Press Release

A USD 6.43 Million the Middle East & Africa District Cooling Market to Grow at a CAGR of Around 7.98% During 2024-30

The Middle East & Africa District Cooling Market size is valued at around USD 6.43 million in 2024 and is projected to grow at a CAGR of around 7.98% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The District Cooling System is an integrated centralized system that allows the distribution and storing of cooling energy to multiple buildings or a large spacing infrastructure through a network of insulated pipes.

The impact of global warming, rising temperatures, and unfavorable climatic conditions in the Middle East and Africa region compelled organizations and governing bodies to take steps in favor of the well-being of the people living there. The factors affecting the growth of the district cooling industry are economic diversification, rapid urbanization, and supportive government policies. Economic diversification in the Middle East is focused on the diversification of Oil earnings by growing other industries like tourism, hospitality, healthcare, infrastructure development, and renewable energy. Although in the African region, economic diversification is moving at a slower pace but rapidly growing infrastructure projects in cities are creating an emerging market for district cooling systems.

The major restraints of the district cooling system are that it requires large space for installation and is also money-intensive with a lack of knowledge among the regional population. On the other hand, factors like growing urbanization, improving infrastructure, and a rising economy are supposed to make the district cooling market to growth & flourish.

Government bodies are also taking initiatives to set up effective methods to promote this system which will drive the market in the coming years. Initiatives like South Africa’s National Energy Efficiency Strategy (NEES), Kenya’s National Climate Change Action Plan (NCCAP) & Green Building Guidelines, Saudi Arabia’s Vision 2030, Dubai Clean Energy Strategy 2050, and others are promoting sustainability development that further helps to regulate energy efficient cooling solutions including the increasing use of district cooling system. On the other side, the awareness and need for energy-efficient technologies will give a rise in the demand for district cooling systems as they are environmentally safe, further states the research report, “The Middle East & Africa District Cooling Market Analysis, 2024.”

Segmentation Analysis

The Commercial & Retail Sector Generates Highest Revenue Growth

Based on the end-user, the market is further bifurcated into Commercial & Retail, Hospitality, Healthcare, Government & Transportation, Industries, Residential, and others. The commercial & retail sector has dominated the market since the beginning due to the rapid growth in industrialization and construction activities. District Cooling system needs less amount of water and energy, therefore, are advantageous for commercial buildings, apartments, and other structures. This rapid growth is influenced by growth in major business hubs such as Dubai, Abu Dhabi, and Johannesburg.  In the commercial sector, the integration of green certifications and smart building technologies promotes the use of district cooling systems.

The UAE Leads the Middle East & Africa District Cooling Industry

The UAE region is the leading force in the district cooling industry. It is known to be the major energy-efficient hub for the district cooling services. Known for its ambitious urban projects, the region is seeing major developments in Dubai and Abu Dhabi which require DCS to effectively manage the cooling needs. With the high population density and rapid urbanization in the region, the cooling needs have skyrocketed and DCS helps in managing it cost-effectively. The region also hosts high-profile events continuously creating a temporary or permanent demand for the district cooling market. Technology advancements in the region will continue to add more profit to the market.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including National Central Cooling Company PJSC (Tabreed), Emirates Central Cooling System Corporation (Empower), Emirates District Cooling (Emicool), Muscat District Cooling, Qatar Cool, Marafeq Qatar, Stellar Energy, Veolia, Gascool, PAL Cooling Holding, and Others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the region?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across various countries?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2024-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?