District Cooling Market Value to Reach USD 44.46 Billion by 2030; Rising Incidence of Heatwaves to Boost Market Expansion

The global district cooling market size touched USD 27.12 billion in 2022 and is predicted to reach USD 28.19 billion in 2023. The market is anticipated to touch USD 44.46 billion by 2030, recording a CAGR of 6.72% over 2023-2030.

Fortune Business Insights™ presents this information in its latest report titled “District Cooling Market Size, Share & COVID-19 Impact Analysis, By Technology (Electric Chillers Absorption Chillers, and Others), By End-User (Residential, Industrial, and Commercial), and Regional Forecasts, 2022-2030”.

Environmental challenges, such as global warming and climate change, have spiked the global temperatures, making summers extremely hot. This is not only hampering people’s health but also heating up buildings, making indoor environments highly uncomfortable. This has prompted customers from residential, industrial, and commercial sectors to look for sustainable cooling solutions, thereby boosting the demand for these cooling systems. These systems use insulated pipes to circulate cold water and cool the indoor environment and maintain an ambient atmosphere. These factors are expected to make these products highly popular, thereby accelerating the district cooling market growth.

Demand for District Cooling Solutions Grew Despite Challenges Brought on by COVID-19 Pandemic

The COVID-19 pandemic had a positive effect on the sales of district cooling systems, even though there were several supply chain challenges, which resulted in a significant shortage of supporting equipment. This industry saw tremendous growth in GCC nations as they face an extremely hot climate, which makes cooling an essential part of their infrastructure.

Rising Incidence of Heatwaves to Boost Market Expansion

Economies across the world have been witnessing a worrying rise in the number of heatwaves every year due to extreme climate changes, resulting in environmental challenges such as global warming. Asia Pacific, the Middle East & Africa, and North America are taking various measures to overcome the climatic challenges caused by the heatwaves. Since the amount of rainfall in the past few years has dramatically reduced and the summer season is becoming longer every year, the incidence of heatwaves is also rising. Such instances have affected millions of lives so far, prompting governments to invest in energy efficient and long-term cooling systems. These factors are expected to augment the sales of centralized cooling solutions as they offer efficient cooling at an affordable cost and can maintain an ambient indoor environment.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/district-cooling-market-100090

Competitive Landscape

ENGIE to Dominate Market with Development of Advanced Cooling Systems

ENGIE accounted for the largest district cooling market share as the company is focusing on developing newer and more advanced versions of these cooling systems to expand its geographical presence. ENGIE operates nearly 320 heating and cooling systems across the world and has maintained its top position in the market. In fact, its stake in Tabreed, which is a top participant in the Gulf state urban climate control systems market, has made ENGIE the largest independent player in the urban cooling networks. The company is also engaging in several partnerships to develop innovative cooling systems in countries that face extremely hot climatic conditions.

Notable Industry Development:

• July 2022: ENGIE, a leading energy player, collaborated with SIT (Singapore Institute of Technology) to promote district cooling solutions across the Southeast Asian region. This agreement aims to create a robust cooling ecosystem in Singapore. It will also enable co-development of curriculum content, applied research, knowledge-sharing sessions for the community & industry, and authentic learning spaces for students at SIT.

List of the Companies Profiled in the Report:

• Danfoss (Denmark)


• ENGIE (France)


• Tabreed National Central Cooling Company PJSC (UAE)


• Emirates Central Cooling System Corporation (Empower) (UAE)


• Emirates District Cooling LLC (Emicool) (UAE)


• Stellar Energy (U.S.)


• Marafeq Qatar (Qatar)


• Shinryo Corporation (Japan)


• Veolia (France)


• Keppel Corporation Limited (Singapore)


• Ramboll Group (Denmark)


• Vattenfall (Sweden)


• Gas District Cooling (M) Sdn Bhd (Malaysia)

Further Report Findings

• The Middle East & Africa region is anticipated to capture the largest market share due to hot climatic conditions and the region’s ever-expanding commercial and residential sectors. The region’s leading market players are entering into agreements with several real estate developers to boost their customer base. For instance, in March 2023, Emirates Central Cooling Systems Corporation PJSC signed a partnership agreement Sobha Realty to offer sustainable distant cooling systems to the real estate developers. Sobha Realty is one of the UAE’s most renowned premium real estate developers.


• The North America market is also anticipated to grow at a strong pace as the regional governments have formulated a vast range of policies and programs that majorly focus on addressing and overcoming energy efficiency problems in the existing as well as new buildings. Governments are focusing on tackling the challenges associated with climate change and global warming by looking for sustainable and reliable cooling solutions, which will further fuel the demand for these cooling systems across the region.


• The electric chillers segment is projected to dominate the global market share during the forecast period as these cooling systems have a better coefficient performance and take around 50% lesser floor space as compared to absorption chillers.

Table of Segmentation