District Heating Market Size Is Currently Worth A Value Of US$ 179.19 Billion In 2023

District Heating Market

The market for district heating worldwide is expected to reach US$ 179.19 billion in 2023 and grow at a CAGR of 4% from 2023 to 2033.

Through a system of insulated pipes, district heating distributes heat to industrial, commercial, and residential buildings. Since it makes use of waste heat from numerous sources, including power plants, industrial operations, and renewable energy systems, it is an effective and environmentally friendly means of heating. The need for district heating systems is rising as energy efficiency, decarbonization, and sustainable urban development are becoming more and more important.

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The demand for sustainable heating solutions is expanding as a result of growing concern over climate change and the pressing need to cut greenhouse gas emissions. District heating systems are thought to be an efficient solution to attain carbon neutrality in heating since they may use waste heat and include renewable energy sources.

District heating systems are rapidly incorporating renewable energy sources into their mix of heat production, including solar thermal, geothermal, biomass, and waste-to-energy. This integration encourages the use of locally accessible renewable resources and lessens reliance on fossil fuels.

The development of district heating systems is greatly aided by the support and helpful policies of numerous governments. As part of their strategy for the energy transition, numerous governments around the world are proposing incentives, subsidies, and restrictions to encourage the installation of district heating systems.

For market participants, installing district heating infrastructure in existing buildings represents a sizable opportunity. Upgrading the heating systems of many outdated buildings to district heating systems can result in significant energy savings and pollution reductions.

Key Takeaways from Market Study

  • The global district heating market is projected to reach US$ 265.24 billion by 2033.
  • Sales of CHP heating systems are forecasted to increase at a CAGR of 5% between 2023 and 2033.
  • Demand for district heating systems in Germany is predicted to grow at a CAGR of 4% during the next 10 years.
  • The market in Japan is set to expand at a CAGR of 3.5% over the decade.

“Technological advancements such as smart heat meters, digital control systems, advanced heat storage solutions, and intelligent heat distribution networks are driving the growth of the district heating market, says a Fact.MR analyst.

Recent Market Developments

  • Two solar heating systems were provided by Savosolar PLC to NewHeat SAS in June 2020.
  • Fortum installed a carbon-neutral district heating network in Espoo in August 2021.

Key Companies Profiled

  • Vattenfall AB
  • Danfoss Group
  • Andritz AG
  • Agripower, Inc.
  • Aris Renewable Energy LLC
  • Aalborg Energie Technik A/S
  • Adven
  • Akershus Energi
  • AGO GmbH Energie + Anlagen
  • 3S Antriebe GmbH
  • Atoll Energy
  • Öresundskraft AB
  • Basalt Global Limited
  • Altawest SAS
  • Banpu Public Company Limited

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Competitive Landscape

To reach more consumers and grow their market shares, major players are concentrating on expanding their district heating networks. This entails locating viable areas for network growth, working with neighbourhood governments and developers, and making the necessary infrastructure investments to connect additional users.

Manufacturers are also actively collaborating and forming relationships with other industry players for the development of integrated energy systems, access to cutting-edge solutions, and knowledge sharing, including technology companies, energy providers, and local governments.

  • In December 2021, Oxelö Energi AB and Vattenfall AB signed a landmark agreement to establish a long-term, sustainable district heating solution in Oxelösund. The agreement paved the way for connecting the district heating network in Oxelösund to Vattenfall’s cutting-edge biomass-fired combined heat and power (CHP) plant, known as Idbäcksverket, located in Nyköping.

Key Segments of District Heating Industry Research

  • By Plant Type:
    • Boilers
    • Combined Heat & Power (CHP)
  • By Heat Source:
    • Coal
    • Natural Gas
    • Renewables
    • Oil & Petroleum Products
    • Geothermal
  • By Application:
    • Residential
    • Commercial
    • Industrial

More Valuable Insights on Offer

Fact.MR, in its new offering, presents an unbiased analysis of the global district heating market, presenting historical demand data (2018 to 2022) and forecast statistics for the period (2023 to 2033).

The study divulges essential insights into the market based on plant type (boilers, combined heat & power (CHP)), heat source (coal, natural gas, renewables, oil & petroleum products, geothermal) and application (residential, commercial, industrial), across five major regions of the world (North America, Europe, Asia Pacific, Latin America, and MEA).

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