Report Overview

Asia-Pacific District Cooling Market – Industry Trends & Forecast Report, 2029

Asia-Pacific district cooling market size was estimated at USD 4.93 billion in 2022. During the forecast period between 2023 and 2029, the size of Asia-Pacific district cooling market is projected to grow at a CAGR of 12.18% reaching a value of USD 9.82 billion by 2029. Asia-Pacific district cooling market is driven by several key factors. Rapid urbanization and population growth in the region have led to increased demand for air conditioning and cooling services in commercial and residential buildings. Rising awareness of energy efficiency and environmental concerns is promoting the adoption of district cooling systems as a sustainable alternative to traditional cooling methods. Government initiatives and regulations aimed at reducing greenhouse gas emissions are further incentivizing the market. Also, the need for reliable and cost-effective cooling solutions in industries such as data centers and manufacturing is propelling the growth of the district cooling market in the Asia-Pacific region. 

Asia-Pacific District Cooling Market - Overview

District cooling is an energy-efficient method of air conditioning that centralizes the production and distribution of chilled water to cool multiple buildings. A central cooling plant generates chilled water, which is then circulated through a network of insulated pipes to various buildings for cooling purposes. This system reduces energy consumption, greenhouse gas emissions, and maintenance costs compared to individual cooling units in each building. District cooling is particularly beneficial in densely populated urban areas and regions with high cooling demands, promoting sustainability and environmental conservation by optimizing the use of resources for cooling while offering economic advantages for both providers and consumers.

Growth Drivers

Rapid Urbanization and Sustainable Initiatives

Asia-Pacific district cooling market is experiencing a significant boost due to the region's rapid urbanization and growing emphasis on sustainability. As cities expand, the demand for efficient cooling solutions in commercial and residential buildings is on the rise. District cooling systems offer energy-efficient and environmentally friendly cooling, aligning with the region's sustainability goals. Additionally, governments and businesses are increasingly investing in infrastructure projects, driving the adoption of district cooling technology. This confluence of factors is propelling the Asia-Pacific district cooling market forward, offering a sustainable and cost-effective solution for cooling needs.

Restraints

Escalating Geopolitical Tensions

Asia-Pacific district cooling market faces a unique challenge in the form of escalating geopolitical tensions among key regional players. These tensions create an uncertain investment environment, deterring potential investors and hindering the expansion of district cooling infrastructure. Geopolitical disputes can lead to regulatory complexities, trade restrictions, and infrastructure security concerns, making it difficult for market stakeholders to plan and execute long-term strategies. The unpredictability of political relations in the region introduces an element of risk that could slow down the market's development, despite its potential for energy efficiency and sustainability benefits.

Impact of COVID-19 on Asia-Pacific District Cooling Market

COVID-19 pandemic significantly impacted Asia-Pacific district cooling market. Lockdowns and reduced economic activity resulted in lower energy demands, affecting the need for district cooling systems in commercial and industrial sectors. Construction projects were delayed or scaled back, impacting the expansion of district cooling infrastructure. Also, supply chain disruptions and workforce challenges hindered project execution. However, the pandemic also highlighted the importance of reliable and efficient cooling systems for healthcare facilities and data centers. As economies recover and adapt to the new normal, the Asia-Pacific district cooling market is expected to rebound, driven by sustainability goals and resilience planning.

Asia-Pacific District Cooling Market

Segmental Coverage

Asia-Pacific District Cooling Market – By Technology

Based on technology, Asia-Pacific district cooling market is divided into Electric Chillers, Heat Pumps, Absorption Chillers, and Free Cooling segments. The electric chillers technology is the largest segment. The segment encompasses a wide range of cooling systems powered by electricity, which are widely utilized for efficient cooling in various applications across the Asia-Pacific region. The prevalence of electric chillers highlights the region's growing demand for energy-efficient cooling solutions, driven by urbanization, industrialization, and climate considerations, making it a dominant player in the district cooling market within the Asia-Pacific region.

