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District Cooling Market Size - By Production Technique (Free Cooling, Absorption Cooling, Heat Pumps, Electric Chillers), By Application (Residential, Commercial, Industrial) & Global Forecast Report, 2023 – 2032

  • Report ID: GMI2672
  • Published Date: May 2023
  • Report Format: PDF

District Cooling Market Size

District Cooling Market size surpassed USD 120.8 billion in 2022 and is anticipated to reach USD 182.9 billion by 2032. The increasing awareness toward the environmental benefits of the product is a key factor driving the industry growth. With increasing concerns about climate change and the need to reduce carbon emissions, many governments and businesses are looking for ways to reduce their energy consumption and carbon footprint.


District Cooling Market

The growing adoption of renewable energy sources for cooling along with increasing investments across commercial establishments will positively influence the business outlook. Additionally, the district cooling market is seeing an increase in demand for these systems in emerging economies, where rapid urbanization and economic growth are driving demand for efficient cooling solutions. Governments worldwide are recognizing the advantages of these systems and are implementing policies and incentives to encourage their requirement.


COVID-19 Impact

The economic slowdown caused by the pandemic has led to delays and cancellations of construction projects, which could affect the district cooling market growth in the short term. In addition, the pandemic has disrupted global supply chains, leading to shortages of critical components and equipment needed for district cooling systems. However, pandemic has raised awareness of the importance of public health and hygiene.


As a result, many businesses and governments are investing in upgrading their air conditioning and ventilation systems to ensure better indoor air quality and reduce the risk of airborne transmission of viruses. Moreover, as the world recovers from the pandemic and seeks to build back better, these systems are likely to play an integral role in providing sustainable and efficient cooling solutions for buildings and communities.


District Cooling Market Analysis

District Cooling Market Size, By Production Technique, 2021 – 2032 (USD Billion)

The electric chillers market will grow at 3.5% CAGR from 2023 to 2032 on account of its highly reliable, with low maintenance requirements and a long lifespan. These systems are highly efficient, with a Coefficient of Performance (COP) of up to 5, meaning they can produce up to five units of cooling for every unit of electricity consumed. This makes them a highly energy-efficient and cost-effective solution for cooling large buildings and communities. Hence, advances in technology have made electric chillers more intelligent and easier to control, allowing for better optimization of energy consumption and increased efficiency.


The absorption cooling technology will witness a significant growth on account of its reliability, efficiency, flexibility, and low noise pollution. The absorption cooling systems has been growing in recent years, as more businesses and governments look for ways to reduce their carbon footprint and energy consumption. However, ease of parity with other technologies, effective cooling capacity generation and ability of low carbon emissions will further propel the district cooling market demand.


In addition, the technology can use renewable energy sources such as solar thermal energy or waste heat, reducing dependence on fossil fuels and further reducing carbon emissions. The ongoing integration with other systems such as cogeneration or thermal energy storage to optimize energy efficiency and reduce costs will further boost the industry expansion.

District Cooling Market Revenue Share, By Application, 2032

The commercial application accounted for USD 93 billion revenue in 2022. Ongoing government efforts to reduce carbon emissions and promote sustainable development and continuous technological advancements by various manufacturers will spur the district cooling market development. The accelerating space cooling demand across colleges/universities, data centers, government buildings, hospitals and SEZ’s will augment the product demand. In addition, stringent regulatory norms coupled with deployment of green building structures will augment product installation. The increasing floor space across commercial establishments to provide sustainable cooling solutions and to meet the high refrigeration demands has also significantly strengthened the product espousal.


Rapid urbanization and population growth are increasing the demand for cooling services in residential buildings. In many countries, hot and humid climates make cooling a necessity rather than a luxury, and central cooling systems can provide more efficient and cost-effective solutions for large residential buildings. Rising concerns about energy efficiency and sustainability are driving demand for more efficient and environmentally friendly cooling solutions.


