District Cooling Market by Production Technique (Free Cooling, Absorption Cooling, & Electric Chillers), Source (Fossil Fuels, Renewables), Application (Residential, Commercial, & Industrial) and Region - Global Forecast to 2029
“Fossil Fuels is likely to account for the largest share of district cooling market.”
During the forecast period, fossil fuels stands out as the largest by source segment in the district cooling market, both in terms of value. This is because of their well-established infrastructure and general availability. They offer a steady and dependable energy source that is required for extensive cooling operations. Furthermore, fossil fuels are an effective source of energy for running the large machinery needed for district cooling systems due to their high energy density. However, in order to improve sustainability and lessen environmental effect, there is an increasing trend toward the integration of renewable energy sources.
“Free cooling is the fastest growing production technique in district cooling market.”
Free cooling represented the fastest growing production technique segment in the district cooling market. Free cooling is a cost-effective and sustainable method that leverages low external temperatures to cool water for district cooling systems. This process utilizes ambient air or cold water from natural sources like lakes, seas, or rivers. Heat exchangers cool the water circulating through district cooling networks, and the now-warm water is released back into the natural source. By incorporating free cooling, the energy efficiency of new or existing buildings can be significantly enhanced. This method, along with district cooling and heat pumps, consumes less electricity compared to systems relying solely on adsorption or electrical chillers.
“Middle East & Africa, by region is forecasted to be the fastest segment of district cooling market during the forecast period.”
The Middle East & Africa region is the fastest-growing market for district cooling due to its hot climate, which drives substantial demand for cooling solutions. Countries like the UAE, Saudi Arabia, and Qatar have aggressively adopted district cooling to efficiently meet the cooling needs of their rapidly growing urban populations and extensive commercial developments. The region's investment in large-scale infrastructure projects and commitment to sustainable urban planning further support the growth of district cooling systems, making it a dominant market globally.
The break-up of the profile of primary participants in the district cooling market:
- By Company Type: Tier 1 – 46%, Tier 2 – 36%, and Tier 3 – 18%
- By Designation: C Level – 35%, D Level – 25%, and Others – 40%
- By Region: North America – 50%, Europe –30%, Asia Pacific – 20%, South America- 12%, the Middle East & Africa – 8%.
Research Coverage:
The district cooling market has been segmented based on Source (Fossil Fuels, Renewables, and Others), Production Technique (Free Cooling, Absorption Cooling, and Electric Chillers), Application (Commercial, Residential, and Industrial), and by Region (Asia Pacific, Europe, North America, South America, and Middle East & Africa).
Reasons to Buy the Report
From an insight perspective, this research report focuses on various levels of analyses — industry analysis (industry trends), market ranking analysis of top players, and company profiles, which together comprise and discuss the basic views on the competitive landscape; emerging and high-growth segments of the market; high growth regions; and market drivers, restraints, opportunities, and challenges.
The report provides insights on the following pointers:
- Analysis of key drivers (enhanced energy efficiency requirement), restraints (high initial infrastructure costs and investments for district cooling systems), opportunities (technological advancements in smart grid integration and IoT), challenges (difficulties faced during implementation of district cooling systems)
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product launches in the market
- Market Development: Comprehensive information about lucrative emerging markets – the report analyzes the market for district cooling across regions
- Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the market
- Competitive Assessment: In-depth assessment of market shares, strategies, products, and manufacturing capabilities of leading players in the market.
