Description

District cooling is a modern and efficient method to air-condition a network of buildings in cities or campuses. Central cooling plants house large, highly efficient, industrial-grade equipment that produce chilled water for supply to customer buildings through an insulated underground piping network. District cooling systems eliminate the need for chillers, cooling towers, pumps, and other individual systems. 

Overall Cost Savings and Energy-efficient Process

  • District cooling offers significant advantages in terms of environment protection, cost, comfort, and operational efficiency over other cooling technologies. District cooling systems provide significant benefits to building owners and municipalities such as elimination of operation of their on-site chillers and reduction in maintenance.
  • Investment in new electricity production and distribution raises the expenditure on energy and thereby, the dependence on natural gas and imported electricity. Focus on substituting imported energies by investing in local heating and cooling infrastructures to reduce the expenditure on energy imports is driving the global district cooling market
  • District cooling converts electricity into cooling energy efficiently and thereby, reduces the need for new electricity production and distribution systems. Regulatory mechanisms and incentive schemes are other factors expected to drive capacity additions in the global district cooling market in the near future 

Lack of Awareness

  • Since district cooling systems are new and not much known yet, attracting customers is challenging, due to lack of awareness about their technological applications, multiple benefits, and savings
  • Most potential customers are not aware of their existing cooling costs, making comparisons between existing cooling services and district cooling services challenging, due to lack of data. Therefore, thorough awareness about applications of the product, reputation of the company, and co-operation with city planning authorities play an important role in growth of the global district cooling market.
  • Nevertheless, lack of integrated infrastructure and planning for land use and absence of knowledge and capacity of structuring projects to attract investments are factors restraining the global district cooling market. Lack of a stable policy framework or clarity on tariff structures for tenants and energy-pricing regimes are other factors restraining the global market. 

Advancements in Technology of District Cooling Results in Operating and Financial Benefits

  • Integration of new technologies and systems, such as advanced plant controls, smart meters, and seawater usage, has gained wider acceptance in recent years. Furthermore, collective collaboration with authorities on regulations, standards, and practices is expected to positively impact the global district cooling market during the forecast period.
  • Active players in the district cooling marketplace can form strong relations with real estate dealers in order to enhance their market position; directly enhance the company’s ability to win contracts; and attract more number of investors
  • Launch of innovative and new products, advancements in technologies such as space saving and usage of treated sludge waste (TSW) heat, and increased promotional activities are anticipated to create new avenues for players operating in the global district cooling market during the forecast period 

Market Developments in Terms of Expansion, Acquisitions, and New Contracts

  • In October 2018, Emirates Central Cooling Systems Corporation (Empower), the world's largest provider of district cooling services, introduced the world’s first unmanned district cooling plant that uses artificial intelligence at the 20th Water, Energy, Technology and Environment Exhibition (WETEX)–2018. The cooling plant would be located in Jumeirah Village Area, Dubai
  • In May 2018, Dubai Investments PJSC, a leading investments company listed on the Dubai Financial Market, announced that its wholly owned subsidiary and a leading provider of district cooling services i.e. Emirates District Cooling (Emicool) had been awarded a contract for a district cooling plant serving the Expo Village, Dubai South Mall and the new Conference & Exhibition Centre at the Expo site. The district cooling plant, currently undergoing the stage of fast-track construction, would have a capacity of 60,000 tons of refrigeration (TR) and would deliver the first phase of chilled water with effect from May 2019.
  • In April 2018, Empower announced expansion at its district cooling plant in Dubai International Financial Centre (DIFC) at a cost of AED 60 Mn. This expansion is intended to meet the continuously rising demand for district cooling services, which is attributable to growth of Empower’s projects across Dubai.
  • In April 2018, Empower announced it had signed an agreement to connect its services to Address Hotel at JBR, Marsa Dubai, with a total capacity of 6,500 refrigeration tons (RT)
  • In March 2017, Emicool, a leading provider of district cooling services based in the UAE, announced that it would be providing district cooling services at the Mirdif Hills project, which is being developed by Dubai Investments Real Estate Company (DIRC). Emicool is expected to deliver 15,000 tons of refrigeration (TR) of chilled water from its utility complex at the Mirdif Hills site through pipes, valve chambers, and heat exchange stations. 
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Asia Pacific District Cooling Market to Expand At Substantial Pace

  • North America dominated the global district cooling market in 2018. Stringent government norms regarding carbon emissions along with ongoing adoption of sustainable energy efficiency standards positively impact the district cooling market in the region. The U.S. is a major country for district cooling in North America
  • The market in Asia Pacific is expected to expand at a substantial pace during the forecast period. With increasing industrial activities, especially in the IT industry, and high-end commercial activities, the need for cooling is rising significantly.
  • Asia Pacific has the potential to implement district cooling systems in small industrial parks, special economic zones, and other areas with high concentration of large commercial establishments. This is estimated to drive the market in the region. Additionally, rapid growth of residential and commercial construction sectors is projected to boost the market in the region. 

