District Cooling Market Size [2023-2030] worth $44.46 Billion | Growing Demand for Sustainable and Energy Efficient Cooling Solutions and Rising Installation of DC Technology to Expedite Investments: Fortune Business Insights™
Fortune Business Insights
6 min read
Fortune Business Insights
District Cooling Market Size to Record 6.72% CAGR Over 2023-2030; Tabreed Signed Agreement with EHCS to Offer District Energy Services to CapitalMed: Fortune Business Insights™
India, Pune, Oct. 17, 2023 (GLOBE NEWSWIRE) -- The District Cooling Market has been experiencing steady growth, primarily in urban and densely populated areas where the demand for cooling services is high. The global District Cooling Market size was valued at USD 27.12 billion in 2022 and is expected to be worth USD 28.19 billion in 2023. The market is projected to reach USD 44.46 billion by 2030, recording a CAGR of 6.72% during the forecast period. Rapid urbanization and increasing urban populations were driving the demand for cooling in commercial, residential, and industrial buildings. District cooling offered an efficient solution for meeting these needs. Fortune Business Insights™ displays this information in a report titled, "District Cooling Market, 2023-2030."
Market Support Will Come from Adequate Government Support for Mining Activities
High Versatility of Rotary Bits to Boost Segment Growth
Key Industry Development:
The National Central Cooling Company, also known as Tabreed, signed an agreement worth USD 83.43 million with Egyptians for Healthcare Services (EHCS) to deliver district energy services to CapitalMed, its new healthcare city project. With this move, Tabreed plans to expand its presence in Egypt.
Drivers and Restraints:
Energy Efficiency: District cooling systems are known for their energy efficiency compared to traditional air conditioning units. They utilize centralized cooling plants, which can take advantage of economies of scale and implement energy-efficient technologies, resulting in lower energy consumption and reduced greenhouse gas emissions.
Urbanization and Population Growth: As urban populations continue to grow, the demand for cooling in commercial, residential, and industrial buildings increases. District cooling provides a scalable and efficient solution for meeting these cooling needs.
Smart Cities and Building Management: The trend toward smart cities and intelligent building management systems has led to increased interest in district cooling. These systems can be integrated with IoT technology to optimize cooling operations and improve overall building performance.
Long-term Planning and Infrastructure Development: District cooling systems are often part of long-term urban planning and infrastructure development projects, making them a strategic choice for city planners and developers.
While the COVID-19 pandemic caused several supply chain challenges during the initial stages, the installation of district cooling systems increased during this period. As these supply chain issues worsened, they resulted in the shortage of various supporting devices. The market is witnessing encouraging growth in GCC economies as these nations have an extremely hot climate, which boosted the demand for these systems.
Segments:
Type of Application:
Residential: This segment includes district cooling services provided to residential buildings, such as apartments and housing complexes.
Commercial: Commercial district cooling serves office buildings, shopping centers, hotels, and other non-industrial commercial properties.
Industrial: District cooling for industrial applications caters to manufacturing facilities, data centers, and other industrial complexes with significant cooling needs.
End-User:
Public Sector: District cooling systems may serve public sector facilities, including government offices, public buildings, and educational institutions.
Private Sector: The private sector encompasses privately owned businesses and organizations, including commercial and industrial entities.
Mixed-Use Developments: Some district cooling systems cater to mixed-use developments, which combine residential, commercial, and recreational spaces.
Cooling Capacity:
Low-Capacity District Cooling: These systems serve smaller or less densely populated areas with lower cooling demands.
Medium-Capacity District Cooling: These systems cater to moderate-sized urban areas and may have several cooling plants.
High-Capacity District Cooling: High-capacity systems are designed for large, densely populated cities and urban regions with substantial cooling requirements.
The report offers a detailed analysis of the industry and highlights important areas such as top companies, product/service types, and key applications of the product. It also provides valuable insights into the latest market trends and highlights key industry developments. Besides the factors above, the report encompasses several factors that contributed to the market’s growth in recent years.
Regional Insights:
Middle East & Africa to Dominate Global Market Due to Extreme Climatic Conditions
The Middle East & Africa region is expected to hold a dominant market share during the forecast period as the region has extremely hot climatic conditions. The region’s commercial and residential sectors are also expanding at a notable rate, further improving the regional market’s growth.
North America will also be a viable market for district cooling solutions as many programs and policies have been launched by the regional governments to boost energy efficiency in existing buildings.
Competitive Landscape:
Market Leaders to Boost Production Capacity to Keep Up With Rising Product Demand
Among many companies involved in this market, ENGIE captured the largest share as the company has a major stake in Tabreed, a leading firm in the Gulf state urban climate control systems market. This has made ENGIE the world’s largest independent player in the urban cooling networks.
LIST OF KEY COMPANIES PROFILED IN THE REPORT
Danfoss (Denmark)
ENGIE (France)
Tabreed National Central Cooling Company PJSC (UAE)
Emirates Central Cooling System Corporation (Empower) (UAE)
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