Global District Heating Market Earnings To Hit Nearly $271.63 Billion by 2030

The global district heating industry size was nearly $168.05 billion in 2022 and is set to increase to about $271.63billion by 2030 along with securing the highest CAGR of 6.19% from 2023 to 2030.

District heating system is utilized for providing heat and monitoring temperature in residential, industrial, and commercial sectors. Reportedly, the heat energy is produced at a central heat unit and then distributed through a well-established district heating system made up of insulated pipes. Reportedly, district heating is an underground infrastructure asset where thermal energy is provided to various buildings from central energy units. For the record, district heating can help in enhancing efficiency, minimize carbon emissions, increasing fuel flexibility, and simplifying building operations & reducing maintenance costs.

This review is based on a report by Zion Market Research, titled "District Heating Market By Heat Source (Coal, Oil & Petroleum Products, Natural Gas, and Renewables), By Component (Boilers, Pumps, Insulated Pipelines, Heat Exchangers, Heat Meters, and Pumps), By Application (Residential, Industrial, and Commercial), By Plant Type (Boiler Plants, Combined Heat & Power, and Others), and By Region - Global, And Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, And Forecasts 2023 – 2030"- Report at https://www.zionmarketresearch.com/report/district-heating-market

District heating systems help in connecting a large number of buildings to a district system, thereby generating economies of scale and enabling the installation of proficient and creation of strong energy sources. Integration of district heating with combined heat and power, geothermal systems, and systems generating renewable energy will boost the global district heating market trends across the globe. With district heating networks making large-scale use of energy infrastructure in various smart cities across the globe, the market for district heating is likely to gain traction in the years ahead. Flexibility in sourcing heat and cost-efficiency will steer the expansion of the global market.

Nevertheless, the need for huge initial capital investments for improving infrastructural growth can hinder the expansion of the global district heating industry. For instance, insulated pipes and laying of underground cables need massive investments and this has proved to be a key obstacle in the growth of the global industry. According to International Energy Agency, though the district heating industry across the globe is flourishing, decarbonization efforts are not enough to curb carbon emissions. This can restrict the growth of the industry across the globe. However, supportive government initiatives promoting the use of renewable & sustainable energy sources and green energy will open new growth opportunities for the global industry.

The global district heating market is divided into heat source, component, plant type, application, and region.

The heat source segment of the district heating market is sub-segmented into coal, oil & petroleum products, natural gas, and renewables segments. Furthermore, the natural gas segment, which contributed more than half of the global market share in 2022, is anticipated to lead the segmental  expansion in the years to come. The growth of the segment in the next eight years can be subject to the growing demand for natural gas as a major source of district heating systems. Apart from this, natural gas is also used in centralized systems for producing comfortable heating with the help of absorption devices for creating steam.

In terms of plant type, the district heating industry across the globe is segmented into boiler plants, combined heat & power, and others segments. Moreover, the combined heat and power segment, which led the segmental expansion in 2022, is predicted to record the fastest CAGR in the next couple of years. The segmental growth over the forecast timespan can be subject to the escalating use of combined heat and power tools for reducing heat losses and capital investments. In addition to this, CHP systems are the best alternative to fossil fuels for district heating as they help in reducing GHG emissions. This, in turn, will expand the scope of the segment in the upcoming years.

Based on the application, the district heating market globally is sectored into residential, industrial, and commercial segments. Moreover, the residential segment, which accounted for a major share of the global market in 2022, is projected to retain numero uno position even in the foreseeable future. The segmental surge can be credited to the extensive application of district heating tools by single-family households in countries of Europe and the U.S. and Canada.

On the basis of the component, the district heating industry across the globe is divided into insulated pipelines, heat exchangers, pumps, boilers, heat meters, and pumps.

Furthermore, the North American district heating industry, which contributed nearly two-thirds of the global district heating industry share in 2022, is predicted to witness remarkable growth in the forecast timeline. The factors that are anticipated to determine the expansion of the regional market include massive demand for heating & power supply in the sub-continent. In addition to this, low temperatures are experienced throughout the year in countries such as the U.S. and Canada, thereby embellishing regional market trends.

 Recent Developments:

• In the second quarter of 2021, Fortum Oyj, a Finland-based energy firm, established a carbon-neutral district heating network in Espoo. The strategic initiative is predicted to augur the growth of the global district heating market.
• In the second half of 2021, Vattenfall, a Swedish firm providing electricity, launched a pilot data venture for supplying sustainable computing capacity. For the record, the newly launched venture makes use of heat, high-computing applications, and artificial intelligence. The strategic move is likely to enhance the scope of the growth of the district heating industry across the globe.

District Heating Market: Competitive Space

The district heating market profiles key participants such as:

• Fortum
• Danfoss
• LOGSTOR
• ENGIE
• Statkraft
• Kelag
• Vital Energiv
• Shinryo Corporation.

The global district heating market is segmented as follows:

By Heat Source

• Coal
• Oil & Petroleum Products
• Natural Gas
• Renewables

By Component 

• Boilers
• Pumps
• Insulated Pipelines
• Heat Exchangers
• Heat Meters
• Pumps

By Application

• Residential
• Industrial
• Commercial

By Plant Type

• Boiler Plants
• Combined Heat and Power
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of The Middle East & Africa

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