Our-in depth analysis of the global district cooling energy system market includes the following segments:
On the basis of regional analysis, global district energy system market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
MEA region (Middle East and African) is expected to propel the growth of district energy market by 2027 with rise in demand for low emission cooling energy system by the people of region. North America and Asia Pacific is also expected to showcase the modest and steady growth in market from 2018-2027.
Global district cooling energy system market is further classified on the basis of region as follows:
Global District cooling energy system market is expected to account for a market size of around USD 12.09 billion in 2027 witnessing a CAGR of 14% during forecast period. Rise in consumption of cooling energy by a large number of people across the globe propelled a rise in demand for district cooling energy system. Additionally, increase in awareness towards the adaption of ecofriendly energy system is affecting the positive growth of the global district energy system market. On the basis of regional platform, global district energy cooling market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Many government initiatives towards the eco-friendly energy demands for district cooling energy system and directly impacts the growth of market. Increased awareness amongst the people of world towards the adaptation of nonpolluting energy system also exhibits the surplus growth of district cooling energy system market in the expected forecast period i.e. 2018-2027.
On the basis of regional platform, Middle East is anticipated to hold key growth potential in the market on account to the increase use of cooling energy and cost effectiveness technology adds up to the reason for growth of district cooling energy system market.
Within Asia Pacific, China and India is expected to contribute the modest growth in forecast period backed by raising temperature in forecast period.
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Availability of larger area that covers ocean or sea that can help to generate wind energy in offshore is the major growth driver of the industry. According to “Association Industry Conditioning Air and Refrigeration Japan” number of air conditioning units used in 2017 was 110 million with 8% increment compared to previous year.
Demand for cool air
Increase in the use of cooling energy by a large strata of population across the globe led the demand for district cooling energy system in forecast period. Rising demand for infrastructure propelled the constructions companies to increase the construction output which further drives the demand of air cooling system market. Additionally, Increasing variability in temperature directly imparts growth in the demand for the energy cooling system.
Government supports towards the adaptation of eco-friendly cooling energy system across the world led the demand for district energy system and anticipates the positive growth in market. Moreover, regulations implicated by government on efficient energy system in Asia Pacific and North American region directly impelled successive growth of global district cooling energy system market in the expected forecast period i.e. 2018-2027.
Increase in the greenhouse gas effect by emission of co2 with normal air conditioning system led to a rise in the demand for non-polluting energy cooling system which further drives growth in the district cooling energy system market.
Cost of installation
One of the challenging factor that is hampering the growth of the market is high initial cost for setting up the district cooling energy network from the central water treatment plants to the end users.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.