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District Cooling Market to Exhibit 8.9% CAGR from 2022 to 2029; Empower Connects Avani Palm View Dubai Hotel & Suites to DC Network

June 21, 2022 | Energy & Power

The global district cooling market size is anticipated to rise from USD 28.16 billion in 2022 to USD 51.01 billion by 2029. The distribution system for cooling energy has become trendier across residential and commercial settings. Heightened awareness of environmental protection and traction for energy-efficient refrigeration technology could trigger investments across emerging and advanced economies. Escalating concerns about global warming on the environment could fuel the demand for cooling.


According to the latest research report by Fortune Business Insights™ titled, “District Cooling Market Size, Share, and COVID-19 Impact Analysis, By Technology (Electric Chillers, Absorption Chillers, and Others), By End-user (Residential, Industrial, and Commercial), and Regional Forecast, 2022-2029,” the market garnered USD 26.15 billion in 2021. It is expected to observe 8.9% CAGR during the forecast period.


 COVID-19 Pandemic-led Plunge in Cooling Demand from Commercial Sector Impeded Growth


The commercial sector witnessed major disruptions as manufacturing, aviation, and hospitality grappled with the COVID-19 pandemic. A notable dip in demand for cooling systems from shopping malls and hotels did not augur well for the industry outlook. An uptick in the production cost challenged major companies gearing to bolster their portfolios. Meanwhile, the introduction of advanced cooling methods has become pronounced. The use of eco-friendly and sustainable sterilization methods could surge the product demand.


Major Players Emphasize Construction of District Cooling (DC) Plant to Tap into Markets


Well-established and emerging players have upped their focus on environment-friendly, high-quality, and sustainable DC services to help reduce carbon emissions. Emirates Central Cooling Systems Corporation (Empower), the world’s major cooling service provider, announced that it awarded a contract worth approximately USD 52.6 million to construct a new generation DC system. The project would focus on Dubai Land Residence Complex (DLRC) region. The company also asserted that the total production capacity would reach 47,000 RT upon completion of all construction phases of the project. The district cooling market growth will be noticeable with an increased focus on development and modernization plans.


To get a detailed report summary and research scope of this market, click here:


https://www.fortunebusinessinsights.com/industry-reports/district-cooling-market-100090


Soaring Number of Installations in the Middle East to Usher in Innovations


Robust economic integration efforts across Gulf Cooperation Council (GCC) countries have encouraged DC manufacturers and suppliers to expand their penetration. According to the UAE government, Dubai contemplates meeting 40% of its cooling requirements through DC systems by 2030. Power plants are likely to use 50% less electricity compared to air conditioning. Robust demand for energy-efficient technology will propel the district cooling market share. For instance, in March 2022, Emirates Central Cooling Systems Corporation (Empower) reported a surge in the number of buildings using its DC service to 1,413 buildings by 2021. However, high capital investments and lack of awareness could dent the industry growth.


Stakeholders Prioritize Investments in Projects to Boost Portfolios


Major players are poised to inject funds into mergers & acquisitions, product launches, R&D activities, and technological advancements to propel their penetration. Furthermore, leading companies could infuse funds into innovations to expand their market presence across untapped areas.


Notable Industry Development



  • October 2020 – Emirates Central Cooling Systems Corporation (Empower) announced that it connected Avani Palm View Dubai Hotel & Suites to its DC network with 2,610 refrigeration tons (RT) cooling capacity.


List of the Companies Profiled in the Report



  • ENGIE (France)

  • National Central Cooling Company PJSC (Tabreed) (UAE)

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

  • Emirates District Cooling LLC (Emicool) (UAE)

  • Marafeq Qatar (Qatar)

  • Stellar Energy (U.S.)

  • ADC Energy Systems LLC (UAE)

  • Shinryo Corporation (Japan)

  • Logstor A/S (Denmark)

  • Danfoss (Denmark)

  •  Veolia (France)

  • Enwave Energy Corporation (Canada)

  • Keppel Corporation Limited (Singapore)

  • Ramboll Group (Denmark)

  • Singapore Power Ltd. (Singapore)

  •  Vattenfall (Sweden)

  • SNC-Lavalin (Canada)


Further Report Findings



  • In terms of end-user, the commercial sector could grow at a notable CAGR during the forecast period, partly due to the expansion of airports, offices, and shops.

  • The Middle East & Africa market size stood at USD 10.08 billion in 2021 and will grow due to the presence of major service providers.

  • North America market forecast will be robust with the implementation of policies to address energy-efficiency in new and existing buildings.


Table of Segmentation


















































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD Billion) & Volume (Thousand RT)



Segmentation



By Technology, End-user, and Region



By Technology




  • Electric Chillers

  • Absorption Chillers

  • Others



By End-user




  • Residential

  • Industrial

  • Commercial



By Region




  • North America (By Technology, End-user, and Country)

    • US (End-user)

    • Canada (End-user)



  • Europe (By Technology, End-user, and Country)

    • France (End-user)

    • Germany (End-user)

    • Italy (End-user)

    • Finland (End-user)

    • Norway (End-user)

    • Sweden (End-user)

    • Rest of Europe (End-user)



  • Asia Pacific (By Technology, End-user, and Country)

    • China (End-user)

    • India (End-user)

    • Japan (End-user)

    • Singapore (End-user)

    • Malaysia (End-user)

    • Australia (End-user)

    • Rest of Asia Pacific (End-user)



  • Latin America (By Technology and End-user)

  • Middle East & Africa (By Technology, End-user, and Country)

    • UAE (End-user)

    • Saudi Arabia (End-user)

    • Qatar (End-user)

    • Bahrain (End-user)

    • Kuwait (End-user)

    • Oman (End-user)

    • Rest of the Middle East & Africa (End-user)




District Cooling Market
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  • 2021
  • 2018-2020
  • 184

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