District Cooling Market

District Cooling Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global District Cooling Market grew at a CAGR of 3.9% between 2017-2021 and is estimated to be US$ 22,146.8 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 4.7% and is expected to reach a valuation of US$ 35,057.2 Mn by 2032 end.

Throughout the projected period, The district cooling market is driven by increasing awareness of environmental protection and changing manufacturers’ preferences from conventional to energy-efficient refrigeration technology.

Market Dynamic

GROWING CONCERN FOR THE GLOBAL ENVIRONMENT WILL BOLSTER THE MARKET

Global warming has been reported as a severe and potentially irreversible problem. Its effects are anticipated to be painful and harmful to man, livestock, plants and animals, marine life, and the overall environment. A rise in global temperatures is not necessarily a bad thing. However, rising temperatures can hurt our environment without proper measures. Global warming mainly happens when large concentrations of greenhouse gases such as carbon dioxide (CO2) are released into the atmosphere. This change causes more heat to be trapped by air in the Earth’s atmosphere than previously existed.

HIGH DEMAND AND LACK OF AWARENESS FOR THE PRODUCT  HAMPER THE MARKET GROWTH

DC Services products are new and not widely known due to the lack of awareness of the technology applications, benefits, and savings. Most potential customers are unaware of existing refrigeration costs. Therefore, understanding the product applications, corporate reputation, and cooperation with city planning plays an important role in developing the DC market. The initial costs of constructing facilities and laying multiple pipeline networks are significant and require large financial support; therefore, high initial investments will hamper the market growth.

THE RISE IN DC PROJECTS IN  MIDDLE EAST WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

The Middle East, especially the GCC, is expected to be a prominent region for the market due to hot climatic conditions with temperatures ranging between 35°C and 55°C. According to the UAE Government, Dubai air conditioning represents over 70% of electricity consumption due to extreme weather conditions. The city aims to meet 40% of its cooling requirements through DC systems by 2030. Power plants in the city are expected to use 50% less electricity than standard air conditioning. Policy-imposed targets and rapidly increasing demand for energy-efficient cooling technology are major drivers of this market in the Middle East.

COVID-19 Impact

The COVID-19 pandemic has hit the global economy so hard that it has affected several economic sectors, such as aviation, manufacturing, and hospitality. COVID-19 has heavily burdened the industry, especially mega DC systems. A significant drop in demand for cooling systems from hotels and shopping malls has adversely affected the market. Due to reduced demand, these system suppliers face enormous challenges, further increasing production costs and resulting in a poor return on investment. Many companies have introduced innovative cooling methods to curb the spread of coronavirus. The market value might not catch up to the pre-COVID-19 value until 2027.

Market Segments Covered in Report

By Technology:

• Electric Chillers
• Absorption Chillers
• Others

By End-user:

• Residential
• Industrial
• Commercial

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why are Reliable Coefficient of Electric Chillers projected to ensure the most revenue during the forecast period?

The reliable Coefficient of Electric Chillers held the largest revenue share with 55.0% of the market. Large-scale projects can be finished quickly and effectively by organizations with the usage of a variety of DC technologies. Among the well-known technologies are electric and absorption chillers. However, because of their superior coefficient performance, electric coolers are recommended. These chillers are more widely accepted because they use up 50.0% less floor space than absorption chillers. Using absorption chillers in the energy system helps cut back on the amount of cooling powered by electricity while also lowering carbon dioxide emissions.

Why is the Commercial segment expected to expand the fastest during the forecast period?

In 2021, the commercial sector commanded a sizable market share. This system is mostly utilized in commercial structures, such as offices, retail stores, government buildings, institutions, and organizations. Due to the rise in global temperatures, the system has become a crucial component of commercial structures. In addition, Qatar will host the FIFA World Cup in 2022, making it the first time a Gulf country has hosted such a major event.

As a result, significant infrastructure investments are anticipated, which should fuel the growth of the district cooling market. Due to the rising demand for air conditioning in residential buildings, HVAC systems are in high order. According to projections, the residential segment will exceed $1 trillion by 2025 due to a significant number of residential development projects and rising public knowledge of renewable and efficient energy sources.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• In 2021, the MEA market held a sizeable revenue share of 37.4%. Various high-end luxury hotels and business centers in the UAE, such as shopping malls and restaurants, have implemented DC systems. Their private and industrial use has also increased. The UAE government has formed the Regulation and Supervision Bureau (RSB), which studies methods of promoting and regulating DC in the country. It also formulated the Dubai Integrated Energy Strategy 2030 (DIES), which identified DC technology to promote energy efficiency.
• There have been numerous regulatory and programmatic initiatives in North America to improve energy efficiency in both new and existing buildings. According to TERI, guidelines for energy-efficient retrofits of existing buildings result in energy savings of 20.0% to 40.0%, increased energy security, decreased emissions of hazardous gases, and reduced demand for new energy generation and distribution. In North America, towns and colleges are served by almost 400 systems, according to the International District Energy Association (IDEA).

Competition Analysis

Major corporations are utilizing organic and inorganic development tactics to strengthen their position in the market by diversifying the products they provide.

Some of the key developments that have taken place in the District Cooling Market include:

• In December 2021, JTC Corporation (JTC) appointed ENGIE South East Asia to operate the district business park and community facilities for the Punggol Digital District (PDD), Singapore’s first smart enterprise. The DCS facility will be able to cool about 30,000 four-room HDB units.
• In February 2022, The Peninsula, the largest mixed-use complex in Birmingham, received 10,915 RT (RT) of DC electricity from Emirates Central Cooling Systems Corporation (Empower), the largest cooling service in the world.

A list of some of the key suppliers present in the market are:

• ENGIE
• National Central Cooling Company PJSC
• Emirates Central Cooling System Corporation
• Emirates District Cooling LLC
• Marafeq Qatar
• Stellar Energy
• ADC Energy Systems LLC
• Shinryo Corporation
• Logstor A/S
• Danfoss
• Veolia
• Enwave Energy Corporation
• Keppel Corporation Limited
• Ramboll Group
• Singapore Power Ltd.
• Vattenfall
• SNC-Lavalin

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.