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 STUDY SCOPE
1.3.1 MARKETS COVERED AND REGIONAL SCOPE
1.3.2 INCLUSIONS AND EXCLUSIONS
1.3.3 YEARS CONSIDERED
1.4 CURRENCY CONSIDERED
1.5 UNITS CONSIDERED
1.6 LIMITATIONS
1.7 STAKEHOLDERS
1.8 SUMMARY OF CHANGES
2 RESEARCH METHODOLOGY
2.1 RESEARCH APPROACH
2.1.1 SECONDARY DATA
2.1.1.1 Key data from secondary sources
2.1.1.2 List of key secondary sources
2.1.2 PRIMARY DATA
2.1.2.1 Key data from primary sources
2.1.2.2 Key industry insights
2.1.2.3 List of primary interview participants
2.1.2.4 Breakdown of primaries
2.2 MARKET BREAKDOWN AND DATA TRIANGULATION
2.3 MARKET SIZE ESTIMATION METHODOLOGY
2.3.1 BOTTOM-UP APPROACH
2.3.1.1 Demand-side analysis
2.3.1.1.1 Regional analysis
2.3.1.1.2 Country-level analysis
2.3.1.1.3 Demand-side assumptions
2.3.1.1.4 Demand-side calculations
2.3.2 TOP-DOWN APPROACH
2.3.2.1 Supply-side analysis
2.3.2.1.1 Supply-side assumptions
2.3.2.1.2 Supply-side calculations
2.4 FORECAST
2.5 RISK ANALYSIS
2.6 RESEARCH ASSUMPTIONS
2.7 RESEARCH LIMITATIONS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN DISTRICT COOLING MARKET
4.2 DISTRICT COOLING MARKET IN ASIA PACIFIC, BY APPLICATION AND COUNTRY
4.3 DISTRICT COOLING MARKET, BY APPLICATION
4.4 DISTRICT COOLING MARKET, BY PRODUCTION TECHNIQUE
4.5 DISTRICT COOLING MARKET, BY SOURCE
4.6 DISTRICT COOLING MARKET, BY REGION
5 MARKET OVERVIEW
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.1.1 Increasing focus on achieving sustainability goals
5.2.1.2 Rapid urbanization and population growth
5.2.1.3 Mounting demand for air conditioning units
5.2.2 RESTRAINTS
5.2.2.1 High initial infrastructure development costs
5.2.2.2 Limited financial support and inconsistent policies
5.2.3 OPPORTUNITIES
5.2.3.1 Advances in IoT and smart grid technologies
5.2.4 CHALLENGES
5.2.4.1 Space constraints and operational issues
5.3 TRENDS/DISRUPTIONS IMPACTING CUSTOMERS’ BUSINESSES
5.4 VALUE CHAIN ANALYSIS
5.5 ECOSYSTEM ANALYSIS
5.6 CASE STUDY ANALYSIS
5.6.1 ARANER IMPLEMENTS WATER-FREE DISTRICT COOLING SOLUTIONS AS
PART OF SAUDI ARABIA’S VISION 2030 TOURISM PROJECTS
5.6.2 CONCESSION AGREEMENTS HELP OVERCOME CHALLENGES ASSOCIATED WITH IMPLEMENTING DISTRICT COOLING SYSTEMS
5.6.3 SOOKE SCHOOL DISTRICT 62 ADOPTS HCMA’S DISTRICT COOLING SYSTEMS TO PROMOTE ENERGY EFFICIENCY AND SUSTAINABILITY
5.7 TECHNOLOGY ANALYSIS
5.7.1 KEY TECHNOLOGIES
5.7.1.1 Absorption chillers
5.7.2 ADJACENT TECHNOLOGIES
5.7.2.1 Thermal energy storage
5.8 TRADE ANALYSIS
5.8.1 EXPORT SCENARIO (HS CODE 841989)
5.8.2 IMPORT SCENARIO (HS CODE 841989)
5.9 PATENT ANALYSIS
5.10 KEY CONFERENCES AND EVENTS, 2024
5.11 PRICING ANALYSIS
5.11.1 INDICATIVE PRICING TREND, BY APPLICATION
5.11.2 AVERAGE SELLING PRICE TREND, BY REGION
5.12 INVESTMENT AND FUNDING SCENARIO
5.13 TARIFF AND REGULATORY LANDSCAPE
5.13.1 TARIFF ANALYSIS
5.13.2 REGULATORY BODIES, GOVERNMENT AGENCIES,
AND OTHER ORGANIZATIONS
5.13.3 CODES AND REGULATIONS
5.14 PORTER’S FIVE FORCES ANALYSIS
5.14.1 THREAT OF NEW ENTRANTS
5.14.2 BARGAINING POWER OF SUPPLIERS
