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 (U.S., Canada, Germany, Poland, Russia, Sweden, Finland, Italy, Denmark, UK, Slovakia, Austria, Czech Republic, France, China, Japan, South Korea), Price Trends, Competitive Market Share & Forecast, 2018 – 2024

Industry Trends

District Heating Market size in 2017 was worth over USD 180 billion and the annual consumption is set to exceed 19,000 PJ by 2024.
 

Global District Heating Market Size, By Region, 2017 & 2024 (USD Billion)

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Rising awareness toward recycling of waste energies coupled with government directives to combat GHG emissions is set to drive the district heating market growth. The U.S. EPA, under Clean Air Act (CAA) has achieved a significant drop in aggregate emissions amounting to 73% in 2017. Moreover, economic feasibility, cost competitiveness and large-scale deployment of the sustainable technologies is projected to complement the industry outlook.
 

Growing demand for space heating systems owing to minimum energy consumption will positively impact the industry scenario. Mounting construction activities, increasing per capita income & improved standard of living is set to augment the product penetration. Implementation of heating systems in smart cities coupled with growing retrofitting activities in the conventional buildings will augment the business landscape.
 

Rapid industrialization along with the mounting global energy demand is set to enhance the industry outlook. Low thermal losses, sustainability and better air quality are the prominent features driving the adoption of DH systems. Moreover, emergence of smart, energy efficient buildings coupled with initiatives toward clean and green energy generation is set to encourage the product penetration.
 

District Heating Market, By Source

CHP or cogeneration district heating market is anticipated to grow owing to high sustainability, enhanced energy supply efficiency, reduced losses and improved production capabilities. Economies including China and South Korea among others provide ample opportunities for investment in CHP on account of favourable regulatory regime. Effective distribution networks, feasible operation costs and capability to limit GHG emissions will further foster the industry landscape.
 

Geothermal accounted for over 3% of the global DH market share in 2017. Reliability on fossil fuels, economic feasibility and cost effectiveness are the underline parameters augmenting the product penetration. Rising exploration activities in the sector along with ongoing R&D activities will further stimulate the product demand. For instance, in 2018, the implementation of anti-corrosion well concept by GEOFLUID, at the district heating grid, set up in France.
 

District Heating Market, By Application

Industrial was valued over USD 58 billion in 2017. Operational safety from gas leakages and minimal conveyance losses are among the prime factors driving the product adoption. Increasing use of biomass DH systems leading to improved energy efficiency and reduced environmental impact is set to augment the product penetration in the chemical sector. Acceptance of wood pellets as a viable alternative fuel owing to abundant and easy availability is further set to augment the industry landscape.
 

Residential is anticipated to grow owing to development of smart home applications including home energy management systems along with increasing adoption of small heating systems. Surging urban population, investments across the real estate industry coupled with growing demand of decentralized generators will foster the product adoption. As per the United Nations statistics, the global urban population presently has reached 55% and is anticipated to reach 68% by 2050.
 

District Heating Market, By Region

Germany District Heating Market Size, By Application, 2017 (USD Million)

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The U.S. will observe substantial gains worth over USD 16 billion by 2024. Ongoing technological advancements and high penetration of commercial building structures leading to development of new SEZs and IT parks will complement the industry landscape. Promising growth in the service sector owing to adoption of renewable technology coupled with positive outlook toward tourism is set to encourage the product adoption.
 

Ongoing construction activities on account of increasing urbanization coupled with the rising demand for smart and efficient housing by the regional population will drive the product demand in Japan. Regulations toward energy efficient systems along with positive outlook toward commercial establishments will augment the product installation. In addition, ecological benefits of CHP integrated heating systems along with government initiatives to encourage green technologies is anticipated to augment the product adoption.
 

Poland is anticipated to grow on account of rising need to decarbonize the heating sector to achieve the climate goals. As per the EU, the DH systems are anticipated to fulfil 30% of the Europe heating energy needs by 2030. In addition, favourable government policies to fulfil the climate and energy goals coupled with high penetration of variable energy resources is set to stimulate the product demand.
 

Competitive Market Share

Key industry players include Statkraft, Fortum, Shinryo Corporation, Logstor, Ramboll, Dong Energy, NRG Energy, STEAG, Vattenfall, Goteborg Energi, RWE AGKeppel DHCS, Hafslund KDHC, LOGSTOR and Kelag Warme among others.
 

District Heating Industry, Background

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District heating system is used for distributing the heat generated in centralized location through a system of insulated pipes for commercial and heating requirements including space and water heating. The primary heat sources for a district heating system include CHP, waste to energy and other industrial process which hold excess heat as by product. The heating plants provide higher efficiencies and better pollution control than localized boilers.
 

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