The Middle East And Africa District Cooling Market are foreseen to record a CAGR of over 8% in the outlook period of 2023-2028.
Market Drivers and Restraints:
The district cooling system provides efficient cooling and reduces the need for other appliances such as pumps, coolers, air conditioners, and similar products. In this respect, it proves to be extremely cost-efficient. On top of this, these cooling systems can run on electricity or natural gas giving them an edge over their counterparts. The usage of recycled water in the district cooling systems was mandated which makes the system more efficient and eco-friendlier. Increased spending on infrastructure has led to the installment of cooling systems in these projects. The growth of large-scale commercial establishments is also a major reason for the growth of the district cooling industries. It works as a centralized network eliminating the demand for cooling towers. These factors play a prodigious role in the growth of the district cooling market in the Middle East and African region.
District cooling systems are still relatively new in the market and have not reached a maturity stage where it can impose a huge market cap. As a result of this, many people still prefer conventional power sources over these products. Lack of public awareness of these technologies may also prove to be a reason that hinders regional market growth.
Market Segmentation:
The absorption cooling segment accounts for the majority of the market share in the district cooling market in the Middle East and African region. The segment is expected to hold the same scenario until the forecast period of 2026. The increasing use of waste energy is also promoting the segment boom.
Infrastructure projects have been receiving a lot of investments in the Middle East and African region as a part of the rapid urbanization goals taken up by the local governments. Because of this and the hot climate conditions prevalent in the region, district cooling systems offer efficient and clean mediums. In the commercial sector, the surge in the call for glass exteriors in airports, hotels, and shopping complexes has increased indoor temperatures and caused a high demand for the district cooling market.
Market Geographical Analysis:
UAE, Qatar, and Saudi Arabia are the leading countries in the Middle East and Africa in terms of generating revenue and helping in the ongoing economic development of the region.
Qatar and UAE have undergone tremendous growth in the infrastructural sector which has led to the growth of the district cooling market in the Middle East and Africa area.
District cooling systems are fairly unpopular because of their immature technological development and small market cap. As a result of this, conventional cooling technologies are still preferred in the Middle East and African region. A lot of Research and Development has been taken up by the local authorities. Due to Covid-19, the funding and investments in the district cooling segment have been cut short and the demand for the same has deteriorated significantly. The revenue for these industries has also been cut short. Experts say that the recovery for various markets including the district cooling is expected to resume post-2020.
Market Key Players:
Market Recent Developments:
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