5.14.3 BARGAINING POWER OF BUYERS
5.14.4 THREAT OF SUBSTITUTES
5.14.5 INTENSITY OF COMPETITIVE RIVALRY
5.15 KEY STAKEHOLDERS AND BUYING CRITERIA
5.15.1 KEY STAKEHOLDERS IN BUYING PROCESS
5.15.2 BUYING CRITERIA
5.16 IMPACT OF GEN AI/AI ON DISTRICT COOLING MARKET
6 DISTRICT COOLING MARKET, BY PRODUCTION TECHNIQUE
6.1 INTRODUCTION
6.2 FREE COOLING
6.2.1 COST-EFFECTIVENESS AND SUSTAINABILITY TO CONTRIBUTE TO
SEGMENTAL GROWTH
6.3 ABSORPTION COOLING
6.3.1 NEED TO ADHERE TO NOISE STANDARDS TO FOSTER SEGMENTAL GROWTH
6.4 ELECTRIC CHILLERS
6.4.1 REQUIREMENT FOR CENTRALIZED SOLUTIONS TO MEET URBAN COOLING NEEDS TO BOOST SEGMENTAL GROWTH
7 DISTRICT COOLING MARKET, BY SOURCE
7.1 INTRODUCTION
7.2 FOSSIL FUELS
7.2.1 INCREASING RELIANCE ON NATURAL GAS TO ADDRESS COOLING NEEDS TO AUGMENT SEGMENTAL GROWTH
7.3 RENEWABLE ENERGY
7.3.1 RISING GOVERNMENT INITIATIVES TO PROMOTE ENERGY-EFFICIENT BUILDINGS TO FOSTER SEGMENTAL GROWTH
7.4 OTHER SOURCES
8 DISTRICT COOLING MARKET, BY APPLICATION
8.1 INTRODUCTION
8.2 RESIDENTIAL
8.2.1 INCREASING DEPLOYMENT OF GREEN BUILDING TECHNOLOGIES TO EXPEDITE SEGMENTAL GROWTH
8.3 INDUSTRIAL
8.3.1 RISING NEED FOR PRECISE TEMPERATURE AND HUMIDITY CONTROL IN WAREHOUSES TO AUGMENT SEGMENTAL GROWTH
8.4 COMMERCIAL
8.4.1 HOSPITALS
8.4.1.1 Increasing requirement for maintaining optimal indoor air quality and temperature to boost segmental growth
8.4.2 EDUCATIONAL INSTITUTES
8.4.2.1 Rising emphasis on effective ventilation to contribute to
segmental growth
8.4.3 GOVERNMENT BUILDINGS
8.4.3.1 Growing focus on meeting strict energy-efficiency standards to accelerate segmental growth
8.4.4 OFFICES
8.4.4.1 Increasing awareness about energy conservation to boost
segmental growth
8.4.5 AIRPORTS
8.4.5.1 Rising emphasis on reducing energy consumption in western countries to fuel segmental growth
8.4.6 RETAIL STORES
8.4.6.1 Growing focus on enhancing customer satisfaction to augment segmental growth
9 DISTRICT COOLING MARKET, BY REGION
9.1 INTRODUCTION
9.2 NORTH AMERICA
9.2.1 US
9.2.1.1 Growing reliance on renewable energy in educational institutes to foster market growth
9.2.2 CANADA
9.2.2.1 Rapid transition toward sustainable energy future to boost
market growth
9.3 ASIA PACIFIC
9.3.1 CHINA
9.3.1.1 Increasing government initiatives to promote renewable energy consumption to drive market
9.3.2 JAPAN
9.3.2.1 Rising adoption of decarbonization strategies to accelerate
market growth
9.3.3 SOUTH KOREA
9.3.3.1 Growing demand for cooling systems in manufacturing facilities to expedite market growth
9.3.4 SINGAPORE
9.3.4.1 Increasing installation of air conditioners in commercial buildings to augment market growth
9.3.5 MALAYSIA
9.3.5.1 Rising focus on reducing energy consumption and carbon emissions to boost market growth
9.3.6 REST OF ASIA PACIFIC
9.4 EUROPE
9.4.1 SWEDEN
9.4.1.1 Mounting adoption of sustainable energy practices to drive market
9.4.2 FRANCE
9.4.2.1 Growing commitment to low-carbon energy future to expedite
market growth
9.4.3 GERMANY
9.4.3.1 Increasing investment in renewable energy sources to contribute to market growth
