District Cooling Market Research Report‚ÄĒGlobal Forecast till 2030

District Cooling Market Research Report Information By Production Technique (Free Cooling, Absorption Chillers, Electric Chillers) Operations (Storage, Distribution, Production) End User (Residential, Commercial, Industrial) Forecast 2030

ID: MRFR/E&P/9572-HCR | February 2023 | Region: Global | 120 Pages         

District Cooling Market

District Cooling Market is expected to grow USD 51.7 billion at a CAGR 7.3% during the forecast period 2022-2030

Segmentation
By Production Technique Free Cooling Absorption Chillers Electric Chillers
By End User Residential Commercial Industrial
Key Players
Companies Profiled    Veolia (France)    Danfoss (Denmark)    Emirates District Cooling    LLC (EMICOOL) (UAE)    Shinryo Corporation (Japan)    Alfa Laval AB (Sweden)    ADC Energy Systems LLC (UAE) Daikin Industries Ltd (Japan)    National Central Cooling Company PJSC (TABREED) (UAE)
Drivers
Market Driving Forces   Rising urbanization and industrialization in emerging nations Increasing demand for renewable and environment-friendly cooling technology Increasing adoption due to rising temperatures
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The Global District Cooling Market size is projected to be worth USD¬†51.7 billion by 2030, registering a CAGR of 7.3% during the forecast period (2022‚Äď2030).


District Cooling Market Overview


District cooling is a sophisticated, energy-efficient method of air conditioning a network of buildings in cities or on college campuses. Central cooling plants hold huge, high-efficiency industrial-grade equipment that generates chilled water for distribution to client buildings via an insulated subterranean pipe network. District cooling is a vital part of energy infrastructure in cities across the world, helping to relieve strain on the electric grid caused by rising air conditioning demand. District cooling provides chilled water to workplaces, retail malls, residences, and other structures that require interior cooling.


COVID-19 Impact on the Global District Cooling System (DCS) Industry:


Despite the sector's tremendous expansion in previous years, the COVID-19 outbreak put a stop to a number of commercial operations and initiatives. Pandemics that caused lockdowns throughout the world compelled numerous businesses to shut down, including aviation, hotels, and commercial commerce. The global district cooling market saw a negative impact on demand across all regions during the pandemic, resulting in a reduction in global district cooling market growth.


However, district cooling market participants foster potential new behaviors and social forms in order to sustain the market and stay ahead of the competition. In order to mitigate the impact of the pandemic, industry actors have implemented a variety of hygienic measures and policies. While the lockdown has been eased, there has been a huge surge in demand for district cooling systems as economic activity returns to its previous condition. A District Cooling Plant concept has gained popularity as people become more conscious of the need for energy saving. District cooling sales are expected to increase as the need for energy-efficient solutions grows to meet the current development boom.


District Cooling Market Dynamics




  • Key Drivers




    • Rising urbanization and industrialization in emerging nations

    • Increasing demand for renewable and environment-friendly cooling technology

    • Increasing adoption due to rising temperatures



The global deployment of district cooling systems has been driven by rapidly rising temperatures and the proven viability of district cooling plants over time. As temperatures in tropical and hot climatic zones rise, so does the demand for efficient and effective cooling systems for personal comfort. Throughout the year, humid air and high temperatures dominate the environment around the tropics, resulting in a high energy demand for lowering air temperature and dehumidifying the air. 


Middle Eastern countries are among the most sought-after markets for district cooling systems. With temperatures rising dramatically, especially during the summers, the sub-region has hot climatic conditions with temperatures ranging from 35¬įC to 55¬įC. Due to the harsh weather conditions in Dubai, air conditioning accounts for more than 70% of total power use. As a result, the city intends to cover 40% of its cooling needs through district cooling by 2030. The greatest district cooling projects in terms of capacity were completed in Qatar, Kuwait, and the United Arab Emirates. Qatar, The Pearl-Qatar's district cooling plant has a total cooling output of 450 MW and appears to be the world's largest integrated district cooling system so far. Policy-imposed objectives, technology developments, and a rapid growth in demand are primary drivers of the Middle East district cooling industry. The Saudi district cooling market is also predicted to expand rapidly throughout the forecast period. With increasing global temperatures on a global basis, the demand for Global District Cooling Market is expected to boom during the forecast period.




  • Key Restraints




    • Slow returns on investments

    • High initial cost of installation



District cooling systems are both capital and time-intensive, necessitating careful planning. The installation of the distribution network is quite expensive. A vast centralized production and distribution infrastructure is required for district heating and cooling. District cooling necessitates a large-scale centralized cooling production and delivery network. As a result, it necessitates significant capital expenditures for manufacturing and delivery. Different manufacturing technologies are employed to achieve optimal operational expenditures through a centralized facility. A distribution network is established with approximately half of the initial investments. The initial expenditures of building facilities, installing various pipeline networks, and supplying additional connections to clients are high and need substantial financial backing. As a result, manufacturing and distribution costs are high. As a result, the initial capital needs for district cooling systems are likely to limit the worldwide market growth.




