The global market for district cooling sector is booming, and is estimated to hit $39.9 billion by 2026 from $21.9 billion last year, growing at a CAGR of 7.77 per cent, said a report.
The rising support from the governments in GCC countries is driving the global district cooling market, according to a published report by Fortune Business Insights, titled, "District Cooling Market: Global Market Analysis, Insights, and Forecast, 2018-2026."
Some of the leading players in the global district cooling market are: Engie; National Central Cooling Company (Tabreed); Empower (Emirates Central Cooling System Corporation); Emicool; Veolia; Enwave Energy Corporation; Petronas; Shinryo Corporation; Keppel Corporation; Ramboll; Singapore Power; Fortum; Vattenfall; Logstor; Danfoss; Stellar Energy; Marafeq Qatar and SNC Lavalin.
Dubai-based Empower had recently announced the settting up of world's first unmanned district cooling plant in UAE. The plant construction is 80% complete and once it is fully operational, the plant will have a total capacity of 50,000 refrigeration tonne (RT).
The company plans to meet the demand for district cooling services of hotels in the UAE.
Rising focus on increasing energy efficiency and optimum use of renewable energy are the two biggest contributions to maintain global temperature below 2 degrees Celsius.
The district cooling market size is expected to increase owing to the dominance of GCC countries such as the Middle East & Africa (MEA), stated the Fortune Business Insights in its report.
According to the report, the construction and infrastructural activities are increasing in these countries, which is stoking demand for district cooling systems.
The district cooling market is growing in Qatar owing to the economic diversification for the Fifa World Cup 2022.
Government is heavily funding to build top-notch facilities for the upcoming World Cup in Qatar. Such initiatives are expected to drive the district cooling market growth in the forthcoming years, said the report.
The demand for district cooling is increasing across residential, commercial, and industrial. Of these, the commercial is expected to cover the major portion of the district cooling market share in the forecast years.
As per the report, the segment accounts for 61.14% of the overall market share. Escalating demand for air conditioning across educational institutes, IT parks, business parks, and others is likely to leverage the growth of this segment, stated the report.
Companies are increasingly investing in energy-efficient technology along with rising popularity on sustainability, which is driving the segment's growth.
Other segments such as residential and industrial are expected to create lucrative opportunities for the market owing to the rising developments in large scale projects in GCC countries.
The report helps to understand the market dynamics and structure by identifying different market segments with their respective marker figures.
The market used different analysis to understand the regional situation of the market. In addition to this, the market offers detailed information on drivers, opportunities, trends, threats, and restraints, said the report.
Analysts in the report analyzed the competitive landscape by covering different key players and their developments in district cooling, it added.
Adoption of different district cooling technologies can help organizations to complete large-scale projects efficiently and on time.
Electric chillers and absorption chillers are some of the well-known technologies, however electric chillers are preferred owing to their better co-efficient performance or COP. These chillers occupy 50% lesser floor space as compared to absorption chillers, thereby increasing their adoption.
Among regions, the district cooling market in the Middle East & Africa is the most robust valued at $7.79 billion in 2018 and it is anticipated to register considerable growth in the forecast years.
Governments and private players are making heavy investments in energy-efficient cooling systems to ensure sustainable environment. The market growth is being spearheaded by regional heavyweights Saudi Arabia and UAE who jointly cover more than 75% of the overall district cooling installed capacity in the region.
Following MEA, North America emerged as the second-largest market owing to the rising focus on reducing carbon emissions.
Majority of the institutional buildings and airports in the US are connected with district cooling network to fulfil the demand for air conditioning, stated the report by Fortune Business Insights.
Other regions such as Latin America and Asia Pacific are expected to grow steadily during the forecast period.
Maintaining a sustainable environment is the first priority of governments and market players. Installing a district cooling system can help in the reduction of GHG emissions and eventually helps to save energy, it added.-TradeArabia News Service