The district cooling market size is expected to advance at a CAGR of 7.9% during 2022–2030, to reach USD 45,836 million by 2030. This can be ascribed to the ever-increasing population and urbanization, rapid construction activities, surging investments by developing nations for infrastructure development, and increasing temperatures in regions with hot climates.
District cooling systems enable the distribution of cooling capacity in different forms such as chilled water or any other medium, which is mostly supplied from a source that is set up in a central location to multiple buildings by utilizing an entire network of underground pipes, which is used for space as well as process cooling.
Global warming across the globe is on the rise. The average rainfall levels have already begun to register new low records globally and subsequently, the average daily temperature of various regions is witnessing significant changes. In Arab countries, such as the U.A.E. and Saudi Arabia, the high temperature is already a problem for the inhabitants, and now, the increasing average temperature especially during summer due to greenhouse emissions is worsening the conditions. People can lose access to necessities such as clean water, food, and electricity, due to high temperatures and low rainfall conditions in the region.
According to an intergovernmental organization, changes in the climatic conditions of the Middle East region would affect its water supply as well as food production systems. The rapid changes in the climate can be somewhat managed by deploying energy-efficient technologies that are cost-efficient, reliable, and can aid in achieving sustainability objectives.
The demand for cooling and air conditioning would increase in the coming years, owing to the soaring average temperatures and subsequently the increasing consumption of electricity. Hence, the need for systems that are efficient in terms of both cost as well as energy, and are able to meet the cooling needs of a larger group of people at a time, is expected to escalate in the coming years.
To provide necessities such as housing and employment for the rising population in urban areas, construction projects are being continuously planned and executed. Construction of high-rise buildings in regions such as North America, Europe, and the Middle East is growing and it hinders natural ventilation. Hence, the need for mechanical or artificial ways of ventilation and maintaining the required temperature is increasing.
It becomes unbearable for people to reside and work comfortably in places characterized by hot climates, especially in the absence of air conditioning and cooling systems. The projects for providing living space to millions of people and overall infrastructure development in regions around the world imply the prospective demand for district cooling systems.
In addition, district cooling is a modern, economical, energy-efficient, and sustainable living choice as compared to conventional systems. It is able to efficiently cater to the needs of a large group of people at the same time. The increasing population and hence the rising number of housing units would be able to generate constant demand for district cooling systems. Moreover, the rising awareness regarding the impact of rapidly changing climatic conditions would also impel people to adopt these efficient systems for their daily survival needs.
Some of the major companies operating in the district cooling market are ADC Energy Systems LLC, Emirates Central Cooling Systems Corporation PJSC, Emicool, Shinryo Corporation, ENGIE SA, LOGSTOR International Sp. Z.o.o., Siemens, Veolia Environment SA, Keppel Corporation Ltd., Stellar Energy, and Ramboll Group A/S.