District Cooling-The Key Market Analysis

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DISTRICT COOLING - THE KEY MARKET ANALYSIS 1

In 2021, the global district cooling market stood at USD 26.15 billion which is projected to grow to USD 51.01 billion by 2029 with an expected CAGR of 8.9%.

Last year, the COVID-19 pandemic affected the DC market.

Today, let us look at the latest trends that govern the market:

District cooling is a centralized distribution system that distributes chilled water through insulated pipes to cool the indoor environment. As people are becoming more aware of the environmental changes, they are moving from traditional cooling methods to energy-efficient technology.

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Working system of DCS propels the market growth

District cooling system working allows for the reduction of cooling energy consumption by 50% because of the use of a thermal storage system. With a flexible capacity design and installation it can store up to 30% of potential power by retaining chilled water in tanks. Compared to traditional ACs they save 30 to 45% more energy. These features with an increasing demand for electric power will contribute to an increase in the DC market.

Impact of Global Warming According to NOOA( National Oceanic and Atmospheric Administration), over the past 100 years, the average global temperature has increased by about 0.8 degrees Celsius. The IPCC projects a temperature rise of 2.5 degrees Fahrenheit to 10 degrees Fahrenheit that cite an increase in the demand for cooling.

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5 3. Augmented growth of DCS installations in the Middle Eastern market ● District cooling case studies show that the GCC region is a prominent market for district cooling systems. Two major factors in the Middle East are: ● Policy imposed targets ● Increasing demand for energy-efficient cooling technology By 2030, Dubai aims to meet 40% of its cooling requirements through DCS.

● Most customers do not know about their existing refrigeration costs so they do not know the difference between their systems and DCS.

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● The high initial investment cost also hampers the growth of these systems.

According to district cooling consultants, the Middle East and Africa dominated the District cooling market in 2021. And at present, EMICOOL is one of the major players in the global market.

● Lack of awareness regarding the savings, benefits and applications of the technology.

Restraining factors that make customers feel that adopting a DCS system is a challenging process

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