PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1252661
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1252661
District Heating Market was worth USD 173,299.14 Million in 2022. It is expected to experience significant growth in the coming years, with projections estimating it to reach a value of USD 250,104.77 Million by 2030. This represents a Compound Annual Growth Rate (CAGR) of 4.2% from 2023 to 2030.
District heating is a centralized heating system that utilizes insulated pipelines to distribute hot water or steam from a central location to multiple buildings and residences. The district heating market refers to the industry that offers these services to residential, commercial, and industrial customers. As an energy-efficient and environmentally sustainable heating solution, district heating is gaining popularity worldwide. It offers numerous benefits such as lower energy costs, reduced greenhouse gas emissions, and improved energy security.
The global population has been increasing exponentially, leading to a surge in urbanization across various regions. Consequently, the demand for energy from different end-use sectors has also escalated. In response to this, district heating has emerged as a viable solution for meeting the heat demand by producing a large amount of energy at a central plant and transmitting it to various end-use industries.
The world is currently grappling with the threats posed by unprecedented carbon emissions and global warming, leading to a growing focus on renewable energy resources. To this end, the United Kingdom has recently announced a USD 2 billion investment package for the heating sector from 2015 to 2025. Similarly, Germany has also pledged to invest approximately USD 1 billion by 2030, while Denmark, the Netherlands, and China are expected to follow suit with similar packages in the coming years. Moreover, Poland has already committed to investing USD 5 billion from 2018 to 2028 in the heating sector.
District heating offers a range of options for heat generation using various sources such as coal, renewables, gas, oil and crude products, and other readily available sources. In recent years, there has been a growing trend toward the use of renewables and gas in district heating systems. This is primarily because these resources help in reducing gas emissions and achieving energy targets. As a result, the operational advantages of using these sources are likely to drive the growth of the district heating market in the coming years.
The Worldwide District Heating Market is divided on the basis of Heat Source, Plant Type, Application, and Region.
The district heating market is segmented based on heat sources into coal, natural gas, renewables, oil and petroleum products, and others. In the coming years, the renewables segment is projected to dominate the market. This is primarily because power utilities are increasingly transitioning to clean energy from fossil fuels to enhance power generation capacity, given the rising awareness of environmental safety among the public, and the government's imposition of stringent regulations for emissions and pollution. This trend is expected to result in the installation of renewable sources for heat generation across the world. The benefits of this approach, such as higher efficiency and minimal carbon emissions, have driven the growth of this segment.
The district heating market is segmented based on plant type into Combined Heat and Power Plants (CHP), boilers, and others. CHP systems are gaining importance, given their ability to generate electricity along with heat for the heating systems, and this has led to a significant increase in their market share in recent years.
The district heating market is segmented based on application into residential, commercial, and industrial. The residential segment holds the largest market share, primarily due to the growing demand for heating networks at residential locations for various purposes, such as space heating and water heating. Additionally, the increasing number of construction projects in the residential sector, driven by the rising urbanization trend, has been a key catalyst for the growth of this segment.
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Europe has been the dominant region in the district heating market due to its low-temperature conditions for most of the year. The region is home to large industries and power plants that generate heat that would otherwise go to waste. This heat is utilized to meet all heating demands within the region. Furthermore, the installation of renewable sources of energy is increasing, and the waste heat from such plants is widely used for heating purposes due to extreme weather conditions. These factors are expected to drive market growth in Europe during the forecast period.
North America is also expected to grow significantly during the forecast period, driven by the increasing demand for heating and electricity in the region. The region experiences low temperatures for an extended period each year, increasing the demand for heating water in residential, commercial, and industrial spaces. The U.S. is the dominant district heating market in this region.
The market for district heating is characterized by moderate competition and features numerous global and regional players. These players are prioritizing the expansion of their customer base on a worldwide scale. Additionally, they are placing considerable emphasis on research and development investments to introduce innovative solutions, forming strategic alliances, and pursuing organic and inorganic growth strategies to gain a competitive advantage throughout the forecast period. By doing so, these players aim to establish themselves as market leaders in the district heating industry.
For instance, In August 2021, Cummins successfully installed a trigeneration system at the Children's Hospital in Australia. The system utilizes natural gas generators to provide electricity, heating, and cooling, while diesel generators offer critical standby power. With the help of an absorption chiller, the trigeneration system delivers baseload power, heating, and cooling to the facility. This innovative solution is expected to significantly reduce the hospital's energy consumption and carbon footprint, demonstrating Cummins' commitment to sustainable and efficient power generation.
This proposed research study on District Heating Market provides market size (US$ million), compound annual growth rate (CAGR %) and forecast estimation (2023-2030), considering 2022 as the base year
The research report elucidates potential growth opportunities across different segments/countries and explains attractive investment proposition matrix for District Heating Market
The overall report identifies new investment opportunities, challenges faced by established players, and growth factors to sustain in the District Heating Market
Impact of COVID-19 on District Heating Market size, forecast, CAGR, and market dynamics are discussed in detail under the research scope. Detailed insight on District Heating Market post-COVID will also be covered.
In order to give the users of this report a comprehensive view on the District Heating Market, we have also included competitive landscape and key innovator analysis for the District Heating Market.
The study encompasses a growth prospect mapping analysis, wherein all the industry segments are benchmarked based on their market size, growth rate and attractiveness.
The report offersdetailed company profiling featuring major market participantswhich will help users to understand their financial information and strategic initiatives of players operating in the District Heating Market.
In addition, the report also unveil the important acquisitions & mergers, collaborations & joint ventures, new launch, research & development, regional expansion of major participants involved in the market on global as well as regional level.
The global District Heating Market report primarily caters to various stakeholders in this industry including suppliers, investors, new entrants, distributors, and financial analysts
GLOBAL DISTRICT HEATING MARKET KEY PLAYERS
Fortum Corporation
Vattenfall AB
Veolia Environnement SA
Engie SA
NRG Energy, Inc.
RWE AG
Ørsted A/S
Helen Ltd.
Shinryo Corporation
Goteborg Energi AB
FVB Energy Inc.
E.ON SE
Kelag AG
Ramboll Group A/S
Alfa Laval AB
GLOBAL DISTRICT HEATING MARKET, BY HEAT SOURCE
Coal
Natural Gas
Renewable
Oil & Petroleum Products
Others
GLOBAL DISTRICT HEATING MARKET, BY PLANT TYPE
Boiler
CHP
Others
GLOBAL DISTRICT HEATING MARKET, BY APPLICATION
Residential
Commercial
Industrial
GLOBAL DISTRICT HEATING MARKET, BY REGION
North America
The U.S.
Canada
Europe
Germany
France
Italy
Spain
United Kingdom
Russia
Netherlands
Sweden
Poland
Rest of Europe
Asia Pacific
India
China
South Korea
Japan
Australia
Thailand
Indonesia
Philippines
Rest of APAC
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of LATAM
The Middle East and Africa
Saudi Arabia
United Arab Emirates
Israel
Turkey
Algeria
Egypt
Rest of MEA