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

  • Report ID: GMI2478
  • Published Date: May 2023
  • Report Format: PDF

Europe District Cooling Industry Analysis

Europe District Cooling Market size surpassed USD 44.3 billion in 2022 and is anticipated to expand at 3.2% CAGR from 2023-2032. The surging global warming index along with the rising average temperature range has paved favorable business situations for the major industry growth. The global market for district cooling is likely to cross USD 182.9 billion by 2032.

Europe District Cooling Market

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Stringent energy-efficiency protocols along with promising regulatory reforms have instituted a promising business scenario for the market players. Moreover, the technology manufacturers across the region have been strengthening their market presence through extensive R&D activities and inorganic strategic implications. Increasing population & economic growth leading to a flourishing real estate sector have raised the revenue of the district cooling market in Europe by 2032. Rapid economic development after the 2009 crisis has created the necessity for broader and smarter technologies for cooling.

COVID-19 Impact

The pandemic-induced economic slowdown has resulted in construction project delays and cancellations, which could impact the demand for district cooling systems in the short term. Additionally, global supply chain disruptions have caused shortages of essential components and equipment needed for these systems. Nevertheless, the pandemic has increased awareness of public health and hygiene, prompting businesses and governments to invest in upgrading their air conditioning and ventilation systems to improve indoor air quality and reduce the risk of airborne virus transmission. Furthermore, as the world strives to recover from the pandemic and pursue sustainable development, district cooling systems are expected to play a crucial role in providing energy-efficient and environmentally friendly cooling solutions for buildings and communities.

Europe District Cooling Production Technique Segmentation

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

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Absorption cooling technology will grow at a rate of over 4% through 2032 on account of its reliability, efficiency, flexibility, and low noise pollution. In recent years, businesses and governments have been adopting these systems as a means of reducing their carbon footprint and energy consumption. These systems can also utilize renewable energy sources like solar thermal energy or waste heat, reducing reliance on fossil fuels and further curbing carbon emissions. Furthermore, the industry the continuous integration of these systems with thermal energy storage, cogeneration, among others, in order to enhance energy efficiency and decrease costs will further positively influence the Europe district cooling market outlook.

Free cooling technology involves utilizing low external temperatures to cool water in the district cooling network, without the need for traditional refrigeration equipment. The technological adoption has been significantly influenced by growing deployment of renewable energy technologies, decline in the use of environmentally damaging refrigerants and decline in the need for upgrading the electrical infrastructure.The average increase in surface temperature across the region along with favorable regulatory norms toward sustainable DC technologies will boost the product demand.

Europe District Cooling Application Segmentation

Europe District Cooling Market Revenue Share, By Application, (2022)

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Residential district cooling market in Europe accounted for over USD 9.6 billion in 2022. The demand for cooling services in residential buildings is increasing due to rapid urbanization and population growth. In many countries, humid and hot climates make sustainable cooling a necessity, particularly for larger residential buildings where central cooling systems can offer more efficient and cost-effective solutions. Growing concerns about energy efficiency and sustainability are driving demand for eco-friendly and energy-efficient cooling solutions.

Furthermore, advancements in technology and infrastructure are making these systems more feasible and economical for residential applications. Governments are also encouraging the use of sustainable cooling systems in residential buildings as part of their efforts to promote sustainable development and reduce carbon emissions, which is expected to boost the industry's growth prospects.

The commercial district cooling industry is expected to experience significant growth due to ongoing government efforts to reduce carbon emissions and promote sustainable development, as well as continuous technological advancements by various manufacturers. The demand for space cooling is increasing rapidly across a range of establishments, including colleges/universities, data centers, government buildings, hospitals, and SEZs, which is anticipated to further drive the European district cooling market. The deployment of green building structures, combined with stringent regulatory norms, is expected to further boost the adoption of these systems. The need to provide sustainable cooling solutions and meet high refrigeration demands in commercial establishments with increasing floor space has also contributed significantly to the product adoption.

Europe District Cooling Regional Analysis

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

Sweden district cooling market will account for over USD 15 billion by 2032 on account of developed infrastructure along with advanced technologies. Hence, supportive regulatory framework and government incentives that promote the espousal of these systems will augment the market growth. Also, the cities and urban areas are being connected to DC networks, enabling the efficient distribution of cooling energy to a larger number of buildings, and reducing the environmental impact of individual cooling systems. Increasing collaboration among stakeholders, including industry players, research institutions, and municipalities, to share knowledge and best practices across the sector will propel the business outlook.

Europe District Cooling Industry Leaders

The key players operating across the Europe district cooling market includes Veolia, Ramboll Group A/S, Vattenfall AB, Goteborg Energi, Logstor A/S, Fortum, Helen Oy, Wien Energie, Siemens, Alfa Laval, and Engie. The companies are increasingly turning to inorganic growth ventures and investing in technological advancements to enhance their industry presence. They are also continuously innovating in product design and development and investing across the value chain.

Europe District Cooling Industry News

  • In 2021, Fortum announced plans to invest in district cooling plant in Poland, with a focus on the city of Pozna?. This investment is part of Fortum's strategy to expand its district cooling operations in Europe.
  • In April 2021, Engie announced its plans to invest USD 108.8 million to expand its district cooling activities in the Nordic region. The investment aims to support the growing demand for sustainable cooling solutions in the region, particularly in cities such as Stockholm and Helsinki, where Engie already operates district cooling systems.

This Europe 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:

  • Germany
  • Poland
  • Sweden
  • Italy
  • France
  • Finland
  • Austria
  • Norway


Authors: Ankit Gupta, Abhishek Chopra

Frequently Asked Questions (FAQ) :

The market size of Europe district cooling exceeded 44.3 billion in 2022 and will depict 3.2% CAGR from 2023-2032 propelled by stringent energy-efficiency protocols, along with promising regulatory reforms in the region.

The absorption cooling technology segment will grow at a rate of over 4% through 2032 as a result of its reliability, efficiency, flexibility, and low noise pollution.

Europe district cooling industry size from residential applications surpassed USD 9.6 billion in 2022 owing to rapid urbanization and population growth. which is fueling the demand for cooling services in households.

Sweden district cooling sector is slated to account for over USD 15 billion by 2032 on account of the supportive regulatory framework and government incentives that are promoting the adoption of these systems in the region.

Major Europe district cooling industry participants includes Veolia, Ramboll Group A/S, Vattenfall AB, Goteborg Energi, Logstor A/S, Fortum, Helen Oy, Wien Energie, Siemens, Alfa Laval, and Engie.

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  • Base Year: 2022
  • Companies covered: 11
  • Tables & Figures: 309
  • Countries covered: 8
  • Pages: 150
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