Market Research Report

Middle East & Africa District Cooling Market Research Report: Forecast (2023-2028)

By Production Technique (Free Cooling, Electric Chiller, Absorption Cooling, Others (Heat Pumps etc.), By End User (Hospitality, Healthcare, Commercial Offices, Transportation, Ind...ustries, Residential Buildings, Retail, Others (Government Buildings etc.), By Country (UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, Egypt, South Africa, Others), By Company (National Central Cooling Company PJSC [Tabreed], Emirates Central Cooling System Corporation [Empower], Emirates District Cooling [Emicool], Stellar Energy, Qatar Cool, Marafeq Qatar, Veolia, Araner, PAL Cooling Holding, Others) Read more

  • Environment
  • Jul 2023
  • 187
  • PDF, Excel, PPT

Market Definition

District cooling, also referred to as centralized cooling, is a cutting-edge & environmentally friendly cooling technique that effectively distributes chilled water or other cooling mediums through an extensive network of subterranean pipes to a neighborhood or a district. A central plant produces chilled water utilizing energy-efficient technologies like absorption chillers, electric chillers, or renewable energy sources in this eco-friendly system's centralization of cooling production.

In general, district cooling systems, when compared to other conventional cooling techniques, possess numerous beneficial aspects, such as aiding in cooling the indoor air of buildings lying within the district, lowering the emission of greenhouse gasses, and so on. It even encourages space savings by eliminating the need for individual cooling units in each structure, enabling more effective urban planning & architectural solutions.

Market Insights & Analysis: The Middle East & Africa District Cooling Market (2023-28)

The Middle East & Africa District Cooling Market is projected to grow at a CAGR of around 7.6% during the forecast period, i.e., 2023-28. This can be attributed to the increasing adoption of sustainable & energy-efficient cooling technologies, driven by the numerous environmental advantages, such as lower carbon footprints & reduced greenhouse gas emissions that can be acquired by District cooling systems. For instance:

  • In 2022, Emirates District Cooling (Emicool) joined hands with one of the supreme market players, Emirates Electrical Engineering (EEE), over the Power Purchase Agreement. The contract emphasizes upon the organization's goal of expanding its solar capacity by around 238% in its District Cooling Plant 1 to achieve the ultimate objective of strengthening the use of clean & renewable energy resources to reduce greenhouse emissions.
Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 7.6%
Country Covered UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, Egypt, South Africa, Others
Key Companies Profiled National Central Cooling Company PJSC (Tabreed), Emirates Central Cooling System Corporation (Empower), Emirates District Cooling (Emicool), Stellar Energy, Qatar Cool, Marafeq Qatar, Veolia, Araner, PAL Cooling Holding, Others
Unit Denominations USD Million/Billion

 

The Middle East & Africa region is witnessing a tremendous transcendence in infrastructure projects, including the development of smart cities, large-scale ventures, and commercial complexes, mainly supported by government actions. As a result, these ambitious endeavors prioritize sustainable & integrated cooling solutions, making district cooling an appealing choice since they offer enhanced space utilization. Along with this, the pressing need for eco-friendlier cooling solutions in both residential & non-residential environments, stimulated by the ever-evolving demand for comfort cooling & process cooling, is contributing to the rapid proliferation of district cooling projects all across the Middle East & African region since district cooling systems employs the use of recycled water that makes them more cost-effective & an ideal choice. Thus, considering the listed factors, it is presumed that the Middle East District Cooling Market would witness an upward trend in the following years.

The Middle East & Africa District Cooling Market Driver:

Implementation of Stringent Rules & Frameworks by Governments of Developing Nations – The Middle East & Africa District Cooling Market is greatly influenced by a massive rise in the imposition of government initiatives & regulations, notably in Dubai & the United Arab Emirates (UAE). Other than this, numerous governments in the region have also decided to undergo for implementing proactive steps to foster the widespread adoption of district cooling systems. They have enforced policies & incentives, including the creation of regulatory frameworks & financial benefits, to support both developers & consumers in embracing this technology. This, in turn, is predicted to contribute in driving the market growth during the forecast period.


Middle East & Africa District Cooling Market Research Report: Forecast (2023-2028)

The Middle East & Africa District Cooling Market Possible Restraint:

Absence of Knowledge Among the Regional Population –  One of the major roadblocks in the Middle East & Africa District Cooling Market is the adoption & recognition of district cooling as a practical & sustainable alternative to traditional cooling systems. This concept is yet to achieve prominence among certain groups involved, such as building owners, developers, and consumers. Encountering resistance to change & effectively educating these stakeholders about the numerous benefits & environmental advantages of district cooling can present a significant challenge & may hamper the market growth.

