District Cooling Market Size By Production Technique (Free Cooling, Absorption Cooling, Heat Pumps, Electric Chillers), By Application (Residential, Commercial {College/University, Office Buildings, Government Buildings}, Industrial), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Size & Forecast, 2022 - 2028
The district cooling market is set to witness rapid growth through 2028 because of rising awareness regarding environmental protection globally. Additionally, shifting preferences of manufacturers from conventional cooling technology to energy-efficient technology are likely to drive market growth through the forecast time period.
Recently, the rising surface temperature has increased the demand for better indoor climate and comfort in offices and buildings. Stringent government policies to curb toxic emissions and mitigate climate change have also stimulated product adoption.
District cooling has emerged as an efficient and modern way to cool a network of buildings in campuses or cities. The process involves the distribution of cooling capacity in the form of chilled water or some other way from a central source to various buildings via a network of underground pipes. Notably, this energy-efficient air-conditioning system consumes 20-35% less electricity as compared to conventional air-cooling systems, which has played a vital role in product adoption in recent years.
The district cooling industry has recorded prominent investments towards the production of sustainable technologies and transition towards adoption of renewable resources, positively impacting market expansion. Additionally, the prevalent trend of urbanization and higher standard of living have also fostered industry outlook. Furthermore, increasing partnerships and agreements between industry players have also positively impacted business growth.
Overall, the district cooling market has been bifurcated in terms of production technique, application, and region. Based on production technique, the market has been fragmented into free cooling, heat pumps, absorption cooling, electric chillers, and others. Out of these, the others product segment is set to record robust growth through 2028 due to rising demand for space cooling and rapidly changing climatic conditions.
With reference to application, the district cooling market has been classified into residential, commercial, and industrial. The commercial segment has been further divided into college/university, government building, office building, and others.
The district cooling market share from the office building application segment is foreseen to observe sizable development on account of increase in the number of office complexes, along with growing prominence for efficient indoor space cooling systems. The others commercial application segment is anticipated to depict a growth rate of approximately 3% by 2028.
In the regional landscape, the Asia Pacific district cooling market is poised to observe exponential expansion through 2028 owing to adoption of district cooling systems in infrastructural developments in the region. Large-scale projects by governments across the APAC region to install advanced district cooling solutions are estimated to positively contribute to regional market growth over the forecast period.
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