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.
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.
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 Region and Country:
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.
The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.
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:
A list of some of the key suppliers present in the market are:
Report Coverage and Highlights
|Historical data available for||2017-2021|
|Market analysis||USD Million for Value and Tons for Volume, and CAGR from 2022 to 2032|
|Key regions covered||North America, Latin America, Europe, Asia-Pacific, Middle East, and Africa|
|Key countries covered||US, Canada, Brazil, Mexico, Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Saudi Arabia, Turkey, UAE, South Africa, Nigeria, Egypt|
|Key segments covered||By Technology, End-user, and Region|
|Customization scope||Available upon Request|
|Pricing and purchase options||Available upon Request|
Frequently Asked Questions
In the forecast period between 2022 and 2032, the market is expected to grow at a CAGR of 4.7%.
The market is expanding due to rising environmental consciousness and manufacturers’ shifting preferences from traditional to energy-efficient cooling technologies.
Major global District Cooling Market players 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, Danfos, Veolia, Enwave Energy Corporation, Keppel Corporation Limited, Ramboll Group, Singapore Power Ltd., Vattenfall, SNC-Lavalin .
Construction of facilities, installing several pipeline networks, and providing new connections to customers all have high upfront costs and demand substantial financial support. As a result, insufficient knowledge of these systems in many developing nations and expensive starting costs will restrain market expansion.
The MEA region is expected to account for the largest market revenue share in the Global District Cooling market.
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