Asia-Pacific District Cooling Market – By Usage

By usage, Asia-Pacific district cooling market is segmented into Storage, Production, and Distribution. The distribution segment stands out as the largest in terms of scope and impact. It plays a pivotal role in efficiently delivering chilled water or cooling energy to various end-users, such as commercial and residential buildings. Effective distribution networks are vital for ensuring the seamless and widespread availability of cooling services, making this segment a key driver in the district cooling market's growth across the Asia-Pacific region.

Asia-Pacific District Cooling Market – By Application

By application, Asia-Pacific district cooling market is divided into Commercial, Residential, and Industrial segments. The commercial segment stands out as the largest. This segment primarily caters to businesses, office complexes, and commercial establishments, driving the demand for district cooling systems to maintain comfortable indoor environments efficiently. The rising number of commercial properties, coupled with the growing awareness of energy-efficient cooling solutions, has led to the prominence of the commercial segment in the market. As businesses prioritize sustainability and cost-effectiveness, district cooling systems in the commercial sector continue to witness robust growth and offer significant opportunities for market players in the Asia-Pacific region.

Asia-Pacific District Cooling Market – By Country

Geographically, Asia-Pacific district cooling market is divided into China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Vietnam, and Rest of APAC. China is the largest country in the Asia-Pacific district cooling market. China stands out as the most significant contributor to the district cooling industry within the region, owing to its vast population and rapid urbanization. The country's increasing demand for efficient cooling solutions in its densely populated cities, coupled with government initiatives promoting energy efficiency and sustainability, has led to substantial growth in the district cooling sector. China's market dominance is further amplified by its robust economy and infrastructure development, making it a pivotal player in shaping the future of district cooling technology and services in the Asia-Pacific region.

Competitive Landscape

Major players in the Asia-Pacific district cooling market include Daikin Industries, Johnson Controls, Carrie, Hitachi Cooling & Heating, Mitsubishi Electric, LG Electronics, Siemens, Veolia, Panasonic Corporation, and Engie Group. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Technology

• Electric Chillers

• Heat Pumps

• Absorption Chillers

• Free Cooling

By Usage

• Storage

• Production

• Distribution

By Application

• Commercial

• Residential

• Industrial

 By Country

• China

• India

• Japan

• South Korea

• Australia & New Zealand

• Indonesia

• Malaysia

• Singapore

• Vietnam

• Rest of APAC

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Asia-Pacific District Cooling Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing demand for environment friendly products
         2. Rising energy demand
      2. Restraints
         1. High initial investment costs
         2. Insufficiency in raw material demand and supply
      3. Opportunities
         1. Increasing investment by the government for research and development activities
         2. Suring technological advancements
      4. Challenges
         1. Lack of awareness about the benefits of district cooling systems
         2. Limited availability of cooling resources
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Asia-Pacific District Cooling Market Overview
   1. Market Size & Forecast by Value & Volume, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
         1. Electric Chillers
         2. Heat Pumps
         3. Absorption Chillers
         4. Free Cooling
         5. Others
      2. By Usage
         1. Storage
         2.  Production
         3.  Distribution
      3. By Application
         1. Commercial
         2.  Residential
         3.  Industrial
      4.  By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Australia & New Zealand
         6. Indonesia
         7. Malaysia
         8. Singapore
         9. Vietnam
         10. Rest of APAC
5. China District Cooling Market Overview
   1. Market Size & Forecast by Value & Volume, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
      2. By Usage
      3. By Application
6. India District Cooling Market Overview
   1. Market Size & Forecast by Value & Volume, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
      2. By Usage
      3. By Application
7. Japan District Cooling Market Overview
   1. Market Size & Forecast by Value & Volume, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
      2. By Usage
      3. By Application
8. South Korea District Cooling Market Overview
   1. Market Size & Forecast by Value & Volume, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
      2. By Usage
      3. By Application
9. Australia & New Zealand District Cooling Market Overview
   1. Market Size & Forecast by Value & Volume, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
      2. By Usage
      3. By Application
10. Indonesia District Cooling Market Overview
    1. Market Size & Forecast by Value & Volume, 2019–2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Usage
       3. By Application
11. Malaysia District Cooling Market Overview
    1. Market Size & Forecast by Value & Volume, 2019–2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Usage
       3. By Application
12. Singapore District Cooling Market Overview
    1. Market Size & Forecast by Value & Volume, 2019–2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Usage
       3. By Application
13. Vietnam District Cooling Market Overview
    1. Market Size & Forecast by Value & Volume, 2019–2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Usage
       3. By Application
14. Rest of APAC District Cooling Market Overview
    1. Market Size & Forecast by Value & Volume, 2019–2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Usage
       3. By Application
15. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Asia-Pacific District Cooling Company Market Share Analysis, 2022
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
16. Impact of COVID-19 on Asia-Pacific District Cooling Market
17. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Daikin Industries
    2. Johnson Controls
    3. Carrie
    4. Hitachi Cooling & Heating
    5. Mitsubishi Electric
    6. LG Electronics
    7. Siemens
    8. Veolia
    9. Panasonic Corporation
    10. Engie Group
    11. Other Prominent Players
18. Key Strategic Recommendations
19. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1    Asia-Pacific District Cooling Market Segmentation

