PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1438056
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1438056
District Cooling Market Forecasts to 2030 - Global Analysis By Source, Production Technique, End User and By Geography
According to Stratistics MRC, the Global District Cooling Market is accounted for $1034 million in 2023 and is expected to reach $1494 million by 2030 growing at a CAGR of 5.4% during the forecast period. District cooling is a centralized cooling system that provides air conditioning and refrigeration services to multiple buildings or facilities within a specific geographic area or district. District cooling offers several advantages, including energy efficiency, reduced environmental impact, and lower maintenance costs for individual buildings.
According to the National Oceanic and Atmospheric Administration (NOAA), the average global temperature has increased by around 1.4° F (0.8° C) in the last 100 years.
Market Dynamics:
Driver:
Energy efficiency
District cooling systems centralize the production of chilled water, allowing for optimized energy consumption compared to decentralized cooling methods. Moreover, the centralized nature of district cooling enables the use of advanced technologies, such as high-efficiency chillers and thermal storage systems, contributing to reduced energy consumption and operating costs. Therefore, energy efficiency is a significant factor propelling market expansion.
Restraint:
High initial investment
Implementing a district cooling system requires substantial upfront capital for infrastructure development, construction, and installation of centralized cooling plants and distribution networks. These costs can vary depending on the size and complexity of the project, as well as the local labor and material costs. However, these costs can be a deterrent for developers and building owners, particularly in regions with limited financial resources or budget constraints, which hampers market demand.
Opportunity:
Urbanization and infrastructure development
Rapid urbanization, characterized by the growth of cities and increased population density, has led to a surge in the demand for cooling solutions, especially in densely populated areas. Additionally, the establishment of modern, well-planned urban infrastructure provides opportunities for integrating centralized cooling solutions. Therefore, urbanization and infrastructure development act as key drivers for the adoption of district cooling systems.
Threat:
Seasonal variations
In periods of low ambient temperatures or reduced cooling needs, district cooling systems may operate at suboptimal capacities, leading to inefficiencies and increased operational costs. These variations can result in underutilization of infrastructure during off-peak seasons, impacting the overall economic viability of district cooling projects. Additionally, seasonal variations may require significant investment in thermal energy storage solutions to store excess cooling capacity during periods of low demand, ensuring a consistent and reliable supply.
Covid-19 Impact
The COVID-19 pandemic has significantly impacted the district cooling market. The health and safety concerns associated with the virus prompted a shift in priorities, diverting attention and resources away from non-essential projects, including district cooling initiatives. Moreover, supply chain disruptions and labor shortages further hampered construction and maintenance activities, delaying projects and affecting overall market dynamics during the pandemic.
The natural gas segment is expected to be the largest during the forecast period
The natural gas segment is estimated to hold the largest share. Natural gas plays a significant role as a primary energy source for the production of chilled water. This process is highly efficient and contributes to the overall energy efficiency of district cooling systems. Additionally, the inherent flexibility of natural gas turbines allows for quick response to varying cooling demands, contributing to the stability and efficiency of the overall system.
The electric chillers segment is expected to have the highest CAGR during the forecast period
The electric chillers segment is anticipated to have lucrative growth during the forecast period. Electric chillers are a fundamental component playing a pivotal role in the production of chilled water for air conditioning and refrigeration purposes. Moreover, as the demand for cooling solutions continues to rise, electric chillers remain a reliable and integral component, balancing the need for efficient cooling with considerations for energy consumption and environmental impact in urban and industrial settings, which propels the market demand.
Region with largest share:
Asia Pacific commanded the largest market share during the extrapolated period owing to increasing urbanization, population growth, and a rising demand for energy-efficient and sustainable cooling solutions. In major cities across the region, the adoption of district cooling has gained prominence as a strategic approach to address the challenges associated with high-density urban development. Furthermore, the region's tropical and subtropical climates, characterized by high temperatures and humidity, amplify the need for effective cooling solutions.
Region with highest CAGR:
North America is expected to witness profitable growth over the projection period, owing to growing emphasis on sustainable urban development and a need for efficient cooling solutions. The region's diverse climate, ranging from extreme cold in northern areas to hot and humid conditions in the south underscores the importance of adaptable cooling solutions. District cooling, with its centralized plants and flexible technologies, offers an effective means to address these climate variations. As urbanization continues and the focus on sustainability intensifies, North America remains a key region for the development and growth of district cooling systems.
Key players in the market
Some of the key players in the District Cooling Market include Siemens AG, Emirates Central Cooling Systems Corporation, Keppel DHCS. Pte. Ltd., ADC Energy Systems, Emirates District Cooling LLC, Ramboll Group A/S, Stellar Energy, Shinryo Corporation, Dalkia, ABB Ltd., ADC Energy Systems and Veolia.
