Middle East District Cooling Market Size By Production Technique (Free Cooling, Electric Chiller, Absorption Cooling), By Application (Residential, Commercial {Education, Office, Government, Healthcare}, Industrial), Industry Analysis Report, Country Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Apr 2021  |  Report ID: GMI2031  |  Authors: Ankit Gupta, Riya Gupta

Report Format: PDF   |   Pages: 175   |   Base Year: 2020

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Middle East District Cooling Market size valued at USD 8 billion in 2020 and is set to witness a CAGR of over 8% from 2021 to 2027. District cooling is the centralized energy generation and distribution system that delivers cooling energy to multiple buildings via underground chilled water pipelines. The system provides an increased energy efficiency and high reliability along with reduced environmental emissions by facilitating air conditioning through chilled water instead of refrigerants.

Middle East District Cooling Market

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Moreover, growing focus toward adoption of sustainable technologies coupled with increasing requirement of DC stations owing to extreme weather conditions will propel the business scenario.

Ongoing technological advancements to install effective and reliable district cooling systems

Electric chillers-based district cooling market is estimated to surge around USD 8 billion by 2027. Stringent government reforms and policies to deploy advanced & effective DC systems will drive the industry growth. Ongoing technological advancements to minimize the operational & maintenance cost of cooling plant and to enhance the tonne of refrigeration will fuel the product penetration. In addition, ability of this production technique to deliver high centralized cooling power with high coefficient of performance when compared with residential and commercial air-conditioning units will positively sway the technology demand.

Rapid commercialization and urbanization to augment the demand for district cooling plants across the region

Residential application is anticipated to grow on account of strong project pipeline followed by rising investments toward integration of DC plants. For instance, in 2020, Qatar District Cooling Company signed a contract to construct the fifth cooling plant in Qatar which will be developed on Pearl Qatar, suppling 18,000 RT of total district cooling capacity. The company will serve 659 residential units, 73 varied villas, and 15 multi-use buildings. Growing urbanization along with escalating energy prices will positively stimulate the adoption of DC plants in the residential premises. Additionally, ease of maintenance and control and optimized system design to conserve water will complement the technology adoption.

Ongoing development of commercial centers including hospitals, tourist centers, hotels and themed parks across the region will propel the demand for district cooling plants. In 2021, Tabreed signed an agreement with Miral to cater to the district cooling services to SeaWorld Abu Dhabi which will connect the SeaWorld marine theme park with its existing Yas Island district cooling program to deliver a cooling capacity of 7,500 RT. Moreover, rising investments by public and private sectors to develop new cooling plants will drive the commercial district cooling industry.

Government focus toward construction of commercial establishment will positively influence the market trends

Rising population index followed by ongoing pandemic has led to the development of high-end healthcare establishments. Increasing infrastructural spending to build new hospitals and care centers is likely to spur the hospital application based district cooling market. In 2019, Emicool signed an agreement with Mirdif Hills Park to develop and construct a district cooling plant which comprises over hospitals, community recreation and commercial infrastructure in Mirdif Hills. Growing inclination toward integration of district cooling systems across the building infrastructure will further boost the industry expansion.

UAE district cooling market is estimated to surge on account of increasing number of district cooling plants to fulfill the rising cooling demand

UAE District Cooling Market

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UAE district cooling market exceeded USD 3 billion in 2020 and is projected to observe more than 8% growth rate through 2027. Increasing number of projects and rising investment toward development of new commercial and residential establishments will further fuel the market demand. Paradigm shift toward optimization of energy-efficient cooling coupled with growing efforts of regulatory authorities to achieve energy conservation targets will augment the market revenue.

Rapid urbanization, growing population and rising incomes have fueled the energy consumption in Saudi Arabia further escalating the demand for highly efficient cooling technologies. The cooling system holds a major share of buildings electricity consumption, the policymakers have initiated programs forward to phase out oil-based liquids and natural gas from the electricity generation mix of the country. Furthermore, the Kingdom has introduced an energy pricing reform to enhance efficiency, reduce emissions and encourage public & private investment towards deployment of renewables and other viable technologies.

Ongoing contractual agreements and partnerships will increase the total RT capacity of various industry players

The regional industry has witnessed minimal impact of the COVID- 19 on account of a strong project pipeline and a positive outlook toward future potential. The industry has witnessed no delay in projects during the pandemic. However, increasing demand for cooling sources followed by rising contractual agreements toward the development of district cooling plants and networks will complement the business outlook. For instance, in 2020, Emirates Central Cooling Systems Corporation (Empower) signed several contractual agreements worth over USD 370 million to construct new district cooling plants and expand its district cooling networks across the region.

Eminent players functioning across the Middle East district cooling market includes National Central Cooling Company PJSC (Tabreed), Emirates Central Cooling System Corporation (Empower), Emicool, Stellar Energy, DC PRO Engineering, ADC Energy Systems, Qatar District Cooling Company, Marafeq Qatar, Shinryo Corporation, Siemens AG, Ramboll Group A/S, SNC Lavalin, Pal Cooling Holding, ARANER, and Veolia.

Major industry participants across the region are inclined toward acquisitions, collaboration, mergers and joint ventures. In December 2020, National Central Cooling Company PJSC (Tabreed) acquired Saadiyat Cooling LLC (SCL) at over USD 260 million. The company currently has a total connected 88,000 RT capacity of concession. Additionally, strong project pipeline as well as large scale construction of commercial and residential infrastructure will stimulate the market demand.

This market research report on Middle East district cooling includes in-depth coverage of the industry with estimates & forecast in terms of ‘RT & USD’ from 2017 to 2027, for the following segments:

Market, By Production Technique

  • Free Cooling
  • Electric Chiller
  • Absorption Cooling
  • Others

Market, By Application

  • Residential
  • Commercial
    • Education
    • Office
    • Government
    • Healthcare
    • Others
  • Industrial

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

  • Saudi Arabia
  • UAE
  • Oman
  • Qatar
  • Kuwait
  • Bahrain


Frequently Asked Questions (FAQ) :

The market for district cooling solutions in the Middle East had surpassed USD 8 billion in 2020 and will expand at more than 8% CAGR over 2021-2027.
It has been estimated that electric chillers based district cooling industry in the region will reach a valuation of USD 8 billion by 2027, with key policies to use advanced DC systems.
The regional market share from residential applications will witness high growth through 2027 owing to a robust pipeline of projects and increased spending on DC plants integration.
The district cooling market size in UAE hit USD 3 billion during 2020 and will register a strong growth through 2027 with a surge in number of projects and the trend for optimizing energy-efficient cooling.

Premium Report Details

  • Published Date: Apr 2021
  • Pages: 175
  • Tables: 171
  • Charts / Figures: 28
  • Companies covered: 15
  • Countries covered: 6

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