District Heating Market by Heat Source (Coal, Natural Gas, Renewables, Oil & Petroleum Products), Component (Boiler, Heat Exchanger), Plant Type (Boiler Plants, CHP), Application (Residential, Commercial, Industrial) and Region - Global Forecast to 2027

District Heating Market by Heat Source (Coal, Natural Gas, Renewables, Oil & Petroleum Products), Component (Boiler, Heat Exchanger), Plant Type (Boiler Plants, CHP), Application (Residential, Commercial, Industrial) and Region - Global Forecast to 2027

The global district heating market is estimated at USD 167.8 Billion in2022 and is projected to reach USD 226.5 Billion by 2027, registering a CAGR of 6.2% during the forecast period. The rise in demand for district heating is also attributed to increasing demand for energy-efficient and cost-effective heating systems, growing urbanization and industrialization, increasing integration of renewable energy in district heating, advantages over individual in-building heating systems, and policy initiatives by governments and associations.

“Renewables Heat Source: The segment expected to grow at the highest CAGR of district heating market by 2027“

The renewable heat source segment is anticipated to record the highest CAGR of 8.8% during the forecast period. In terms of established and installed capacity, the district heat generated using natural gas is higher than the district heat produced utilizing renewables. However, the revenue generated by using renewables as a heat source is higher than that of natural gas due to the reasonable cost of renewables. These factors are expected to create lucrative opportunities for the growth of the district heating market for the renewable heat source segment during the forecast period.

“Boiler Plant Type: To grow at the second highest CAGR of district heating market by 2027”

The boiler plants segment is expected to witness the second highest CAGR of 5.7% during the forecast period. Boilers are more energy efficient than standard air-heating systems. This is because water is a much better thermal conductor than air; it warms up faster and retains heat for longer. Boilers also heat water for district heating more evenly and easily.

“Commercial Application: Expected to grow at the second highest CAGR of district heating market by 2027”

The commercial application segment is expected to experience the second-highest CAGR of 6.6% during the forecast period. The growth of the commercial application segment is mainly attributed to the increasing adoption of district heating in commercial buildings and the growing demand for energy-efficient devices. District heating provides increased occupant comfort and reduces cool air circulation while reducing the energy required to heat the space. While these systems can have a substantial initial investment compared to other options, they are beneficial in the long run with lower energy bills while achieving much higher levels of comfort and increasing staff morale. Similarly, heavy investments by the worldwide governments for the construction of commercial spaces such as institutes, offices, and retail stores are expected to promote the growth of the district heating market.

The district heating market is dominated by a few globally established players such as Fortum (Finland), Vattenfall (Sweden), ENGIE (France), Danfoss (Denmark), Statkraft (Norway), LOGSTOR (Denmark), Vital Energiv (UK), Kelag (Austria), SHINRYO CORPORATION (Japan). The study includes an in-depth competitive analysis of these key players in the district heating market, with their company profiles, recent developments, and key market strategies.

Research Coverage:

The report segments the district heating market and forecasts its size, by value, based on region (Asia Pacific, Europe, and Americas), heat source (Coal, Natural Gas, Renewables, Oil and Petroleum Products), plant type (Boiler Plants, Combined Heat and Power, Others), application (Residential, Commercial, Industrial). The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the district heating market. The report also covers qualitative aspects for component (Boiler, Insulated Pipeline, Pumps, Heat Exchanger, Heat Meters, Others) segments of the market.

Key Benefits of Buying the Report:

The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the district heating market and provides them information on key market drivers, restraints, challenges, and opportunities.