be able to cool 8,000 four-room HDB flats with its about 30,000 refrigeration tonnes of cooling capacity.
The environment is negatively impacted by global warming. Trees are flowering earlier, rivers and lakes' ice is breaking earlier, and glaciers have diminished. Over the past century, the atmospheric concentrations of carbon dioxide (CO2) have risen due to burning fossil fuels like coal and oil.
The clearing of land for industrial and agricultural purposes, as well as other human activities, has increased the concentration of dangerous greenhouse gases. As a result, temperatures have risen, contributing to global warming's effects. The National Oceanic and Atmospheric Administration (NOAA) estimates that over the previous 100 years, the average world temperature has risen by around 0.8°C. 1,300 experts from the United States and other countries make up the Intergovernmental Panel on Climate Change (IPCC), which predicts a temperature increase of 2.5°F to 10°F over the coming century. Thus, as global warming progresses, there is inevitably a greater demand for cooling.
Due to the hot climate, with temperatures ranging from 35°C to 55°C, the Middle East, particularly the GCC, is anticipated to be a significant location for the market. Due to the harsh temperature, the UAE Government estimates that over 70% of the electricity consumed in Dubai is for air conditioning. By 2030, the city wants 40% of its cooling needs to be satisfied by DC systems. The city's power plants should consume 50% less energy than conventional air conditioning. Therefore, it is projected that a High Number of Installations in the Middle East will Fuel Market Growth.
During the forecast period, the District Cooling Market in North Americais anticipated to develop at the quickest rate.Due to its hot climate, the North America have considerable market potential. Key service providers in the Middle East & Africa include Emirates Central Cooling Systems Corporation (EMPOWER), Emirates District Cooling (Emicool), Marafeq Qatar, and Tabreed.
The North America have a sizable number of cooling systems installed by the UAE. In the UAE, a number of high-end luxury hotels and corporate facilities, including malls and restaurants, have implemented DC systems. Their use for commercial and private purposes has grown as well. The Regulation and Supervision Bureau (RSB), established by the UAE government, is researching ways to encourage and oversee DC in the nation. Additionally, the Dubai Integrated Energy Strategy 2030 (DIES) was developed, and it targeted DC technology to advance energy efficiency.
The Global District Cooling Market is segmented as follows
- Production Technique
- Free Cooling
- Absorption Cooling
- Electric Chillers
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
List of the Key Players of the Global District Cooling Market is
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)
The Global District Cooling Market Scope can be Tabulated as below
|Market Size Provided for Years||2017 - 2030|
|Historic Years||2017 - 2021|
|Forecast Years||2023 - 2030|
|Regions & Counties Covered||
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis|