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) & Forecast, 2023 – 2032

District Heating & Cooling Market Size

District Heating & Cooling Market surpassed USD 397.7 billion in 2022 and is likely to showcase CAGR of 7% from 2023 to 2032. The supportive government incentive programs and target to achieve net zero emission in line with national targets for renewable energy integration will energize the industry landscape. District heating is a system of supplying heat to multiple buildings or residential areas from a centralized source. On the other hand, district cooling  is a centralized system that supplies chilled water or air conditioning to multiple buildings or areas from a central cooling plant, offering efficient cooling solutions.
 

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Increasing utilization of sensible heat for commercial purposes along with a growing emphasis on adopting clean energy sources will drive the industry growth. Ongoing refurbishment and replacement of conventional power plants with cost effective clean energy generation facilities will foster the favorable business scenario. Rising infrastructure investments in line with surging demand for sustainable technology systems will propel the market outlook. In addition, the growing demand for environmentally friendly temperatures in residential, industrial, and commercial areas will further drive the demand for district heating & cooling solutions.
 

Continuous investment in the development of effective climate solutions coupled with the deployment of advanced heating and cooling systems solutions will influence the district heating & cooling market growth. Abundant availability of low-cost waste streams and high-power costs are the key prominent factors that will strengthen the technology adoption in forthcoming years. Moreover, government policies related to heat and electricity supply in conjunction with supported by well implemented policy interventions will thrust the industry expansion. The growing implementation of effective marketing and promotional strategies by key industry players will contribute to the increased requirement of these systems.
 

COVID-19 Impact

The COVID-19 pandemic has disrupted numerous industrial operations, including infrastructure developments and investment projects. Global shutdowns and temporary closures of offices and industries were implemented in accordance with government and local authority regulations. The impact of the virus has been felt worldwide, with 215 nations affected and severe lockdown measures implemented. However, the gradual relaxation of government regulations and the resumption of activities, particularly in sectors like manufacturing and infrastructure projects will significantly influence future market growth.
 

District Heating & Cooling Market Trends

The district heating & cooling market is witnessing a growing emphasis on energy efficiency to reduce carbon emissions and optimize resource utilization. Growing implementation of regulatory policies related to utilization of efficient technologies including waste heat recovery and heat pumps systems in association with growing adoption of sustainable energy technologies will augment the industry share. Furthermore, the industry expansion will be supported by changing climatic conditions on account of rising surface temperatures range. Paradigm shift toward the utilization of renewable energy sources along with adoption of smart and digital solutions in heating & cooling sector will complement the business growth.
 

District Heating & Cooling Market Analysis

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The combined heat power (CHP) market accounted for over USD 150 billion in 2022. The growing adoption of renewable energy systems and integration of advanced technologies will contribute to the increased product demand. Also, ongoing government reforms aimed at energy conservation in conjunction with reducing carbon footprints will escalate the industry outlook. The growing focus on improving energy efficiency and optimizing the performance of DH systems will proliferate the espousal of these technologies. The rising need for energy-efficient systems to support constant construction activities will stimulate the market statistics. Governments and regulatory bodies are implementing policies and providing incentives to promote the technology implementation.
 

The growing need of environment-friendly technologies including waste heat and hot streams for generating energy has significantly strengthened the use of absorption cooling technology across the regions. The technology involves the use of waste incineration, CHP, and industrial waste heat to generate energy. In addition, it dissolves the vapor in an absorbent and transfers the resulting product to a high-pressure environment through a pump with low power consumption. Hence, the average increase in the surface temperature coupled with stringent regulatory norms toward sustainable DC technologies will boost the district heating & cooling market demand.
 

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The commercial district heating & cooling industry is projected to generate USD 300 billion revenues by 2032. Increasing adoption of sustainable building measures and codes along with shifting focus toward constructing green buildings will fuel the product penetration across emerging economies. Increasing investments toward the real-estate industry together with burgeoning service sector will accelerate the industry outlook. Additionally, the demand for efficient and environmentally friendly heating and cooling solutions in commercial buildings including retail spaces, offices, and hospitals will influence the business growth.
 

The residential district heating & cooling market is foreseen to register 7.5% growth rate between 2023 and 2032. The industry will witness a significant growth on account of growing construction activities of energy efficient residential building. The implementation of more stringent greenhouse gas (GHG) regulations and rising demand of renewable energy sources for power generation will further enhance the industry overview. Ongoing integration of heat pumps across residential premises and increasing shift toward decentralized energy systems will foster the business revenues.
 

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Asia Pacific district heating & cooling market is estimated to amass USD 220 billion by 2032. The region will witness notable growth owing to the development of climate action plans implemented by governments. Continuing execution of government policies supporting the transition to cleaner and more efficient solutions will stimulate the demand for district energy systems across the region. Furthermore, instant urbanization and increasing investments in residential developments in the region have positively impacted the industry. Growing energy security concerns related to the depletion of conventional energy sources will propel the adoption of district energy systems. The market for Europe district cooling will observe 3.2% growth rate through 2032.
 

District Heating & Cooling Market Share

The key industry players operating in district heating & cooling market are:

• ENGIE
• Cetetherm
• Wien Energie GmbH
• Helen Oy
•  Veolia
• Singapore Power Ltd
• Stellar Energy International
• Danfoss
• Marafeq Qatar
• DC Pro Engineering
•  ADC Energy Systems
• Tabreed
• Siemens
• Emirates Central Cooling Systems Corporation PJSC
• Pal Group
• SNC-Lavalin Group
• Emicool
• Hafslund AS
•  KELAG Energie & Wärme GmbH
• Keppel Corporation Limited
• Korea District Heating Corporation
•  LOGSTOR Denmark Holding ApS
•  Ørsted A/S
• Ramboll Group A/S
•  RWE
•  Shinryo Corporation
• Statkraft AS
• STEAG GMBH
• Vattenfall AB
• Göteborg Energi
• Fortum
   

District Heating & Cooling Industry news

• In December 2021, Vattenfall launched the pilot data project to supply sustainable computing capacity. This project involves the direct use of heat, high-performance computing applications, Artificial Intelligence (AI), and operated to provide high-performance security in the DH plant for sustainability. Vattenfall offers the structure and the cloud & heat technology and a secured space to run the operation.
   
• In June 2021, Emicool commenced the phase-wise implementation of Emivalve, which allows remotely controlled processes along with the enabling of instant connection & disconnection through an automated centralized software. The company partnered with AIUT, which provides technologically advanced solutions in robotization, and the automation of production processes coupled with Industrial Internet of Things (IIoT) for product development. The product enabled consumers with district cooling services with an easy move in & out for tenants instead of visiting the company’s headquarters or customer service centers.
   

This district heating & cooling market research report includes in-depth coverage of the industry with estimates & forecast in terms of “PJ” & “USD Million” from 2019 to 2032, for the following segments:

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Market, By Source

• District Heating
  • CHP
  • Geothermal
  • Solar
  • Heat Only Boilers
  • Others
• 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 regions and countries:

• 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