Figure 2    Asia-Pacific District Cooling Market Value Chain Analysis

Figure 3    Company Market Share Analysis, 2022

Figure 4       Asia-Pacific District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 5       Asia-Pacific District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 6       Asia-Pacific District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 7       Asia-Pacific District Cooling Market Share, By Application, By Value, 2019–2029

Figure 8       Asia-Pacific District Cooling Market Share, By Country, By Value, 2019–2029

Figure 9       China District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 10     China District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 11     China District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 12     China District Cooling Market Share, By Application, By Value, 2019–2029

Figure 13     India District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 14     India District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 15     India District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 16     India District Cooling Market Share, By Application, By Value, 2019–2029

Figure 17     Japan District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 18     Japan District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 19     Japan District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 20     Japan District Cooling Market Share, By Application, By Value, 2019–2029

Figure 21     South Korea District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 22     South Korea District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 23     South Korea District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 24     South Korea District Cooling Market Share, By Application, By Value, 2019–2029

Figure 25     Australia & New Zealand District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 26     Australia & New Zealand District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 27     Australia & New Zealand District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 28     Australia & New Zealand District Cooling Market Share, By Application, By Value, 2019–2029

Figure 29     Indonesia District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 30     Indonesia District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 31     Indonesia District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 32     Indonesia District Cooling Market Share, By Application, By Value, 2019–2029

Figure 33     Malaysia District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 34     Malaysia District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 35     Malaysia District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 36     Malaysia District Cooling Market Share, By Application, By Value, 2019–2029

Figure 37     Singapore District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 38     Singapore District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 39     Singapore District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 40     Singapore District Cooling Market Share, By Application, By Value, 2019–2029

Figure 41     Vietnam District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 42     Vietnam District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 43     Vietnam District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 44     Vietnam District Cooling Market Share, By Application, By Value, 2019–2029

Figure 45     Rest of APAC District Cooling Market Size, By Value (USD Million), 2019–2029

Figure 46     Rest of APAC District Cooling Market Share, By Technology, By Value, 2019–2029

Figure 47     Rest of APAC District Cooling Market Share, By Usage, By Value, 2019–2029

Figure 48     Rest of APAC District Cooling Market Share, By Application, By Value, 2019–2029

List of Tables

Table 1      Asia-Pacific District Cooling Market Size, By Value (USD Million), 2019–2029

Table 2      Asia-Pacific District Cooling Market Size, By Technology, By Value, 2019–2029

Table 3      Asia-Pacific District Cooling Market Size, By Usage, By Value, 2019–2029

Table 4      Asia-Pacific District Cooling Market Size, By Application, By Value, 2019–2029

Table 5      Asia-Pacific District Cooling Market Size, By Country, By Value, 2019–2029

Table 6      China District Cooling Market Size, By Value (USD Million), 2019–2029

Table 7      China District Cooling Market Size, By Technology, By Value, 2019–2029

Table 8      China District Cooling Market Size, By Usage, By Value, 2019–2029

Table 9      China District Cooling Market Size, By Application, By Value, 2019–2029

Table 10    India District Cooling Market Size, By Value (USD Million), 2019–2029

