The global district heating market is expected to expand from USD 198 billion in 2023 to USD 340 billion by 2033, with a CAGR of 5.6%. District heating systems enable efficient, centralized heat generation for residential, industrial, and commercial areas, delivered through insulated distribution networks.
These systems draw heat energy from combined heat and power (CHP) units, boilers, and heat pumps, enhancing energy efficiency and emissions control. With the increasing need for sustainable heating, district heating is gaining popularity for its capacity to reduce greenhouse gas emissions while effectively meeting diverse consumer heating demands. By incorporating renewable sources like biomass, industrial and municipal waste, and CHP-generated waste, district heating systems contribute to global efforts to combat climate change and reduce carbon emissions. Renewable energy resources are critical as the world faces the pressing threat of global warming.
Besides, it has been reported that district heating results in 11% reduction in usage of electricity with 40% curtailment in usage of fossil fuels, thereby causing overall saving in energy of 6% amongst the industries. Also, routing industrial processes through district heating has resulted in potentially reducing emissions of carbon dioxide by 112,000 tons/year.
District heating serves close to 60 Mn citizens of the EU, and extra 140 Mn people reside in cities with atleast 1 district heating system. The IEA and EU has released reports stating that DH meets close to 11-12% of heat demand from the EU through 6K cooling and district heating networks.
Machine Learning is being employed with the idea of predicting heat loads from operational data and customer data, along with national holidays, weather forecasts, and likewise, so as to plan and optimize heat production, which helps in handling peak loads and lessening heat loss.
At the same time, the fact that initial installation cost of district heating systems is higher can’t be ignored. Future Market Insights has entailed these facts with future prospects in its latest market study entitled ‘District Heating Market’.
Key Takeaways from District Heating Market:
- North America holds the largest market share due to the excessive demand for electricity by the commercial, residential, and commercial spaces in the US.
- Europe comes in second. Novi Sad Heating Plant based out of Serbia does consume close to 1 Mn MWh of heat every single year, that too, with natural gas being the primary fuel that costs about EUR 40 Mn. Production system’s efficiency is around 96%, whereas efficiency of the distribution system is a bit above 90%.
- The Asia-Pacific is expected to grow at the fastest pace in the district heating market with China, followed by South Korea, witnessing the highest number of installations of renewable heating plants.
Competition in the District Heating Market:
NRG Energy (US), Statkraft (Norway), Shinryo Corporation (Japan), LOGSTOR (Denmark), Vital Energi (UK), Kelag (Denmark), Fortum (US), Vattenfall (Sweden), ENGIE (France), Danfoss (Denmark), NRG Energy (US), Statkraft (Norway), Shinryo Corporation (Japan), LOGSTOR (Denmark), Vital Energi (UK), Kelag (Austria).
District Heating Market Segmentation Analysis:
By Source:
- CHP
- Geothermal
- Solar
- Heat only Boilers
- Others
By Application:
- Residential
- Commercial (College, Office, Government/Military)
- Industrial (Chemical, Refinery, Paper)
- Others
By Region:
- North America
- Latin America
- Europe
- Asia Pacific
- The Middle East and Africa
Report Preview: https://www.futuremarketinsights.com/reports/district-heating-market
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