  • Key Opportunity




    • Rapid population growth and commercialization

    • Increasing need for energy-efficient cooling technologies



A District Cooling Plant concept has gained popularity as people become more conscious of the need for energy saving. The demand for energy-efficient solutions to satisfy the economy's continuous infrastructure expansion is expected to drive up district cooling sales. It is also a dependable and secure source of cooling. District cooling has the potential to cut cooling energy use by 50%. The district cooling sector is expected to benefit from the continued deployment of feasible and sustainable cooling systems to meet energy-saving objectives, as well as increasing manufacturing of sustainable building solutions. District cooling systems use 20 to 30% less energy than the most energy-efficient traditional cooling solution and 60 to 80% less energy than the average conventional cooling system.


Furthermore, district cooling can cut peak electricity capacity by up to 30% on average. A novel invention that enhances the energy efficiency of District Cooling Systems (DCS) has proved that it may increase energy carrying capacity by up to three times when compared to a standard chilled water storage system, while saving more than 10% in yearly costs. This Thermal Energy Storage (TES) technological solution employs a novel Phase-Change Material (PCM) capable of storing and releasing cold energy as it transitions between liquid and solid phases. In a district cooling plant, the stored cold energy is progressively released to reduce cooling peak demands in commercial buildings. Furthermore, the increasing use of renewable technologies, along with strong regulatory requirements to decrease pollution, will drive development in the Global District Cooling Market.


District Cooling Market Segmentation


Market Outlook By Production Technique


Free Cooling, Absorption chillers, and Electric chillers are the types of production techniques used in the Global District Cooling Market. The Electric chillers segment is the largest market segment and is expected to grow substantially during the forecast period. Electric chillers provide an uninterrupted supply of cooling services, making them the preferable alternative for buildings that require temperature adjustment throughout the day. They are effective for large-scale activities.


Market Outlook By Operation


Storage, Distribution, and production are the segments by operations of the Global District Cooling Market. The distribution segment is the largest market segment and is expected to grow substantially during the forecast period. With the growing need for cooling systems in various facilities, the distribution network of district cooling systems will see a substantial increase.


Market Outlook By End-User


Residential, Commercial, and Industrial are the segments by end-user of the Global District Cooling Market. The Commercial segment is the largest market segment and is expected to grow substantially during the forecast period. Rapid infrastructure development in developing countries, as well as stringent measures to mitigate the environmental effect of economic expansion. When compared to individual room cooling solutions, commercial buildings have surpassed industrial buildings in the use of district cooling systems.


District Cooling Market Regional Analysis


The regions are classified as North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Among all regions, the Middle East & Africa are predicted to have the largest market for Global District Cooling Market. The Middle East has enormous potential for the use of district cooling systems. The continual year-round heat, along with costly glass exteriors for hotels, airports, and workplaces, etc., results in extremely high inside temperatures. The combination of dispersed generation of electricity and waste heat utilization can give a long-term solution to the region's high need for refrigeration. Commercial buildings, hotels, residential complexes, retail malls, and other structures can benefit from district cooling systems. 


In 2010, The Pearl-Qatar received the world's largest district cooling plant, the Integrated District Cooling Plant (IDCP). IDCP will service more than 80 apartment towers, seaside villas, townhouses, shopping complexes, offices, schools, and hotels around the Island, eventually delivering more than 130,000 tons of refrigeration to the projected 50,000 people. Technological advancements will boost the total capacity of existing facilities as well as ongoing development projects. In the UAE, intense building activity, projects, and corporate collaborations for technical progress would increase the district cooling market outlook. For example, in March 2022, Empower was given a USD 52.5 million contract to build a district chilling plant in Dubai, which would supply 23,500 refrigeration tonnes of eco-friendly district chilling services to the Dubai Land Residence Complex (DLRC) province.


Asia-Pacific is the second-largest and fastest-growing region in the Global District Cooling Market. During the forecast period, India and China are expected to share a significant growth rate in the Asia-Pacific district cooling market and will maintain their dominance due to rising disposable income, high demand for energy-efficient products, technological advancement, and increased government focus on the adoption of energy-efficient products in these regions. The Indian government has announced ambitious projects such as Smart Cities and Smart Grid that are expected to boost the industry in the next years.


District Cooling Market Competitive Landscape


The Global District Cooling Market comprises many local and global players. The market is expected to witness a healthy growth rate throughout the forecast period. The key players in the industry, to maintain their market share, are involved in various strategies such as new product launches, collaborations, corporate deals, mergers, and acquisitions to maintain and expand their market dominance.


