The global district cooling market is predominantly run by regional players due to the high preference for local products among consumers, finds a new study by Transparency Market Research (TMR). The leading participants in this market are focusing aggressively on product innovation and advancements, which is likely to increase the competition within the market over the next few years.
Aecon Group Inc., Enwave Energy Corp, Veolia, Engie, Keppel, Singapore District Cooling Pte Ltd., Emirates District Cooling LLC, Qatar Cool, and Frio Brasil Refrigeracao Ltda are some of the leading players in the global district cooling market, states the report.
As per the Research Report, the global market for district cooling is likely to expand at a 5.10% CAGR during the period from 2015 to 2024, surging from a value of US$11.1 bn in 2015 to US$17.3 bn by the end of the forecast period. The commercial sector has emerged as the leading application area of district cooling and is expected to remain so thanks to the swift rise in the commercial sector across the world. The increasing focus on energy saving and the burgeoning demand for BREEAM and LEED-certified buildings are also expected to fuel the usage district cooling in this sector over the forecast period.
Middle East and Africa to Acquire Dominance, Surpassing North America by 2024
The report also analyzes the worldwide market for district cooling on the basis of its geographical reach. According to the study, the Middle East and Africa, North America, Latin America, Asia Pacific, and Europe are the key regional markets for district cooling across the world. In 2015, North America surfaced as the most prominent regional market for district cooling with a share of nearly 48% in the overall market.
Though this regional market is likely to witness significant growth over the forecast period, thanks to the increasing levels of temperature, rising incentives for the adoption of renewable resources of energy, and the efficient usage of energy resources, the market in the Middle East and Africa is likely to surpass the former by 2024 due to the high potential for DC development, supported by its hot climatic conditions.
Apart from this, the growing adoption of technology to reduce carbon emissions, rise in district cooling installation and industrial activities are also anticipated to boost the Middle East district cooling market over the next few years. Saudi Arabia, UAE, Qatar, Bahrain, Kuwait, and Oman are likely to surface as the key domestic markets for district cooling in the Middle East and Africa, states the research report.
Rise in Urbanization to Boost Demand for District Cooling
“The significant rise in the real estate sector, globally, thanks to increasing urbanization, particularly in Asia Pacific and the Middle East and Africa, has the most prominent impact on the demand for district cooling across the world,” states the author of the study. The soaring consumption of building energy for heating and cooling requirements and the increasing construction of high rise buildings in North America, Europe, and the Middle East and Africa, fueled by the growing population, worldwide, are expected to raise the need for mechanical means of air conditioning and energy consumption, which eventually is anticipated to reflect on the sales of district cooling machinery substantially in the near future.
Apart from this, the peak electricity demand and the rising greenhouse gas emissions are also projected to increase the demand for district cooling services as a sustainable energy solution over the next few years, boosting the growth of this market significantly. However, the high initial costs incurred in district cooling projects may hamper the progress of this market to some extent in the years to come, notes the study.
The study presented here is based on a report by Transparency Market Research (TMR), titled “District Cooling Market (Application - Residential, Commercial, and Industrial) - Global Industry Analysis, Size, Share, Growth Trends and Forecast 2016 - 2024.”
The district cooling market has been segmented as follows:
- North America
- The U.S.
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East and Africa
- Saudi Arabia
- South Africa
- Rest of MEA
- Latin America
- Rest of Latin America