South East Asia District Cooling

South East Asia District Cooling Market Research Report: Forecast (2022-27)

By Production Technique (Free Cooling, Electric Chiller, Absorption Cooling, Others (Heat Pumps etc.), By End-User (Hospitality, Healthcare, Commercial Offices, Transportation, Industries, Residentia Read more

  • Environment
  • Jan 2022
  • 221
  • ET33021

Market Introduction

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.

Market Insights

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.

Report Coverage Details
Study Period Historical Data: 2017-20
Base Year: 2021
Forecast Period: 2022-27
CAGR (2022-2027) 9.8%
Country Covered Malaysia, Singapore, Thailand, Vietnam, Indonesia, Rest of SEA
Key Companies Profiled Xylem, Trane, Siemens, Samson Vietnam Co., Ltd., AVK, Keppel DHCS, SP Group, ENGIE Group, ABB, Mitsui & Co., Shinryo, SunCon, Gas District Cooling (M) Sdn Bhd, District Cooling System and Power Plant Co., Ltd., Others
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:

  • In July 2017, the Department of Alternative Energy Development and Efficiency (DEDE) began closely monitoring the energy consumption levels of large buildings across Thailand. It was in line with the rigorous implementation of the most-recent efficiency standards on newly constructed buildings later in 2017.
  • In 2018, DEDE mandated some standards like Green Building Energy Codes, Energy Management Standards, Energy Efficiency Resource Standard (EERS), etc., for newly constructed or existing residential & commercial buildings equipped with district cooling systems.

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:

  • In 2020, Singapore announced a new residential area Tengah over at a district cooling network will be installed for the first time on the rooftops of public-housing blocks.
  • In August 2021, after a feasibility study found that the electricity consumption would be 17% less, owners of seven buildings in Tampines Central signed the letter of intent to develop the district cooling network in Singapore. Several buildings in Tampines Central, including Tampines Mall, Telepark, Century Square, Tampines 1, OCBC Tampines Centre Two, Our Tampines Hub, and UOB Tampines Centre, would be retrofitted with a more energy-efficient cooling system. This project intends to turn Tampines into an Eco-Town by 2025, in line with Singapore Green Plan 2030.

South East Asia District Cooling Market Research Report: Forecast (2022-27)

Impact of Covid-19 on the South East Asia District Cooling Market

Amidst the Covid-19 pandemic in 2020, many HVAC companies have targeted energy transitioning by adopting district cooling systems for higher energy efficiency to reduce GHG emissions by 2030. The growing infrastructure developments and continuous urbanization after the relaxations in Covid-19 restrictions have created an opportunity for companies like Trane, Keppel DHCS, ENGIE Group, etc., to offer their wide spectrum of energy & environmental infrastructure solutions, including district cooling systems.

Despite the operational challenges & disruptions brought by the Covid-19 pandemic, Keppel DHCS continued executing existing projects and performed well in the industry. In response to disruptions caused by the pandemic, Keppel Infrastructure adopted a more agile model by implementing remote monitoring & centralized operations for District Cooling Systems (DCS), wherever its facilities are available in Singapore.

Market Segmentation

Based on the Production Technique:  

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

Of them all, Electric Chillers held a notable share in the South East Asia District Cooling Market during 2017-19. It owes to its Coefficient of Performance (COP) that ranges between 1.0 & 8.0, i.e., more than absorption chillers (COP 0.54 to 1.1). For instance:

  • In 2017, ‘ENGIE Group’ & ‘Megajana’ in Malaysia signed a joint venture to expand chilled water capacity in Cyberjaya. With this 2,000 Refrigeration Ton electrical chiller and 20,000 Refrigeration Ton per hour thermal energy storage, Megajana’s energy efficiency improved by 5 %. This expansion also raised the existing two district cooling plants to a total installed capacity of 14,000 RT (Tons of Refrigeration) chillers & 95,500 RTh (Refrigeration Ton per Hour) of thermal storage, with a monthly distribution of over 3.8 million RTh of chilled water to the customers of 48 buildings through a 12km underground network.

Based on End Users:

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

The District Cooling Market in South East Asia is projected to witness significant growth around the commercial sector during 2021-26, owing to various ongoing construction projects of major business parks & retail malls in urban areas. Moreover, the aim of urban development in the region by retrofitting existing buildings or constructing new ones with green building standards has led to the surging demand for district cooling systems in the commercial sector. For example:

  • In 2020, ENGIE South East Asia & Sunway Construction Sdn Bhd, a wholly-owned subsidiary of Sunway Construction Group Berhad (SunCon), signed a Memorandum of Understanding (MOU) to set up a joint venture for district cooling systems in Malaysia for greenfield & brownfield urban development projects, including some of Sunway’s portfolio of office buildings, retail malls, educational institutions, medical centers, hotels, resorts, theme parks, and factories.

