Renewable Heating Market Size, Regional Outlook, Application Growth Potential, COVID-19 Impact Analysis, Competitive Market Growth & Forecast, 2021 – 2027
Report ID: GMI3499
Renewable Heating Market size is projected to gain substantial momentum over the forecast period 2021-2027. The adoption of renewable based heating solutions is increasing due to the need for sustainable and reliable space heating in residential, commercial, and industrial sectors. Supported by strict regulatory measures and favorable government efforts, the use of renewable technologies for heating applications will accelerate to become more mainstream.
The ongoing replacement of conventional space heating systems with sustainable alternatives is driving the renewable heating market forward. Renewable heating works in the same way as conventional technologies except that they utilize renewable sources for heat generation rather than fossil fuels. These systems make use of a heat exchanger that helps transfer the useful renewable heat to the space heating system of buildings.
The different types of renewable heating technologies include solar, geothermal, biomass, and others. Among these, the solar heating market is expected to witness rapid growth through 2027. In solar systems, evacuated tube and flat-plate solar collectors are commonly used for space heating. As these technologies are scalable, they can be even deployed in large buildings for heating applications. With the increasing popularity of solar heating solutions, system designers are focusing on optimizing the angle of incidence of solar collector arrays to address concerns regarding seasonal availability.
Renewable heating finds application in residential, commercial, and industrial applications. The residential segment will account for a substantial share of the renewable heating industry in the coming years. According to the U.S. Environmental Protection Agency (EPA), over 65% of total energy used in the residential sector goes towards heating and cooling applications. Therefore, residential applications represent a massive opportunity for the deployment of heating technologies based on renewable sources in the future.
The renewable heating market will also benefit from the residential sector owing to different government initiatives and incentives on domestic installations. In the U.K., for instance, the government offers the Domestic Renewable Heat Incentive (RHI), which helps consumers introduce renewable heating technologies in their homes. The scheme is part of the U.K. government’s bid to reduce carbon emissions and offers financial incentives to replace oil and gas central heating systems with renewable-based systems.
Considering the regional landscape, Europe renewable heating market size is projected to expand at a healthy CAGR between 2021 and 2027. The regional growth is driven by the presence of stringent government and regulatory measures promoting the adoption of sustainable technologies. The European Union had recently unveiled the 2050 vision to achieve 100% renewable heating and cooling (100%RHC) in Europe by 2050. Such initiatives are expected to bolster the regional outlook significantly.
ABB Ltd., General Electric, EDF, Vestas Wind Systems A/S, Geronimo Energy (National Grid Renewables, LLC), ENERCON GmbH, Senvion S.A., Sinovel Wind Group Co., Ltd., UpWind Solutions Inc. (Vestas), Invenergy, Acciona, Xcel Energy Inc. (SunShare), Innergex, Enel Spa (Enel), and The Tata Power Company Limited are some of the prominent names in the renewable heating industry worldwide.
Understanding the impact of COVID-19 on renewable heating market forecast
The International Energy Agency (IEA) reports that the worldwide heat consumption has declined significantly during 2020 compared to the previous year due to the COVID-19 pandemic and the resulting economic crisis. Owing to nationwide containment measures introduced by the respective governments, heat consumption had decreased considerably across commercial and industrial sectors. Additionally, supply chain disruptions across various manufacturing subsectors and falling demand from heat-intensive industries have impacted the renewable heating industry forecast. However, the rise in teleworking practices amid the pandemic has created consistent opportunities across the domestic sector.
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