According to MarkNtel Advisors, the South East Asia District Cooling Market is projected to grow at a CAGR of 9.8% during the forecast period of 2022-27. The growth of the market is driven primarily by several township developments in urban areas of South East Asia, such as the construction of multi factory buildings, five-star hotels, business parks, high-rise building towers, mixed land use development in metropolitan cities, such as Bangkok, Jakarta, & Kuala Lumpur.
Besides the urban development activities, the Southeast Asian countries are committed to reducing greenhouse gas emissions by 2030, with improvements in urban cooling projects and comprehensive municipal enforcement of building standards. For instance:
Moreover, the ongoing construction projects for urban developments in countries like Thailand, Singapore, & Malaysia, including the retrofitting of some high-rise buildings and the construction of the new buildings as per the green building standards, have also surged the demand for district cooling systems.
Currently, the new technology has been introduced wherein Thermal Energy Storage (TES) technology solution uses a new Phase-Change Material (PCM) that would store & release cold energy since it changes between liquid & solid states. The stored cold energy would be released gradually in a district cooling plant to mitigate cooling peak loads in commercial buildings.
This solution, designed & developed jointly by the National University of Singapore (NUS) & Keppel DHCS Pte Ltd. (KDHCS), a wholly-owned subsidiary of KI, would improve the energy-carrying capacity by up to three times of a conventional chilled water storage system & yield over 10% cost savings annually. Moreover, it would help companies save costs & maintain the balance of carbon emissions, further states the research report, “South East Asia District Cooling Market Analysis, 2022.”
Electric Chillers Held a noticeable Share in the South East Asia District Cooling Market
Among all production techniques, Electric Chillers held a noticeable market share due to their coefficient of performance (COP) or the ratio of refrigeration produced to the energy consumed that ranges between 1.0-8.0, which is more than absorption chillers (0.54 to 1.1), thereby providing more energy efficiency. Moreover, at times, the shipment of absorption chillers is done in parts, owing to their heavier weight & larger size than electric or compression chillers, which makes the latter easy to transport & handle. There are many electric-chiller-based plants in Thailand. For instance:
Hence, the production cost & simplified logistics of electric chillers are the prime aspects attributing to their significant market share, and the same trend is likely to be followed over the forecast years.
Singapore & Thailand are the Major Markets for District Cooling Systems in South East Asia.
The construction of eco-friendly towns in Thailand & Singapore would lead these countries to capture a substantial share in the District Cooling Market. The leading market players are substantially investing in developing technologies for energy-efficient cooling systems for commercial buildings. Moreover, a few proposed district cooling projects in these countries are projected to contribute to the overall market growth in the coming years.
These include The Forestias, a Mixed-Use Complex (Hotel, Office, Condo, Hospital, Retail, Residential) with 10,000 RT (Tons of Refrigeration) cooling capacity, and another mixed-use complex One Bangkok (Hotel, Office, Condo, Hospital, Retail) with 38,000 RT cooling capacity, further cites MarkNtel Advisors in their research report, “South East Asia District Cooling Market Analysis, 2022.”
Key Market Competitors
According to MarkNtel Advisors, the leading players in the South East Asia District Cooling Market are Trane, Keppel DHCS, ENGIE Group, SP Group, Mitsui & Co., Shinryo Corporation, Gas District Cooling (M) Sdn. Bhd., Veolia, Fujita Engineering & Construction Co. Ltd., KJ Technical Services Sdn. Bhd.
Key Questions Answered in the Study