The size of the Middle East district cooling market will exceed $12bn by 2024, a new study has predicted.
In its latest report, US-based analysis firm Global Market Insights said increasing investments toward infrastructure development across the GCC countries, coupled with growing demand for reliable and cost-efficient cooling systems, will drive the size of the district cooling market.
In addition, rapid urbanization along with ongoing construction developments across government projects in prominent cities in Saudi Arabia, including Mecca and Riyadh, will stimulate product penetration.
In 2015, Emirates District Cooling (Emicool) underlined its plan to expand its DC plant capacity to 250,000 refrigeration tonnes (RT) in line with the expansion of the Dubai Investments Park, as part of its growth strategy for Dubai World Expo 2020.
The commercial district cooling market is set to exceed 8 million RT by 2024, the analyst found. Hotels, malls, shops, offices and hospitals are some of the key application areas. Increasing emphasis on energy conservation along with rising demand for Leadership in Energy and Environmental Design (LEED)-certified buildings will positively impact business growth.
Saudi Arabia district cooling market, by production technique, 2016 & 2024 (million RT)
In the UAE, a flourishing construction sector coupled with ongoing government targets towards energy efficiency will fuel district cooling market growth. Companies in the UAE including Empower and Logstor have entered into a joint venture to use fibre optic networks in their large DC systems for conservation of water resources in cooling distribution and production.
Growing adoption of sustainable energy to meet escalating energy demand will embellish the district cooling market. Government legislation promoting energy-efficient and economical cooling solutions, coupled with rising environmental concerns, will stimulate product penetration. The Dubai Integrated Energy Strategy 2030, developed in line with the Green Growth Strategy and UAE Vision 2021, has set strategic directions toward secure and uninterrupted sustainable energy supply.
Torrid weather conditions and high-humidity climate zones across Middle East will also propel the district cooling market. The GCC countries experience the longest summers in the world, with the highest temperatures reaching about 540 degrees C in 2016.
In 2016, absorption cooling accounted for over 6 per cent of district cooling market revenue. This technique is eco-friendly in nature and utilizes waste energy for production purposes. It utilizes heat as a source of energy and helps reduce the use of electrically driven cooling, thereby reducing carbon dioxide emissions.
Qatar’s district cooling market share was valued at over 8 per cent of market revenue in 2016. Significant expansion of DC systems and strategic government plans to reduce energy consumption will stimulate market growth. Qatar’s National Vision 2030 aims at achieving sustainable development of the country by transforming and providing a high standard of living for its citizens.
Notable players in the district cooling market include Emirates District Cooling (Emicool), Emirates Central Cooling System (Empower) and National Central Cooling Company PJSC (Tabreed). Other industry participants include Qatar Cool, Stellar Energy, Siemens, Marafeq Qatar, ADC Energy, Shinryo Corporation and Logstor.
For more information, please visit: https://gminsights.com/industry-analysis/middle-east-district-cooling-market