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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}), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Size & Forecast, 2022 – 2028

  • Report ID: GMI1401
  • Published Date: Feb 2022
  • Report Format: PDF

Industry Trends

District Heating Market Size exceeded USD 163 billion in 2021 and is anticipated to grow at a CAGR of over 5% between 2022 and 2028. Rising concerns of recycling waste energies along with government subsidies and power taxes will augment the market growth. Moreover, minimal impact on the environment in line with low dependency on conventional fuel for heat generation will complement the business scenario.

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Strict government regulations to curb Greenhouse Gas Emissions (GHG) and climate changes coupled with the development of strategies & plans to ensure energy efficiency will drive the market expansion. Ongoing investments in the development of sustainable solutions along with promising regulatory policies for the adoption of renewable resources will positively sway the business dynamics. Additionally, the replacement and maintenance of conventional power plants with reduced cost in clean energy generating systems will complement the industry growth.

Growing deployment of sustainable and energy-efficient technologies will propel the industry demand

The COVID-19 had a considerable impact on the overall industry growth on account of delay in several infrastructural projects and the shutting of various industrial & manufacturing facilities, affecting the overall demand for district heating systems. However, relaxation on government-imposed lockdowns and resuming of industries along with ongoing vaccination drives to curb the virus spread have augmented the industry revenue. In addition, the district heating systems will observe a surge in demand owing to increasing construction activities across residential and commercial establishments.

Rapid integration of renewables including CHP in line with the optimum resource utilization will accelerate the district heating market progression

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The Combined Heat and Power (CHP) segment is projected to experience significant growth on account of the high sustainability and cost-effectiveness. The enhanced energy supply efficiency along with the utilization of waste heat and low carbon renewable energy sources will propel the product demand. In addition, favorable regulatory standards for reduced carbon footprints and cost savings will foster the industry expansion. Furthermore, the paradigm shift toward sustainable heat and electricity supply combined with policy targets to achieve energy efficiency will encourage the acceptance of cogeneration techniques in the industry.

The solar thermal energy segment will witness growth during the forecast timeline owing to the emission-free and cost competitiveness. Stringent government regulations for zero-emission buildings followed by shifting inclination toward the adoption of clean and energy-efficient heating resources will impel the business spectrum. Moreover, the growing demand for automated control and flexible electricity systems will boost the industry value.

Government-funded incentives for the acceptance of clean resources based on district heating systems to spur the market revenue

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Residential segment is slated to reach USD 89 billion by 2028. The continuous usage of small heating systems along with robust investments in the real estate sector has stimulated the district heating systems demand across residential establishments. The wide applicability of decentralized generators coupled with the upsurge in urban population will positively influence the business outlook.

Commercial application segment is expected to showcase 5% growth rate through 2028. Rapid urbanization and industrialization in line with increasing investments toward the development of new manufacturing units and facilities will influence the demand for district heating systems across the commercial sector. Strict government emission reduction standards for various developers, followed by growing investments in effective and sustainable technology development will further sway the industry progression. Furthermore, the introduction of stringent building emission mandates and continuous deployment of green building structures will stimulate the product penetration in commercial applications.

Growing investments in the real estate sector and improving fiscal stability will create growth opportunities for APAC region

Asia Pacific district heating market size will cross USD 119 billion by 2028. Shifting inclination toward the usage of decentralized systems in several commercial and industrial buildings along with growing measures to adopt energy-efficient DH systems will boost the business trends. Increasing investments in the deployment of sustainable technologies along with ongoing government efforts to decarbonize the heating sector with renewable integration will further encourage product adoption across the region. Moreover, continuous government initiatives and plans for the urban development process will accelerate the demand for DH systems.

Strategic implications including agreements and partnerships will sway the market presence of key players

Major companies operating in the market include Fortum, Vattenfall, Goteborg Energi, Statkraft, STEAG, RWE, Shinryo Corporation, Ørsted, NRG Energy, Ramboll Group A/S, Korea District Heating Corporation, Keppel DHCS Pte Ltd., LOGSTOR A/S, Kelag Warme GmbH, and Hafslund. Inorganic growth ventures, new product innovations, mergers, agreements, and collaborations among various players across the industry will foster the business spectrum.

The district heating market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘PJ’ & USD’ from 2022 to 2028 for the following segments:

Market, By Source

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

Market, 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 countries:

  • 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


Authors: Ankit Gupta, Abhishek Chopra

Frequently Asked Questions (FAQ) :

Market size of district heating surpassed USD 163 billion in 2021 and is expected to expand at a CAGR of 5% from 2022 to 2028 owing to government subsidies, power taxes, and increasing concerns of recycling waste energies.
Combined heat and power (CHP) segment is set to record substantial growth considering the benefits of cost-effectiveness and high sustainability.
Residential segment is poised to reach USD 89 billion through 2028 driven by robust investments in the real estate sector and the continuous deployment of small heating systems.
Asia Pacific market size will exceed USD 119 billion by 2028 impelled by the shifting inclination towards the use of decentralized systems in numerous industrial and commercial buildings.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 15
  • Tables & Figures: 507
  • Countries covered: 17
  • Pages: 300
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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