District Cooling Market by Production Technique (Free Cooling, Absorption Cooling, Electric chillers), Application (Commercial, Residential, and Industrial) and Region (North America, Europe, APAC, MEA, South America) - Global Forecast to 2026

District Cooling Market by Production Technique (Free Cooling, Absorption Cooling, Electric chillers), Application (Commercial, Residential, and Industrial) and Region (North America, Europe, APAC, MEA, South America) - Global Forecast to 2026

The global district cooling market is projected to reach USD 1,177 million by 2026 from an estimated market size of USD 931 million in 2021, at a CAGR of 3.4% during the forecast period. The district cooling market is primarily driven by the Surging need for efficient cooling in regions with hot climates. Rapid urbanization will put tremendous pressure on urban infrastructure. With the increasing number of people moving to cities, the demand for cooling residential and commercial spaces is also expected to increase in the coming years.

“The Commercial meters segment, by Application, is expected to be the fastest-growing market from 2021 to 2026”

The Application segment is categorized as commercial, residential, and industrial. The commercial district cooling market is projected to grow at a CAGR of 3.5% during the forecast period. Middle east and Africa, with a share of 73.7% in 2021, dominated the district cooling commercial market. The demand for district cooling in the commercial segment is driven by concerns regarding the impact on the environment and rising energy prices have made the use of energy-efficient district cooling systems a favorable solution for cooling in commercial spaces.

“The electric chillers segment, by Production technique, is expected to be the largest market from 2021 to 2026”

The electric chillers segment accounted for the largest share of the district cooling market, by application, in 2021. The demand for electric chillers from the production technique sector is driven by the relatively higher coefficient of performance (COP) in comparison with that of residential and commercial air conditioning units. Even Linking electric chillers with cold storage on a network helps reduce peak electricity demand for cooling in a city by shifting production to other periods of the day.

“The Middle East and Africa: The largest growing region in the district cooling market.”

The Middle East and Africa are expected to dominate the district cooling market during the forecast period due to shift in the electricity demand and supply balance in the Middle East & Africa and Asia Pacific regions have resulted in the wider use of district cooling, which has enabled utilities and developers to balance power supply and effectively manage its usage. District cooling is being promoted as a way of addressing energy shortages, energy demand, and global warming in the Middle East & Africa, and Asia Pacific

Breakdown of Primaries:

In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The distribution of primary interviews is as follows:
By Company Type: Tier 1- 45%, Tier 2- 30%, and Tier 3- 25%
By Designation: C-Level- 35%, D-Level- 25%, and Others- 40%
By Region: North America- 27%, Europe- 20%, Asia Pacific- 33%,– 4%, and South America-8%, Middle East & Africa- 12%

Note: “Others” include sales managers, engineers, and regional managers

The tiers of the companies are defined based on their total revenue as of 2019: Tier 1: >USD 1 billion, Tier 2: USD 500 million–1 billion, and Tier 3: <USD 500 million

The district cooling market is dominated by a few major players that have a wide regional presence. The leading players in the district cooling market are Emirates Central Cooling System Corporation (UAE), National Central Cooling Company PJSC (UAE), Emirates District Cooling LLC (UAE), Shinryo Corporation (Japan), ADC Energy Systems LLC (UAE), Keppel DCHS PTE LTD (Singapore), LOGSTOTR A/S (Denmark), Ramboll Group A/S (Denmark), SIEMENS AG (Germany), Stellar Energy (USA), and District Cooling Company LLC (UAE) and others.

Study Coverage:

The report defines, describes, and forecasts the district cooling market, by production technique, application, and geography. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market, which include the analysis of the competitive landscape, market dynamics, market estimates in terms of value, and future trends in the district cooling market.

Key Benefits of Buying the Report
1. The report identifies and addresses the key markets for district cooling operations and services, which would help district cooling providers review the growth in demand.
2. The report helps system providers understand the pulse of the market and provides insights into drivers, restraints, opportunities, and challenges.
3. The report will help key players understand the strategies of their competitors better and help them in making better strategic decisions.