District Cooling Market
PUBLISHED: 2024 ID: SMRC25044
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District Cooling Market

District Cooling Market Forecasts to 2030 - Global Analysis By Source (Natural Gas, Coal, Geothermal and Other Sources), Production Technique (Absorption Cooling, Free Cooling, Heat Pumps, Electric Chillers and Other Production Techniques), End User and By Geography

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4.5 (79 reviews)
Published: 2024 ID: SMRC25044

This report covers the impact of COVID-19 on this global market
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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
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o 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
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o 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            
1 Global District Cooling Market Outlook, By Region (2021-2030) ($MN)           
2 Global District Cooling Market Outlook, By Source (2021-2030) ($MN)           
3 Global District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)           
4 Global District Cooling Market Outlook, By Coal (2021-2030) ($MN)           
5 Global District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)           
6 Global District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)           
7 Global District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)           
8 Global District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)           
9 Global District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)           
10 Global District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)           
11 Global District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)           
12 Global District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)           
13 Global District Cooling Market Outlook, By End User (2021-2030) ($MN)           
14 Global District Cooling Market Outlook, By Industrial (2021-2030) ($MN)           
15 Global District Cooling Market Outlook, By Residential (2021-2030) ($MN)           
16 Global District Cooling Market Outlook, By Commercial (2021-2030) ($MN)           
17 North America District Cooling Market Outlook, By Country (2021-2030) ($MN)           
18 North America District Cooling Market Outlook, By Source (2021-2030) ($MN)           
19 North America District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)           
20 North America District Cooling Market Outlook, By Coal (2021-2030) ($MN)           
21 North America District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)           
22 North America District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)           
23 North America District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)           
24 North America District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)           
25 North America District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)           
26 North America District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)           
27 North America District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)           
28 North America District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)           
29 North America District Cooling Market Outlook, By End User (2021-2030) ($MN)           
30 North America District Cooling Market Outlook, By Industrial (2021-2030) ($MN)           
31 North America District Cooling Market Outlook, By Residential (2021-2030) ($MN)           
32 North America District Cooling Market Outlook, By Commercial (2021-2030) ($MN)           
33 Europe District Cooling Market Outlook, By Country (2021-2030) ($MN)           
34 Europe District Cooling Market Outlook, By Source (2021-2030) ($MN)           
35 Europe District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)           
36 Europe District Cooling Market Outlook, By Coal (2021-2030) ($MN)           
37 Europe District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)           
38 Europe District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)           
39 Europe District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)           
40 Europe District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)           
41 Europe District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)           
42 Europe District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)           
43 Europe District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)           
44 Europe District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)           
45 Europe District Cooling Market Outlook, By End User (2021-2030) ($MN)           
46 Europe District Cooling Market Outlook, By Industrial (2021-2030) ($MN)           
47 Europe District Cooling Market Outlook, By Residential (2021-2030) ($MN)           
48 Europe District Cooling Market Outlook, By Commercial (2021-2030) ($MN)           
49 Asia Pacific District Cooling Market Outlook, By Country (2021-2030) ($MN)           
50 Asia Pacific District Cooling Market Outlook, By Source (2021-2030) ($MN)           
51 Asia Pacific District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)           
52 Asia Pacific District Cooling Market Outlook, By Coal (2021-2030) ($MN)           
53 Asia Pacific District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)           
54 Asia Pacific District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)           
55 Asia Pacific District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)           
56 Asia Pacific District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)           
57 Asia Pacific District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)           
58 Asia Pacific District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)           
59 Asia Pacific District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)           
60 Asia Pacific District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)           
61 Asia Pacific District Cooling Market Outlook, By End User (2021-2030) ($MN)           
62 Asia Pacific District Cooling Market Outlook, By Industrial (2021-2030) ($MN)           
63 Asia Pacific District Cooling Market Outlook, By Residential (2021-2030) ($MN)           
64 Asia Pacific District Cooling Market Outlook, By Commercial (2021-2030) ($MN)           
65 South America District Cooling Market Outlook, By Country (2021-2030) ($MN)           
66 South America District Cooling Market Outlook, By Source (2021-2030) ($MN)           
67 South America District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)           
68 South America District Cooling Market Outlook, By Coal (2021-2030) ($MN)           
69 South America District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)           
70 South America District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)           
71 South America District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)           
72 South America District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)           
73 South America District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)           
74 South America District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)           
75 South America District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)           
76 South America District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)           
77 South America District Cooling Market Outlook, By End User (2021-2030) ($MN)           
78 South America District Cooling Market Outlook, By Industrial (2021-2030) ($MN)           
79 South America District Cooling Market Outlook, By Residential (2021-2030) ($MN)           
80 South America District Cooling Market Outlook, By Commercial (2021-2030) ($MN)           
81 Middle East & Africa District Cooling Market Outlook, By Country (2021-2030) ($MN)           
82 Middle East & Africa District Cooling Market Outlook, By Source (2021-2030) ($MN)           
83 Middle East & Africa District Cooling Market Outlook, By Natural Gas (2021-2030) ($MN)           
84 Middle East & Africa District Cooling Market Outlook, By Coal (2021-2030) ($MN)           
85 Middle East & Africa District Cooling Market Outlook, By Geothermal (2021-2030) ($MN)           
86 Middle East & Africa District Cooling Market Outlook, By Other Sources (2021-2030) ($MN)           
87 Middle East & Africa District Cooling Market Outlook, By Production Technique (2021-2030) ($MN)           
88 Middle East & Africa District Cooling Market Outlook, By Absorption Cooling (2021-2030) ($MN)           
89 Middle East & Africa District Cooling Market Outlook, By Free Cooling (2021-2030) ($MN)           
90 Middle East & Africa District Cooling Market Outlook, By Heat Pumps (2021-2030) ($MN)           
91 Middle East & Africa District Cooling Market Outlook, By Electric Chillers (2021-2030) ($MN)           
92 Middle East & Africa District Cooling Market Outlook, By Other Production Techniques (2021-2030) ($MN)           
93 Middle East & Africa District Cooling Market Outlook, By End User (2021-2030) ($MN)           
94 Middle East & Africa District Cooling Market Outlook, By Industrial (2021-2030) ($MN)           
95 Middle East & Africa District Cooling Market Outlook, By Residential (2021-2030) ($MN)           
96 Middle East & Africa District Cooling Market Outlook, By Commercial (2021-2030) ($MN) 

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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