District Cooling Market is predicted to reach USD 51.7 billion at a CAGR of 7.3% during the forecast period

Pune, India, Dec 2022, MRFR Press Release/Market Research Future has published a Half- Cooked Research Report on the Global District Cooling Market.

Global District Cooling Market

A district cooling system (DCS) distributes cooling capacity from a central source in the form of chilled water or another medium to several buildings via a network of subterranean pipes for use in space and process cooling. District cooling is an ecologically friendly, energy-efficient, and cost-effective cooling technology. The cooling is produced centrally and provided as cold water to each building via a closed distribution network.

Market Synopsis

According to the MRFR analysis, the Global District Cooling Market value is projected to reach USD 51.7 billion by 2030 at a CAGR of 7.3%.

Over the projected period, the Global District Cooling Market is expected to grow considerably. Rising environmental consciousness and quickly rising global temperatures are promoting the adoption of renewable energy sources to lower carbon footprint, raising demand for energy-efficient cooling, and therefore significantly affecting the Global District Cooling Market's market development. While the high installation costs and sluggish returns on investments may hinder industry growth.

During the COVID-19 outbreak, the Global District Cooling business saw a dip in demand as a result of lower energy use, a drop-in economic activity, and a global halt of all renewable energy programs. The market, on the other hand, is expected to recover when major industries resume full-scale operations following the lifting of the lockdown. The market will expand significantly in the near future due to the increased demand for environmentally friendly and sustainable power-generating resources.

Browse In-depth Detailed Research Report [Table of Content, List of Figures, List of Tables] of District Cooling Market Trends

Competitive Landscape

The Global District Cooling market comprises many local and global players. The key players in the industry are involved in various strategies such as new product launches, collaborations, corporate deals, mergers, and acquisitions to maintain and expand their market dominance. The key players operating in this market include Veolia (France), Danfoss (Denmark), Emirates District Cooling, LLC (EMICOOL) (UAE), Shinryo Corporation (Japan), Alfa Laval AB (Sweden), ADC Energy Systems LLC (UAE)Daikin Industries Ltd. (Japan), National Central Cooling Company PJSC (TABREED) (UAE), SNC-Lavalin (Canada), Keppel Corporation Limited (Singapore), Emirates Central Cooling System Corporation (EMPOWER) (UAE), Qatar District Cooling Company (QATAR COOL), Stellar Energy (USA), Engie (France)

Segmentation

By Production Technique:

• Free Cooling: The district cooling network's water obtains cold from adjacent natural cold sources, such as a river or sea. Natural cold sources are used to cool the structure; heat will naturally escape without the need of a compressor or a vapor-compression refrigeration system. Natural cold sources include rivers, lakes, the sea, and outdoor air. The use of renewable energy in free cooling produces low carbon emissions. Free cooling systems do not utilize refrigerants that are harmful to the environment. They are very efficient energy users and minimize cooling system power usage, particularly at peak. However, because to a shortage of water supplies, it may require backup sources if load demand is high, and cooling service may be seasonal.


• Absorption Chillers: Absorption chillers capture waste heat from other processes or equipment to power a thermodynamic process that chills and distributes water for HVAC demands. Water is often blended with either ammonia or lithium bromide in place of traditional refrigerants, with lithium bromide being the more popular choice because to its nontoxicity. They have the ability to deliver large cooling capacity to a facility while not contributing to peak power consumption.


• Electric Chillers: Electric chillers have dominated the market for large commercial cooling systems due to their history of dependable, cost-effective operation. To satisfy the cooling demand, an electric chiller transforms electrical energy to cool energy. Electric chillers use the least amount of power to cool. These chiller systems must remain competitive in terms of energy consumption, hence government subsidies for residential and commercial power usage are critical.

By Operations:

• Storage: A considerable amount of the peak demand can be satisfied by cold energy storage capacity with a cold-water storage tank or an ice storage facility since the diurnal variation of the cooling demand at peak load is large. Cold storages (CSs) are a significant component in DC systems because they reduce wasteful capacity investment costs while supporting peak shaving and load shifting, as well as lowering cold production costs.


• Distribution: District chilled water is supplied through supply pipes from the cooling source(s) to the user stations and returned after removing heat from the building's secondary chilled water systems. Pumps move chilled water by establishing a pressure difference between the supply and return lines.


• Production: The central chiller plant produces chilled water using compressor-driven chillers. The chiller operation at the Central Utilities Plant uses plant steam to produce chilled water.

  By End User:

• Residential: A residential area is an area of land that is mostly utilized for housing. Consumption for space cooling is expected to climb to 30% of total building power demand by 2050, with the residential sector accounting for roughly 70% of the increase. The district cooling system is more energy efficient than the PTAC system in both technical and economic considerations. The increasing number of residential projects and greater awareness are projected to drive district cooling adoption in the residential segment.


• Commercial: Cooling is in high demand in commercial buildings such as malls, hotels, multistory offices, and data centers. The rising economy and commercial infrastructure, as well as rigorous rules and an increased desire to decrease the environmental effect, are driving expansion in the commercial sector.


• Industrial: District cooling supplies chilled water to industrial facilities for interior cooling. It supplies chilled water to industries, warehouses, and storage facilities where temperature management is critical for optimal productivity.

By Region

• North America: The district cooling industry in North America is expected to grow significantly during the forecast period. Increased penetration of commercial building constructions, as well as increased efforts to adopt energy-efficient DC systems, will raise industry statistics. Growing investments in the deployment of sustainable technology, together with ongoing government initiatives to decarbonize the energy sector through renewable integration, will supplement product penetration throughout the area. However, the implementation of government laws encouraging the use of district energy systems would boost market income.


• Europe: Rising demand for space cooling across the area will drive industry expansion. The EU launched the (COM (2016) 51 final) project in 2016 with the goal of reducing energy imports and reliance among member countries. It also presents a strategy for decarbonizing buildings and lowering GHG emissions from commercial and residential enterprises.


• Asia-Pacific: The district cooling market in Asia Pacific has grown rapidly. A District Cooling Plant concept has gained popularity as people become more conscious of the need for energy saving. The Indian government has announced ambitious projects such as Smart Cities and Smart Grid that are expected to boost the industry in the next years.


• Middle East & Africa: The Middle East and Africa are expected to dominate the majority of district cooling market potential, owing to a more affluent population and rising building activity, notably in countries such as the United Arab Emirates, Saudi Arabia, and Qatar. Middle Eastern and African governments are utilizing their authority to plan, regulate, fund, and build district cooling facilities throughout the area. The government of Dubai intends to deploy district cooling services to satisfy 40% of its cooling capacity. The goal is projected to be reached by 2030. The district cooling industry in the Middle East and Africa is being driven by increased awareness of net zero energy (NZE) buildings and a rise in the number of nations having NZE buildings.


• South America: The market is seeing high demand for district cooling. Because of the system's eco-friendliness, cost-effectiveness, and low energy usage, the region's District Cooling Market has seen rapid expansion. Furthermore, continuing smart city initiatives have resulted in an increase in construction activity, particularly in the commercial sector, favorably benefiting the district cooling market.