Solar District Heating Market Size By System (Small [Residential, Commercial, Industrial], Large [Residential, Commercial, Industrial]), By Application (Residential, Commercial [College/University, Office Buildings, Government/Military], Industrial [Chemical, Refinery, Paper]) Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share, & Forecast, 2019 - 2025

Industry Trends

Solar District Heating Market size exceeded USD 4 billion in 2018 and consumption is expected to exceed 400 PJ by 2025.
 

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Stringent regulatory norms toward emission reduction coupled with growing adoption of sustainable energy technologies will foster the solar district heating market growth. Torrid climatic conditions owing to global warming along with introduction of green building codes and standards will propel the industry growth. In 2018, the U.S. EPA proposed GHG emission regulations for modified, new and reconstructed power plants. The proposed rule has replaced the 2015’s Carbon Pollution Standard for new plants which had established NSPS to limit carbon emissions from fossil fuel-based power plants.
 

Rapid development of urban areas across the emerging economies on account of improvement in standard of living, demographic changes and rise in disposable income will propel the business outlook. In addition, accelerating investments toward industrial and construction sector along with increasing global energy demand will positively influence the product adoption. According to the United Nation statistics, in 2018 the urban population constituted 55% of the global population and will grow to 68% by 2050.
 

Technological advancements in product design and development, lower thermal losses, energy efficient and sustainable heating source are some of the key features which will augment the industry growth. Large potential of solar thermal as a key source to provide energy and heat to various district and communities on both small and large scale has provided favourable opportunities for the industry players for expansion. 
 

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Solar District Heating Market, By System

Increasing investments toward residential and commercial establishments along with growing penetration of DH systems across Tier II & III cities will boost the small-scale systems. These units primarily have a capacity range between 3 – 10 kW_th. In addition, these systems provide renewable heating facility to households, commercial buildings and small & medium industries.
 

The large-scale solar district heating systems have been gaining importance owing to increasing investments toward industrial and commercial establishments. These systems are usually built in district and block heating systems including multifamily buildings, hotels, industries, sports and data centres. Rapidly changing surface temperature across the regions along with favourable regulatory norms toward sustainable DH technologies will boost the product demand.
 

Solar District Heating Market, By Application

Residential solar district heating market is anticipated to exceed USD 3 billion by 2025. Strict regulatory mandates and norms toward emission reduction coupled with increasing investments toward construction of apartments and single-family houses will boost the industry growth. Furthermore, growing penetration of small-scale SDH systems along with rapid development of urban areas across the emerging nations will complement the business growth.
 

Increasing floor space across commercial establishments to provide sustainable heating solutions and to meet the high energy demands has significantly strengthened the product adoption. Enormous potential for the utilization of SDH systems in the Denmark, Germany, France and Italy owing to fluctuating temperatures and huge solar potential will complement the business outlook. Growing adoption of sustainable building codes and standards coupled with paradigm shift toward construction of green buildings will stimulate the industry growth.
 

Solar District Heating Market, By Region

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The U.S. solar district heating market will grow over by 6% by 2025. Increasing demand for efficient and sustainable heating infrastructure along with accelerating investments toward development of residential and commercial establishments will boost the industry growth. Growing government efforts and promotional activities toward sustainable and efficient heating technologies coupled with stringent regulatory norms to reduce carbon emissions will positively influence the product demand.
 

Favourable government policies coupled with growing concern to reduce the carbon emissions will foster the Germany SDH industry growth. Increasing investments toward decarbonization of heating sector along with accelerating investments by industry players toward technological innovations will propel the product demand. In July 2019, Savosolar announced the procurement of a tender of SDH system across the nation. The company will supply over 200 m³ of heat storage and about 1,700 m² solar collector field.
 

Competitive Market Share

The key industry players operating across the industry includes Fortum, Goteberg Energi, Kelag, Keppel DHCS, Korea District Heating, Logstor, Orsted, Ramboll, RWE, Shinryo, Statkraft, STEAG, Vattenfall, Cetetherm, Arcon-Sunmark, Aalborg CSP and Savosolar.
 

The leading industry players are broadly focusing toward business expansion and extensive product innovations to strengthen their global reach. Furthermore, extensive research & development activities along with vast availability of solar potential has provided favourable business opportunities for the industry players.
 

Solar District Heating Industry Background

Solar district heating plants are small- & large-scale thermal systems delivering hot water and steam from centralized heating system to multiple buildings through a network of pipelines. The technology supplies zero-emission, renewable energy for various purposes. The heating solutions can be integrated with various other generation sources to provide consistent heating to the district/community. The collectors can be installed on roofs or can be ground mounted and provides heating solutions across residential, commercial and industrial establishments.