9.4.4 FINLAND
9.4.4.1 Expansion of high-density commercial infrastructure to
fuel market growth
9.4.5 NORWAY
9.4.5.1 Increasing implementation of strict emission standards to accelerate market growth
9.4.6 ITALY
9.4.6.1 Rising emphasis on meeting energy security objectives to
boost market growth
9.4.7 REST OF EUROPE
9.5 MIDDLE EAST & AFRICA
9.5.1 GCC
9.5.1.1 Saudi Arabia
9.5.1.1.1 Expanding industrial base and population growth to
drive market
9.5.1.2 UAE
9.5.1.2.1 Rising initiatives to curb carbon emissions to augment market growth
9.5.1.3 Qatar
9.5.1.3.1 Growing demand for energy-efficient cooling systems to accelerate market growth
9.5.1.4 Bahrain
9.5.1.4.1 Rising emphasis on promoting sustainable energy practices to boost market growth
9.5.1.5 Oman
9.5.1.5.1 Increasing focus on reducing dependence on hydrocarbons to contribute to market growth
9.5.1.6 Kuwait
9.5.1.6.1 Rising installation of air conditioning units to expedite market growth
9.5.2 EGYPT
9.5.2.1 Growing investment in construction projects to drive market
9.5.3 AFRICA & REST OF MIDDLE EAST
9.6 SOUTH AMERICA
9.6.1 BRAZIL
9.6.1.1 Increasing reliance on renewable energy sources to foster
market growth
9.6.2 ARGENTINA
9.6.2.1 Shifting preference from fossil fuels to clean energy sources to accelerate market growth
9.6.3 REST OF SOUTH AMERICA
10 COMPETITIVE LANDSCAPE
10.1 OVERVIEW
10.2 KEY PLAYER STRATEGIES/RIGHT TO WIN, 2019–2024
10.3 MARKET SHARE ANALYSIS, 2023
10.4 REVENUE ANALYSIS, 2019–2023
10.5 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2023
10.5.1 STARS
10.5.2 EMERGING LEADERS
10.5.3 PERVASIVE PLAYERS
10.5.4 PARTICIPANTS
10.5.5 COMPANY FOOTPRINT: KEY PLAYERS, 2023
10.5.5.1 Company footprint
10.5.5.2 Production technique footprint
10.5.5.3 Application footprint
10.5.5.4 Region footprint
10.6 COMPANY EVALUATION MATRIX: STARTUPS/SMES, 2023
10.6.1 PROGRESSIVE COMPANIES
10.6.2 RESPONSIVE COMPANIES
10.6.3 DYNAMIC COMPANIES
10.6.4 STARTING BLOCKS
10.6.5 COMPETITIVE BENCHMARKING: STARTUPS/SMES, 2023
10.6.5.1 Detailed list of key startups/SMEs
10.6.5.2 Competitive benchmarking of key startups/SMEs
10.7 COMPETITIVE SCENARIO AND TRENDS
10.7.1 PRODUCT LAUNCHES
10.7.2 DEALS
10.7.3 EXPANSIONS
10.7.4 OTHERS
10.8 COMPANY VALUATION AND FINANCIAL METRICS
10.9 BRAND/PRODUCT COMPARISON
11 COMPANY PROFILES
11.1 ENGINEERING, PROCUREMENT, AND CONSTRUCTION (EPC) COMPANIES
11.1.1 EMIRATES CENTRAL COOLING SYSTEMS CORPORATION PJSC
11.1.1.1 Business overview
11.1.1.2 District cooling projects
11.1.1.3 Recent developments
11.1.1.3.1 Deals
11.1.1.3.2 Expansions
11.1.1.3.3 Others
11.1.1.4 MnM view
11.1.1.4.1 Key strengths/Right to win
11.1.1.4.2 Strategic choices
11.1.1.4.3 Weaknesses/Competitive threats
11.1.2 TABREED
11.1.2.1 Business overview
11.1.2.2 District cooling projects
11.1.2.3 Recent developments
11.1.2.3.1 Deals
11.1.2.3.2 Expansions
11.1.2.3.3 Others
11.1.2.4 MnM view
11.1.2.4.1 Key strengths/Right to win
11.1.2.4.2 Strategic choices
11.1.2.4.3 Weaknesses/Competitive threats