Highly Competitive Market with Dominance of Top Players

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  • The global district cooling market is highly fragmented and competitive. The report comprises profiles of major companies operating in the global district cooling market.
  • Some of the key players operating in the global market are
    • Emirates Central Cooling Systems Corporation (EMPOWER)
    • Engie, Veolia
    • ADC Energy Systems LLC
    • Emirates District Cooling LLC
    • Stellar Energy
    • Keppel DHCS Pte. Ltd
    • Logstor A/S
    • Shinryo Corporation
    • Dalkia, Singapore Power (SP) Group
    • Alfa Laval AB

The report analyzes and forecasts the district cooling market at global and regional levels. The market has been forecast based on volume (KRT) and value (US$ Mn) from 2019 to 2027.

The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand for district cooling during the forecast period. The report also highlights opportunities in the district cooling market at the global level.

Market Dynamics:

The report comprises a detailed value chain analysis, which provides a comprehensive view of the global district cooling market. Porter’s Five Forces model has also been included to help understand the competitive landscape of the market.

The report also includes the regulatory scenario of different countries. The study encompasses market attractiveness analysis, wherein various end-uses of district cooling market have been benchmarked based on their market size, growth rate, and general attractiveness.

Competitive Landscape:

The section covers detailed competitive matrix, company market share, and company profiles of the key players operating in the district cooling market. These players include

  • Emirates Central Cooling Systems Corporation (EMPOWER)
  • Engie, Veolia
  • ADC Energy Systems LLC
  • Emirates District Cooling LLC
  • Stellar Energy
  • Keppel DHCS Pte. Ltd
  • Logstor A/S
  • Shinryo Corporation
  • Dalkia, Singapore Power (SP) Group
  • Alfa Laval AB

These companies have been profiled in terms of attributes such as company overview, financial overview, business segments, and recent developments.

Key active players in the market are engaged in expansion, merger & acquisition, and new contracts in order maintain their share in the district cooling market. For instance, in January 2017, EMPOWER announced it had completed the second phase of providing district cooling services to Jumeirah project area, including Burj Al Arab, Jumeirah Beach Hotel, and The Emirates Academy of Hospitality Management. The total capacity of the initial cooling energy is 10,000 RT delivered by the main cooling plant.

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

Primary research represents a bulk of research efforts, supplemented by extensive secondary research. Annual reports, press releases, and relevant documents of key players operating in various application areas have been reviewed for competition analysis and market understanding.

Secondary research also includes recent trends, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. These have proved to be reliable, effective, and successful approaches for obtaining precise market data, capturing market participants’ insights, and recognizing business opportunities.

Key Takeaways

  • Extensive analysis of the district cooling market trends and shares from 2018 to 2027 to identify growth opportunities and analyze market developments
  • List of key developments made by major players in the district cooling market
  • List of key factors that are useful for building a roadmap of upcoming growth opportunities for the district cooling market at global, regional, and country levels
  • Insights into growth opportunities for various stakeholders in the value chain and a detailed competition landscape of major players to help understand the market competition level
  • Porter’s Five Forces analysis that highlights the potency of buyers and suppliers and enables stakeholders to make profit-oriented business decisions

Market Segmentation:

The study provides a decisive view of the global district cooling market by segmenting it in terms of end-user. This segments have been analyzed based on present and future trends. The regional segmentation includes the current and projected demand for district cooling in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The report also covers the demand for district cooling in individual end-user segments across all regions.

End-user

  • Residential
  • Commercial
  • Industrial

Region

  • North America
    • U.S.
    • Canada
  • Europe
    • France
    • Sweden
    • Germany
    • Italy
    • Finland
    • Rest of Europe
  • Asia Pacific
    • Japan
    • China
    • Malaysia
    • Singapore
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Rest Latin America
  • Middle East & Africa
    • UAE
    • Saudi Arabia
    • Qatar
    • Oman
    • Kuwait
    • Bahrain
    • Rest of Middle East & Africa