District Cooling Global Market Report 2024

A district cooling system (DCS) refers to a system that distributes cooling capacity in the form of chilled water or another medium from a central source to many buildings via a network of subterranean pipes used to provide chilled water for indoor cooling purposes for industrial, commercial, and residential buildings.

The main types of district cooling are free cooling, absorption cooling, electric chillers, and others. Free district cooling is used to ensure that the cooling supply is secure. The system is frequently supplemented by a heat pump or an electric chiller. The functions involved stationary cooling and transport cooling. The various applications include commercial, residential, and industrial.

The district cooling market research report is one of a series of new reports that provides district cooling market statistics, including district cooling industry global market size, regional shares, competitors with a district cooling market share, detailed district cooling market segments, market trends and opportunities, and any further data you may need to thrive in the district cooling industry. This district cooling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The district cooling market size has grown rapidly in recent years. It will grow from $16.14 billion in 2023 to $18.12 billion in 2024 at a compound annual growth rate (CAGR) of 12.2%. The growth in the historic period can be attributed to increased demand for cooling systems in regions with high temperature, growing urbanization, rising disposable income, development of large-scale residential and commercial structures, increasing demand for energy-efficient cooling solutions.

The district cooling market size is expected to see rapid growth in the next few years. It will grow to $28.4 billion in 2028 at a compound annual growth rate (CAGR) of 11.9%. The growth in the forecast period can be attributed to growing need for efficient cooling systems, rapid construction activities, surging investments by developing nations for infrastructure development, increasing global population and urbanization, growing emphasis on sustainability. Major trends in the forecast period include use of advanced data analytics for optimizing cooling system efficiency, emergence of district cooling as a service (dcaas) models, adoption of smart grid technologies in district cooling networks, growing adoption of innovative technologies, increasing focus on cold energy recovery and utilization in district cooling.

The rising focus on the adoption of sustainable energy is expected to propel the growth of the district cooling market. Sustainable energy refers to a type of energy that cannot be depleted and can remain viable forever, it does not need to be renewed or replenished. Sustainable district cooling provides sustainable cooling and improves the local environment by reducing noise and increasing the security of the energy supply. For instance, in June 2023, according to the International Energy Agency, a France-based intergovernmental organization, global renewable capacity additions are set to soar by 107 gigawatts (GW) - the largest absolute increase ever - to more than 440 GW. Therefore, the rising focus on the adoption of sustainable energy is driving the growth of the district cooling market.

The increase in urbanization is expected to propel the growth of the district cooling market. Urbanization is the ongoing process of cities' growth and expansion, typically involving the movement of people from rural to urban areas. Urbanization drives the demand for district cooling systems, as densely populated urban areas require efficient cooling solutions to combat heat and energy demands, reducing the environmental impact and enhancing the sustainability of urban development. For instance, in April 2022, according to the World Economic Forum, a Switzerland-based independent international organization, more than 4.3 billion people, or 55% of the global population, resided in urban environments, with projections indicating this figure is set to reach 80% by 2050. Therefore, increasing urbanization is driving the district cooling market.

Technological innovations are the key trend gaining popularity in the district cooling systems market. Major companies operating in the district cooling sector are focused on introducing technological innovations to reinforce their position. For instance, in August 2021, Keppel Corporation, a Singapore-based district cooling systems manufacturing company, launched Keppel DHCS based on thermal energy storage technology. It helps in the reduction of the district energy plant space and improves energy efficiency and energy-carrying capacity. These new district cooling systems have a cooling capacity of 14,000 refrigeration tons.

Major companies operating in the district cooling market are increasing their focus on introducing campaigns to gain a competitive edge in the market. A Sustainability Initiatives campaign is a coordinated effort aimed at promoting and implementing practices, policies, and actions that prioritize environmental and social responsibility to ensure the long-term well-being of the planet and its inhabitants. For instance, in June 2022, Emirates Central Cooling Systems Corporation (Empower), a UAE-based company, launched Set & Save 24°C, its annual summer campaign to reduce district cooling energy consumption. The campaign aims to encourage customers to rationalize their district cooling consumption by setting the air conditioner thermostat at 24°C, which will reduce consumption bills, protect the environment, save energy, and preserve resources for a green future.

In August 2021, Empower, a Dubai-based district cooling provider, acquired Nakheel’s district cooling for a deal amount of USD 234 million. The acquisition helps to diversify Empower’s portfolio, which includes The Gardens, Nakheel Mall, Dragon Mart, and Jumeirah Islands. Nakheel’s District Cooling is a Dubai-based district cooling plant manufacturing company.

Major companies operating in the in the district cooling market report are 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, Engie Energy SA, Vivendi Environnement SA, Emirates Central Cooling Systems Corp., Fortum Oyj, DC PRO Engineering, Johnson Controls International plc, Siemens AG, Trane Technologies plc, Carrier Global Corporation, Hitachi Ltd., LG Electronics Inc., Seeley International Pty Ltd., Addison-HVAC Systems Inc., Daikin Industries Ltd., GEA Group AG

Middle East was the largest region in the district cooling market share in 2023. The regions covered in the district cooling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the district cooling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The district cooling market consists of sales of single-effect absorption chillers, double-effect absorption chillers, and direct-fired absorption chillers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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