How Has The District CoolingMarket Size Evolved In Recent Years?
The district cooling market has seen considerable growth due to a variety of factors.
• In the last few years, there has been a rapid surge in the size of the district cooling market. The market, which is currently at $17.98 billion in 2024, is predicted to expand to $20.13 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 11.9%.
Factors contributing to the growth observed in the historic period include high demand for cooling systems in high-temperature areas, escalating urbanization, increasing disposable income, development of large-scale residential and commercial projects, and a growing requirement for energy-efficient cooling options.
What Is The Projected Growth Of The District Cooling Market?
The district cooling market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the district cooling market is anticipated to witness a significant expansion. The market is predicted to reach a valuation of $31.76 billion by 2029, growing at a compound annual growth rate (CAGR) of 12.1%.
This growth during the projected period can be credited to an increasing demand for efficient cooling systems, accelerated construction activities, rising infrastructural investments by emerging economies, burgeoning global population and urbanization, and an amplified focus on sustainability. Predicted trends for this period encompass the utilization of cutting-edge data analytics to enhance cooling system efficiency, the rise of district cooling as a service (dcaas) models, the integration of smart grid technologies in district cooling networks, the proliferation of innovative technologies, and a heightened emphasis on cold energy recovery and usage in district cooling.
What Key Factors and Trends are Driving the Growth of the District Cooling Market?
The increased emphasis on the use of eco-friendly energy sources is anticipated to drive the district cooling market's expansion. This energy source does not run out and can provide lasting power without needing to be renewed. District cooling, in its sustainable form, offers environmentally friendly cooling solutions and enhance the local setting by cutting down noise and bolstering the secure delivery of energy. To illustrate, the International Energy Agency, an intergovernmental organization based in France, reported in June 2023 that the collective capacity additions of global renewable energy are projected to surge by 107 gigawatts (GW), marking the highest absolute climb ever, which will see it exceed 440 GW. Hence, the broadening focus on sustainable energy adoption underpins the district cooling market's growth.
What are the Market Segments in the District Cooling Market?
The district cooling market covered in this report is segmented –
1) By Production Technique: Free Cooling, Absorption Cooling, Electric Chillers, Other Production Techniques
2) By Function: Stationary Cooling, Transport Cooling
3) By Application: Commercial, Residential, Industrial
Subsegments:
1) By Free Cooling: Natural Ventilation, Ice Storage
2) By Absorption Cooling: Water-Lithium Bromide Systems, Ammonia-Water Systems
3) By Electric Chillers: Air-Cooled Chillers, Water-Cooled Chillers
4) By Other Production Techniques: District Heating And Cooling Networks, Thermal Energy Storage Systems
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What Trends are Shaping the District Cooling Market?
Technological breakthroughs stand out as the emerging trend in the district cooling systems market. Top-notch corporations in this sector are leveraging technology to solidify their dominance. For instance, Honeywell, a performance materials and technology company based in the US, unveiled Solstice E-Cooling in February 2022 – an innovative platform of liquid heat transfer agents. Unlike traditional air and water cooling methods, this superior technology efficiently cools high-performance electronics. It employs a two-phase liquid cooling process to not only maintain a cool temperature for electronic devices and data centers, but also decreases environmental damage. Furthermore, Solstice E-Cooling promises uniform and energy-conscious cooling, superior heat expulsion, and lower pump power usage.
Who Are the Key Players in the District Cooling Market?
Major companies operating in the district cooling market include:
• 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
• Emirates Central Cooling Systems Corp.
• DC PRO Engineering
• Johnson Controls International plc
• Siemens AG
• Trane Technologies plc
• Carrier Global Corporation
• Hitachi Ltd.
• LG Electronics Inc.
• Daikin Industries Ltd.
• GEA Group AG
What are the Regional Insights into the District Cooling Market?
Middle East was the largest region in the district cooling market share in 2024.The regions covered in the district cooling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
