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Solar District Heating Market Size, By System (Small {Residential, Commercial, Industrial}, Large {Residential, Commercial, Industrial}), By Application (Residential, Commercial {College/University, Office, Government/Military}, Industrial {Chemical, Refinery, Paper}), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2022 – 2028

  • Report ID: GMI3512
  • Published Date: Mar 2022
  • Report Format: PDF

Industry Trends

Solar District Heating Market Size exceeded USD 2.5 billion in 2021 and is anticipated to grow at over 7% CAGR from 2022 to 2028. Growing participation of public & private players in infrastructural development coupled with the reduced operating & maintenance cost of solar district heating (SDH) systems will foster the market growth. Their eco-friendly nature in line with low greenhouse gas emissions and ease of parity will positively sway product adoption. In addition, strict energy efficiency norms and policies to augment the market expansion.

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Growing investments in R&D activities for developing sustainable heating techniques along with rapid economic development is predicted to stimulate the market progression. The rise in population in line with economic growth boosting the real estate sector will further complement the industry growth. Associated environmental as well as economic benefits combined with the increasing usage of sustainable technologies have instituted a favorable business scenario. Moreover, regulatory norms for zero building emissions along with the shifting inclination toward adopting renewable sources for generating electricity is poised to propel the industry expansion.

Rapid deployment of energy-efficient & sustainable technologies to accelerate the solar district heating market value

The outbreak of COVID-19 slightly impacted the overall industry revenue owing to delays in several infrastructural projects along with the shutting down of various commercial, industrial, and manufacturing facilities, thereby affecting the overall demand for Solar District Heating (SDH) systems. The resumption of industry operations and relaxations on government-imposed lockdowns coupled with ongoing vaccination drives to curb the virus spread have, however, influenced the industry share. Moreover, SDH systems will witness a surge in demand on account of rising construction activities across residential & commercial establishments.

Continuous technological advancements in product development & design will fuel the market demand for small-scale SDH systems

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Rising investments across residential and commercial sectors in line with the rapid deployment of SDH systems is projected to influence the small-scale segment demand. The ability to provide renewable heating to households, small & medium industries, and commercial establishments will impel product acceptance. Additionally, developing various programs to promote the adoption of district heating systems will complement the industry progression.

Rising investments in the commercial and industrial sectors followed by an increasing energy demand to positively spur product acceptance

The residential solar district heating market is estimated to reach USD 2 billion by 2028 owing to the introducing sustainable building solutions along with internal heat loads. Furthermore, the development of temperature control systems along with the ease of parity and high operating standards will boost product adoption. Rising investments in developing energy-efficient commercial structures coupled with the rapid expansion of heating networks across single-family homes & apartments will drive product deployments across the residential sector.

Promising government policies along with rising concerns to reduce carbon footprints will accelerate the growth for European region

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Europe solar district heating market accounted for over 130 PJ in 2021. Government initiatives to decarbonize the heating sector to achieve the region’s climate goals will impel the industry demand. For instance, as per the EU, district heating systems will fulfil approximately 30% of the region’s heating requirements by 2030. In addition, rising concerns to reduce carbon emissions coupled with favorable government policies will enhance business trends. Furthermore, the growing prominence of variable renewable energy resources for generating heat will influence the industry value during the forecast period.

The rising demand for automation & controls in flexible electrical systems and thermal storage will fuel the solar district heating market revenue. Introducing government standards for zero emission building targets will foster the business landscape. For instance, the national emission targets for new buildings in Denmark comprises 70% reduction by 2030. Shifting focus toward adopting sustainable energy in line with government efforts for mitigating climatic change has instituted a favorable business scenario across the region. Additionally, rapid technological enhancements along with increasing investments in R&D have resulted in the expansion of SDH systems.

Strategic partnerships and collaborations along with ongoing agreements will enhance the market presence of prominent players

The key companies operating across the solar district heating market include Fortum, KELAG Energie & Wärme GmbH, Göteborg Energi, Korea District Heating Corporation, Keppel Corporation Limited, LOGSTOR A/S, Ørsted A/S, Ramboll Group A/S, RWE, NRG Energy, Inc., Shinryo Corporation, Statkraft, STEAG GmbH, Vattenfall AB, Savosolar, and Aalborg CSP. Mergers, joint ventures, strategic implications, product innovations, and contracts, among various eminent leaders will propel the business outlook.

The solar district heating market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘PJ’ & ‘USD’ from 2018 to 2028 for the following segments:

Market, By System

  • Small systems
    • Residential
    • Commercial
    • Industrial
  • Large systems
    • Residential
    • Commercial
    • Industrial

Market, By Application

  • Residential
  • Commercial
    • College/university
    • Office buildings
    • 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 Rep.
    • France
  • Asia Pacific
    • China
    • Japan
    • South Korea


Authors: Ankit Gupta , Abhishek Chopra

Frequently Asked Questions (FAQ) :

Market size of solar district heating surpassed USD 2.5 billion in 2021 and is expected to expand at a CAGR of 7% through 2028 owing to the escalating participation of public & private players in infrastructural development.
Residential segment is expected to surpass USD 2 billion by 2028 considering the introduction of sustainable building solutions along with internal heat loads.
Europe market accounted for 130 PJ in 2021 and will depict substantial expansion driven by increasing government initiatives for the decarbonization of the heating sector and the achievement of climate goals.
Key companies in the industry comprise Korea District Heating Corporation, Fortum, Ramboll Group A/S, Keppel Corporation Limited, Vattenfall AB, Shinryo Corporation, Aalborg CSP, Goteborg Energi, and others.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 16
  • Tables & Figures: 684
  • Countries covered: 17
  • Pages: 390
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