District Heating Market Size By Source (CHP, Geothermal, Solar, Heat Only Boilers), By Application (Residential, Commercial {College/University, Office, Government/Military}, Industrial {Chemical, Refinery, Paper}), Industry Analysis Report, Regional Outlook, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Dec 2020  |  Report ID: GMI1401  |  Authors: Ankit Gupta, Aditya Singh Bais

Report Format: PDF   |   Pages: 320   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

District Heating Market size was valued at over USD 150 billion in 2019 and is expected to register over 3.8% CAGR between 2020 and 2026. Directives to curb GHG emissions coupled with growing concerns toward recycling waste energies will stimulate the product demand of district heating units. Stringent norms toward building energy efficiency through deployment of sustainable technologies will boost the market demand.

District Heating Market

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In the recent past, global district heating industry has witnessed a significant progression on account of its economical and eco-friendly nature. The heat supply from district heating is generated in an eco-friendly way, which decreases the effect of greenhouse gas emissions and will positively impact the DH demand. Moreover, supportive government policies toward limiting the carbon emissions along with growing adoption of clean energy will enhance the market statistics of district heating systems.

However, the ongoing COVID-19 pandemic has hampered large scale economic disruption across various developing & developed nation around the globe. The economic slowdown along with declined GDP of top economies till Q3 of FY2020 on account of the pandemic is expected to hamper the industry trends. Lack of availability of manpower and lockdown of industrial operations are few prominent factors that will lower the installation of district heating units. Even with the economic slowdown, the market growth is projected to recover by the Q4 of FY2020, as the operations resume after the lockdown.

The study illustrates a detailed analysis of industry trends across the world segmented on a country & region basis across source and application. Furthermore, the market forecasts & estimates are appropriately aligned with the data indicated by authorities including the International District Energy Association (IDEA), International Energy Agency (IEA), Italian District Heating Association, Swedish Energy Efficiency, European Environmental Bureau (EEB), government regulatory bodies, and company reports.

District Heating Market Report Coverage
Report Coverage Details
Base Year:2019
Market Size in 2019:150 Billion (USD)
Forecast Period:2020 to 2026
Forecast Period 2020 to 2026 CAGR:3.80%
2026 Value Projection:180 Billion (USD)
Historical Data for:2015 to 2019
No. of Pages:320
Tables, Charts & Figures:518
Segments covered:Source, Application
Growth Drivers:
  • North America
    • Strict regulations towards carbon emissions
    • Favorable government policies towards renewable including CHP
  • Europe
    • Government norms toward zero emission buildings
    • Extreme climatic conditions
    • Government incentives towards adoption of district heating systems
  • Asia Pacific
    • Rapid urbanization and industrialization
    • Clean energy directives
Pitfalls & Challenges:
  • High capital cost
  • Volatile Prices

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Growing concerns toward rising carbon emissions will propel the deployment of CHP plants

District Heating Market By Source

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CHP district heating market is projected to witness a growth of over 3% through 2026. Due to high sustainability, CHP is considered as one of the most cost-effective solutions for district heating systems, which in turn will stimulate the market demand of DH units during the forecast timeline. The penetration of CHP based district heating systems are very high across the countries where CHP plays more prominent role in heat and electricity generation. Focused government policy toward heat and electricity supply coupled with well-implemented policy intervention will further expand the use of cogeneration in the district heating industry.

Rapid investments toward commercial establishments to fuel the demand of district heating systems

Commercial district heating market is set to witness significant growth on account of rising commercialization at a significant rate coupled with the development of various massive building structures. Soaring investments towards the installation of green building structure coupled with the introduction of stringent building emission norms will propel the market size in commercial district heating application during the forecast timeline. Expansion of IT parks and data centres will further create a favourable business scenario for commercial district heating industry growth.

High penetration of commercial building structures along with flourishing service sector across North America will enhance the district heating market trends

District Heating Market By Region

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North America accounted for over 3% of the market share in 2019. The DH industry will witness substantial growth on account of rising industrialization and commercialization across the region. The growing adoption of sustainable technologies is anticipated to boost the region’s market size at a considerable rate. Soaring investments toward the expansion of manufacturing facilities will enhance the market demand of DHS. Increasing federal, state, and local initiatives toward carbon capture coupled with the integration of fuel-efficient technologies will augment the district heating market share.

Development of energy efficient systems acting as the pivotal point for prominent market players

The prominent market players are focusing on developing innovative products with advanced features to propel their market share across the industry. In addition, focused R&D activities coupled with contracts and agreements are the major strategies followed by the market giants to gain a competitive edge in the global district heating industry. Moreover, leading market participants are also focusing on energy optimization, stable heat supply and operations & maintenance of the overall energy system.

The vital players profiled in the district heating market report includes Fortum, Statkraft AG, Goteborg Energi, STEAG GmbH, Vattenfall AB, Shinryo Corporation, Ramboll Group A/S, NRG Energy, Korea District Heating Corporation, Hafslund, Kelag Warme GmbH, amongst other players.

District heating market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘PJ” & ‘USD” from 2015 to 2026, for the following segments:

By Source

  • CHP
  • Geothermal
  • Solar
  • Heat only boilers
  • Others

By Application

  • Residential
  • Commercial
    • College/University
    • Office
    • Government/Military
    • Others
  • Industrial
    • Chemical
    • Refinery
    • Paper
    • Others

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

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • Poland
    • Russia
    • Sweden
    • Finland
    • Italy
    • Denmark
    • UK
    • Slovakia
    • Austria
    • Czech Republic
    • France
  • Asia Pacific
    • China
    • Japan
    • South Korea

Frequently Asked Questions (FAQ) :

The global district heating industry revenue surpassed USD 150 billion in 2019 and is likely to expand at a 3.8% CAGR through 2026.
CHP district heating industry size is estimated to grow at more than 3% CAGR over 2020-2026 owing to CHP’s ability to be highly sustainable and a cost-effective solution.
The North American market captured more than 3% of the global share in 2019 and is set to grow substantially driven by rising industrialization and adoption of sustainable technologies.
The ongoing COVID-19 pandemic has caused an economic slowdown along with declined GDP of top economies, creating a negative impetus on district heating industry trend.

Premium Report Details

  • Published Date: Dec 2020
  • Pages: 320
  • Tables: 473
  • Charts / Figures: 45
  • Companies covered: 15
  • Countries covered: 17

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