Dublin, Jan. 06, 2026 (GLOBE NEWSWIRE) — The “Digital Twin District Cooling Global Market Report 2025” has been added to ResearchAndMarkets.com’s offering.
The digital twin district cooling market has experienced substantial growth, expanding from $1.53 billion in 2024 to a projected $1.81 billion in 2025, at a compound annual growth rate (CAGR) of 17.9%. This growth is attributed to global decarbonization efforts, the increased adoption of renewable energy, and government incentives for green technology.
Projections indicate that the market will continue its upward trajectory, reaching $3.45 billion by 2029. Contributing factors include urbanization, the rise of smart cities, and expansion of commercial and residential infrastructures. Emerging trends such as IoT integration, AI advancements, enhanced data analytics, and cloud computing are shaping the industry’s future.
Smart city initiatives are a pivotal driver for market expansion. These initiatives leverage technology and data for resource optimization and quality of life improvements. As urban centers expand, digital twin district cooling systems become indispensable for effective cooling network management. This demand is reflected in the increase of smart cities from 118 in 2021 to 141 in 2023, as reported by the International Institute for Management Development.
Market players focus on innovations like smart substations to enhance district cooling system efficiency. Denmark-based Danfoss introduced the Titan substation in March 2023, featuring advanced digital twin technology for improved system management and performance. This solution allows seamless integration and optimization of cooling networks, extending equipment lifespan and adapting to demand fluctuations.
Strategic acquisitions are reshaping market dynamics, as seen with Cadence Design Systems’ acquisition of Future Facilities in July 2022. This move bolsters Cadence’s capabilities in data center optimization and sustainability through integration of thermal and energy simulation technologies.
Major industry players include ENGIE SA, Siemens AG, Veolia Environnement SA, Schneider Electric SE, Honeywell International Inc., ABB Ltd., GE Vernova Inc., Johnson Controls Inc., Trane Technologies, Danfoss Inc., and others. North America leads the market, with Asia-Pacific anticipated as the fastest-growing region. Coverage includes regions such as Western and Eastern Europe, South America, Middle East, and Africa.
Trade tensions and tariffs are influencing the market outlook, notably escalating U.S. tariffs in 2025, impacting utilities sector costs and supply chain dynamics. The sector focuses on domestic sourcing and efficiency-driven innovations to mitigate these challenges while ensuring compliance.
The digital twin district cooling market incorporates software, hardware, and services aimed at energy optimization, predictive maintenance, and real-time system management. This dynamic market involves revenues from products like smart sensors and IoT-powered solutions, with key regions including Australia, Brazil, China, France, Germany, India, and more.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2025 – 2029 |
| Estimated Market Value (USD) in 2025 | $1.81 Billion |
| Forecasted Market Value (USD) by 2029 | $3.45 Billion |
| Compound Annual Growth Rate | 17.5% |
| Regions Covered | Global |
Report Scope
Markets Covered:
- Components: Software, Hardware, Services
- Deployment: On-Premises, Cloud
- Applications: Energy Optimization, Predictive Maintenance, System Design and Simulation, Monitoring and Control, Other Applications
- End Users: Commercial, Residential, Industrial, Utilities, Other End Users
Subsegments:
- Software: Simulation Platforms, Analytics Tools, Visualization Interfaces, Integration Middleware
- Hardware: Sensors, Edge Computing Devices, Connectivity Modules, Actuators
- Services: Consulting, System Integration, Maintenance and Support, Training and Education
Companies Featured
- ENGIE SA
- Siemens AG
- Veolia Environnement SA
- Schneider Electric SE
- Honeywell International Inc.
- ABB Ltd.
- GE Vernova Inc.
- Johnson Controls Inc.
- Trane Technologies International Limited
- Emerson Electric Co.
- Danfoss Inc.
- Arup
- RAMBOLL
- Bentley Systems Inc.
- Aurecon Group Brand Pty. Ltd.
- BrainBox AI Inc.
- Gradyent
- heatbeat engineering GmbH
- EkkoSense Ltd.
- Integrated Environmental Solutions Limited
- Carbon Re Ltd.
- VORtech BV
For more information about this report visit https://www.researchandmarkets.com/r/3fbc5p
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- Digital Twin District Cooling Market