Key Developments:
In August 2023, Stella Energy Solutions, a utility-scale solar and storage developer, has entered into a multi-year agreement with Empact Technologies, which provides software and services for clean energy tax incentive management.
In April 2023, Veolia Water Technologies & Solutions and Locus Performance Ingredients (Locus PI) announced their exclusive collaboration that will focus on developing new biobased solutions tailored to address process, water and wastewater sustainability and performance challenges.
Sources Covered:
- Natural Gas
- Coal
- Geothermal
- Other Sources
Production Techniques Covered:
- Absorption Cooling
- Free Cooling
- Heat Pumps
- Electric Chillers
- Other Production Techniques
End Users Covered:
- Industrial
- Residential
- Commercial
Regions Covered:
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia
- New Zealand
- South Korea
- Rest of Asia Pacific
- South America
- Argentina
- Brazil
- Chile
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- UAE
- Qatar
- South Africa
- Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
- Company Profiling
- Comprehensive profiling of additional market players (up to 3)
- SWOT Analysis of key players (up to 3)
- Regional Segmentation
- Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
- Competitive Benchmarking
- Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 End User Analysis
- 3.7 Emerging Markets
- 3.8 Impact of Covid-19
4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
5 Global District Cooling Market, By Source
- 5.1 Introduction
- 5.2 Natural Gas
- 5.3 Coal
- 5.4 Geothermal
- 5.5 Other Sources
6 Global District Cooling Market, By Production Technique
- 6.1 Introduction
- 6.2 Absorption Cooling
- 6.3 Free Cooling
- 6.4 Heat Pumps
- 6.5 Electric Chillers
- 6.6 Other Production Techniques
7 Global District Cooling Market, By End User
- 7.1 Introduction
- 7.2 Industrial
- 7.3 Residential
- 7.4 Commercial
8 Global District Cooling Market, By Geography
- 8.1 Introduction
- 8.2 North America
- 8.2.1 US
- 8.2.2 Canada
- 8.2.3 Mexico
- 8.3 Europe
- 8.3.1 Germany
- 8.3.2 UK
- 8.3.3 Italy
- 8.3.4 France
- 8.3.5 Spain
- 8.3.6 Rest of Europe
- 8.4 Asia Pacific
- 8.4.1 Japan
- 8.4.2 China
- 8.4.3 India
- 8.4.4 Australia
- 8.4.5 New Zealand
- 8.4.6 South Korea
- 8.4.7 Rest of Asia Pacific
- 8.5 South America
- 8.5.1 Argentina
- 8.5.2 Brazil
- 8.5.3 Chile
- 8.5.4 Rest of South America
- 8.6 Middle East & Africa
- 8.6.1 Saudi Arabia
- 8.6.2 UAE
- 8.6.3 Qatar
- 8.6.4 South Africa
- 8.6.5 Rest of Middle East & Africa
9 Key Developments
- 9.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 9.2 Acquisitions & Mergers
- 9.3 New Product Launch
- 9.4 Expansions
- 9.5 Other Key Strategies
10 Company Profiling
- 10.1 Siemens AG
- 10.2 Emirates Central Cooling Systems Corporation
- 10.3 Keppel DHCS. Pte. Ltd.
- 10.4 ADC Energy Systems
- 10.5 Emirates District Cooling LLC
- 10.6 Ramboll Group A/S
- 10.7 Stellar Energy
- 10.8 Shinryo Corporation
- 10.9 Dalkia
- 10.10 ABB Ltd.
