District heating and cooling systems are mostly used to provide heat or cold to various commercial buildings in cities and towns, where the heat or cold is utilised for the preparation of cold or hot water, as well as space heating and cooling. The industrial, residential, and service sectors all employ district heating and cooling. Free cooling, cold water source, absorption cooling, and electric chillers are all examples of district cooling approaches. Government laws against pollution, as well as a growth in global population, are driving up demand for district heating and cooling. Over the projection period, this is likely to increase output to satisfy the growing demand for district heating and cooling.

Covid-19 Impact & Market Status

Business models are being thoroughly revised to align with current business dynamics and appropriately address all the challenges that have sprung amidst the ongoing Covid-19 pandemic and its associated implications. Market players in the global District Cooling market are aggressively targeting new opportunities to emerge from the pandemic inflicted growth downturn and reverse the financial vulnerabilities.

Because to the consequences of the first and second waves of the COVID -19 pandemic, overall industry growth has halted. However, effective immunisation programmes implemented by government authorities in a number of countries have resulted in expanding industry trends. Furthermore, the need to supply immediate heating and cooling solutions to a variety of sectors, including residential dwellings and buildings, healthcare, and food and beverage, will boost the company's prospects.

The District Cooling Market is expected to reach US$ 1,412.2 billion during the forecast period at a 2.3 % CAGR 2028.

This report has a detailed outlook of the many changes that have emerged in the District Cooling  industry chain depending on upstream and downstream market conditions. A deep analysis of the Covid-19 pandemic inflicted changes in the businesses and the best industrial practices to restore growth trends across regions and countries have been documented in thorough detail to encourage progressive investment decisions by players and aspirants in the global District Cooling market.

The industry scenario will be boosted by increased investments in the development of large industrial facilities.

The commercial outlook will be aided by the increasing use of floor heating in large industries for workers in adverse weather conditions. The transition to low-carbon technology solutions for heating and cooling applications will be aided by a favourable legislative framework. For example, the Japanese government revised the Renewable Energy Act in 2020 to promote Feed-In-Premium (FIP) schemes for renewable energy installations. The corporate landscape will be complemented by rising investments in the development of massive industrial complexes and buildings, as well as ongoing urbanisation.

Concerns about changing climate conditions and energy efficiency will have a favourable impact on the heating and cooling industry outlook.

Increased heating demand across Nordic regions has been assisted by the increased share of electrical energy, which has prompted the overall industry statistics. The market dynamics will be stimulated by ongoing renewable energy integration, severe energy efficiency rules, and a growing focus on power optimization. Furthermore, upgrading and expanding district heating systems in compliance with energy efficiency standards will have a favourable impact on the business picture.

Green building regulations are gaining traction in the heating and cooling business.

Growing demand for energy-efficient heating and cooling systems, as well as favourable regulatory stances on HVAC systems in residential constructions, will boost market dynamics. Furthermore, the ongoing and continuing integration of HEMS (energy management systems) with green building requirements has laid the groundwork for the deployment of upgraded technology. Furthermore, rising real estate expenditures and investments in response to an increase in urban population, as well as rising demand for decentralised heat-generating systems, will propel the market forward.

By 2020, the market for industrial heating and cooling will have surpassed USD 300 billion. The efficient district heating demand for networks across industrial periphery is being driven by a decrease in conveyance losses as well as operational safety against leaks.

Regional segment

Through 2028, the heating and cooling market share in North America is expected to grow at a CAGR of over 3%. The industry's potential will be boosted by expanding demand for efficient cooling and space heating solutions, as well as rising residential and commercial consumer expenditure and rising living standards. For example, the Department of Natural Resources Canada (NRC) announced in August 2021 that it will pay Inukshuk Synergie approximately USD 165 thousand in funding to commercialise biomass energy-powered heating systems. Regional industry developments will be stimulated by government attempts to foster energy-efficient technologies underpinned by strict carbon emission norms.

During the projected period, Asia-Pacific is expected to have the highest CAGR in the global market. Growing construction industry, increased innovation and development in heating and cooling manufacturing, rapid industrialization and urbanisation, growing foreign direct investment, and rising production base of heating and cooling component industry are all expected to boost market growth in the global district heating and cooling market over the forecast period.

The rapid urbanisation and rising investment in infrastructure development and government projects, as well as the optimal use of renewable energy sources, mass customization of district heating and cooling, and multi-functionality of district heating and cooling, are driving the growth of the district heating and cooling market.

The market is expected to rise due to an increase in demand for district heating and cooling in various applications, as well as increased research and development in heating and cooling systems. Furthermore, over the forecast period, growing construction industries, increased government investments in district heating and cooling, adoption of different technology in district heating and cooling, and increased innovation and development in district heating and cooling are expected to create opportunities for manufacturers in the global market. However, in the approaching years, the worldwide district heating and cooling market is projected to be hampered by expensive initial investment, risk, and uncertainty in the global economy. 

The commercial outlook will be aided by the increasing use of floor heating in large industries for workers in adverse weather conditions. The transition to low-carbon technology solutions for heating and cooling applications will be aided by a favourable legislative framework. For example, the Japanese government revised the Renewable Energy Act in 2020 to promote Feed-In-Premium (FIP) schemes for renewable energy installations. The corporate landscape will be complemented by rising investments in the development of massive industrial complexes and buildings, as well as ongoing urbanisation.

The corporate landscape will be enhanced by the integration of renewable energy sources and the increased use of green energy across the industrial sector. Due to favourable regulations to enhance the usage of sustainable energy sources across the overall energy mix, major utilities are focusing on the development of concentrated solar power (CSP), geothermal, biomass, solar PV, and wind.

The major players of the global District Cooling market Manufacturers such as Emirates District Cooling (Emicool), LLC, National Central Cooling Company, and Shinryo Corporation are primarily investing in the development of heating systems, with the latter likely to lead the market in the next years. Further, renowned industry players are unraveling new product portfolios and technological advancements for market fortification amidst Covid-19 impact.

District Heating And Cooling Market Scope

Key Segments of the Global District Cooling  Market

Type Category (USD Billion)

Heating

• Fuel
• Electricity
• District heating
• Biofuels & wastes
• Renewables
• Geothermal
• Natural gas
• Oil products
• Coal
• Others

Cooling

Application Overview (USD Billion)

Industrial

• Heating
• Fuel
• Electricity
• District heating
• Biofuels & wastes
• Renewables
• Geothermal
• Natural Gas
• Oil Products
• Coal
• Others

Residential

• Heating
• Fuel
• Electricity
• District heating
• Biofuels & wastes
• Renewables
• Geothermal
• Natural gas
• Oil products
• Coal
• Others

Service sector

• Heating
• Fuel
• Electricity
• District heating
• Biofuels & wastes
• Renewables
• Geothermal
• Natural gas
• Oil products
• Coal
• Others

Technology  Overview (USD Billion)

• Electric Chillers
•  Absorption Chillers
• Other

Regional Overview (USD Billion)

North America

• U.S
• Canada

Europe

• Germany
• France
• UK
• Rest of Europe

Asia Pacific

• China
• India
• Japan
• Rest of Asia Pacific

South America

• Mexico
• Brazil
• Rest of South America

Middle East and South Africa