UAE District Cooling Market Forecast 2025-2030: Growth at 6.02% CAGR Expected

UAE District Cooling Market Overview: 2025-2030

Base Year: 2024

Historical Years:  2020–23

Forecast Years: 2025-2030

The UAE District Cooling Market size was valued at 4 million tons in 2024 & is estimated to surpass 5.68 million tons by 2030. Along with this, the industry is also projected to grow at a CAGR of around 6.02% during the forecast period, i.e., 2025-30.

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UAE District Cooling Market Dynamics: 2025-2030

UAE District Cooling Market Driver:

Associated Cost-Efficiency and Long-Term Service – Due to the accompanying cost-efficiency and long-term service, many businesses in the country are implementing district cooling systems. As a result of using 50% less energy than air conditioners, district cooling systems require less initial expenditure and ongoing maintenance. Airports, business buildings, university campuses, and residential towers are examples of large-scale establishments in the UAE that benefit significantly from district cooling. The system is based on a central cooling plant that cools its grid using a network of insulated underground pipes transporting chilled water. In addition, the equipment’s ability to run without issue for up to 30 years encourages the adoption of new technologies, thereby propelling industry growth further.

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UAE District Cooling Market (2025-30): Segmentation Outlook

The market report has segmented the market into the following categories:

By Production Technique

-Free Cooling

-Absorption Cooling

-Electric Chillers

-Others (Heat Pumps, etc.)

By Application

-Hospitality

-Healthcare

-Commercial & Retail

-Government & Transportation

-Industrial

-Residential

-Others (Religious Institution, etc.)

The Residential segment captured a significant market share in the historical period.

By Region

-Dubai

-Abu Dhabi

-Sharjah & Northern Emirates.

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Top Companies Operating in the UAE District Cooling Market:

-Empower

-Tabreed

-Emirates District Cooling(Emicool)

-Pal Cooling Holding LLC

-Others.

Industry Recent Development:

• In 2024: Empower initiated the construction of a new district cooling plant in Deira district. The plant, which follows the main construction contract, will cater buildings within the Deira. This project is a pivotal element of the Deira Enrichment Project, aimed at revitalizing the district with residential communities, commercial spaces, and modern offices while maintaining Deira’s cultural and heritage values.
• In 2024: Emirates Central Cooling System Corporation (Empower) and the AI Habtoor Group have signed an agreement for the supply of district cooling services to the AI Habtoor Tower.

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