District Heating Market Size and Forecast 2021 - 2031, Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Heat Source, Plant Type, Application, and Geography

Description

List of Tables

District Heating Market Forecast (2021-2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - by Plant Type (Boiler, Combined Heat and Power (CHP), and Others), Application (Residential, Commercial, and Industrial), and Regions (North America, Europe, Asia Pacific, Middle East and Africa, South and Central America)

The district heating market size was valued at US$ 214.01 billion in 2024 and is expected to reach US$ 298.73 billion by 2031; it is estimated to register a CAGR of 4.6% during 2025-2031.

Climate change and pollution are becoming significant concerns among industries and consumers for energy production, transportation, and construction. These concerns increase the adoption of district heating systems to reduce carbon emissions. These systems such as combined heat and power (CHP) engines, provide a flexible, integrated, and renewable-based energy system that accelerates decarbonization. These engines have enormous potential for boosting renewable energy utilization by attracting renewable and low-carbon heat sources, hence lowering reliance on fossil fuels. CHP engines absorb CO2 emissions from the central plant or other industrial sources by improving sustainability. The growing focus on achieving net-zero emissions to achieve operational sustainability increases the adoption of district heating systems. According to Climate Action Tracker data, in December 2023, nearly 145 countries considered net zero targets to reduce 90% of global emissions. China, the European Union, the US, and India account for more than half of global greenhouse gas emissions. These regions and countries are promoting sustainability in industrial operations, which surges the demand for district heating systems to reduce emissions from operations. District heating integrates renewable energy sources into the grid. This system allows the central usage, management, and distribution of energy generated from heat pumps, solar thermal panels, and industrial waste heat. This integration supports the desire for greener energy and accelerates the transition to a more sustainable and decarbonized power supply.

Based on application, the district heating market is segmented into residential, commercial, and industrial. The residential segment held the largest district heating market share. District heating systems benefit residents by providing an effective, dependable, and eco-friendly solution suitable for space heating and domestic hot water. These systems centralize heat generation through combined heat and power (CHP) facilities, renewable energy sources, or industrial waste heat then transport heat to several buildings via an insulated pipe network. This centralized heating solution eliminates the need for individual boilers in each home, which lowers initial installation costs, maintenance requirements, and indoor pollution risks. Residents benefit from higher heating quality, cheaper energy bills, and fewer technical concerns. Densely populated cities with high energy demand and limited space can benefit from district heating. The system increases energy efficiency while reducing infrastructure clutter. The system, including smart metering, allows residents to effectively monitor and control their energy usage, promoting conservation and cost savings.

Danfoss AS; Veolia; Fortum Corp; Engie SA; LOGSTOR Denmark Holding ApS; Siemens AG; Statkraft AS; Vattenfall AB; Shinryo Corporation; and Vital Energi Ltd; are among the key district heating market players that are profiled in this market study.

The overall district heating market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the district heating market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the district heating market.

Product Code: TIPRE00007183

1. Introduction

1.1 The Insight Partners Research Report Guidance
1.2 Market Segmentation

2. Executive Summary

2.1 Analyst Market Outlook
2.2 Market Attractiveness

3. Research Methodology

3.1 Secondary Research
3.2 Primary Research
- 3.2.1 Hypothesis formulation:
- 3.2.2 Macro-economic factor analysis:
- 3.2.3 Developing base number:
- 3.2.4 Data Triangulation:
- 3.2.5 Country level data:

4. District Heating Market Landscape

4.1 Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
- 4.3.1 Component Providers:
- 4.3.2 Technology Providers:
- 4.3.3 Transmission and Distribution Network:
- 4.3.4 Regulatory Bodies:
- 4.3.5 End users:
- 4.3.6 List of Vendors in the Value Chain
4.4 Average Selling Price - 2024 (Unit: US$/MWh)
4.5 Import Export Analysis, 2023 (Unit: US$ Thousand)
- 4.5.1 Import Export Analysis, 2023 - Central Heating Boilers (840310), (Unit: US$ Thousand)
- 4.5.2 Import Export Analysis, 2023 - Electric Instantaneous or Storage Water Heaters (851610), (Unit: US$ Thousand)
- 4.5.3 Import Export Analysis, 2023 - Industrial & Laboratory Electric Furnaces & Oven (851430), (Unit: US$ Thousand)
4.6 ESG Outlook
- 4.6.1 Environmental Considerations
- 4.6.2 Social Considerations
- 4.6.3 Governance Considerations