Regional Landscape

Based on the Geography, the South East Asia District Cooling Market expands across:

  • Malaysia
  • Singapore
  • Thailand
  • Vietnam
  • Indonesia
  • Rest of South East Asia

Singapore & Thailand had a noticeable market size of district cooling systems due to various urban developments like construction & designing of commercial buildings like business parks, hotels, retail malls, factories, etc., in these countries in 2021. Moreover, the township development & mixed land-use projects in these countries have also driven the demand for district cooling systems.

  • In July 2020, a consortium comprising Thai renewable energy company, BCPG Public Company Limited (BCPG), Singapore’s Keppel DHCS Pte Ltd (Keppel DHCS 1), Thai engineering consultancy, TEAM Consulting Engineering, and Management Public Company Limited (TEAM GROUP) got the contract of USD 329 Million for the district cooling project in Bangkok, Thailand.    

Recent Developments by Leading Companies

  • In 2021, Keppel DHCS tested Thermal Energy Storage (TES) technology in Changi Business Park, Singapore, which is expected to yield more energy-carrying capacity than conventional chilled water storage and earn more than 10% in cost savings yearly.
  • In 2021, ‘Engie South East Asia’ got appointed by ‘JTC Corporation’ to build, own, and operate an underground district cooling system (DCS) for the Punggol Digital District (PDD). Under this agreement, Engie would construct the DCS plant equipped with a cooling capacity of 30,000 refrigeration tons, equivalent to cooling 8,000 four-room HDB flats. The partnership would open the market opportunities for other shareholders to fulfill the demand & supply chain.

Market Dynamics:

Key Drivers

Steady Growth in District Cooling Market due to Various Township Developments

The township development in urban areas like Bangkok in Thailand and Jakarta in Indonesia has witnessed continuous constructions of high-rise buildings since 2017 to attract tourism businesses. Besides, the urban development in these metropolitan cities has also allowed incorporating district cooling systems in commercial buildings, such as five-star hotels, retail malls, airports, etc., due to high cooling demand fulfilled by green building standards. With all these reasons and upcoming projects during 2022-27, district cooling systems across South East Asia would have a considerable market size.

In this ongoing process of development of a city, MITSUI & Co., Ltd. has invested in district cooling & power distribution business to supply the ‘One Bangkok development’ project in Bangkok, Thailand, a new landmark development in central Bangkok likely to open by 2023. The project comprises of 16.7-hectare site, i.e., a 16-building fully-integrated district with five premium-grade office towers, three luxury residential towers, five luxury & lifestyle hotels, four differentiated retail precincts, and art & culture & public spaces. The centralized district cooling infrastructure would provide environmental benefits & efficiencies.

Commitment towards Reducing Green House Gas (GHG) Emissions by Deploying District Cooling Systems

South East Asian countries like Indonesia, Thailand, Singapore, Malaysia, & Vietnam have committed to reducing greenhouse gas emissions by 2030 with the improvement in urban cooling projects & comprehensive municipal enforcement of building standards. The various commitments by developing countries to reduce GHG emissions through urban cooling projects, which also include district cooling systems, would have significant growth potential for the district cooling market during the forecast period. Some of the ongoing urban cooling projects in Vietnam include:

  • The ‘VN11 Sustainable Urban Cooling Project' in Vietnam, started in 2021, is expected to complete by 2024 by the Global Green Growth Institute with a budget of around USD 2.5 Million. The project would support the three pilot cities of Hanoi, Can Tho, and Tam Ky in Vietnam, which would further enhance the progress of the South East Asia District Cooling Market in the forthcoming years.

Possible Market Restraint: High Installation & Maintenance Costs Associated with District Cooling Systems

The installation & maintenance costs of district cooling systems are two or three times higher than the conventional systems, which might act as a significant growth challenge for the District Cooling Market in developing countries like Indonesia, Vietnam, etc., as per the country’s economy.

Growth Opportunities & Hotspots:

Proposed Greenfield Investments in Skylines during 2020-30

Kuala Lumpur, Singapore, Bangkok, Jakarta, Ho Chi Minh City, Hanoi, Metro Manila, etc., are anticipated to witness increased greenfield investments in the skyline amid their expansion. Growth in commercial areas in these areas would provide ample opportunities for district cooling providers to increase their earnings.

