With the hot & humid temperatures and the rising population & tourism in South East Asia, the demand for efficient energy cooling solutions has arisen significantly, which has been satiated by District Cooling systems to a certain extent. These systems provide cooling to a larger area or a whole building at once through piped cooling distribution, which, in turn, helps save & manage energy consumption.
According to the International District Energy Association, the energy demand for air conditioning is around 50-70% of the peak electricity demand. District cooling, a crucial energy infrastructure, helps minimize strain on the electric grid caused by these high energy demands. As a result, these systems are gaining immense popularity across the South East Asia region.
The South East Asia District Cooling Market is expected to grow at a CAGR of around 9.8% during the forecast period i.e. 2022-2027. According to the International Energy Association, the demand for electricity just for cooling solutions would require extra 200 GW by the year of 2040. Therefore, to not only sustain the consumer’s demand for cooling solutions but also to mitigate the energy security risk, climate change, emission reductions the companies in the South East Asia have been shifting towards energy-efficient District Cooling Systems.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Country Covered||Malaysia, Singapore, Thailand, Vietnam, Indonesia, Rest of SEA|
|Key Companies Profiled||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|
|Unit Denominations||USD Million/Billion|
The South East Asia District Cooling Market has shown considerable growth during 2017-19. The steady growth was observed due to evolving government initiatives in the countries viz. Thailand, Singapore, Malaysia, Indonesia, and Vietnam mandated energy efficient norms in primarily commercial buildings which have promoted the development of District Cooling Systems in the region. For example:
Since 2020, many companies have committed to invest in the development & operations of district cooling systems to meet the green building norms mentioned above. As a result, the district cooling system market would steadily grow during the forecast period. For instance: