New York, United States, Feb. 26, 2024 (GLOBE NEWSWIRE) -- District energy is a technology that has existed for decades and is well-established. In most large cities, a district energy system distributes thermal energy to renowned landmarks around the globe. District heating provides thermal energy to multiple buildings from one or more central energy plants. The steam or hot water produced at the facility is distributed around the clock via underground thermal piping networks that are highly insulated. Because thermal energy is transferred to the building's heating system, individual buildings do not require boilers. A district heating system improves energy efficiency and reduces expenses for residential and commercial clients. Demand for the solutions is projected to be exceptionally high throughout Europe. In the coming years, it is projected that investment would increase.
Download Free Sample Report PDF @ https://straitsresearch.com/report/district-heating-market/request-sample
Increased Need for Cost-Effective and Energy-Efficient Heating Systems and Rapid Urbanization to Drive the Global District Heating Market
According to Straits Research, “The global district heating market size had a revenue worth USD 165.2 billion in 2022. It is expected to reach USD 211.81 billion by 2031, growing at a CAGR of 2.8% during the forecast period (2022-2031).” The increasing need for energy-efficient heating choices worldwide is driving the development of innovative technology. For instance, according to a 2019 study done in the United States by Johnson Controls, 75% of companies anticipate increasing their investment in energy efficiency, renewable energy, and intelligent building technologies, a 16% increase over 2018. In contrast to 72% in previous years, almost 85% of firms anticipate having at least one green-certified building. These developments are projected to raise the need for efficient heating and cooling systems in buildings. Additionally, a substantial amount of the energy utilized in residential rooms is consumed by heating equipment, which drives up the price.
Government regulations that encourage the adoption of district heating systems positively affect the market's growth. It is projected that the effort to replace fossil fuels with renewable energy sources will drastically affect DHC's industrial use. The feasibility of DHC systems is significantly influenced by national laws and, in some countries, subnational policies. Denmark and Germany have the most comprehensive national legislation in this area, despite other nations implementing DHC policies. These countries' policies include information on federal support, objectives, connection requirements, and customer protection.
The rising urbanization of the world is also fueling the demand for and pressure to transition to renewable energy sources for central heating and cooling. These sources can assist satisfy the expanding energy demands of cities, enhance efficiency, reduce emissions, and provide cost-effective climate management. Due to urbanization, the use of centralized systems in China's northern regions has risen rapidly. District energy systems are a natural fit for urban environments, as they support and benefit them. The compatibility of the technology with the surrounding environment and the working population's needs benefits urban demography. China and Munich are two of the best examples of how the expansion of metropolitan centers fosters the development of district networks.
Fourth Generation District Heating System to Create Global District Heating Market Opportunities
The water temperature circulated by fourth-generation district heating systems is between 50 and 60 degrees. This generation's architecture's relatively low temperature lowers heat loss or wastage inside the network, allowing for more significant cost savings. In addition, this new generation of systems retains the advantages of centralized district heating networks, such as saving time and money on boiler maintenance and, most significantly, reducing carbon emissions.
District heating networks are one example of a utility that has increased its investment in innovative service delivery methods and rapidly digitized its operations to prioritize data consumption. Using fully integrated data systems, suppliers of district heating can uncover inefficiencies and take rapid corrective action. Moreover, data can give utilities a better understanding of how much heat their customers consume, enabling more effective district heating operations and administration. Utilities are aided in introducing new control tactics, personalizing demand management for specific customer groups, and empowering customers to optimize their behavior by analyzing customer heat use.
Regional Insights
The Asia Pacific's district heating market share is growing at a CAGR of 2.83%. A rise in disposable income, heightened concern over CO2 emissions, and high demand for heating and cooling systems are some of the primary aspects impacting the growth of the district heating industry in the region. Models from the Organization for Economic Cooperation and Development (OECD) suggest that by 2060, the income per person in China and India might have multiplied by seven.
In addition, governments in the Asia-Pacific region collaborate with a domestic company to strengthen the domestic market. For instance, the Beijing District Heating Group is one of China's most significant heating enterprises. In addition, the company provided heating solutions to the central Beijing government, the army, significant corporations, and academic institutions. Additionally, it has a multitude of projects in other provinces.
Europe is estimated grow at a CAGR of 0.4% during the forecast period. Germany's district heating and cooling market are one of the region's most significant. Due to pre-1990 laws, district heating is utilized more commonly in the eastern areas of Germany than in the western regions. The majority of the space heating in individual German homes comes from district heating. Typically, manufacturing companies use district heating and cooling for industrial operations rather than individual heating and cooling units, which makes the industry's heating demand more susceptible to economic fluctuations. In addition to space heating, additional heating and cooling activities contribute to the commerce, trade, and services industry. Germans consider district heating and cooling systems indispensable for reducing primary energy use and bolstering supply security. As a result of these factors, the district heating market is growing.
Key Highlights
- By plant type, the combined heat & power section is forecasted to hold the largest revenue share, proliferating at a CAGR of 2.75%.
- By heat source, the natural gas section will likely have the most significant revenue holding growing at a CAGR of 1.1%.
- By application, the commercial & industrial section is forecasted to grow at a CAGR of 2.17% and have the most significant market holdings.
- By region, the Asia Pacific is expected to command the district heating market while growing at a CAGR of 2.83%.
Competitive Players in the Market
- Vattenfall AB
- SP Group
- Danfoss Group
- Engine
- NRG Energy Inc.
- Statkraft AS
- Logstor A/S
- Shinryo Corporation
- Vital Energi Ltd
Market News
- In 2022, Vattenfall was awarded a significant wind energy project off the German coast. After exercising its right of entry, Vattenfall has been granted permission to develop the N-7.2 offshore wind power project off Germany's North Sea coast. The project is anticipated to produce enough fossil-free electricity to supply more than one million German households.
Global District Heating Market: Segmentation
By Plant Type
- Boiler Plant
- Combined Heat and Power (CHP)
By Heat Source
- Coal
- Natural Gas
- Renewables
- Oil and Petroleum Products
By Application
- Residential
- Commercial and Industrial
By Region
- North America
- Europe
- Asia-Pacific
- Rest of the World
Get Detailed Market Segmentation @ https://straitsresearch.com/report/district-heating-market/segmentation
About Straits Research Pvt. Ltd.
Straits Research is a market intelligence company providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision-makers. Straits Research Pvt. Ltd. provides actionable market research data, especially designed and presented for decision making and ROI.
Whether you are looking at business sectors in the next town or crosswise over continents, we understand the significance of being acquainted with the client’s purchase. We overcome our clients’ issues by recognizing and deciphering the target group and generating leads with utmost precision. We seek to collaborate with our clients to deliver a broad spectrum of results through a blend of market and business research approaches.
For more information on your target market, please contact us below:
Phone: +1 646 905 0080 (U.S.)
+91 8087085354 (India)
+44 203 695 0070 (U.K.)
Email: sales@straitsresearch.com
Follow Us: LinkedIn | Facebook | Instagram | Twitter