Therefore, it becomes crucial to underscore the significance of district cooling systems that are still relatively new in the market and need support & positive action to reach a level of widespread adoption. Consequently, many individuals still prefer conventional power sources over these innovative offerings of modern technology, which is another primary challenge in the expansion of the district cooling industry.

The Middle East & Africa District Cooling Market (2023-28): Segmentation Analysis

The Middle East & Africa District Cooling Market study from MarkNtel Advisors analyses the major trends in each segment & sub-segment & includes predictions for the period 2023–28 at the regional & country levels. The market has been fragmented as:

By Production Technique

  • Free Cooling
  • Electric Chiller
  • Absorption Cooling
  • Others (Heat Pumps etc.)

Electric Chillers are expected to gain widespread prominence among end-users owing to the implementation of strict regulations strived at reducing carbon emissions & the prevailing policies concentrated on the advancement of sustainable heating, ventilation, and air conditioning (HVAC) systems. These chillers hold the superior ability to slash extreme electricity demand compared to alternative options in an effective manner. The increasing adoption of electric chillers can be attributed to the scarcity of available free water, which further drives the demand for this technology in the Middle East & African region at an astonishing pace. Lately, when comparing water-cooled chillers, air-cooled ones utilize less electricity to supply the same level of cooling. This energy efficiency advantage enables water-cooled chillers to be an appealing choice for those seeking effective cooling solutions while minimizing electricity consumption, thus encouraging the adoption of these chillers & influencing the Middle East & Africa District Cooling Market.

By End User

  • Hospitality
  • Healthcare
  • Commercial Offices
  • Transportation
  • Industries
  • Residential Buildings
  • Retail
  • Others (Government Buildings etc.)

Commercial Offices hold the major possibility of leading the legacy of the market since they are classified under the commercial sector, which is expected to maintain its strong position throughout the forecast period. Regardless of this, the mounting demand for cooling services continues to expand steadily in other commercial establishments such as shopping malls, hotels, high-rise offices, and data centers, driven by evolving consumer preferences & reinforcing business operations as well as other activities.

On the contrary, the Residential Sector is the secondary driving force of the market owing to paramount factors such as the strengthening population density in developing countries of the Middle East & African region, coupled with the rapid advent of residential projects. In addition, the exponentially increasing disposable incomes in several countries of the African region, and the prompt proliferation of the real estate sector, notably in the Middle Eastern part, such as the UAE & Dubai, are the prime contributors to the escalating demand for district cooling systems.

The Middle East & Africa District Cooling Market Regional Projection:

Geographically, the Middle East & Africa District Cooling Market expands across:

  • The UAE
  • Saudi Arabia
  • Qatar
  • Bahrain
  • Kuwait
  • Oman
  • Egypt
  • South Africa
  • Others

The United Arab Emirates (UAE) is principally contributing as a significant energy-efficient utility sector in the rapid development of district cooling systems. This is due to an initiative that has been undertaken by the governments of Gulf countries. Also, a lot of construction work is being performed, projects are being undertaken, and businesses are operating together collaboratively to endorse technology across the nation, which is another principle factor responsible for the expansion of the market. In addition, the District Cooling Market is all set to be leveraged by a new set of regulations that strives to prioritize efficiency & customer satisfaction throughout the country. Not only will these regulations promote transparency & accountability among stakeholders but they would result in a more customer-oriented approach within the industry. Consequently, consumers would gain a comprehensive understanding of the cost-effectiveness of district cooling, which is expected to lead to an increase in the demand for these systems in the years approaching.

Middle East & Africa District Cooling Industry Recent Development:

  • May 2023: National Central Cooling Company PJSC (Tabreed), the renowned global provider of District Cooling services, made a significant breakthrough in the Indian market by proudly announcing its collaboration with TATA Realty and Infrastructure Limited (TRIL), resulting in its first-ever district cooling transaction in India. 
  • April 2023: Emirates Central Cooling System Corporation (Empower), a dominating supplier of district cooling services, declared the operational launch of its district cooling plant in Dubailand, with an impressive cooling capacity of nearly 47,000 Refrigeration Tons (RT), this facility is poised to cater to the cooling needs of the vibrant residential community known as the Dubai Land Residence Complex (DLRC). 

Gain a Competitive Edge with the Middle East & Africa District Cooling Market Report

  1. The Middle East & Africa District Cooling Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
  2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
  3. The Middle East & Africa District Cooling Market report aids in assessing and mitigating risks associated with entering or operating in the market.
  4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.

