Global District Cooling Market Share, Size, Trends, Industry Analysis Report, By Production Technique (Free Cooling, Absorption Cooling, Electric Chillers); By Application (Commercial, Residential, Industrial); By Region; Segment Forecast, 2023 - 2032
- Published Date:Jul-2023
- Pages: 114
- Format: PDF
- Report ID: PM2432
- Base Year: 2022
- Historical Data: 2019-2021
Report Outlook
The global district cooling market was valued at USD 965.2 million in 2022 and is expected to grow at a CAGR of 3.6% during the forecast period.District cooling (DC) systems are centralized air-conditioning systems that produce and distribute chilled water to buildings, offering economies of scale and improved efficiency. These systems are more reliable, efficient, and environmentally friendly than in-building air-conditioning stations. The piping network of district cooling systems distributes chilled water or a secondary fluid to consumers, including residential, commercial, industrial, or other users needing chiller water for comfortable air-conditioning or process cooling systems.
To Understand More About this Research: Request a Free Sample Report
District cooling systems have a higher capital cost than central air-conditioners, but they offer higher energy efficiency, especially in densely populated areas with high cooling loads per surface area and diversified use. When only a few rooms in a building require air-conditioning, individual air-conditioners may be more suitable. The density of the cooling load per surface area is usually the deciding factor. While it is not generally practical to use district cooling for all buildings, it is often a viable option for one or more buildings in a heavily populated area.
Industry Dynamics
Growth Drivers
The District Cooling market is also anticipated to witness steady growth in the forecast period, as it offers a centralized and more efficient cooling solution for buildings and communities. District cooling systems can provide a more sustainable and cost-effective solution to cooling, particularly in densely populated areas where individual air-conditioning units may not be practical or efficient.
The growth of the district cooling market is also driven by the increasing demand for energy-efficient and sustainable cooling solutions, particularly in regions with high cooling demands and energy costs. Furthermore, advancements in technology and the development of new materials and equipment have led to the development of more efficient and reliable district cooling systems, which are expected to further drive the growth of this market.
Report Segmentation
The market is primarily segmented based on production technique, application, and region.
|
By Production Technique |
By Application |
By Region |
|
|
|
To Understand the Scope of this Report: Speak to Analyst
The Absorption Cooling Segment is Expected to Witness Fastest Growth During Forecast Period
The absorption cooling is anticipated to experience rapid growth in the forecast period, driven by factors such as the increasing demand for energy-efficient cooling solutions, favorable government regulations, and rising concerns over greenhouse gas emissions. Absorption cooling systems are an environmentally friendly alternative to traditional cooling systems that utilize electricity, as they can use various heat sources such as waste heat, natural gas, or solar energy to produce cooling. This makes them a more sustainable and cost-effective cooling solution, particularly in regions with high energy costs and limited access to electricity.
The Industrial Segment Accounted for a Substantial Revenue Share in 2022
The district cooling market has witnessed significant growth in recent years, driven by technological advancements and growing concerns about energy efficiency and environmental sustainability. Among the various segments, the industrial segment has accounted for a substantial revenue share in the district cooling market. This can be attributed to the increasing demand for district cooling systems in the oil, gas, chemical, and manufacturing industries.
The oil and gas industry, in particular, is a major contributor to the growth of the district cooling market in the industrial segment. The industry requires a significant amount of cooling for various processes, and district cooling systems have emerged as reliable and cost-effective solution for meeting these cooling needs. The chemical and manufacturing industries are also adopting district cooling systems for process cooling and air-conditioning applications.
Another factor driving the growth of the district cooling market in the industrial segment is the increasing focus on energy efficiency and sustainability. District cooling systems offer a more energy-efficient and environmentally friendly alternative to traditional air-conditioning systems, which has led to their adoption by various industries.
In terms of technology, advancements in district cooling systems, such as integrating renewable energy sources and developing smart control systems, are expected to drive further the growth of the industrial segment in the district cooling market. Using renewable energy sources such as solar and geothermal energy in district cooling systems can significantly reduce industries' carbon footprint while reducing their energy costs.
The Demand in Asia Pacific is Expected to Witness Significant Growth During Forecast Period
Regionally, the district cooling market is expected to witness significant growth in the Asia-Pacific region, driven by the increasing demand for cooling in the commercial, industrial, and residential sectors and the growing emphasis on sustainability and energy efficiency. Additionally, advancements in technology have led to the development of more efficient and reliable absorption cooling systems, which are expected to drive the growth of this market further.
Furthermore, the district cooling market in the industrial segment is expected to witness significant growth in Asia Pacific, driven by rapid industrialization and urbanization in countries such as China and India. The Middle East and Africa region is also expected to witness substantial growth, owing to several oil and gas industries.
Competitive Insight
Some of the major market players operating in the global district cooling market include ADC Energy Systems, Alfa Laval AB, Danfoss, DC Pro Engineering, Emicool, Empower, Fortum, Gas District Cooling (M) Sdn. Bhd, Keppel Corporation Limited, Marafeq Qatar, PAL Cooling Holding (PCH), Qatar District Cooling Company, Ramboll Group A/S, Shinryo Corporation, Siemens AG, SNC Lavalin Group, Stellar Energy, Tabreed, and Veolia.
Recent Developments
- In March 2022, Empower was awarded a USD 52.5 million contract to construct a district chilling plant in Dubai, which will provide eco-friendly district chilling services to the Dubai Land Residence Complex (DLRC) province in the amount of 23,500 refrigeration tonnes (RT). In November 2021, Empower agreed to acquire Dubai International Airport's district chilling, with a total capacity of 110,000 refrigeration tonnes (RT), for AED 1.1 billion, using a pair of internal accruals and debt financing from domestic and international banks in which Empower has connected strategic relationships.
- In August 2021, Empower, also known as "Emirates Central Cooling Systems Corporation," one of the nation's biggest district chilling service suppliers, has agreed to acquire Nakheel's cooling unit. This agreement states that Empower will obtain all of the investments of the concerned chilling systems, which serve over 18,000 consumers across Dubai through its 19 colling plants.
Global District Cooling Market Report Scope
|
Report Attributes |
Details |
|
Market size value in 2023 |
USD 998.7 million |
|
Revenue forecast in 2032 |
USD 1,371.5 million |
|
CAGR |
3.6% from 2023 - 2032 |
|
Base year |
2022 |
|
Historical data |
2019 - 2021 |
|
Forecast period |
2023 - 2032 |
|
Quantitative units |
Revenue in USD million and CAGR from 2023 to 2032 |
|
Segments covered |
By Production Technique, By Application, By Region |
|
Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
|
Key companies |
ADC Energy Systems, Alfa Laval AB, Danfoss, DC Pro Engineering, Emicool, Empower, Fortum, Gas District Cooling (M) Sdn. Bhd, Keppel Corporation Limited, Marafeq Qatar, PAL Cooling Holding (PCH), Ramboll Group A/S, Shinryo Corporation, Siemens AG, SNC Lavalin Group, Stellar Energy, Tabreed, and Veolia. |
FAQ's
The Global district cooling market size is expected to reach USD 1,371.5 million by 2032.
Top market players in the District Cooling Market are ADC Energy Systems, Alfa Laval AB, Danfoss, DC Pro Engineering, Emicool, Empower, Fortum.
Asia Pacific contribute notably towards the global District Cooling Market.
The global district cooling market expected to grow at a CAGR of 3.6% during the forecast period.
The District Cooling Market report covering key are production technique, application, and region.
© 2024 Polaris Market Research and Consulting. All rights reserved
