District Heating Market

Global District Heating Market

District Heating Market- By Heat Source, Plant Type, and Application.

Market Synopsis:

The Global District Heating Market is valued at USD 170.6 Billion in the year 2021 and is forecasted to reach a value of USD 207.2 Billion by the year 2028. The Global Market is anticipated to grow exhibiting a Compound Annual Growth Rate (CAGR) of 3.10% over the forecast period.

The district energy system is a system that supplies heat for temperature regulation in industrial and commercial spaces, as well as other heating applications in various end-use industries, in the form of hot water or steam. The heat energy is generated at a central heat plant and distributed from there via a well-established heat network of insulated pipes. Heat is generated utilizing combined heat and power systems, pumps, or boilers. These systems eliminate the need for individual heating systems while also lowering greenhouse gas emissions because heat is generated at the central plant, which can fulfill the expanding demand for heat from a large number of clients.

Rising concerns about waste energy recycling, as well as government subsidies and power taxes, will drive industry expansion. Strict government regulations to limit GHG emissions and climate change, as well as the creation of energy-efficiency strategies and programs, will drive market expansion.

Furthermore, the low-cost replacement and maintenance of old power plants with clean energy generation systems will help the business flourish. Countries around the world are transitioning toward renewable energy sources as concerns about global warming and the negative effects of carbon emissions such as ozone depletion grow. This component promotes the installation of renewable energy sources, which contributes to the worldwide growth of the heating industry by permitting the generation of both electricity and heat energy.

Furthermore, the commercial scenario will be complemented by low environmental impact and reduced reliance on traditional fuel for heat generation. Continuous investments in the development of sustainable solutions, as well as prospective legislative efforts supporting the use of renewable resources, will benefit firm dynamics. Over the projection period, the compatibility of District Heating with renewable energy sources represents a growth opportunity for the sector.

Market Segmentation:

The District Heating Market is segmented on the basis of Heat Source, Plant Type, and Application. On the basis of Heat Source, the market is segmented into Coal, Natural Gas, Renewable, Oil & Petroleum Products, and Others. On the basis of Plant Type, the market is segmented into Boiler, CHP, and Others. On the basis of Application, the market is categorized into Commercial, Residential, and Industrial.

Based on Plant Type:

On the basis of Plant Type, the market is segmented into Boiler, CHP, and Others. The industry of Combined Heat and Power (CHP) is predicted to grow dramatically. CHP systems generate energy while also producing heat for heating systems. This has been a crucial role in their recent market share gain. Another reason that is indirectly contributing to sector expansion is rising electricity demand. Furthermore, CHP systems are more efficient than typical boilers and save money by avoiding distribution and transmission losses. Furthermore, government support for boosting the use of CHP systems has supported the markets growth.

Based on Application:

On the basis of Application, the market is categorized into Commercial, Residential, and Industrial. The residential category has the greatest District Heating Market share because of the rising need for heating networks at residential locations for diverse functions such as space heating and water heating. In addition, increased urbanization has resulted in an increase in the number of residential construction projects, which has acted as a stimulant for segment expansion. Global industrialization is rapidly increasing. With the continuous transformation, infrastructure development in the industrial sector is also rising. This aspect boosts the use of heating rooms in the industrial sector. As a result, this segment is growing.

Asia Pacific is expected to have the biggest market share in 2021.

Due to increased urbanization and the rising need for energy-efficient and cost-effective heating solutions in this area, Asia Pacific will have the largest market share. Rising disposable income, increasing awareness of CO2 emissions, and high use of heating and cooling systems are some of the major variables driving the investigated market expansion in China.

Governments in the Asia-Pacific region are also collaborating with local businesses to expand the home market. In China, for example, the Beijing District Heating Group is a large heating company. In addition, the company has offered heating solutions to the central Beijing government and army, Chinese embassies, major corporations and organizations, and the general public, and it has a number of projects in other provinces.

Competitive Landscape:

The key players in the Global District Heating Market include- Fortum (US) and others.

Segmentation of the Global District Heating Market: