Middle East District Cooling Market Size By Production Technique (Free Cooling, Electric Chiller, Absorption Cooling), By Application (Residential, Commercial {Education, Office, Government, Healthcare}, Industrial), COVID-19 Impact Analysis, Regional Out

Middle East District Cooling Market Size By Production Technique (Free Cooling, Electric Chiller, Absorption Cooling), By Application (Residential, Commercial {Education, Office, Government, Healthcare}, Industrial), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2022 - 2030

The Middle East district cooling market size is set to grow at a commendable pace over the forecast period. This is credited mainly to the growing preference toward the integration of sustainable, energy-efficient cooling technologies owing to various environmental and economic benefits.

Energy consumption has grown rapidly in the Middle East, with the region recording one of the world’s highest consumption rates. Therefore, regional governments and industry leaders are prioritizing sustainability while devising urban development plans.

One of the major contributors to regional and global energy consumption is building services. Air conditioning has a particularly large grid share, accounting for around 70% of peak demand for electricity.

Considering the climatic conditions across the Middle East, air conditioning is an all-year-round requirement that further increases the importance of sustainability. The demand for central district cooling systems is thus expected to rise, given their ability to reduce carbon footprint and improve sustainability.

Recently, prominent players have also been devising stake acquisition deals to strengthen their position in the Middle East district cooling market. Citing an instance, in August 2021, Tabreed completed the acquisition of a 50% stake in an Abu Dhabi-based district cooling project with a capacity of 80,000 RT.

The Middle East district cooling market is bifurcated in terms of production technique, application, and country.

Based on production technique, the Middle East district cooling industry is classified into free cooling, electric chillers, and absorption cooling. Of these, the electric chillers segment is set to record a significant growth rate through 2030, owing to stringent regulatory norms to reduce carbon emissions along with existing policies related to the development of sustainable HVAC systems.

Regional standards such as the Dubai Green Building Regulations conduct their energy performance audits/analysis by considering water-cooled electric chillers as the reference. Water-cooled chillers use less electricity to deliver the same level of cooling as compared to an air-cooled chiller.

However, upgrades to air-cooled chiller system are improving its compatibility with Middle Eastern temperatures. Daikin’s EWAD-MZ technology, for instance, has been developed to work under environmental conditions specific to the region. Such advancements are anticipated to strengthen Middle East district cooling market outlook.

With regards to application, the Middle East district cooling market is segmented into residential, commercial, and industrial. The industrial segment is expected to depict substantial growth through 2030. This is credited to growing investments in infrastructural development, which may escalate demand for industrial district cooling solutions.

Based on country, the industry is segmented into Saudi Arabia, UAE, Qatar, Kuwait, and Bahrain. The Qatar market for district cooling is projected to register a substantial value owing to rapidly increasing temperatures and supportive government initiatives for DC system installation.