The European district cooling market is set to grow from its current market value of more than $35 billion to over $40 billion by 2024; according to a new research report by Global Market Insights.
Acceleration in the demand for space cooling systems along with growing concerns pertaining to carbon emissions will drive the market size.
Extreme climatic conditions across the region including Sweden, Italy and Germany is expected to stimulate product penetration. For instance, in 2017, the number of annual cooling degree days (CDD) in Italy were 295 when compared with 200 in 2016.
Ease of parity, economies of scale in long run and high standard of operations & maintenance are some of the key features which will stimulate the Europe district cooling market size, according to the report.
In addition, the high reliability & flexibility of systems with various production techniques will positively influence the business growth.
Sweden’s district cooling market is set to reach over 3,000 TJ by 2024. Increasing penetration of renewable energy technologies owing to ambitious government targets toward sustainable technology adoption will fuel the business growth.
Geographical proximity to the gulf stream across the nation will further encourage the product adoption. The government of Sweden in 2017, has planned to invest $103 5m toward development of the renewable energy sector by 2020.
The commercial district cooling market share is set to grow owing to increasing emphasis on energy efficiency and sustainable building solutions. The increasing commercial floor space on account of the flourishing service sector along with ongoing investments toward infrastructure development will further stimulate the industry growth.
Meanwhile heat pump district cooling market is set to witness a growth of over 2% by 2024. Increasing adoption of the product across Northern Europe owing to its ease of compatibility with conventional heating technology will foster the industry growth.
The EU’s “Renewable Energy Directive” has enforced standards toward the limitation and reduction of emissions caused by industries established across the region.
France district cooling market will grow on account of stringent government norms toward the adoption of energy efficient technologies along with accelerating population across the nation.
Source: Decentralised Energy