However, advances in technology and infrastructure are making district cooling systems more practical and cost-effective for residential applications. Furthermore, respective government authorities are promoting the use of sustainable cooling systems in residential buildings as part of their efforts to reduce carbon emissions and promote sustainable development, which will garner the district cooling market outlook.

Middle East District Cooling Market Size, 2020 - 2032 (USD Billion)

Middle East district cooling industry exceeded USD 7 billion by 2032. The increasing demand for energy-efficient DC systems to facilitate the ongoing construction boom will drive the industry size. The market is driven by a range of factors including population growth, urbanization, and the need for more sustainable and energy-efficient solutions for cooling. The demand is primarily determined by the high temperatures in the region, which can reach up to 50°C during the summer months. This has led to a significant increase in the use of cooling, which in turn has put pressure on the electricity grids. The increasing need for sustainable energy solutions, government initiatives to promote energy efficiency, and the expansion of urban infrastructure.


District Cooling Market Share

The major players operating across the district cooling market includes

  • Veolia
  • Emicool
  • PAL Group
  • Empower
  • SNC Lavalin Group
  • Qatar District Cooling Company
  • Ramboll Group A/S
  • Tabreed
  • Siemens
  • Shinryo Corporation
  • DC Pro Engineering
  • Marafeq Qatar
  • Danfoss
  • Cetetherm
  • Stellar Energy
  • Singapore Power Ltd.
  • Helen Oy
  • Logstor A/S
  • Goteborg Energi
  • Keppel Corporation Limited
  • Vattenfall AB
  • Wien Energie GmbH
  • Vattenfall AB

The companies are focusing on inorganic growth ventures and technological advancements to enhance their presence. For example, continuous innovations in product design and development together with investments across the DC value chain will propel the industry growth.


District Cooling Industry News

  • In February 2022, Tabreed entered into a partnership with Gascool and Marakez to offer its district cooling services to the new D5M mall in east Cairo. This is a particularly important as well as strategic step for the company as the partnership sets the company’s footprint into the Egypt market.


  • In December 2021, Engie and RATP, a French state-owned public transport company, were awarded the contract to manage and operate its district cooling network for twenty years. Under the contract, the two companies will be responsible for tripling the network size by the addition of twenty new production plants, ten storage facilities along with 158 km of distribution lines to consumers. In addition, the contract is expected with a turnover of USD 2.7 billion over the next 20 years coupled with reducing around 300,000 MT of greenhouse gases.



This district cooling market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘TJ’ & USD’ from 2023 to 2032 for the following segments:

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Market, By Production Technique

  • Free Cooling
  • Absorption Cooling
  • Heat Pumps
  • Electric Chillers
  • Others

Market, By Application

  • Residential
  • Commercial
    • College/University
    • Office Building
    • Government Building
    • Others
  • Industrial

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • Poland
    • Sweden
    • Italy
    • France
    • Finland
    • Austria
    • Norway
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Singapore
    • Malaysia
  • Middle East
    • Saudi Arabia
    • UAE
    • Qatar
    • Oman
    • Kuwait
    • Bahrain


Authors: Ankit Gupta, Abhishek chopra

Frequently Asked Questions (FAQ) :

The market size of district cooling exceeded USD 120.8 billion in 2022 and is anticipated to hit USD 182.9 billion by 2032 due to the surging need for energy-efficient and environmentally friendly methods of cooling buildings and communities.

Commercial district cooling industry size surpassed USD 93 billion in 2022 led by the ongoing government efforts for reducing carbon emissions and promoting sustainable developments.

Middle East district cooling industry will reach over USD 7 billion by 2032 owing to the increasing demand for energy-efficient DC systems in the region.

Veolia, Emicool, PAL Group, Empower, SNC Lavalin Group, Qatar District Cooling Company, Ramboll Group A/S, Tabreed, Siemens, Shinryo Corporation, and Marafeq Qatar are some of the major district cooling business players

District Cooling Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 25
  • Tables & Figures: 504
  • Countries covered: 21
  • Pages: 300
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