ALBANY, N.Y. — The global district cooling (DC) market was valued at $11.19 billion in 2015 and is expected to expand at a compound annual growth rate (CAGR) of 5.1 percent to reach $17.33 billion in 2024, according to a new Transparency Market Research report titled District Cooling Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2016-2024. According to the report, district cooling systems provide services such as space cooling and chilled water. Central plants chill water and distribute it through pipes to various households and commercial and industrial facilities within a specific area. A district cooling system comprises of different components such as central chillers, distribution pipes, substations, heat exchangers, evaporators, pumps, meters, valves, and more. District cooling systems are more efficient and less polluting than individual air conditioners. Different fuel resources such as natural gas, gasoline, coal, and solar energy can be utilized at central plants. Thus, flexibility of fuel resources and economies of scale make district cooling systems efficient and affordable.

On the basis of application, global district cooling market is segmented into residential, commercial, and industrial. Residential application includes district cooling connections of individual houses, buildings, and connections of individual flats in buildings. Commercial application includes district cooling connections of hotels, restaurants, malls, shops, hospitals, data centers, laboratories, and other commercial facilities. Industrial application includes power generation plants, manufacturing plants, chemical plants, and other industrial facilities. Commercial application dominated the global district cooling market with more than 50 percent market share in 2015. Emphasis on energy saving coupled with rising demands for Building Research Establishment Environmental Assessment Method (BREEAM)- and Leadership in Energy and Environmental Design (LEED)-certified buildings are anticipated to propel the district cooling market due to the burgeoning commercial sector across the globe.