The global district cooling market, which was valued at $11.2 billion in 2015, is expected to expand at a compound annual growth rate (CAGR) of 5.1 per cent to reach $17.3 billion in 2024, a report said.
On the basis of application, global district cooling market is segmented into residential, commercial, and industrial, explained the report entitled "District Cooling Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2016-2024” by Transparency Market Research (TMR), a global market intelligence company.
Residential application includes district cooling connections of individual houses, buildings, and connections of individual flats in buildings. Commercial application includes district cooling connections of hotels, restaurants, malls, shops, hospitals, data centers, laboratories, and other commercial facilities. Industrial application includes power generation plants, manufacturing plants, chemical plants, and other industrial facilities.
Commercial application dominated the global district cooling market with more than 50 per cent market share in 2015. Emphasis on energy saving coupled with rising demands for Breeam (BRE environmental assessment method) and Leed (Leadership in energy and environmental design)-certified buildings are anticipated to propel the district cooling market due to the burgeoning commercial sector across the globe.
The DC system employed in commercial and public buildings provides 50 per cent better refrigeration as compared to buildings with regular air-conditioners. Absorption chillers and electric chillers are widely used in this system. The latter exhibit higher coefficients of performance than commercial air-conditioning units and can meet approximately 35 per cent of the cooling needs of commercial buildings.
In recent years, the district cooling landscape is witnessing enhanced activities by various market participants, including ADC Energy Systems, Emirates Central Cooling Systems Corporation (Empower), Emirates District Cooling (Emicool), Emirates National Central Cooling Company (Tabreed), Stellar Energy, Keppel DHCS, Logstor, Ramboll Group, Tekla Corporation, Shinryo Corporation, Dalkia, Veolia, Singapore Power (SP) Group, and Alfa Laval, among others.