The stringent government regulations on account of implementation of district cooling in the government projects coupled with a strong focus toward the reduction of GHG emission and water and energy consumption are actively contributing to the market growth of the district cooling market in the Middle East. For instance, according to the Electricity & Cogeneration Regulatory Authority (ECRA), it had mandated the application of district cooling in all government projects which has over 15,000 tons. Moreover, the upcoming events in the region such as FIFA World Cup 2022 and Expo 2020 have accelerated the infrastructure and construction activities in the region and are projected to boost the demand for district cooling in the forecast period.
According to the MarkNtel Advisors’ research report, “Middle East District Cooling Market Analysis, 2020”, the CAGR of Middle East Share District Cooling market is expected to be more than 9% during 2020-25. The UAE captured the considerable market share in the Middle East District Cooling Market in 2020 on account of increasing demand for cooling in the country which is anticipated to have an optimistic effect on the outlook of the district cooling market in the country. UAE’s cooling demand is anticipated to reach 20 million Tons of Refrigeration by 2030, out of which 39% is anticipated to be due to district cooling.
Moreover, the rising inclination of the government toward clean energy is leading to the growth of the district cooling market. For instance, in 2014, the regional administration of Dubai has set a target of reducing energy consumption in infrastructural activities up to 20% by 2030. Coupled with this, the government planned to surge penetration of district cooling up to 40% in 2030 from 16% in 2011 by supporting the district network connection of existing buildings to district cooling and regulating the district cooling industry. Therefore, it is strongly contributing to the market growth of district cooling in UAE in the forthcoming years.
The absorption segment acquired the significant market share in the Middle East District Cooling market in 2019 on account of its benefits such as using waste energy and heat as a cooling medium and a source of energy respectively, thus enabling it to support the high level of primary energy efficiency. Moreover, this technology does not utilize refrigerants increasing environmental damage, hence aiding in the decline of carbon dioxide emissions. Therefore, these factors would augment the demand for absorption cooling in the region, and is further anticipated to proliferate the market growth of the District Cooling in the coming years, as stated in the MarkNtel Advisors’ research report “Middle East District Cooling Market Analysis, 2020”.
According to MarkNtel Advisors’ research report, the Middle East Share District Cooling market is highly fragmented. The market players in the Middle East Share District Cooling market are National Central Cooling Company PJSC (Tabreed), Emirates Central Cooling System Corporation (Empower), Emirates District Cooling (Emicool), Emaar, Qatar Cool, Steller Energy, Marafeq Qatar, Araner, etc. To capture the highest market share, companies are investing in new projects to increase their footing in the country.
1. By Product Technique (Free Cooling, Electric Chiller, Absorption Cooling, Others (water-cooled chillers, ice storage etc.)
2. By End-User (Hospitality, Healthcare, Commercial Offices, Transportation, Industries, Residential Buildings, Retail, Others (Government Buildings etc.)
3. By Country (UAE, Saudi Arabia, Bahrain, Oman, Qatar, Kuwait, Egypt, Others)
4. By Company (National Central Cooling Company PJSC (Tabreed), Emirates Central Cooling System Corporation (Empower), Emirates District Cooling (Emicool), Emaar, Qatar Cool, Stellar Energy, Veolia, Pal Cooling Holding, Marafeq Qatar, Araner, etc.)
Key questions answered in the study:
1. What are the current and future trends of the Middle East District Cooling market?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. What are the future plans and customer expectations of end-users across the region?
4. How the competition has been shaping across the countries followed by their comparative factorial indexing?
5. What are the key growth drivers and challenges for the Middle East District Cooling market industry?
6. What are the customer orientation, purchase behavior, and expectations from District Cooling suppliers across various regions?