Vietnam District Cooling Market – Industry Trends and Forecast to 2029

Vietnam District Cooling Market Analysis and Size

A district cooling system produces chilled water within a centralized energy plant and distributes it through underground pipes to buildings connected to the system and provides them with air-conditioning. Through the district cooling network, the cooling plant pumps chilled supply water to buildings. The chilled water is fed into the customers cooling systems through a heat exchanger. District cooling delivers chilled water to offices, shopping malls, apartments, and other kinds of buildings that need indoor cooling. District cooling can be produced from local natural resources such as seawater or from chillers running on steam or electricity, which makes it an environmentally friendly option. It is also a reliable and highly secure source of cooling. District cooling is the most convenient method for production and distribution of cooling, delivering both environmental and economic benefits such as reduced carbon footprint, minimized noise and vibration impact, reduced operating redundancy, enhanced system reliability guaranteeing chilled water tariffs, reduced overall electricity infrastructure cost and capital expenditure, reduced energy consumption, reduced operational and maintenance costs, and increased comfort and safety.

Data Bridge Market Research analyses that the Vietnam district cooling market is expected to reach the value of USD 12,385.49 Thousand by 2029, at a CAGR of 5.6% during the forecast period. The district cooling market report also covers pricing analysis, patent analysis, and technological advancements in depth.          

Vietnam District Cooling Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Increase in Demand for Cooling Systems in Commercial and Residential Areas

District cooling provides chilled water for indoor cooling purposes to industrial, commercial, and residential buildings through a closed-loop pipe network. District cooling delivers chilled water to offices, shopping malls, apartments, and other kinds of buildings that need indoor cooling. The world is changing, and consumers are increasingly looking for more environmentally-friendly ways to keep people cool in hot weather. District cooling also has a significant positive environmental effect by reducing CO2 emissions and pollution. These systems can also reduce electric consumption by an average of 50%, and it could be 40-60% more efficient than conventional air conditioning. For this reason, there is an increasing demand for air conditioning systems in shopping malls and offices. This increasing demand for air conditioning systems also increases the demand for district cooling systems.

• Change in Preference of Manufacturers from Conventional to Energy-Efficient Cooling Technology

The Vietnam district cooling market is witnessing changing preferences of manufacturers from conventional to energy-efficient cooling technology as district cooling systems can reach an efficiency rate typically five or even ten times higher than a traditional cooling system. District cooling is five to ten times more energy-efficient than conventional machine cooling. Space cooling is the fastest-growing use of energy in buildings in Vietnam and Southeast Asia. Electricity use for cooling in buildings across the region has increased dramatically. Over the past two decades, Vietnam has witnessed dramatic increases in energy demand. The current Vietnamese economy is extremely inefficient in terms of energy consumption.

Opportunities

• Rapid Urbanization and Industrialization

Industrialization and urbanization increase the development of industries which results in the rapid adoption of district cooling across industries. Industrialization and urbanization are linked processes because industries are set up in the urban sector, which generates employment and provides a better lifestyle. This attracts people from various sectors, and the mobility of people increases from rural sectors to urban sectors to earn a better living.

Restraints/Challenges

• High Initial Capital Cost

The cost of investment for district cooling can fluctuate depending on the quality of the device, cooling load, coefficient of performance, and life expectancy. Moreover, while implementing district cooling, maintenance costs per year must be taken into consideration. District cooling requires a high initial cost for constructing plants, pipeline networks, new connections, and others which act as a major restraint for the growth of the Vietnam district cooling market.

• Difficulty in District Cooling System Implementation

A district cooling system is the most sustainable solution in which chilled water can be distributed through a network of underground pipes from a large-scale centralized chiller plant to locations. Despite the advantages of district cooling systems, full implementation of district cooling systems faces many challenges, such as site planning and interfacing issues, issues in the discharge of condensing water, construction challenges, among others.

Post-COVID-19 Impact on Vietnam District Cooling Market

COVID-19 created a major impact on the district cooling market as almost every country opted for the shutdown of every production facility except the ones dealing in producing the essential goods. The production of the district cooling system got hampered during the lockdown. In the post lockdown scenario, the growth of the Vietnam district cooling market is attributed to the increasing adoption of centralized cooling technologies across all regions and countries. Vietnam's warming, CO2 emissions are major concerns that contribute to the growth of the Vietnam district cooling market.

Manufacturers & solution providers are making various strategic decisions to bounce back post-COVID-19. The players are conducting multiple research and development activities to improve the technology involved in the DC-DC converters. With this, the companies will bring advanced technologies to the market. In addition, government initiatives related to smart energy system has led to the market's growth

Recent Development

• In January 2021, AVK International A/S announced that they are launching gate valves with PE ends in four new sizes with outside pipe diameters of 450, 500, 560, and 630 mm. This new product has no bolts and is stronger than the PE pipe itself. The new product has increased the company's customer base by targeting new companies
• In October 2020, Keppel Corporation Limited was awarded a contract worth USD 300 Million by JTC to build to operate a new district cooling system (DCS) plant for a duration of 30 years. This has further helped the company enhance its customer base and grow in the market

Vietnam District Cooling Market Scope

The Vietnam district cooling market is segmented on the basis of product technique, components, usage, and end-user. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product Technique

• Free cooling chillers
• Absorption chillers
• Electric chillers
• Others

On the basis of product technique, the Vietnam district cooling market is segmented into free cooling chillers, absorption chillers, electric chillers, and others.

Usage

• Production
• Storage
• Distribution

On the basis of usage, the Vietnam district cooling market has been segmented into storage, production, distribution.

Components

• Central cooling plant
• Chilled distribution network
• Consumer or energy transfer station

On the basis of components, the Vietnam district cooling market has been segmented into central cooling plant, chilled distribution network, consumer or energy transfer station.

End-User

• Commercial
• Industrial
• Residential

On the basis of end-user, the Vietnam district cooling market has been segmented into commercial, industrial, residential.

District Cooling Market Regional Analysis/Insights

The Vietnam district cooling market is analysed and market size insights and trends are provided by country, product technique, components, usage, and end-user, as referenced above.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Vietnam brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing a forecast analysis of the country data.   

Competitive Landscape and Vietnam District Cooling Market Share Analysis

The Vietnam district cooling market competitive landscape provides details by the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Vietnam presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to Vietnam district cooling market.

Some of the major players operating in the Vietnam district cooling market are Keppel Corporation Limited, SHINRYO CORPORATION, SNC-Lavalin Group, ALFA LAVAL, SAMSON AKTIENGESELLSCHAFT, DAIKIN INDUSTRIES, Ltd., Xylem, Johnson Controls, AVK International A/S, ABB

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