- 10.11 ADC Energy Systems
- 10.12 Veolia
List of Tables
- Table 1 Global District Cooling Market Outlook, By Region (2021-2030) ($MN)
- Table 2 Global District Cooling Market Outlook, By Source (2021-2030) ($MN)
- Table 3 Global District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)
- Table 4 Global District Cooling Market Outlook, By Coal (2021-2030) ($MN)
- Table 5 Global District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)
- Table 6 Global District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)
- Table 7 Global District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)
- Table 8 Global District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)
- Table 9 Global District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)
- Table 10 Global District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)
- Table 11 Global District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)
- Table 12 Global District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)
- Table 13 Global District Cooling Market Outlook, By End User (2021-2030) ($MN)
- Table 14 Global District Cooling Market Outlook, By Industrial (2021-2030) ($MN)
- Table 15 Global District Cooling Market Outlook, By Residential (2021-2030) ($MN)
- Table 16 Global District Cooling Market Outlook, By Commercial (2021-2030) ($MN)
- Table 17 North America District Cooling Market Outlook, By Country (2021-2030) ($MN)
- Table 18 North America District Cooling Market Outlook, By Source (2021-2030) ($MN)
- Table 19 North America District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)
- Table 20 North America District Cooling Market Outlook, By Coal (2021-2030) ($MN)
- Table 21 North America District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)
- Table 22 North America District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)
- Table 23 North America District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)
- Table 24 North America District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)
- Table 25 North America District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)
- Table 26 North America District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)
- Table 27 North America District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)
- Table 28 North America District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)
- Table 29 North America District Cooling Market Outlook, By End User (2021-2030) ($MN)
- Table 30 North America District Cooling Market Outlook, By Industrial (2021-2030) ($MN)
- Table 31 North America District Cooling Market Outlook, By Residential (2021-2030) ($MN)
- Table 32 North America District Cooling Market Outlook, By Commercial (2021-2030) ($MN)
- Table 33 Europe District Cooling Market Outlook, By Country (2021-2030) ($MN)
- Table 34 Europe District Cooling Market Outlook, By Source (2021-2030) ($MN)
- Table 35 Europe District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)
- Table 36 Europe District Cooling Market Outlook, By Coal (2021-2030) ($MN)
- Table 37 Europe District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)
- Table 38 Europe District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)
- Table 39 Europe District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)
- Table 40 Europe District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)
- Table 41 Europe District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)
- Table 42 Europe District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)
- Table 43 Europe District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)
- Table 44 Europe District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)
- Table 45 Europe District Cooling Market Outlook, By End User (2021-2030) ($MN)
- Table 46 Europe District Cooling Market Outlook, By Industrial (2021-2030) ($MN)
- Table 47 Europe District Cooling Market Outlook, By Residential (2021-2030) ($MN)
- Table 48 Europe District Cooling Market Outlook, By Commercial (2021-2030) ($MN)
- Table 49 Asia Pacific District Cooling Market Outlook, By Country (2021-2030) ($MN)
- Table 50 Asia Pacific District Cooling Market Outlook, By Source (2021-2030) ($MN)
- Table 51 Asia Pacific District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)
- Table 52 Asia Pacific District Cooling Market Outlook, By Coal (2021-2030) ($MN)
- Table 53 Asia Pacific District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)
- Table 54 Asia Pacific District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)
- Table 55 Asia Pacific District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)
- Table 56 Asia Pacific District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)
- Table 57 Asia Pacific District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)
- Table 58 Asia Pacific District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)
- Table 59 Asia Pacific District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)
- Table 60 Asia Pacific District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)
- Table 61 Asia Pacific District Cooling Market Outlook, By End User (2021-2030) ($MN)
- Table 62 Asia Pacific District Cooling Market Outlook, By Industrial (2021-2030) ($MN)
- Table 63 Asia Pacific District Cooling Market Outlook, By Residential (2021-2030) ($MN)
- Table 64 Asia Pacific District Cooling Market Outlook, By Commercial (2021-2030) ($MN)
- Table 65 South America District Cooling Market Outlook, By Country (2021-2030) ($MN)
- Table 66 South America District Cooling Market Outlook, By Source (2021-2030) ($MN)
- Table 67 South America District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)
- Table 68 South America District Cooling Market Outlook, By Coal (2021-2030) ($MN)
- Table 69 South America District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)
- Table 70 South America District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)
- Table 71 South America District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)
- Table 72 South America District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)
- Table 73 South America District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)
- Table 74 South America District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)
- Table 75 South America District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)
- Table 76 South America District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)
- Table 77 South America District Cooling Market Outlook, By End User (2021-2030) ($MN)
- Table 78 South America District Cooling Market Outlook, By Industrial (2021-2030) ($MN)
- Table 79 South America District Cooling Market Outlook, By Residential (2021-2030) ($MN)
- Table 80 South America District Cooling Market Outlook, By Commercial (2021-2030) ($MN)
- Table 81 Middle East & Africa District Cooling Market Outlook, By Country (2021-2030) ($MN)
- Table 82 Middle East & Africa District Cooling Market Outlook, By Source (2021-2030) ($MN)
- Table 83 Middle East & Africa District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)
- Table 84 Middle East & Africa District Cooling Market Outlook, By Coal (2021-2030) ($MN)
- Table 85 Middle East & Africa District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)
- Table 86 Middle East & Africa District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)
- Table 87 Middle East & Africa District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)
- Table 88 Middle East & Africa District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)
- Table 89 Middle East & Africa District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)
- Table 90 Middle East & Africa District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)
- Table 91 Middle East & Africa District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)
- Table 92 Middle East & Africa District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)
- Table 93 Middle East & Africa District Cooling Market Outlook, By End User (2021-2030) ($MN)
- Table 94 Middle East & Africa District Cooling Market Outlook, By Industrial (2021-2030) ($MN)
- Table 95 Middle East & Africa District Cooling Market Outlook, By Residential (2021-2030) ($MN)
- Table 96 Middle East & Africa District Cooling Market Outlook, By Commercial (2021-2030) ($MN)
