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District Heating & Cooling Market Size By Energy Source (District Heating {CHP, Geothermal, Solar, Heat only Boilers}, District Cooling {Free Cooling, Absorption Cooling, Heat Pumps, Electric Chillers}), By Application (Residential, Commercial, Industrial), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028

  • Report ID: GMI2877
  • Published Date: Apr 2022
  • Report Format: PDF

Industry Trends

District Heating & Cooling Market size exceeded USD 270 billion in 2021 and is anticipated to grow at over 5% CAGR from 2022 to 2028. Favorable government incentive programs along with national renewable integration targets will positively sway the industry landscape.
 

District Heating & Cooling Market

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The ongoing replacement of aging conventional power plants with low-cost clean energy generating stations for optimum resource utilization will continue to drive the district heating market growth. Increasing infrastructure spending combined with the flourishing demand for sustainable technologies will augment the business outlook. Moreover, the rising demand for space heating across residential, commercial, and industrial premises will enhance the product demand.
 

COVID- 19 has halted several industrial operations including infrastructure developments, investment projects, and many more. Owing to the global shutdown, operations were temporarily halted, followed by the temporary closure of offices & industries in accordance with government & local authority regulations. According to the WHO study, the virus has affected 215 nations, resulting in severe national and worldwide lockdowns. However, government regulations on resuming activities in major sectors, such as manufacturing, and infrastructure projects will have a substantial impact on the district heating & cooling market growth.
 

Growing adoption of energy-efficient and clean technologies

District Heating Market Size, By Source

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The district heating market is expected to surge at around 5.8% gains through 2028. Shortage of fossil fuels, high heat extraction costs, and environmental concerns will boost the district heating system demand. Additionally, ongoing government reforms pertaining to energy conservation and reduction in carbon footprints will support the market statistics. High distributed power generation costs coupled with significant transmission & distribution losses may hamper the global market.
 

The Combined Heat Power (CHP) of market is predicted to surpass USD 120 billion by 2028. The increasing adoption of renewable energy production systems and advanced technologies will accelerate the demand for these technologies. The increasing demand for energy-efficient DC systems to facilitate the ongoing construction boom will fuel the business landscape.
 

Ongoing infrastructural developments will spur the industry scenario

The residential district heating & cooling market is poised to witness growth rate of about 5.4% through 2028. The development of sustainable building infrastructures coupled with rapid industrialization will positively influence the product demand. The introduction of more stringent GHG regulations along with the growing adoption of renewable sources to generate energy will elevate the market revenue.
 

Ongoing investments in the development of effective climate solutions in line with the deployment of advanced system solutions will boost the market demand. High power costs and excessive availability of low-cost waste streams are some of the other prominent features that will propel technology adoption. Government policies toward heat and electricity supply and well-implemented policy intervention will augment the business landscape.
 

Rising investments in the real estate sector

Favorable government policies and growing concerns toward carbon reduction will embellish the district heating & cooling market size. Growing establishments to meet electricity demand together with the distribution of continuous & reliable systems will foster the market share. For instance, in March 2021, Tabreed entered into a JV with the IFC to develop a district energy investment platform in Singapore. The IFC will invest in district cooling, Cooling-as-a-Service, and trigeneration with a primary focus on India and other Southeast Asian countries. Ongoing development activities in India combined with offering sustainable energy-efficient end-to-end Cooling-as-a-Service for new urban masterplans, real estate developments, and ongoing redevelopments in targeted cities.
 

Stringent government norms to climate changes and greenhouse gas emissions

District Heating & Cooling Market Size, By country

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Asia Pacific district heating & cooling market size is estimated to reach USD 115 billion by 2028 led by the development of several climate action plans. Government policies and rapid urbanization in line with increasing investments in the development of residential establishments have significantly nourished the industry outlook. Energy security concerns pertaining to depleting conventional energy sources will stimulate the district energy market growth.
 

Strategic partnerships and collaborations including joint ventures & mergers

Major participants across the district heating & cooling market including Fortum, Goteborg Energi, Vattenfall AB, Statkraft AS, STEAG GmbH, RWE, Shinryo Corporation, Ramboll Group A/S, Ørsted A/S, NRG Energy Inc., LOGSTOR A/S, Korea District Heating Corporation, Keppel Corporation, KELAG Energie & Wärme GmbH, Hafslund Eco, Emicool, SNC Lavalin Group, PAL Group, Empower, Qatar District Cooling Company, Tabreed, Siemens, ADC Energy Systems, Wien Energie GmbH, DC Pro Engineering, Danfoss, Marafeq Qatar, Stellar Energy, Singapore Power, Veolia, Helen Oy, Cetetherm and ENGIE.
 

This market research report on district heating & cooling includes in-depth coverage of the industry with estimates & forecast in terms of “PJ” & “USD” from 2018 to 2028, for the following segments:

Market, By Energy Source

  • District Heating
    • CHP
    • Geothermal
    • Solar
    • Heat only Boilers
  • District Cooling
    • Free Cooling
    • Absorption Cooling
    • Heat Pumps
    • Electric Chillers
    • Others

Market, By Application

  • Residential
  • Commercial
  • Industrial

The above information has been provided for the following region and country:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • Poland
    • Sweden
    • Finland
    • Italy
    • Austria
    • Russia
    • France
  • Asia Pacific
    • China
    • Japan
    • South Korea
  • Middle East
    • Saudi Arabia
    • UAE
    • Qatar
    • Oman
    • Kuwait
    • Bahrain
  • Rest of World

 

Authors: Ankit Gupta, Abhishek Chopra

Frequently Asked Questions (FAQ) :

The market size of district heating and cooling exceeded USD 270 billion in 2021 and is projected to record 5% CAGR during the forecast timeline of 2022-2028.

The combined heat & power (CHP) segment will surpass USD 120 billion in global district heating & cooling industry by 2028 due to the growing use of renewable energy generation systems.

The residential district heating and cooling segment is expected to showcase 5.4% CAGR through 2028 due to the rising demand for sustainable building infrastructures.

Goteborg Energi, Fortum, STEAG GmbH, Statkraft AS, Vattenfall AB, and RWE, among many others, are the main players in this market.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 33
  • Tables & Figures: 489
  • Countries covered: 19
  • Pages: 405

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