11.1.3 EMICOOL
11.1.3.1 Business overview
11.1.3.2 District cooling projects
11.1.3.3 Recent developments
11.1.3.3.1 Deals
11.1.3.3.2 Expansions
11.1.3.4 MnM view
11.1.3.4.1 Key strengths/Right to win
11.1.3.4.2 Strategic choices
11.1.3.4.3 Weaknesses/Competitive threats
11.1.4 SHINRYO CORPORATION
11.1.4.1 Business overview
11.1.4.2 District cooling projects
11.1.4.3 MnM view
11.1.4.3.1 Key strengths/Right to win
11.1.4.3.2 Strategic choices
11.1.4.3.3 Weaknesses/Competitive threats
11.1.5 ADC ENERGY SYSTEMS
11.1.5.1 Business overview
11.1.5.2 District cooling projects
11.1.5.3 MnM view
11.1.5.3.1 Key strengths/Right to win
11.1.5.3.2 Strategic choices
11.1.5.3.3 Weaknesses/Competitive threats
11.1.6 KEPPEL
11.1.6.1 Business overview
11.1.6.2 District cooling projects
11.1.6.3 Recent developments
11.1.6.3.1 Deals
11.1.6.3.2 Expansions
11.1.7 RAMBOLL GROUP A/S
11.1.7.1 Business overview
11.1.7.2 District cooling projects
11.1.7.3 Consulting services
11.1.8 STELLAR ENERGY INTERNATIONAL
11.1.8.1 Business overview
11.1.8.2 District cooling projects
11.2 MANUFACTURING COMPANIES
11.2.1 JOHNSON CONTROLS INC.
11.2.1.1 Business overview
11.2.1.2 Products/Services/Solutions offered
11.2.2 DAIKIN INDUSTRIES, LTD.
11.2.2.1 Business overview
11.2.2.2 Products/Services/Solutions offered
11.2.3 TRANE TECHNOLOGIES PLC
11.2.3.1 Business overview
11.2.3.2 Products/Services/Solutions offered
11.2.4 MITSUBISHI HEAVY INDUSTRIES, LTD.
11.2.4.1 Business overview
11.2.4.2 Products/Services/Solutions offered
11.2.5 DANFOSS A/S
11.2.5.1 Business overview
11.2.5.2 Products/Services/Solutions offered
11.2.5.3 Recent development
11.2.5.3.1 Product launches
11.2.5.3.2 Deals
11.2.6 ATKINSRЙALIS
11.2.6.1 Business overview
11.2.6.2 Products/Services/Solutions offered
11.2.7 FORTUM
11.2.7.1 Business overview
11.2.7.2 Products/Services/Solutions offered
11.2.8 SIEMENS
11.2.8.1 Business overview
11.2.8.2 Products/Services/Solutions offered
11.2.9 VEOLIA
11.2.9.1 Business overview
11.2.9.2 Products/Services/Solutions offered
11.2.10 LOGSTOR DENMARK HOLDING APS
11.2.10.1 Business overview
11.2.10.2 District cooling projects
11.2.10.3 District cooling pipe networks
11.2.10.4 Products/Services/Solutions offered
11.2.10.5 Recent developments
11.2.10.5.1 Deals
11.3 OTHER PLAYERS
11.3.1 MULTIPLY GROUP
11.3.2 DC PRO ENGINEERING
11.3.3 MARAFEQ QATAR
11.3.4 SP GROUP
11.3.5 VATTENFALL AB
11.3.6 HELEN OY
11.3.7 CETETHERM
11.3.8 ENGIE
11.3.9 DALKIA
11.3.10 ENWAVE ENERGY CORPORATION
12 APPENDIX
12.1 INSIGHTS FROM INDUSTRY EXPERTS
12.2 DISCUSSION GUIDE
12.3 KNOWLEDGESTORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL
12.4 CUSTOMIZATION OPTIONS
12.5 RELATED REPORTS
12.6 AUTHOR DETAILS
The report "District Cooling Market by Production Technique (Free Cooling, Absorption Cooling, Electric Chillers), Application (Commercial, Residential & Institutional), Region - Global Forecast to 2021", The market for district cooling is projected to grow from USD 5.14 Billion in 2016 to USD 9.54 Billion by 2021, at a CAGR of 13.19% from 2016 to 2021.
