Press release
The Impact of Sustainable Energy Adoption on Cooling Solutions : A Key Catalyst Accelerating District Cooling Market Growth in 2025
District Cooling
District Cooling Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The expansion of the district cooling market has been significant in the past years. The market increased from a valuation of $17.98 billion in 2024 and is expected to further rise to approximately $20.13 billion in 2025, representing a compound annual growth rate (CAGR) of 11.9%. The historic growth period is primarily due to heightened demand for cooling mechanisms in high-temperature regions, escalating urbanization, growth in disposable income, establishment of grand scale residential and commercial edifices, coupled with a surging demand for energy-efficient cooling solutions.
District Cooling Market Size Forecast: What's the Projected Valuation by 2029?
An upsurge in the district cooling market size is anticipated in upcoming years, projected to expand to $31.76 billion by 2029 with a compound annual growth rate (CAGR) of 12.1%. The expected growth over the forecast period is due to the increasing demand for effective cooling systems and rapid construction activities, along with significant investments in infrastructure by emerging nations, rising global population, urbanization, and a greater focus on sustainable practices. Some of the emerging trends during this forecast period are the implementation of sophisticated data analytics for enhancing the proficiency of the cooling system, the rise of district cooling as a service (dcaas) models, the inclusion of intelligent grid technologies into district cooling networks, the growing use of novel technologies and a heightened emphasis on recovering and using cold energy in district cooling.
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What Are the Drivers Transforming the District Cooling Market?
The increasing emphasis on the utilization of sustainable energy is predicted to boost the expansion of the district cooling market. Sustainable energy is energy that is inexhaustible and can continue indefinitely without needing renewal or replenishment. District cooling that is sustainable offers eco-friendly cooling and enhances the local environment by diminishing noise and bolstering the energy supply's reliability. For example, the International Energy Agency, an organization governed by France, reported in June 2023 that worldwide renewable capacity augmentations are predicted to leap by 107 gigawatts (GW), marking the greatest absolute increase ever, to over 440 GW. Thus, the escalating emphasis on the usage of sustainable energy is fueling the development of the district cooling market.
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What Long-Term Trends Will Define the Future of the District Cooling Market?
The district cooling systems market is witnessing the increased prevalence of technological innovations as a primary trend. Many prominent players in this sector are channeling their efforts towards the development of innovative technologies to strengthen their market position. Honeywell, an American company known for its work in performance materials and technology, launched Solstice E-Cooling in February 2022. This novel platform offers heat transfer liquids that cool high-performance electronics more efficiently and effectively than conventional air and water cooling methods. The state-of-the-art cooling solution for electronics and data centers employs a two-phase liquid cooling technology to cool electrical devices, contributing minimal impact to the environment. Solstice E-Cooling allows for more even, energy-efficient cooling, superior heat rejection, and reduced pumping power.
Which Segments in the District Cooling Market Offer the Most Profit Potential?
The district cooling market covered in this report is segmented -
1) By Production Technique: Free Cooling, Absorption Cooling, Electric Chillers, Other Production Techniques
2) By Function: Stationary Cooling, Transport Cooling
3) By Application: Commercial, Residential, Industrial
Subsegments:
1) By Free Cooling: Natural Ventilation, Ice Storage
2) By Absorption Cooling: Water-Lithium Bromide Systems, Ammonia-Water Systems
3) By Electric Chillers: Air-Cooled Chillers, Water-Cooled Chillers
4) By Other Production Techniques: District Heating And Cooling Networks, Thermal Energy Storage Systems
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Which Firms Dominate the District Cooling Market by Market Share and Revenue in 2025?
Major companies operating in the district cooling market include Ramboll Group A/S, Fortum Corporation, Emirates District Cooling LLC, Engie SA, National Central Cooling Company PJSC, Veolia Environnement SA, Empower India Ltd., Qatar District Cooling Company, Keppel DHCS Pte Ltd., ADC Energy Systems LLC, Stellar Energy Systems Inc., Shinryo Corporation, Cetetherm AB, Logstor AS, Alfa Laval AB, Wien Energie Vertrieb GmbH & Co. KG, Danfoss Group, Marafeq Qatar, Emirates Central Cooling Systems Corp., DC PRO Engineering, Johnson Controls International plc, Siemens AG, Trane Technologies plc, Carrier Global Corporation, Hitachi Ltd., LG Electronics Inc., Daikin Industries Ltd., GEA Group AG
Which Regions Offer the Highest Growth Potential in the District Cooling Market?
Middle East was the largest region in the district cooling market share in 2024.The regions covered in the district cooling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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