Competition in the global district cooling market is expected to intensify in the coming years due to the presence of large number of local and regional players, states Transparency Market Research. Even the demand for local products is high among the customers that have further encouraged the dominance of the local players. Leading players in the market are focusing on incorporating advanced technologies and diversifying their product line through innovation. These strategies are likely to work in favor of the players and earn benefits for them in the forthcoming years. In this report, researchers have analyzed few prominent players operating in this market, which included Qatar Cool, Frio Brasil Refrigeracao Ltda, Emirates District Cooling LLC, Keppel, Engie, and Singapore District Cooling Pte Ltd.
According to the statistics provided in this report, the global district cooling market is expected to progress at steady CAGR of 5.10% over the forecast period between 2016 and 2024. If the market rise at the expected CAGR, the market is likely to attain a valuation of US$17.3 bn by the end of 2024. In 2015, the market earned at US$11.1 bn.
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Application of district cooling is widely seen in the commercial sector with an objective to save energy and to meet the rising demands from BREEAM and LEED-certified buildings. This segment held 50% share in the market in 2015 and dominated the market. Over the forecast period, it is expected to hold similar share in the market as the commercial segment is expected to expand at a significant rate over the period. Based on geography, North America held dominant share due to increased incentives for the adoption of renewables, and the efficient usage of energy resources. Rising temperature levels is another factor driving the demand for district cooling in this region.
Increasing Urbanization to Drive demand for District Cooling System
Rapid urbanization is the key factor driving the demand in the global district cooling market. Globally, various nations are facing issues as large number of people are shifting from remote and rural areas to developed and metro areas. With growing urbanization, people are likely to increase in developed regions in the coming next few years. Countries in North America, Europe, and Latin America are the key areas going to face high developments and urbanization. Due to this rise, the demand in the global district cooling market is expected to rise in the next few years. Moreover, increasing investments projects taking place in developing economies are also expected to provide a fillip in this market.
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High Initial Investment to Deter Market Performance
Despite the strides, the market has taken in recent years, high initial and installation cost of district cooling might restrict the growth in this market. In addition, non-synchronized developments decisions taking place in this market have also impacted the growth in the developments taking place in the district cooling market. However, high demand for sustainable and energy-efficient cooling technologies is likely to create better growth prospects that will fuel the demand in this market. In addition, increasing use of treated sewage effluent (TSE) is district cooling systems is also expected to create new growth opportunities and can drive the demand in this market.