In 2024, electricity coverage by renewable sources in France was highest in the southern region of Occitania, where renewables accounted for nearly ** percent of the total electricity consumption of the region. Island of France, where Paris is located, is the least covered region with *** percent of its electricity covered by renewables.

Germany is the leading consumer of energy sourced from solid biomass in the European Union. In 2023, inland consumption in Germany was estimated at over ***** million metric tons of oil equivalent. France ranked second that year, whereas island nations such as Cyprus and Malta recorded the least consumption of this energy source. Total inland consumption in the whole of the European Union reached ****** million metric tons of oil equivalent in 2022.

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District Cooling Market Size 2025-2029

The district cooling market size is forecast to increase by USD 13.2 billion at a CAGR of 7.2% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing global population and rapid urbanization, leading to a deluge in demand for energy-efficient cooling solutions. Technological advancements in district cooling systems, including energy recovery and smart grid integration, are enhancing their efficiency and competitiveness against traditional air conditioning systems. However, the high installation cost of district cooling systems remains a significant challenge, limiting their widespread adoption, particularly in developing regions. Regulatory hurdles, such as complex approval processes and stringent safety standards, further impede market growth.
Moreover, Providers are integrating smart control systems into district cooling networks, utilizing advanced sensors, IoT devices, and data analytics for real-time monitoring and management. To capitalize on the market opportunities, companies must focus on cost reduction strategies, collaborate with governments to streamline regulatory processes, and invest in research and development to improve system efficiency and affordability. Effective supply chain management and partnerships with key stakeholders, including manufacturers, distributors, and installers, are also essential for market success.

What will be the Size of the District Cooling Market during the forecast period?

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The market is experiencing significant growth, driven by increasing energy consumption data and the need for climate change mitigation. Energy efficiency financing, such as performance contracts and green bonds, are facilitating the adoption of advanced HVAC design, including variable speed drives, air-cooled and water-cooled condensers, and cooling towers. Solar thermal and geothermal energy are gaining popularity as renewable energy sources for district cooling systems. Building commissioning and performance analysis ensure thermal comfort and indoor air quality while reducing the heat island effect and carbon footprint.
Smart metering, energy modeling, and energy management software enable efficient energy usage and demand response. Public-private partnerships and infrastructure investment in cooling infrastructure development are essential for sustainable urban planning and reducing energy tariffs. Waste heat recovery and district heating systems are also crucial components of energy-efficient, smart cities.

How is this District Cooling Industry segmented?

The district cooling industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product Type

  Electric chillers
  Free cooling
  Absorption cooling


End-user

  Commercial
  Industrial
  Residential


Source

  Fossil fuel
  Renewable energy


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany


  Middle East and Africa

    Bahrain
    Qatar
    UAE


  APAC

    Japan


  Rest of World (ROW)

By Product Type Insights

The electric chillers segment is estimated to witness significant growth during the forecast period.

Electric chillers, a crucial component of district cooling systems, convert electricity into cooling capacity by compressing and expanding refrigerant gases. Their precision and controllability ensure consistent indoor comfort levels in commercial and residential buildings. Operators can adjust cooling capacity based on demand, conditions, and preferences, enhancing operational efficiency and energy management. This control leads to improved performance and cost savings for end-users. Centralized cooling systems, aided by energy audits and building codes, promote carbon emissions reduction and water conservation through heat recovery systems and chilled water systems. Smart building technologies, such as predictive maintenance and performance monitoring, further optimize system performance and regulatory compliance.

Distributed generation, renewable energy integration, and peak load management contribute to energy efficiency and sustainability. Green building standards, like LEED certification and BREEAM certification, prioritize operational efficiency and environmental stewardship. HVAC systems, cooling towers, heat exchangers, and thermal energy storage systems also play essential roles in district cooling infrastructure. Urban development and smart grids, incorporating ice storage and data centers, expand the application scope of district cooling systems.

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The Electric chillers segment was valued at USD 12.20 billion in 2019 and showed a gradual increase during the forecast period.

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