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: Nov 2019  |  Report ID: GMI1401  |  Authors: Ankit Gupta, Aditya Singh Bais

Report Format: PDF   |   Pages: 310   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

District Heating Market was valued at over USD 150 billion in 2019 and annual consumption is anticipated to exceed 14,000 PJ by 2026.
 

District Heating Market

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A district heating system is an infrastructure asset where thermal energy is provided to buildings from centralized energy plants. Hot water or steam is generated at the plant and is circulated underground utilizing a highly insulated thermal piping network. The thermal energy is directly transferred to the heating system of the building thereby, avoiding the need for boiler in individual buildings. The heat supply via district heating is produced in an eco-friendly way, which reduces the effect of greenhouse gas emissions. Primarily heat sources for a typical district heating system are CHP, waste to energy, other industrial process that holds excess heat or heat as biproduct. As these systems usually avoids ordinary primary energy supply and prefers mainly recovered heat, hence DH systems can be characterized as economy of scope instead of economy of size. The study features a detailed analysis of district heating system installation scenarios on a global scale segmented on a regional & country basis residential, commercial and industrial applications. Moreover, the forecasts and estimates are in line with data represented by authorities including the IEA, EU, EIA, regulatory bodies and, company press releases.
 

District Heating Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 150 Billion (USD)
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 2.9% 2026 Value Projection: 14,000 (PJ)
Pages: 310 Tables, Charts & Figures: 519
Geographies covered (17): U.S., Canada, Germany, Poland, Russia, Sweden, Finland, Italy, Denmark, UK, Slovakia, Austria, Czech Republic, France, China, Japan, South Korea
Segments covered: Source, Application
Companies covered (27): Fortum, Goteborg Energi, Vattenfall AB, STEAG GmbH, Statkraft AS, Shinryo Corporation, RWE AG, Rambill Group A/S, Ørsted, NRG Energy, Logstar A/S, Korea District Heating Corporation, Keppel DHCS Pte Ltd, Kelag Warme GmbH, Hafslund
Growth Drivers:
  • Strict regulations toward carbon emissions
  • Favorable government policies toward renewables including CHP
  • Government norms toward zero emissions buildings
  • Extreme climatic conditions
  • Government incentives toward adoption of district heating systems
  • Rapid urbanization and industrialization
  • Clean energy directives
Pitfalls & Challenges:
  • High capital cost
  • Volatile prices

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Rising concerns toward increasing GHG emissions will boost the deployment of co-generation/CHP plants

Combined Heat & Power (CHP) district heating market predominantly accounts for the majority market share across the global district heating industry. Cogeneration technology due to its high sustainability is as one of the most economical solution for district heating systems. Minimal losses, high sustainability and enhanced energy supply efficiency are few underlying factors favoring the installation of CHP based DHS across the globe. The penetration of cogeneration based DHS is high across the countries such as Germany, Denmark, and the U.S. where CHP plays more significant role in electricity and heat generation. In these countries CHP and district heating has already become an important part of regional & national GHG emission reduction strategy. Utilization of waste heat and high system efficiency are some of the paramount factors favoring the installation of these systems over the forecast timeline.
 

Increasing urbanization will drive the residential DHS revenue

Germany District Heating Market Share Outlook, By Application, 2019 (USD Billion)
Germany District Heating Market Share Outlook, By Application, 2019 (USD Billion)

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Over the last few years, the urbanization rate has witnessed a significant rise due to rising per capita income and inclination toward high standard of living. For instance, as per the United Nations, in 2018, the global urban population has reached over 50% and is anticipated to reach 68% by 2050. The ongoing migration trends from rural to urban regions has witnessed unprecedented hike from the past decade which has resulted in increased investments across the real estate industry, which in turn will positively influence the DH demand. In addition, shifting trends toward the integration of smart home applications and monitoring systems including energy management systems will drive the district heating market size over the forecast timeline. In addition the growing application of decentralized generators coupled with rising investments in the real estate sector will significantly influence the installation of these systems size over the forecast timeline.
 

Flourishing service sector industry will drive the North America DHS industry

North America District Heating Market Growth, By Source, 2026 (USD Billion)
North America District Heating Market Growth, By Source, 2026 (USD Billion)

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North America DHS market is predominantly characterized by dense urban areas & localities with a high penetration of commercial buildings & establishments. Due to its capital-intensive nature majority of real estate developers across the region are reluctant on the installation of  DH systems. The demand in the current situation is inclined toward the deployment of low-cost systems that hold significant ROI. Over the past decade combined heat & power (CHP) integrated DHS systems has gained significant prominence on account of their ability to supply heat in an economic manner. The unique opportunity to provide both power & heat and serve the energy demand of multiple customers has further increased their deployment across the region. Over the coming years, the adoption of renewable technology is expected to enhance the region’s district heating market size at a significant rate. In addition, government focus toward the adoption of sustainable technologies will further augment the technology demand substantially.
 

Development of energy efficient systems acting as the focal point of industry participants

The value chain prevailing across the district heating industry is categorized into three stages including production, supply & distribution and end-users. The companies including Fortum, Ramboll and Dong Energy are operating in more than one part of the value chain to ensure reliable & cost effective heat supply. These market players are involved in focused R&D activities to develop sustainable solutions with minimal environmental impact. In addition, these companies are also responsible for reliable heat supply, energy optimization and O&M of the overall system.
 

Key industry participants operating across the global market for district heating comprises of Statkraft, Shinryo Corporation, Fortum, Ramboll, Logstor, NRG Energy, Dong Energy, Kelag Warme, Vattenfall, Goteborg Energi, RWE AGKeppel DHCS, Hafslund KDHC and STEAG.
 

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

By Source

  • CHP
  • Geothermal
  • Solar
  • Heat only boiler
  • Others

By Application

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

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) :

A district heating system is an infrastructure asset where thermal energy is provided to buildings from centralized energy plants.
Government focus towards the adoption of sustainable technologies will fuel North American market for district heating growth.
Combined Heat & Power (CHP) segment of district heating market dominates the industry, on account of minimal losses, high sustainability and enhanced energy supply efficiency.

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