Rising Popularity of District Cooling Systems Contributing in MEA Chiller Market

The major drivers for the chiller market in Middle East & Africa are the rising popularity of district cooling systems and growing construction industry. Registering a 3.6% CAGR during the forecast period (2019–2024), it is expected to generate $1.3 billion by 2024 compared to $1.1 billion in 2018.

Chillers are compressor-based machines that work by either an absorption–refrigeration cycle or vapor compression to remove heat from liquids, which are then used for cooling large facilities.

New technologies, such as internet of things and artificial intelligence, help in optimizing the chiller functioning by predicting equipment failure ahead of time. As these technologies are able to provide operational statistics and energy consumption as per need, they can also help in reducing energy costs and maximizing efficiency.

Technological advancements have led to the development of smart connected chillers, which are trending in the MEA chiller market. As chillers consume about 25.0–35.0% of the total energy in a heating, ventilation, and air conditioning (HVAC) system, it is becoming imperative to monitor and control their operations.

The increasing deployment of district cooling systems (DCS) is positively influencing the MEA chiller market. As these systems are energy-efficient, they are being preferred over traditional cooling systems. Buildings in the region are now being fitted with DCSs as they consume almost 40.0–50.0% less energy than conventional air conditioning systems.

Due to this, Ithra Dubai signed an agreement with Emirates Central Cooling Systems Corporation in December 2018 to procure DCSs with a combined 45,000 refrigeration tons capacity for Deira Waterfront Development Project.