The Global District Heating Market Size is valued at 179.72 billion in 2022 and is predicted to reach 278.78 billion by the year 2031 at a 5.18% CAGR during the forecast period for 2023-2031.
Growing consumer demand for reducing carbon emissions will boost market expansion. Since the world's population has grown dramatically in recent years, urbanization has improved in many places. This directly increased energy consumption across a range of end-use industries. In a central plant, district heating has the potential to generate a lot of electricity. Transporting it farther to various end-use sectors is an excellent way to meet the need for heat. Due to the challenges posed by unprecedented carbon emissions and global warming, there is a growing preference for renewable energy sources.
The United Kingdom announced a USD 2 billion investment incentive program for the heating industry from 2015 to 2025. Germany has also stated that it will invest roughly $1 billion by 2030. Similar packages are anticipated in China, the Netherlands, and Denmark in the upcoming years.
Moreover, Poland invested approximately USD 5 billion in broadband between 2018 and 2028 in the heating industry.
Recent Developments:
- In August 2021, A trigeneration system was installed by Cummins in the Royal Children's Hospital of Australia. Diesel generators provide essential standby power, whilst natural gas generators supply electricity, heating, and cooling. Via the use of an absorption chiller, the trigeneration system provides baseload electricity, heating, and cooling.
Competitive Landscape:
The major players collaborate technologically to create fresh product lines and innovate, growing their consumer base. In addition, it is anticipated that in the upcoming years, important players would have new opportunities due to changing customer tastes, quality standards, and energy efficiency.
Some of the District Heating market players are:
- ALFA LAVAL
- Clearway Energy Inc.
- Danfoss,
- ENGIE,
- Fortum,
- FVB Energy Inc.
- Göteborg Energi
- Helen Ltd
- Kelag
- LOGSTOR A/S
- NRG Energy
- Ramboll Group A/S
- Shinryo Corporation
- Statkraft
- Vattenfall,
- Vital Energi Ltd.
Market Segmentation:
The District Heating market is segmented based on the heat source, component, plant type, and application. Based on a heat source, the market is segmented as coal, natural gas, renewables, oil & petroleum products, and others. The component segment includes a boiler, insulated pipeline, pumps, heat exchangers, and meters. By plant type, the market is segmented into boiler plants, combined heat & power, and others. The applications segment includes residential, commercial, and industrial.
Based On The Heat Source, The Natural Gas Segment Is Accounted As A Major Contributor In The District Heating Market
The natural gas category is expected to hold a major share of the global District Heating market in 2021. Considering the environmental factors, as power generation has moved away from fossil fuels, natural gas has steadily taken a sizable percentage of the market share in the global district heating market. Natural gas has many advantages, including lower costs and reduced carbon emissions with remarkable efficiency, which have fueled the expansion of this market.
These networks' development is also aided by rising natural gas exploration activity in each region. In recent years, non-traditional energy sources, including solar and wind, have grown. In many nations, there has been a shift towards solar energy. Nonetheless, the district heating network supports renewable energy and many people. Compared to natural gas, it has a smaller market share because it is still a young technology.
Residential Segment Witnessed Growth At A Rapid Rate
Due to the rapid development of residential infrastructure, rising disposable incomes, the expansion of the piped gas network, and the rising rate of electrification in many emerging nations, the residential segment dominated the market for water heaters. Market growth is anticipated to be boosted by the rising need for dependable, affordable, and environmentally friendly water heating technologies, notably in the industrial and residential sectors. Additionally, it is anticipated that the ability of heaters to operate at lower costs—up to 75% less expensive in the summer and 30% to 40% less costly in the winter—will increase product demand throughout the projection period.
In The Region, The North American District Heating Market Holds A Significant Revenue Share
The main drivers influencing the market's growth in China are rising disposable income, growing CO2 emission concerns, and increased heating and cooling system use. Models from the Organization for Economic Cooperation and Development (OECD) predict that by 2060, the income per person in China and India might have increased by seven times. Governments around the Asia-Pacific area are working with regional businesses to expand the home market. For instance, one of the important heating businesses in China is the Beijing District Heating Group. The government and army in downtown Beijing, Chinese embassies, significant businesses and institutions, and the general public all used the company's heating solutions. In addition, it holds a large number of projects in other provinces.
District Heating Market Report Scope:
|
Report Attribute |
Specifications |
|
Market size value in 2022 |
USD 179.72 Bn |
|
Revenue forecast in 2031 |
USD 278.78 Bn |
|
Growth rate CAGR |
CAGR of 5.18 % from 2023 to 2031 |
|
Quantitative units |
Representation of revenue in US$ Million, and CAGR from 2023 to 2031 |
|
Historic Year |
2019 to 2022 |
|
Forecast Year |
2023-2031 |
|
Report coverage |
The forecast of revenue, the position of the company, the competitive market statistics, growth prospects, and trends |
|
Segments covered |
Heat Source, Component, Plant Type, And Application |
|
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; The UK; France; Italy; Spain; China; Japan; India; South Korea; Southeast Asia; South Korea; Southeast Asia |
|
Competitive Landscape |
Fortum, Vattenfall, ENGIE, Danfoss, Ststkraft, LOGSTOR, Vital Energiv, Kelag, Shrinyo Corporation. |
|
Customization scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing and available payment methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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