Global District Cooling Market is Expected to Grow at a CAGR of 8.2% over the Forecast Period (2024 – 2034): A Report by TNR, The Niche Research

Wilmington, Delaware, Aug. 07, 2024 (GLOBE NEWSWIRE) -- The district cooling market has experienced significant evolution, driven by various growth drivers, emerging trends, and opportunities. District cooling systems, which provide chilled water for air conditioning to multiple buildings from a central plant, have become increasingly pivotal in addressing urban cooling needs efficiently.

Several factors underpin the growth of the district cooling market. Urbanization is a major driver, as increasing populations in metropolitan areas escalate the demand for effective cooling solutions. District cooling systems offer a more energy-efficient alternative to traditional air conditioning, reducing operational costs and enhancing sustainability. Furthermore, government regulations promoting energy efficiency and reducing greenhouse gas emissions are bolstering the adoption of district cooling. These regulations encourage the deployment of centralized cooling systems that can leverage economies of scale to reduce energy consumption and environmental impact.

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Technological advancements also contribute significantly to market growth. Innovations such as the integration of renewable energy sources, cutting-edge cooling technologies, and optimized control systems are significantly boosting the efficiency and appeal of district cooling systems. The rise in smart city initiatives, which integrate advanced technologies to improve urban infrastructure, further supports the expansion of district cooling networks.

Global District Cooling Market: Key Datapoints

One notable trend is the growing focus on sustainability and environmental impact. There is a heightened emphasis on using renewable energy sources like solar and geothermal power within district cooling systems to minimize carbon footprints. Additionally, the adoption of smart technologies, including IoT and AI, is facilitating real-time monitoring and optimization of cooling operations, leading to improved performance and cost-efficiency.

Another trend is the expansion of district cooling networks in emerging markets. Countries in the Middle East, Asia-Pacific, and Africa are increasingly investing in district cooling infrastructure to meet the rising cooling demands driven by rapid urbanization and economic growth. These regions present substantial opportunities for market expansion due to their burgeoning real estate and construction sectors.

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The district cooling market presents several opportunities for growth. There is significant potential in retrofitting existing buildings with district cooling systems, which can offer considerable energy savings and improved cooling efficiency. Additionally, the development of new district cooling projects in emerging markets offers promising prospects for market participants. The growing emphasis on sustainability also creates opportunities for companies to innovate and offer eco-friendly cooling solutions. Increasing mergers and partnership between manufacturers is anticipated to bring new opportunities in the market. For instance, in July 2022, ENGIE, a leading global energy company, and SIT (Singapore Institute of Technology) unveiled a collaboration to enhance district cooling systems throughout Southeast Asia. This partnership focuses on establishing a district cooling ecosystem in Singapore, which will support applied research, co-create educational materials, provide dependable learning environments for SIT students, and facilitate knowledge-sharing sessions for both the community and industry professionals.

The COVID-19 pandemic accelerated the shift towards more sustainable and efficient building solutions. As cities focus on recovery and rebuilding, there is an increased emphasis on incorporating advanced cooling technologies and improving the resilience of urban infrastructure, which bodes well for the future of the district cooling market.

Key Takeaways of the Report: 

• Absorption cooling segment by production technique is expected to grow at a CAGR of 5.4% in the district cooling market due to its high energy efficiency and low environmental impact. This growth is fueled by increasing demand for sustainable cooling solutions and the integration of waste heat recovery systems. Absorption chillers offer significant energy savings and reduced operational costs, making them an attractive option for large-scale cooling applications, particularly in regions with stringent environmental regulations.
• Commercial by application dominated the district cooling market with a substantial revenue share of 49.3% due to its high demand for efficient and scalable cooling solutions. This dominance is driven by the need for reliable climate control in large commercial spaces such as office buildings, shopping malls, and hotels. District cooling systems offer cost-effective and energy-efficient solutions that cater to the extensive cooling requirements of these facilities, making them a preferred choice for commercial property developers and managers.
• In 2023, Asia Pacific is anticipated as second leading region in the global district cooling market due to rapid urbanization and increasing infrastructure development across major cities. The region’s growing emphasis on energy efficiency and sustainable building practices is driving the adoption of district cooling systems. Additionally, the rising demand for reliable cooling solutions in commercial and residential sectors, combined with supportive government policies, is further accelerating market growth in this region.

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Following are the major companies active within the district cooling market:

• ADC Energy Systems LLC
• Alfa Laval AB
• Daikin Industries Ltd.
• Danfoss
• Emirates Central Cooling System Corporation PJSC
• Emirates District Cooling, LLC
• Engie
• Keppel Corporation Limited
• National Central Cooling Company PJSC (TABREED)
• Qatar District Cooling Company
• Shinryo Corporation
• SNC-Lavalin
• Stellar Energy
• Veolia
• Other Industry Participants

Global District Cooling Market

By Production Technique

• Free Cooling
• Absorption Cooling
• Electric Chillers
• Others

By Application

• Commercial
• Residential
• Industrial

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America) 

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Jay Reynolds

The Niche Research

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