ShareDistrict cooling: A market poised for strong growth in the Kingdom of Saudi Arabia
During summer, air conditioning accounts for about 70% of the total electricity consumption.
With extreme high temperatures prevailing throughout the year, air conditioning is a necessity in the Kingdom of Saudi Arabia (KSA). During summer, air conditioning accounts for about 70% of the total electricity consumption.
The KSA district cooling (DC) market earned about USD 400 million in 2012, which is about 26% of the total Gulf Cooperation Council (GCC) DC revenues. The commercial and retail segments together contribute a major share of the revenues. However, this scenario is likely to change, as new application areas and end-user segments like residential, hospitality, infrastructure, among others, are likely to adopt DC for comfort cooling applications.
DC revenues are expected to increase from USD 400 million in 2012 to about USD 870 million in 2016, at a Compound Annual Growth Rate (CAGR) of about 21% over 2012-2016. It is expected that the Kingdom will account for about 35% of the overall GCC DC revenues by 2016. Thus, the prospects for DC application in the KSA look bright.
Companies leading the DC services in Saudi Arabia are Saudi Tabreed, City Cool and Arabian District Cooling.
Source : Frost & Sullivan
The KSA district cooling (DC) market earned about USD 400 million in 2012, which is about 26% of the total Gulf Cooperation Council (GCC) DC revenues. The commercial and retail segments together contribute a major share of the revenues. However, this scenario is likely to change, as new application areas and end-user segments like residential, hospitality, infrastructure, among others, are likely to adopt DC for comfort cooling applications.
DC revenues are expected to increase from USD 400 million in 2012 to about USD 870 million in 2016, at a Compound Annual Growth Rate (CAGR) of about 21% over 2012-2016. It is expected that the Kingdom will account for about 35% of the overall GCC DC revenues by 2016. Thus, the prospects for DC application in the KSA look bright.
Companies leading the DC services in Saudi Arabia are Saudi Tabreed, City Cool and Arabian District Cooling.
Source : Frost & Sullivan