In recent years, the growing demand for cooling in stressed urban environments has led to the increasing popularity of efficient District Cooling Systems (DCSs) with a centralized cooling plant serving a group of buildings owing to their proven ability to be as much as 30% more efficient than the traditional, decentralized air-conditioning units.

Moreover, the rapid shift of population toward urban areas, specifically in Singapore & Malaysia, has driven the market in the region. In 2017, around 75% of Malaysia’s population lived in urban areas, with more than 7 million people living in Greater Kuala Lumpur.

Key Questions Answered in the Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the South East Asia District Cooling Market?
  2. What are the country-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the South East Asia District Cooling Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the South East Asia District Cooling Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the South East Asia District Cooling Market study?

Frequently Asked Questions

A. The South East Asia District Cooling Market is projected to grow at a CAGR of around 9.8% during 2022-27.

A. Commercial offices are anticipated to emerge as an area of remunerative opportunities for the leading players in the South East Asia District Cooling Market during 2022-27.

A. Increasing inclination toward energy-efficient cooling technology and massive funding in infrastructural projects are projected to drive immense growth opportunities for the South East Asia District Cooling Market in the coming years.

A. In the coming years, there will be a rise in the South East Asia District Cooling Market owing to burgeoning government investments in large-scale urban development projects, mounting adoption of district cooling due to rising environmental concerns, along with their surging installations in hotels & malls.

  1. Introduction
    1. Research Process
    2. Assumption
    3. Market Segmentation
    4. Market Definition
  2. Executive Summary
  3. South East Asia District Cooling Market Trends & Insights
  4. South East Asia District Cooling Market Dynamics
    1. Growth Drivers
    2. Challenges
    3. Impact Analysis
  5. South East Asia District Cooling Market Policies, Regulations, Material Type Standards
  6. South East Asia District Cooling Market Hotspot and Opportunities
  7. South East Asia District Cooling Market Outlook, 2017- 2027F
    1. Market Size and Analysis
      1. By Revenues
      2. By Volume (in Tons of Refrigeration)
    2. Market Share and Analysis
      1. By Production Technique
        1. Free Cooling
        2. Electric Chiller
        3. Absorption Cooling
        4. Others (Heat Pumps etc.)
      2. By End User
        1. Hospitality
        2. Healthcare
        3. Commercial Offices
        4. Transportation
        5. Industries
        6. Residential Buildings
        7. Retail
        8. Others (Government Buildings etc.)
      3. By Country
        1. Malaysia
        2. Singapore
        3. Thailand
        4. Vietnam
        5. Indonesia
        6. Rest of SEA
      4. By Company
        1. Competition Characteristics
        2. Market Share & Analysis
        3. Competitor Placement in MarkNtel Quadrant
  8. Malaysia District Cooling Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume (in Tons of Refrigeration)
    2. Market Share and Analysis
      1. By Production Technique
      2. By End User
  9. Singapore District Cooling Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume (in Tons of Refrigeration)
    2. Market Share and Analysis
      1. By Production Technique
      2. By End User
  10. Thailand District Cooling Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume (in Tons of Refrigeration)
    2. Market Share and Analysis
      1. By Production Technique
      2. By End User
  11. Vietnam District Cooling Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume (in Tons of Refrigeration)
    2. Market Share and Analysis
      1. By Production Technique
      2. By End User
  12. Indonesia District Cooling Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume (in Tons of Refrigeration)
    2. Market Share and Analysis
      1. By Production Technique
      2. By End User
  13. South East Asia District Cooling Market Key Strategic Imperatives for Success and Growth
  14. Competitive Outlook
    1. Competition Matrix
      1. Material Type Portfolio
      2. Brand Specialization
      3. Target Markets
      4. Target Material Types
      5. Research & Development
      6. Strategic Alliances
      7. Strategic Initiatives
    2. Company Profiles (Business Description, Material Type Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. Xylem
      2. Trane
      3. Siemens
      4. Samson Vietnam Co., Ltd.
      5. AVK
      6. Keppel DHCS
      7. SP Group
      8. ENGIE Group
      9. ABB
      10. Mitsui & Co.
      11. Shinryo
      12. SunCon
      13. Gas District Cooling (M) Sdn Bhd
      14. District Cooling System and Power Plant Co., Ltd.
      15. Others
  15. Disclaimer