District Cooling Market size is forecast to reach $11.5 billion by 2025, after growing at a CAGR of 9.2% during 2020-2025. The demand for district cooling is growing due to the increase in the demand for energy efficient cooling technologies. District cooling aims to reduce greenhouse gas pollution and refrigerant consumption. The district cooling industry will be fostered by the continued implementation of sustainable and effective cooling systems to meet energy saving goals, along with the increasing production of sustainable building solutions. Moreover, the growing introduction of renewable technology, along with tight regulatory requirements to minimize pollution, would stimulate the development of the industry. In addition, due to growing surface temperature levels across the Middle East, Central Europe and South Asian nations, severe climate conditions would promote the introduction of the substance. Furthermore, the total demand over the expected timeframe is rising.
District Cooling Market Segment Analysis - By Application
Residential sector has dominated the market for District Cooling Market in 2019, by growing at a CAGR of 9.6%. Because of the rise in demand for cooling due to accelerated climate change. Apartments, condominiums, row houses, and private residences are residential properties. There is a growth in demand in the residential sector for luxury products such as air conditioners. There is a growth in demand for energy-efficient cooling systems, such as district cooling, as air conditioners use about 50 percent of the overall electricity used in households. The launch of smart homes and green building technology has had a positive influence on the cooling demand in the district. The district refrigeration demand in the residential segment is projected to fuel a rise in people's disposable income, the need to conserve electricity and rapid climate change. Global temperature rises and emissions increases have resulted in increased demand for district cooling in commercial applications due to heavy building activities.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=16442
Report Price: $ 4500 (Single User License)
District Cooling Market Segment Analysis - By Geography
Middle East & Africa is estimated to grow at the highest CAGR in District Cooling Market. Over the years, increasingly growing temperatures and the demonstrated feasibility of DC plants in the surrounding regions have contributed to the growth of DC networks in the Middle East. With raising awareness of the need for energy efficiency, the principle of the DC plant has further gained traction. The growing need for energy-efficient systems to promote the current building boom would fuel the growth of the industry. In addition, the industry environment has been complemented by the rising construction activities in prominent cities of Riyadh and Mecca coupled with the favorable government priorities for the implementation of DC systems. Government subsidies have encouraged the development of DC on a wide scale through the Saudi Industrial Development Fund. In 2018, initiatives were taken by the Dubai government to develop 20 to 24 medium and large-scale capacity plants that have stimulated the growth of DC systems in the region. One of the key factors driving the demand in this area is growing investment with regard to the production of cooling systems. Growing government policies for renewable energy production in the MEA region are promoting business growth. With the FIFA World Cup 2022 taking place, countries like Qatar are seeing extensive growth in the construction market.
District Cooling Market Drivers
Commercial applications driving the district cooling industry revenue
Due to the booming residential and service market, including SEZs, colleges/universities, and office & government buildings, demand for sustainable cooling has been mainly from urban areas. In offices, hotels, government houses, colleges/universities, and high-rise skyscrapers throughout the U.S., Sweden, France, China, Saudi Arabia, and Japan, the DC network has been steadily expanding. Growing investments in the construction of energy-efficient commercial buildings, along with a stringent regulatory system for sustainable building codes, have presented district cooling industry players with a favorable business scenario. Furthermore, accelerating floor space through commercial infrastructure to provide sustainable cooling technologies and to satisfy the high demands of cooling has greatly enhanced the acceptance of the commodity. Business expansion will be complemented by the vast opportunity for the use of systems in countries close to the equator due to differing temperatures.
Download Sample Report @ https://www.industryarc.com/pdfdownload.php?id=16442
District Cooling Market Challenges
High capital cost
The exponential growth in the use of district cooling technology and the price of raw materials, which limit the market share of district cooling, are changing unpredictably. These product replacement concerns and the need for energy are likely to serve as major constraints in the district cooling market.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the District Cooling Market. In 2019, the market of district cooling has been consolidated by the top five players accounting for xx% of the share. Major players in the District Cooling Market are Ramboll, Fortum, Emicool, Engie, Tabreed, Vattenfall, Siemens, Veolia, Helen, Empower, Qatar Cool, Keppel Dhc, Singapore District Cooling, SNC Lavalin, ADC Energy Systems, Stellar Energy, Shinryo Corporation, Cetetherm, Wien Energie, Goteborg, Logstor, Danfoss, Marafeq, DC Pro, Pal Technologies, and among others.
Acquisition/Product Launches:
In January 2017, the purchase of a district cooling plant from International Capital Trading was announced by Tabreed. The acquisition will allow Tabreed to reinforce its portfolio and add 11,500 RT to its current production capacity.
In April 2016, the acquisition from International Capital Trading of a district cooling plant was announced by Tabreed. With the purchase, Tabreed will be able to improve its portfolio and add 11,500 RT to its existing production potential.
In July 2016, Empower has signed a USD 0.49 billion deal with Nakheel to supply Jumeirah Village Circle and Jumeirah Village Triangle with district cooling facilities. This contract would contribute about 260,000 RT to the total manufacturing capacity of Empower.
Key Takeaways
In order to allow air conditioning, district cooling is the processing and delivery of chilled water from a central source. In a central facility, chilled water is produced and delivered to consumers via an underground network of insulated pipes. For large-scale high-density projects such as urban commercial districts, airports, military bases, university campuses, apartment buildings, and business establishments, city cooling is necessary.
In addition, changing patterns towards energy efficient conditioning optimization would stimulate the market outlook. For example, the government of Abu Dhabi has framed an "Estidama" policy in conjunction with its Vision 2030, which governs the development, design, operation and performance of houses, villas and communities across the country.
Nevertheless, due to the COVID-19 pandemic, the end-use sectors are greatly impacted, as most countries have given "stay at home guidance," i.e. lockout. This aspect, in the current scenario, restricts the growth of the industry.
Related Reports :
A. Ammonia Refrigerant Market
https://www.industryarc.com/Report/1276/Ammonia-Refrigerant-Market-analysis-report.html
B. Refrigerant Market
https://www.industryarc.com/Report/11662/refrigerant-market-analysis.html
For more Chemicals and Materials Market reports - Please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.