The various companies supplying district cooling and related products are as follows:
- Emirates Central Cooling System Corporation (UAE)
- National Central Cooling Company PJSC (UAE)
- Emirates District Cooling LLC (UAE)
- Shinryo Corporation (Japan)
- ADC Energy Systems LLC (UAE)
- Keppel DCHS PTE LTD (Singapore)
- LOGSTOTR A/S (Denmark)
- Ramboll Group A/S (Denmark)
- SIEMENS AG (Germany)
- Stellar Energy (U.S.)
- District Cooling Company LLC (UAE) among others.
These companies are adopting strategies such as expansions, contracts, and acquisitions to strengthen their market position, increase their production capacity, and widen their customer base. For instance, acquisition of Palm Utilities and Palm District Cooling by Emirates Central Cooling Systems Corporation, the largest acquisition in the district cooling industry.
This report segments the market for district cooling into production technique, application, and region, and provides the estimations for the overall value of the market and the subsegments across various regions. A detailed analysis of the key industry players has been conducted to provide insights into their business overviews, products & services, key strategies, expansions, contracts & agreements, mergers & acquisitions, partnerships, agreements, joint ventures, and recent developments associated with the market for district cooling.
Breakdown of primaries:
Primary interviews were conducted with a number of industry experts in order to collect data related to different aspects of district cooling market. The distribution of primary interviews is as follows:
- By Company: Tier 1 - 54%, Tier 2 - 33%, and Tier 3 - 13%
- By Designation: Director level - 40%, C level - 47%, and Others - 13%
- By Region: Middle East & Africa- 33%, North America – 25%, Europe- 17%, and Latin America - 8%
Emirates Central Cooling Systems Corporation (Empower), the leading district cooling company, adopted various strategies such as contracts & agreements and expansions to increase its production capacity. For instance, in January 2014, EMPOWER acquired Palm Utilities (Dubai, UAE) worth USD 500 million which enabled it to increase its production capacity and strengthen its market presence. . The company also underwent strategic expansions, by expanding its production capacities in Business Bay (Dubai, UAE). The company is strengthening its market, hold, and brand portfolio across UAE and is also expanding its operations to other nations such as the GCC countries.
National Central Cooling Company PJSC (Tabreed) is expanding its production capacity in GCC countries. The company is currently deepening its roots in GCC countries to exploit the potential of the district cooling market. For instance, National Central Cooling Company PJSC (Tabreed) signed a contract with Qatar Cool for the construction of a fourth district cooling plant in the State of Qatar in May 2014. This contract enable the company to expand its market and strengthen its foothold in GCC. In the coming years, the company plans to expand its reach to other geographies with its experienced business units and rich brand portfolio.
The absorption cooling segment to be the fastest growing production technique in the district cooling market
The absorption cooling segment is estimated to be the most widely used production technique for meeting cooling demand as it utilizes waste energy. The absorption cooling segment accounted for the largest share in 2015 and is projected to grow at the highest rate during the forecast period. Absorption cooling is an environment-friendly means of cooling. It helps reduce the use of electrically driven cooling in the energy system and also reduces carbon dioxide emissions.
The commercial segment to account for the largest share of the district cooling market
The commercial segment accounted for the largest market share in 2015, owing to increasing demand for energy efficient cooling technologies for commercial buildings. Concerns over impact on the environment and rising energy prices has made the use of energy-efficient district cooling system a favorable solution for cooling in commercial spaces.
The Middle East & Africa region to play a key role in the growth of the market for district cooling
On the basis of region, the district cooling market is segmented into the Americas, Europe, Asia-Pacific, and the Middle East & Africa. The Middle East & Africa is a key market for district cooling. Development in the economies and the investment on infrastructure projects in this region have led to the high growth of this market. Growing affluent population, hot weather, and climate change concerns are some of the factors driving the district cooling market in the region.