5. District Heating Market - Key Market Dynamics

5.1 District Heating Market - Key Market Dynamics
5.2 Market Drivers
- 5.2.1 Rising Energy Demand Worldwide
- 5.2.2 Growing Towards the Installation of Heat-Pump
- 5.2.3 High Focus on Achieving Net-Zero Emissions
5.3 Market Restraints
- 5.3.1 High Initial Capital Investment:
5.4 Market Opportunities
- 5.4.1 Rising Investment Toward the Expansion of District Heating Network
5.5 Future Trends
- 5.5.1 The Evolution of Fifth Generation District Heating and Cooling (5GDHC) Networks
5.6 Impact of Drivers and Restraints:

6. District Heating Market - Global Market Analysis

6.1 District Heating Market Revenue (US$ Million), 2021-2031
6.2 District Heating Market Forecast Analysis

7. District Heating Market Analysis - by Heat Source

7.1 Coal
- 7.1.1 Overview
- 7.1.2 Coal: District Heating Market - Revenue and Forecast to 2031 (US$ Million)
7.2 Natural Gas
- 7.2.1 Overview
- 7.2.2 Natural Gas: District Heating Market - Revenue and Forecast to 2031 (US$ Million)
7.3 Oil and Petroleum Products
- 7.3.1 Overview
- 7.3.2 Oil and Petroleum Products: District Heating Market - Revenue and Forecast to 2031 (US$ Million)
7.4 Others
- 7.4.1 Overview
- 7.4.2 Others: District Heating Market - Revenue and Forecast to 2031 (US$ Million)

8. District Heating Market Analysis - by Plant Type

8.1 Boiler
- 8.1.1 Overview
- 8.1.2 Boiler: District Heating Market - Revenue and Forecast to 2031 (US$ Million)
8.2 Combined Heat and Power
- 8.2.1 Overview
- 8.2.2 Combined Heat and Power: District Heating Market - Revenue and Forecast to 2031 (US$ Million)
8.3 Others
- 8.3.1 Overview
- 8.3.2 Others: District Heating Market - Revenue and Forecast to 2031 (US$ Million)

9. District Heating Market Analysis - by Application

9.1 Residential
- 9.1.1 Overview
- 9.1.2 Residential: District Heating Market - Revenue and Forecast to 2031 (US$ Million)
9.2 Commercial
- 9.2.1 Overview
- 9.2.2 Commercial: District Heating Market - Revenue and Forecast to 2031 (US$ Million)
9.3 Industrial
- 9.3.1 Overview
- 9.3.2 Industrial: District Heating Market - Revenue and Forecast to 2031 (US$ Million)

