The global district cooling market is projected to reach USD 1,272.8 million by 2030 and is anticipated to expand at a CAGR of 4.4% during the forecast period, according to a new report by Grand View Research, Inc. Some dynamics such as increasing urbanization and the rising demand for energy-efficient cooling solutions have augured well for leading companies vying to boost their growth strategies. As cities expand and population densities rise, the need for centralized cooling systems has become more pressing. District cooling offers significant energy savings and reduced carbon emissions compared to traditional air conditioning methods, making it a preferred choice for commercial and residential developments. Government policies emphasizing sustainability and energy efficiency also encourage large-scale adoption of district cooling networks.

The shift toward environmentally friendly cooling technologies is another key driver fueling market expansion. Traditional cooling methods often rely on refrigerants with high global warming potential, whereas district cooling systems integrate renewable energy sources, such as seawater cooling and waste heat recovery. This transition is supported by increasing awareness among businesses and consumers about the environmental benefits of district cooling, along with governmental incentives promoting sustainable infrastructure development.

Furthermore, the rise of smart cities and large-scale urban infrastructure projects is accelerating the adoption of district cooling solutions. Countries investing in commercial complexes, special economic zones, and data centers recognize district cooling’s ability to enhance energy efficiency, reduce operational costs, and lower emissions. The technology’s long-term cost benefits, including minimal maintenance expenses and improved system reliability, make it an attractive investment for developers seeking sustainable cooling solutions in modern urban environments.

Order a free sample PDF of the District Cooling Market Intelligence Study, published by Grand View Research.

 

District Cooling Market Report Highlights

  • Electric chillers dominated the production technique segment with more than 58.1% share in 2024 owing to their superior energy efficiency, cost-effectiveness, and ability to integrate with sustainable cooling solutions.
  • The absorption cooling segment is expected to grow at a CAGR of 3.5% from 2025 to 2030.
  • Commercial accounted for the largest revenue share of 53.7% in 2024, owing to the growing adoption of district cooling systems in office buildings, shopping malls, hotels, and mixed-use developments—all of which demand efficient and cost-effective cooling solutions.
  • The residential segment is expected to grow at the fastest CAGR of 4.0% from 2025 to 2030.
  • The Middle East & Africa market dominated the district cooling industry with 41.0% of the revenue share in 2024, owing to the hot climate, rapid urbanization, and significant investments in infrastructure development.
  • In January 2025, Emicool, a leading district cooling provider, partnered with Quant Gulf to deploy the Schaeffler OPTIME Ecosystem, enhancing operational efficiency and sustainability.

District Cooling Market Segmentation

Grand View Research has segmented the district cooling market on the basis of production technique, application, and region:

  • Production Technique Outlook (Revenue, USD Million, 2018 - 2030)
    • Free Cooling
    • Absorption Cooling
    • Electric Chillers
  • Application Outlook (Revenue, USD Million, 2018 - 2030)
    • Residential
    • Commercial
    • Industrial
  • Regional Outlook (Revenue, USD Million, 2018 - 2030)
    • North America
      • U.S.
      • Canada
      • Mexico
    • Europe
      • UK
      • Germany
      • France
      • Finland
      • Sweden
    • Asia Pacific
      • China
      • Japan
      • Singapore
      • South Korea
    • Latin America
      • Brazil
      • Argentina
    • Middle East & Africa
      • Saudi Arabia
      • UAE
      • Oman
      • Qatar

List of Key Players in District Cooling Market

  • Veolia
  • Danfoss
  • Emicool
  • SHINRYO CORPORATION
  • ALFA LAVAL
  • ADC Energy Systems
  • DAIKIN INDUSTRIES, Ltd.
  • Tabreed
  • AtkinsRéalis
  • Emirates Central Cooling Systems Corporation PJSC
  • Keppel Ltd
  • Qatar District Cooling Company Private J.S.C
  • Stellar Energy International
  • ENGIE

About Grand View Research:

Grand View Research, Inc. is a market research and consulting company that provides off-the-shelf, customized research reports and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and energy. With a deep-seated understanding of varied business environments, Grand View Research provides strategic objective insights.

For more information, visit www.grandviewresearch.com.