Table 11    India District Cooling Market Size, By Technology, By Value, 2019–2029

Table 12    India District Cooling Market Size, By Usage, By Value, 2019–2029

Table 13    India District Cooling Market Size, By Application, By Value, 2019–2029

Table 14    Japan District Cooling Market Size, By Value (USD Million), 2019–2029

Table 15    Japan District Cooling Market Size, By Technology, By Value, 2019–2029

Table 16    Japan District Cooling Market Size, By Usage, By Value, 2019–2029

Table 17    Japan District Cooling Market Size, By Application, By Value, 2019–2029

Table 18    South Korea District Cooling Market Size, By Value (USD Million), 2019–2029

Table 19    South Korea District Cooling Market Size, By Technology, By Value, 2019–2029

Table 20    South Korea District Cooling Market Size, By Usage, By Value, 2019–2029

Table 21    South Korea District Cooling Market Size, By Application, By Value, 2019–2029

Table 22    Australia & New Zealand District Cooling Market Size, By Value (USD Million), 2019–2029

Table 23    Australia & New Zealand District Cooling Market Size, By Technology, By Value, 2019–2029

Table 24    Australia & New Zealand District Cooling Market Size, By Usage, By Value, 2019–2029

Table 25    Australia & New Zealand District Cooling Market Size, By Application, By Value, 2019–2029

Table 26    Indonesia District Cooling Market Size, By Value (USD Million), 2019–2029

Table 27    Indonesia District Cooling Market Size, By Technology, By Value, 2019–2029

Table 28    Indonesia District Cooling Market Size, By Usage, By Value, 2019–2029

Table 29    Indonesia District Cooling Market Size, By Application, By Value, 2019–2029

Table 30    Malaysia District Cooling Market Size, By Value (USD Million), 2019–2029

Table 31    Malaysia District Cooling Market Size, By Technology, By Value, 2019–2029

Table 32    Malaysia District Cooling Market Size, By Usage, By Value, 2019–2029

Table 33    Malaysia District Cooling Market Size, By Application, By Value, 2019–2029

Table 34    Singapore District Cooling Market Size, By Value (USD Million), 2019–2029

Table 35    Singapore District Cooling Market Size, By Technology, By Value, 2019–2029

Table 36    Singapore District Cooling Market Size, By Usage, By Value, 2019–2029

Table 37    Singapore District Cooling Market Size, By Application, By Value, 2019–2029

Table 38    Vietnam District Cooling Market Size, By Value (USD Million), 2019–2029

Table 39    Vietnam District Cooling Market Size, By Technology, By Value, 2019–2029

Table 40    Vietnam District Cooling Market Size, By Usage, By Value, 2019–2029

Table 41    Vietnam District Cooling Market Size, By Application, By Value, 2019–2029

Table 42    Rest of APAC District Cooling Market Size, By Value (USD Million), 2019–2029

Table 43    Rest of APAC District Cooling Market Size, By Technology, By Value, 2019–2029

Table 44    Rest of APAC District Cooling Market Size, By Usage, By Value, 2019–2029

Table 45    Rest of APAC District Cooling Market Size, By Application, By Value, 2019–2029

Table 46    Daikin Industries Company Overview

Table 47    Daikin Industries Financial Overview

Table 48    Johnson Controls Company Overview

Table 49    Johnson Controls Financial Overview

Table 50    Carrie Company Overview

Table 51    Carrie Financial Overview

Table 52    Hitachi Cooling & Heating Company Overview

Table 53    Hitachi Cooling & Heating Financial Overview

Table 54    Mitsubishi Electric Company Overview

Table 55    Mitsubishi Electric Financial Overview

Table 56    LG Electronics Company Overview

Table 57    LG Electronics Financial Overview

Table 58    Siemens Company Overview

Table 59    Siemens Financial Overview

Table 60    Veolia Company Overview

Table 61    Veolia Financial Overview

Table 62    Panasonic Corporation Company Overview

Table 63    Panasonic Corporation Financial Overview

Table 64    Engie Group Company Overview

Table 65    Engie Group Financial Overview