Frequently Asked Questions

   A. The Middle East & Africa District Cooling Market is projected to grow at a CAGR of around 5.2% during the forecast period, i.e., 2023-28.

   A. Implementation of stringent rules & frameworks by governments of developing nations is presumed to drive the Middle East & Africa District Cooling Market.

   A. National Central Cooling Company PJSC (Tabreed), Emirates Central Cooling System Corporation (Empower), Emirates District Cooling (Emicool), Stellar Energy, Qatar Cool, Marafeq Qatar, Veolia, Araner, and PAL Cooling Holding are the leading players in the market.

   A. Electric Chiller is the leading segment anticipated to dominate the market over the other components.

   A. The UAE is anticipated to present a growth prospect in the Middle East & Africa District Cooling Market during 2023-28.

   A. Absence of knowledge among the regional population is predicted to hinder the market growth.

Middle East & Africa District Cooling Market Research Report (2023-2028) - Table of Contents

 

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Digital Transformation in the Middle East & Africa District Cooling Market
  5. The Middle East & Africa District Cooling Market Trends & Insights
  6. The Middle East & Africa District Cooling Market Dynamics
    1. Growth Drivers
    2. Challenges
  7. The Middle East & Africa District Cooling Market Hotspot & Opportunities
  8. The Middle East & Africa District Cooling Market Policies, Regulations, Product Standards  
  9. The Middle East & Africa District Cooling Market Outlook, 2019-2029F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Volume (Kilo Tons of Refrigeration)
    2. Market Share & Analysis
      1. By Production Technique
        1. Free Cooling- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
        2. Electric Chiller- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
        3. Absorption Cooling- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
        4. Others (Heat Pumps, etc.)- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      2. By End User
        1. Hospitality- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
        2. Healthcare- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
        3. Commercial & Retail- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
        4. Government & Transportation- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
        5. Industries- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
        6. Residential - Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
        7. Others (Religious Institution, etc.)- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      3. By Country
        1. The UAE
        2. Saudi Arabia
        3. Qatar
        4. Bahrain
        5. Kuwait
        6. Oman
        7. Egypt
        8. South Africa
        9. Rest of the Middle East & Africa
      4. By Company
        1. Market Shares
        2. Competition Characteristics
  10. The UAE District Cooling Market Outlook, 2019-2029F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Volume (Kilo Tons of Refrigeration)
    2. Market Share & Analysis
      1. By Production Technique- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      2. By End User- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
  11. Saudi Arabia District Cooling Market Outlook, 2019-2029F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Volume (Kilo Tons of Refrigeration)
    2. Market Share & Analysis
      1. By Production Technique- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      2. By End User- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
  12. Qatar District Cooling Market Outlook, 2019-2029F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Volume (Kilo Tons of Refrigeration)
    2. Market Share & Analysis
      1. By Production Technique- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      2. By End User- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
  13. Bahrain District Cooling Market Outlook, 2019-2029F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Volume (Kilo Tons of Refrigeration)
    2. Market Share & Analysis
      1. By Production Technique- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      2. By End User- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
  14. Kuwait District Cooling Market Outlook, 2019-2029F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Volume (Kilo Tons of Refrigeration)
    2. Market Share & Analysis
      1. By Production Technique- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      2. By End User- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
  15. Oman District Cooling Market Outlook, 2019-2029F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Volume (Kilo Tons of Refrigeration)
    2. Market Share & Analysis
      1. By Production Technique- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      2. By End User- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
  16. Egypt District Cooling Market Outlook, 2019-2029F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Volume (Kilo Tons of Refrigeration)
    2. Market Share & Analysis
      1. By Production Technique- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      2. By End User- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
  17. South Africa District Cooling Market Outlook, 2019-2029F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Volume (Kilo Tons of Refrigeration)
    2. Market Share & Analysis
      1. By Production Technique- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
      2. By End User- Market Size & Forecast (2019-2029), in Kilo Tons of Refrigeration
  18. The Middle East & Africa District Cooling Market Key Strategic Imperatives for Success & Growth
  19. Competition Outlook
    1. Company Profiles
      1. National Central Cooling Company PJSC (Tabreed)
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. Emirates Central Cooling System Corporation (Empower)
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3. Emirates District Cooling (Emicool)
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. Muscat District Cooling
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. Qatar Cool
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      6. Marafeq Qatar
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Stellar Energy
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Veolia
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. Gascool
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. PAL Cooling Holding
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      11. Others
  20. Disclaimer


Middle East Africa District Cooling Market Segmentation