Market Definition
District Cooling (DC) systems provide cooling & conditioning to a large area or a facility with enhanced operational & energy efficiencies. These systems produce chilled water within a centralized energy plant and distribute it to facilities connected to them through underground insulated pipes, which, in turn, eradicates the need for implementing any additional split chillers or cooling towers and promotes sustainability.
Market Overview
The Bahrain District Cooling Market is projected to grow at a considerable CAGR during the forecast period, i.e., 2023-28. The growth of the market would be driven mainly by the arid climate conditions of the country and ever-increasing government spending on various infrastructural development projects. In addition, the rapid rise in commercial & residential construction activities and growing government focus on implementing energy-efficient technologies are other prominent aspects projected to propel the market growth in the forecast years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| Key Companies Profiled | Tabreed Bahrain, Others |
| Unit Denominations | USD Million/Billion |
In order to cater to the burgeoning end-user requirements for district cooling systems, the leading player in the industry, Tabreed, is actively working on expanding its production & distribution capacities across Bahrain and, in turn, boding well for the overall market expansion. Moreover, numerous upcoming smart city construction projects in the country in line with sustainability targets also project remunerative prospects for the district cooling industry in the coming years.
In addition, the mounting influx of tourists, pilgrims, & migrants in Bahrain is leading to the increasing establishment of hotels, resorts, shopping malls, and stadiums, among others, i.e., another crucial aspect generating the need for deploying district cooling systems in these facilities and, consequently, creating new directions for the market to expand notably over the forecast years.
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Market Dynamics:
Key Driver: Increasing Government Focus on Mitigating the Rapid Climate Change
The government of Bahrain is making active efforts toward reducing the alarming levels of carbon emissions caused by rapid climate change. With rising energy prices, alongside the aim to diversify the economy away from oil & gas and bring sustainability, the government is massively investing in other verticals, such as housing & commercial development projects, energy-efficient building construction, etc. Consequently, the need for clean energy technologies, including district cooling systems, is rising at a phenomenal pace in Bahrain, thereby driving the market.
Possible Restraint: Significantly High Costs Incurred in Deploying District Cooling Plants
The installation & operational costs of district cooling systems are significantly high, which owes mainly to the deployment of large-scale centralized cooling production & distribution grid. Due to this aspect, the implementation of these solutions is limited only to areas with a high cooling demand density, i.e., the major growth restraint for the Bahrain District Cooling Market at places with a relatively lower-colling demand density.
Market Segmentation
Based on Production Technique:
Among all, electric chillers are anticipated to acquire a sizeable share of the Bahrain District Cooling Market during 2023-28. These systems use renewable energy to store chilled water when integrated with TES (Thermal Energy Storage) and thus deliver better coefficient performance. Moreover, electric chillers consume much less space than absorption chillers and are well-suited for large-scale operations. As a result, their relatively higher demand than other techniques is playing a prominent role in augmenting the district cooling market expansion across Bahrain.
Nevertheless, the demand for 'free cooling' production technique is also rising at a noteworthy pace in the country. It involves the use of chilled water from seas, oceans, lakes, rivers, & waste-cooling energy sources, which offer benefits like easy production, cost-effective operations, and reduced use of harmful refrigerants.
Based on Application:
Here, the commercial application of district cooling systems holds a prominent market share in Bahrain. It ascribes to the massive influx of tourists & migrants in the country, owing to which the government is heavily funding the development of various commercial establishments like trade centers, hotels, corporate spaces, etc., i.e., backed also by active government efforts toward diversifying the economy away from the oil & gas sector.
District cooling is increasingly becoming the preferred cooling technology for commercial facilities, owing to benefits like significant operational & cost efficiencies and reduced energy consumption & carbon emissions, i.e., enabling both the government & businesses to meet their sustainability targets, thereby stimulating the overall market growth across the country.
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Frequently Asked Questions
A. The Bahrain District Cooling Market is projected to register a considerable CAGR during 2023-28.
A. The arid weather of Bahrain and the mounting influx of migrants & tourists in the country are the prime aspects projected to drive the District Cooling Market during 2023-28.
A. Tabreed Bahrain is the key company operating in the Bahrain District Cooling Market.
A. The commercial application is projected to generate lucrative prospects for the leading players in the Bahrain District Cooling Market during 2023-28.
