Middle East District Cooling Market size will exceed $12bn by 2024, as reported in the latest study by Global Market Insights, Inc.
Increasing investments toward infrastructure development across the GCC countries coupled with growing demand for reliable and cost-efficient cooling systems will drive the district cooling market size.
Rapid urbanization along with ongoing construction developments across government projects in prominent cities of Saudi Arabia including Mecca and Riyadh will accelerate penetration.
Hotels, malls, shops, offices and hospitals are some of the key application areas as the market for district cooling expands.
Increasing emphasis on energy conservation along with rising demand for Leadership in Energy and Environmental Design (LEED) certified buildings will positively impact the business growth.
Flourishing construction sector coupled with ongoing government targets towards energy efficiency will fuel the UAE district cooling market growth.
Companies in the UAE including Empower and Logstor as a part of strategy 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 the escalating energy demand will embellish the district cooling market.
Government legislations toward promotion of energy efficient and economical cooling solutions coupled with rising environmental concerns will stimulate the product penetration.
The Dubai Integrated Energy Strategy 2030 developed in line with the Green Growth Strategy and the 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 propel the district cooling market.
The GCC countries experiences the longest summers with highest temperatures reaching about 540 C in 2016.
Absorption cooling in 2016 accounted for over 6% 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.
In 2015, Emicool underlined its plan to expand its DC plant capacity to 250,000 tonnes of refrigeration in line with the expansion of the Dubai Investments Park as a part of its growth strategy for Dubai World Expo 2020.
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 Stellar Energy, Siemens, Marafeq Qatar, ADC Energy, Shinryo Corporation and Logstor.