Geographical Growth of District Cooling Market Trends, and Forecast, 2022-2031

District Cooling Market Outlook 2031

The global district cooling market was valued at US$ 25.2 Bn in 2021

It is estimated to grow at a CAGR of 7.8% from 2022 to 2031

The global district cooling market is expected to reach US$ 53.5 Bn by the end of 2031

𝐑𝐞𝐚𝐝 𝐑𝐞𝐩𝐨𝐫𝐭 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰 -https://www.transparencymarketresearch.com/district-cooling-market.html

Global District Cooling Market Introduction

District cooling system (DCS) is used for centralized production and distribution of thermal energy in the form of chilled water or cold air, via underground insulated pipelines, to various buildings or establishments such as offices and industrial & residential buildings. It helps cool the indoor air of buildings within a district. DCS comprises three primary components: central chiller plant, distribution network, and consumer station. District cooling can run on natural gas, electricity, waste heat, and renewable energies such as geothermal or natural cooling from water sources.

High Number of Installations of District Cooling Systems in Middle East
The Middle East, especially the GCC, is expected to be a prominent region of the district cooling market due to the hot climatic conditions in the sub-region with temperatures ranging between 35°C and 55°C. In Dubai, air conditioning contributes to over 70% of electricity consumption due to the extreme weather conditions.

𝐆𝐞𝐭 𝐏𝐃𝐅 𝐬𝐚𝐦𝐩𝐥𝐞 𝐟𝐨𝐫 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐚𝐥 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐚𝐧𝐝 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐈𝐧𝐭𝐞𝐥𝐥𝐢𝐠𝐞𝐧𝐜𝐞 -https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=22277

Therefore, the city aims to meet 40% of its cooling requirements through district cooling by 2030. Power plants in the city are expected to use 50% less electricity than standard air conditioning. Policy-imposed targets, technological advancements, and rapid increase in demand are major drivers of the district cooling market in the Middle East. The district cooling market in Saudi Arabia is also expected to grow at a rapid pace during the forecast period.

The world's largest district cooling plant, Integrated District Cooling Plant (IDCP), was installed in the Pearl-Qatar in 2010. IDCP caters to more than 80 apartment towers, beachfront villas, townhouses, shopping complexes, offices, schools, and hotels across the island, thus supplying more than 130,000 tons of refrigeration to nearly 50,000 residents.

In September 2018, Emirates Central Cooling Systems Corporation (Empower) signed a contract to design two new cooling plants, currently named Business Bay 3 and Business Bay 4. The two plants combined are projected to have a cooling capacity of 90,000 refrigeration tons (RT). Once the two new plants are operational, the total capacity of the project is anticipated to reach 225,000 RT.

𝐑𝐞𝐪𝐮𝐞𝐬𝐭 𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧 -https://www.transparencymarketresearch.com/sample/sample.php?flag=CR&rep_id=22277

Rise in Industrialization and Urbanization Augmenting District Cooling Market

District cooling plays an important role in catering to the rising demand for energy. Increase in industrial and commercial activities across the globe is likely to fuel the need for cooling. Significant growth of the real estate sector; rise in urbanization; and increase in population in developing countries, such as Brazil, Mexico, and India have increased the consumption of building energy for heating and cooling needs, thus driving the market for district heating and cooling systems.

Natural ventilation has been decreasing in high-rise buildings in the Middle East, Europe, and North America, thereby increasing the obstruction of buildings on each other. These are some of the factors that are driving the need for mechanical means of air conditioning, and therefore propelling energy consumption. Significant rise in consumption of primary energy, greenhouse gas emissions, and peak electricity demand is fueling the requirement for district cooling service as a sustainable energy solution, thereby enabling local communities to gain economic and environmental benefits of the district cooling technology.

𝐌𝐚𝐤𝐞 𝐚𝐧 𝐄𝐧𝐪𝐮𝐢𝐫𝐲 𝐛𝐞𝐟𝐨𝐫𝐞 𝐁𝐮𝐲𝐢𝐧𝐠 -https://www.transparencymarketresearch.com/sample/sample.php?flag=EB&rep_id=22277

Overall Cost Savings and Energy-efficient Process
District cooling offers significant advantages in terms of environmental protection, cost, comfort, and operational efficiency as compared to other cooling technologies. The system provides significant benefits to building owners and municipalities such as elimination of on-site chillers operation and reduction in maintenance activities. Investment in new electricity production and distribution increases the expenditure on energy and dependence on natural gas and imported electricity.

Emphasis on substituting imported energies by investing in local heating and cooling infrastructure to reduce the expenditure on energy imports is driving the district cooling market. District cooling converts electricity into cooling energy efficiently, which in turn helps reduce the need to generate and distribute new electricity. Regulatory mechanisms and incentive schemes are other factors that are expected to play a key role in augmenting capacity additions in the district cooling market in the near future.

High Demand for District Cooling in Commercial Establishments

In terms of end-user, the global district cooling market has been segregated into residential, commercial, and industrial. The commercial segment held major share of 56.74% of the global market in 2021. It is estimated to dominate the market during the forecast period. Demand for cooling is increasing continuously in commercial establishments such as malls, hotels, multistory offices, and data centers. The residential segment accounted for 31.1% share of the market in 2021. Rise in population density in developing countries, increase in number of new residential projects, surge in disposable income, and rapid expansion of the real estate sector are boosting the demand for district cooling system and power plant.

The residential segment is estimated to grow at a steady pace during the forecast period. The industrial segment held relatively minor share of 12.1% of the market in 2021. Rapid industrialization, increase in demand for sustainable solutions, and high rate of adoption of renewable energy sources at industrial facilities are likely to propel the segment during the forecast period.

𝐀𝐛𝐨𝐮𝐭 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡

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𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐔𝐬:

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