Global District Heating Market Is Expected To Reach Around USD 217 Billion By 2025

18-Mar-2019 | Zion Market Research

Zion Market Research has published a new report titled “District Heating Market by Heat Source (Renewable and Non-Renewable), by Plant Type (Boiler Plant and CHP), and by Application (Residential, Industrial, and Commercial): Global Industry Perspective, Comprehensive Analysis, and Forecast, 2018–2025”. According to the report, the global district heating market was valued at approximately USD 171 billion in 2018 and is expected to generate around USD 217 billion by 2025, at a CAGR of around 3.41% between 2019 and 2025.

The ongoing constructional activities due to rapid urbanization are boosting the global district heating market. Increase in per capita income of people and their high purchasing power will also drive the district heating market. The emergence of smart, energy efficient and green buildings is projected to support the growth of the district heating market globally. District heating can be is one of the best approaches to tackle the problem of energy requirement. As non-renewable energy sources are depleting rapidly, the increasing acceptance of renewable energy sources for district heating is likely to maintain sustainability. The use of renewable energy consecutively reduces carbon emissions by more than 80%. Thus, this attribute of district heating systems will have a positive impact on the market in the future. Additionally, several government initiatives toward clean and green energy generation are also driving the district heating market growth. However, the high initial investment costs required for setting up district heating may put brakes on this market’s growth in the future.

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Global District Heating Market

Based on heat source, the district heating market is segmented into renewable and non-renewable. The renewable segment is expected to dominate the market, owing to the rapid depletion of non-renewable energy resources and the renewable resources’ ability to not any type of pollution. By plant type, the market is sectored into boiler plant and CHP. The CHP segment is expected to dominate the market, owing to its cost-effectiveness and its ability to reduce energy losses and carbon emissions. On the basis of application, the district heating market is divided into industrial, commercial, and residential. The residential segment is likely to dominate the global market, due to the rising demand for smart, green, and energy efficient buildings among the population.

Europe contributed an extensive revenue share to the global district heating market in 2018 and is expected to dominate globally in the upcoming years. This regional growth can be attributed to the strict environmental rules and regulations regarding sustainability and energy efficiency in and across the region. Moreover, the presence of the leading organizations throughout the region is anticipated to further boost the regional market growth in the upcoming years. The Asia Pacific is expected to provide significant growth opportunities for the players operating in the global district heating market, owing to the ongoing construction activities due to swift urbanization and the rising demand for smart and energy efficient housing by the regional population.

Some key players of the global district heating market are Fortum, Vattenfall, Engie, Danfoss, NRG Energy, Statkraft, LOGSTOR, Vital Energi, STEAG New Energies, and Shinryo Corporation, among others.

This report segments the global district heating market into:

Global District Heating Market: Heat Source Analysis

  • Renewable
  • Non-Renewable

Global District Heating Market: Plant Type Analysis

  • Boiler Plant
  • CHP

Global District Heating Market: Application Analysis

  • Residential
  • Industrial
  • Commercial

Global District Heating Market: Regional Analysis

  • North America
    • The U.S.
  • Europe
    • UK
    • France
    • Germany
  • Asia Pacific
    • China
    • Japan
    • India
  • Latin America
    • Brazil
  • The Middle East and Africa

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