10. District Heating Market - Geographical Analysis

10.1 Overview
10.2 North America
- 10.2.1 North America District Heating Market Overview
- 10.2.2 North America: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
- 10.2.3 North America: District Heating Market Breakdown, by Heat Source
  - 10.2.3.1 North America: District Heating Market- Revenue and Forecast Analysis - by Heat Source
- 10.2.4 North America: District Heating Market Breakdown, by Plant Type
  - 10.2.4.1 North America: District Heating Market- Revenue and Forecast Analysis - by Plant Type
- 10.2.5 North America: District Heating Market Breakdown, by Application
  - 10.2.5.1 North America: District Heating Market- Revenue and Forecast Analysis - by Application
- 10.2.6 North America: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.2.6.1 North America: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.2.6.2 United States: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.2.6.2.1 United States: District Heating Market Breakdown, by Heat Source
    - 10.2.6.2.2 United States: District Heating Market Breakdown, by Plant Type
    - 10.2.6.2.3 United States: District Heating Market Breakdown, by Application
  - 10.2.6.3 Canada: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.2.6.3.1 Canada: District Heating Market Breakdown, by Heat Source
    - 10.2.6.3.2 Canada: District Heating Market Breakdown, by Plant Type
    - 10.2.6.3.3 Canada: District Heating Market Breakdown, by Application
  - 10.2.6.4 Mexico: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.2.6.4.1 Mexico: District Heating Market Breakdown, by Heat Source
    - 10.2.6.4.2 Mexico: District Heating Market Breakdown, by Plant Type
    - 10.2.6.4.3 Mexico: District Heating Market Breakdown, by Application
10.3 Europe
- 10.3.1 Europe District Heating Market Overview
- 10.3.2 Europe: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
- 10.3.3 Europe: District Heating Market Breakdown, by Heat Source
  - 10.3.3.1 Europe: District Heating Market- Revenue and Forecast Analysis - by Heat Source
- 10.3.4 Europe: District Heating Market Breakdown, by Plant Type
  - 10.3.4.1 Europe: District Heating Market- Revenue and Forecast Analysis - by Plant Type
- 10.3.5 Europe: District Heating Market Breakdown, by Application
  - 10.3.5.1 Europe: District Heating Market- Revenue and Forecast Analysis - by Application
- 10.3.6 Europe: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.3.6.1 Europe: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.3.6.2 Germany: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.3.6.2.1 Germany: District Heating Market Breakdown, by Heat Source
    - 10.3.6.2.2 Germany: District Heating Market Breakdown, by Plant Type
    - 10.3.6.2.3 Germany: District Heating Market Breakdown, by Application
  - 10.3.6.3 United Kingdom: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.3.6.3.1 United Kingdom: District Heating Market Breakdown, by Heat Source
    - 10.3.6.3.2 United Kingdom: District Heating Market Breakdown, by Plant Type
    - 10.3.6.3.3 United Kingdom: District Heating Market Breakdown, by Application
  - 10.3.6.4 France: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.3.6.4.1 France: District Heating Market Breakdown, by Heat Source
    - 10.3.6.4.2 France: District Heating Market Breakdown, by Plant Type
    - 10.3.6.4.3 France: District Heating Market Breakdown, by Application
  - 10.3.6.5 Italy: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.3.6.5.1 Italy: District Heating Market Breakdown, by Heat Source
    - 10.3.6.5.2 Italy: District Heating Market Breakdown, by Plant Type
    - 10.3.6.5.3 Italy: District Heating Market Breakdown, by Application
  - 10.3.6.6 Russia: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.3.6.6.1 Russia: District Heating Market Breakdown, by Heat Source
    - 10.3.6.6.2 Russia: District Heating Market Breakdown, by Plant Type
    - 10.3.6.6.3 Russia: District Heating Market Breakdown, by Application
  - 10.3.6.7 Rest of Europe: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.3.6.7.1 Rest of Europe: District Heating Market Breakdown, by Heat Source
    - 10.3.6.7.2 Rest of Europe: District Heating Market Breakdown, by Plant Type
    - 10.3.6.7.3 Rest of Europe: District Heating Market Breakdown, by Application
10.4 Asia Pacific
- 10.4.1 Asia Pacific District Heating Market Overview
- 10.4.2 Asia Pacific: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
- 10.4.3 Asia Pacific: District Heating Market Breakdown, by Heat Source
  - 10.4.3.1 Asia Pacific: District Heating Market- Revenue and Forecast Analysis - by Heat Source
- 10.4.4 Asia Pacific: District Heating Market Breakdown, by Plant Type
  - 10.4.4.1 Asia Pacific: District Heating Market- Revenue and Forecast Analysis - by Plant Type
- 10.4.5 Asia Pacific: District Heating Market Breakdown, by Application
  - 10.4.5.1 Asia Pacific: District Heating Market- Revenue and Forecast Analysis - by Application
- 10.4.6 Asia Pacific: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.4.6.1 Asia Pacific: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.4.6.2 China: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.4.6.2.1 China: District Heating Market Breakdown, by Heat Source
    - 10.4.6.2.2 China: District Heating Market Breakdown, by Plant Type
    - 10.4.6.2.3 China: District Heating Market Breakdown, by Application
  - 10.4.6.3 Japan: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.4.6.3.1 Japan: District Heating Market Breakdown, by Heat Source
    - 10.4.6.3.2 Japan: District Heating Market Breakdown, by Plant Type
    - 10.4.6.3.3 Japan: District Heating Market Breakdown, by Application
  - 10.4.6.4 South Korea: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.4.6.4.1 South Korea: District Heating Market Breakdown, by Heat Source
    - 10.4.6.4.2 South Korea: District Heating Market Breakdown, by Plant Type
    - 10.4.6.4.3 South Korea: District Heating Market Breakdown, by Application
  - 10.4.6.5 India: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.4.6.5.1 India: District Heating Market Breakdown, by Heat Source
    - 10.4.6.5.2 India: District Heating Market Breakdown, by Plant Type
    - 10.4.6.5.3 India: District Heating Market Breakdown, by Application
  - 10.4.6.6 Australia: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.4.6.6.1 Australia: District Heating Market Breakdown, by Heat Source
    - 10.4.6.6.2 Australia: District Heating Market Breakdown, by Plant Type
    - 10.4.6.6.3 Australia: District Heating Market Breakdown, by Application
  - 10.4.6.7 Rest of APAC: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.4.6.7.1 Rest of APAC: District Heating Market Breakdown, by Heat Source
    - 10.4.6.7.2 Rest of APAC: District Heating Market Breakdown, by Plant Type
    - 10.4.6.7.3 Rest of APAC: District Heating Market Breakdown, by Application
10.5 Middle East and Africa
- 10.5.1 Middle East and Africa District Heating Market Overview
- 10.5.2 Middle East and Africa: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
- 10.5.3 Middle East and Africa: District Heating Market Breakdown, by Heat Source
  - 10.5.3.1 Middle East and Africa: District Heating Market- Revenue and Forecast Analysis - by Heat Source
- 10.5.4 Middle East and Africa: District Heating Market Breakdown, by Plant Type
  - 10.5.4.1 Middle East and Africa: District Heating Market- Revenue and Forecast Analysis - by Plant Type
- 10.5.5 Middle East and Africa: District Heating Market Breakdown, by Application
  - 10.5.5.1 Middle East and Africa: District Heating Market- Revenue and Forecast Analysis - by Application
- 10.5.6 Middle East and Africa: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.5.6.1 Middle East and Africa: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.5.6.2 South Africa: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.5.6.2.1 South Africa: District Heating Market Breakdown, by Heat Source
    - 10.5.6.2.2 South Africa: District Heating Market Breakdown, by Plant Type
    - 10.5.6.2.3 South Africa: District Heating Market Breakdown, by Application
  - 10.5.6.3 Saudi Arabia: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.5.6.3.1 Saudi Arabia: District Heating Market Breakdown, by Heat Source
    - 10.5.6.3.2 Saudi Arabia: District Heating Market Breakdown, by Plant Type
    - 10.5.6.3.3 Saudi Arabia: District Heating Market Breakdown, by Application
  - 10.5.6.4 United Arab Emirates: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.5.6.4.1 United Arab Emirates: District Heating Market Breakdown, by Heat Source
    - 10.5.6.4.2 United Arab Emirates: District Heating Market Breakdown, by Plant Type
    - 10.5.6.4.3 United Arab Emirates: District Heating Market Breakdown, by Application
  - 10.5.6.5 Rest of Middle East and Africa: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.5.6.5.1 Rest of Middle East and Africa: District Heating Market Breakdown, by Heat Source
    - 10.5.6.5.2 Rest of Middle East and Africa: District Heating Market Breakdown, by Plant Type
    - 10.5.6.5.3 Rest of Middle East and Africa: District Heating Market Breakdown, by Application
10.6 South and Central America
- 10.6.1 South and Central America District Heating Market Overview
- 10.6.2 South and Central America: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
- 10.6.3 South and Central America: District Heating Market Breakdown, by Heat Source
  - 10.6.3.1 South and Central America: District Heating Market- Revenue and Forecast Analysis - by Heat Source
- 10.6.4 South and Central America: District Heating Market Breakdown, by Plant Type
  - 10.6.4.1 South and Central America: District Heating Market- Revenue and Forecast Analysis - by Plant Type
- 10.6.5 South and Central America: District Heating Market Breakdown, by Application
  - 10.6.5.1 South and Central America: District Heating Market- Revenue and Forecast Analysis - by Application
- 10.6.6 South and Central America: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.6.6.1 South and Central America: District Heating Market - Revenue and Forecast Analysis - by Country
  - 10.6.6.2 Brazil: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.6.6.2.1 Brazil: District Heating Market Breakdown, by Heat Source
    - 10.6.6.2.2 Brazil: District Heating Market Breakdown, by Plant Type
    - 10.6.6.2.3 Brazil: District Heating Market Breakdown, by Application
  - 10.6.6.3 Argentina: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.6.6.3.1 Argentina: District Heating Market Breakdown, by Heat Source
    - 10.6.6.3.2 Argentina: District Heating Market Breakdown, by Plant Type
    - 10.6.6.3.3 Argentina: District Heating Market Breakdown, by Application
  - 10.6.6.4 Rest of South and Central America: District Heating Market - Revenue, 2021 - 2031 (US$ Million)
    - 10.6.6.4.1 Rest of South and Central America: District Heating Market Breakdown, by Heat Source
    - 10.6.6.4.2 Rest of South and Central America: District Heating Market Breakdown, by Plant Type
    - 10.6.6.4.3 Rest of South and Central America: District Heating Market Breakdown, by Application

