District Cooling Market to Reach $1.3 billion by 2029, Growing at a CAGR of 3.6%, says MarketsandMarkets™

Delray Beach, FL, Aug. 25, 2025 (GLOBE NEWSWIRE) -- The District Cooling Market is projected to reach USD 1.3 billion by 2029 from an estimated USD 1.1 billion in 2024, at a CAGR of 3.6% during the forecast period. Energy efficiency improvement is a key driver for the district cooling market, due to its potential for substantial energy savings and environmental benefits. District cooling systems are designed to optimize the use of energy by centralizing cooling production, which reduces the overall energy consumption compared to individual cooling units. This centralization allows for the use of advanced, energy-efficient technologies that are not feasible on a smaller scale. As energy costs rise and environmental concerns grow, businesses and municipalities are increasingly seeking solutions that lower their energy usage and carbon footprint. Additionally, many governments offer incentives and support for adopting energy-efficient systems, further driving the demand for district cooling. This focus on energy efficiency helps organizations achieve sustainability goals while also improving their bottom line, making it a crucial factor in the market's growth.

Browse 292 market data Tables and 65 Figures spread through 270 Pages and in-depth TOC on "District Cooling Market - Global Forecast to 2029"

Scope of the Report

Market Size Available for Years: 2021-2029
2024 Market Size: USD 1.1 billion
2029 Projected Market Size: USD 1.3 billion
CAGR (2024–2029): 3.6%
Segments covered: District Cooling Market by Production Technique, Source, Application, and Region.
Region Highlight: Asia Pacific, Europe, North America, South America, Middle East & Africa

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Top Companies in District Cooling Industry

Emirates Central Cooling Systems Corporation PJSC (UAE)
Tabreed (UAE)
Emicool (UAE)
Shinryo Corporation (Japan)
LOGSTOR Denmark Holding ApS (Denmark) among others…

Electric chillers is expected to hold largest share of the district cooling market in production technique segment during the forecast period.

Electric chillers segment by production technique hold the largest share of the district cooling market due to their high efficiency, reliability, and widespread availability. They can be easily integrated into existing infrastructure and are capable of producing large amounts of chilled water needed for district cooling systems. Additionally, electric chillers benefit from advancements in technology, which have significantly improved their energy efficiency and reduced operational costs. This makes them an attractive option for developers and operators seeking to minimize environmental impact and comply with increasingly stringent energy regulations. Their versatility in handling varying cooling loads across different applications further solidifies their dominant market position.

Fossil fuels accounted for the largest growing by source segment of the district cooling market.

Globally, fossil fuel-based district heating and cooling systems still predominate, although initiatives to switch these systems to renewable energy sources are gaining momentum. The International Energy Agency (IEA) claims. The growing need for sustainable and energy-efficient cooling infrastructure is propelling expansion in the district cooling industry as well. With advantages for the environment, including less energy and water use, district cooling systems offer an environmentally friendly substitute for conventional cooling techniques. District cooling is becoming more popular as a result of government rules requiring new development projects to be sustainable and energy-efficient. District heating and cooling systems are still mostly powered by fossil fuels, but the sector is aggressively moving toward more efficient and renewable energy sources. The urge to lessen is what's driving this shift.

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Regional Analysis

Asia Pacific region Holds the Largest Share of the District Cooling Market. The surge in construction activities, alongside a burgeoning population and evolving climatic conditions, are critical drivers of this regional market growth. Additionally, the push towards sustainable and energy-efficient cooling solutions in urban developments, increased investments in infrastructure, and government initiatives promoting eco-friendly technologies are further catalyzing the market. The integration of advanced technologies and innovations in district cooling systems is also anticipated to enhance operational efficiency and reduce energy consumption, thereby contributing to the market's expansion in the coming years.

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