List of Key Companies covered in the district cooling market report:



  • Veolia (France)

  • Danfoss (Denmark)

  • Emirates District Cooling, LLC (EMICOOL) (UAE)

  • Shinryo Corporation (Japan)

  • Alfa Laval AB (Sweden)

  • ADC Energy Systems LLC (UAE)

  • Daikin Industries Ltd. (Japan)National Central Cooling Company PJSC (TABREED) (UAE)

  • SNC-Lavalin (Canada)

  • Keppel Corporation Limited (Singapore)

  • Emirates Central Cooling System Corporation (EMPOWER) (UAE)

  • Qatar District Cooling Company (QATAR COOL)

  • Stellar Energy (USA)

  • Engie (France)

  • Vattenfall (Sweden)


Recent Developments:



  • In November 2022, Emirates District Cooling Company (Emicool), a prominent worldwide investor in sustainable infrastructure, has inked a Power Purchase Agreement with Emirates Electrical Engineering (EEE), a pioneer in the UAE's solar sector. The agreement reveals that the company is growing its solar capacity by 238% inside the confines of its District Cooling Plant 1 (DCP1) and its head office in Dubai Investments Park 1.

  • In September 2022, Tabreed agreed to deliver district cooling to CapitalMed, its new healthcare city project, with developer Egyptians for Healthcare Services. The deal is part of Tabreed's strategy to increase its footprint in Egypt, the Arab world's most populous country.

  • In May 2022, Daikin and SP Group launched a joint venture to build Singapore's largest industrial district cooling system, with a capacity of up to 36,000 refrigerant tons (RT). After completion in 2025, it is estimated to contribute to yearly savings of 20% in cooling-related power usage.

  • In February 2022, Emirates Central Cooling System Corporation (EMPOWER) (UAE) has signed a deal with Select Group to deliver 10,915 RT of DC electricity to the Peninsula, Dubai's largest mixed-use complex.

  • In December 2021, JTC Corporation has appointed Engie Southeast Asia to construct, own, and manage an underground district cooling system (DCS) for the Punggol Digital District. Engie will develop and build the DCS plant, which will have a cooling capacity of 30,000 refrigeration tons, which is comparable to chilling 8,000 four-room HDB units.


District Cooling Market Trend Report and Global Analysis:


The Global District Cooling Market is segmented based on by Production Technique, Operations, and End-User in this report. The report is focused on various analytical aspects such as market dynamics, Technology Analysis, Porter’s five forces, competitive landscape, recent developments, and company profiles. The insights in this report, comprise, discuss views, and predict the emerging and fast-growing segments, regions, and countries with potential for development in the Global District Cooling Industry.


District Cooling Market Segments:


Global Insights By Production Technique:



  • Free Cooling

  • Absorption Chillers

  • Electric Chillers


Global Insights By Operations:



  • Storage

  • Distribution

  • Production


Global Insights By End User:



  • Residential

  • Commercial

  • Industrial


Global Insights By Regions:



  • North America

  • Europe

  • Asia-Pacific

  • Middle East & Africa

  • South America


Objectives of the Study



  • To get a comprehensive overview of the Global district cooling market

  • To get wide-ranging information about the key factors driving the market and market opportunities

  • To gain information regarding the key players in the industry, technology advancements, and key developments

  • To gain insights about the key country/region in which the district cooling market is growing



Report Scope:

Report Attribute/Metric Details
  Market Sizing    2030: 51.7 Billion USD
  CAGR by 2030   ~7.3%
  Base Year   2021
  Forecast Period    2022-2030
  Historical Data    2018 - 2020
  Forecast Units    Value (USD Million)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Production Technique, Operations and End User
  Geographies Covered   North America, Europe, Asia-Pacific, Middle East & Africa, and South America
  Key Vendors   Veolia (France), Danfoss (Denmark), Emirates District Cooling, LLC (EMICOOL) (UAE), Shinryo Corporation (Japan), Alfa Laval AB (Sweden), ADC Energy Systems LLC (UAE)Daikin Industries Ltd. (Japan), National Central Cooling Company PJSC (TABREED) (UAE), SNC-Lavalin (Canada), Keppel Corporation Limited (Singapore), Emirates Central Cooling System Corporation (EMPOWER) (UAE), Qatar District Cooling Company (QATAR COOL), Stellar Energy (USA), Engie (France)
  Key Market Opportunities   Rapid population growth and commercialization Increasing need for energy-efficient cooling technologies
  Key Market Drivers   Rising urbanization and industrialization in emerging nations Increasing demand for renewable and environment-friendly cooling technology Increasing adoption due to rising temperatures


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Frequently Asked Questions (FAQ) :

The Global District Cooling Market would register a growth of ~7.3% during the forecast period.

The high initial cost of installation is a key restraining factor for Global District Cooling Market

Middle East & Africa would enjoy the upper hand in the Global District Cooling Market.