11. Competitive Landscape

11.1 Heat Map Analysis by Key Players
11.2 Company Market Share Analysis, 2024

12. Industry Landscape

12.1 Overview
12.2 Market Initiative
12.3 Product Development
12.4 Mergers & Acquisitions

13. Company Profiles

13.1 Danfoss AS
- 13.1.1 Key Facts
- 13.1.2 Business Description
- 13.1.3 Products and Services
- 13.1.4 Financial Overview
- 13.1.5 SWOT Analysis
- 13.1.6 Key Developments
13.2 Veolia
- 13.2.1 Key Facts
- 13.2.2 Business Description
- 13.2.3 Products and Services
- 13.2.4 Financial Overview
- 13.2.5 SWOT Analysis
- 13.2.6 Key Developments
13.3 Fortum Corp
- 13.3.1 Key Facts
- 13.3.2 Business Description
- 13.3.3 Products and Services
- 13.3.4 Financial Overview
- 13.3.5 SWOT Analysis
- 13.3.6 Key Developments
13.4 Engie SA
- 13.4.1 Key Facts
- 13.4.2 Business Description
- 13.4.3 Products and Services
- 13.4.4 Financial Overview
- 13.4.5 SWOT Analysis
- 13.4.6 Key Developments
13.5 LOGSTOR Denmark Holding ApS
- 13.5.1 Key Facts
- 13.5.2 Business Description
- 13.5.3 Products and Services
- 13.5.4 Financial Overview
- 13.5.5 SWOT Analysis
- 13.5.6 Key Developments
13.6 Siemens AG
- 13.6.1 Key Facts
- 13.6.2 Business Description
- 13.6.3 Products and Services
- 13.6.4 Financial Overview
- 13.6.5 SWOT Analysis
- 13.6.6 Key Developments
13.7 Statkraft AS
- 13.7.1 Key Facts
- 13.7.2 Business Description
- 13.7.3 Products and Services
- 13.7.4 Financial Overview
- 13.7.5 SWOT Analysis
- 13.7.6 Key Developments
13.8 Vattenfall AB
- 13.8.1 Key Facts
- 13.8.2 Business Description
- 13.8.3 Products and Services
- 13.8.4 Financial Overview
- 13.8.5 SWOT Analysis
- 13.8.6 Key Developments
13.9 Shinryo Corporation
- 13.9.1 Key Facts
- 13.9.2 Business Description
- 13.9.3 Products and Services
- 13.9.4 Financial Overview
- 13.9.5 SWOT Analysis
- 13.9.6 Key Developments
13.10 Vital Energi Ltd
- 13.10.1 Key Facts
- 13.10.2 Business Description
- 13.10.3 Products and Services
- 13.10.4 Financial Overview
- 13.10.5 SWOT Analysis
- 13.10.6 Key Developments

14. Appendix

14.1 About The Insight Partners