District Heating Market Size, By Source (CHP, Geothermal, Solar, Heat Only Boilers), By Application (Residential, Commercial {College/University, Office, Government/Military}, Industrial {Chemical, Refinery, Paper}), COVID-19 Impact Analysis, Regional Out

District Heating Market Size, By Source (CHP, Geothermal, Solar, Heat Only Boilers), By Application (Residential, Commercial {College/University, Office, Government/Military}, Industrial {Chemical, Refinery, Paper}), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Size & Forecast, 2022 - 2028

The district heating market is expected to gain substantial traction by 2028 due to stringent regulations to reduce carbon emissions worldwide.

District heating is extremely energy-efficient due to the simultaneous production of heat and electricity in combined heat and power facilities. The environmental benefit of district heating is enhanced by using renewable energy sources and utilizing waste heat generated by the industry. This type of energy usage is helpful for both the environment and society. As a result, governments around the world are incentivizing the adoption of district heating systems, which has fueled industry expansion.

Notably, industry players have been employing lucrative strategies to monetize emerging trends in the market, which has supported the growth of the global district heating market. For instance, in July 2021, Steag GmbH, a Germany-based power company, announced the expansion of its district heating infrastructure in Essen in partnership with the municipal utility Stadtwerke Essen.

The district heating market has been bifurcated based on application, source, and region. With respect to source, the market has further been divided into heat-only boilers, CHP, solar, and geothermal. The geothermal segment is set to exhibit significant growth through the assessment period owing to the development of innovative financial models and advanced heating solutions.

On the application spectrum, the district heating market has been divided into industrial, residential, and commercial. Under commercial, the market has been segmented into government/military, college/university, and office. The college/university segment is speculated to expand at a steady pace over the study timeline to reach a notable valuation by the end of 2028. This growth is attributed to rapid commercialization and urbanization.

The district heating market share from the office segment is estimated to progress at a considerable CAGR through the forecast period. Ongoing development of enormous building structures is likely to boost segmental development over the forthcoming years. The government/military segment is anticipated to expand at a robust growth rate over the review timeline to register a substantial market share by 2028. The introduction of stringent building emission regulations and increasing investments towards the deployment of green building structures are slated to accelerate product adoption in the coming time period.

Under industrial, the market has been classified into paper, chemical, and refinery. The chemical segment is projected to gain significant growth momentum over 2022-2028 driven by the widespread development of new power plants and facilities. The refinery segment is poised to develop at a sturdy pace through the analysis timeframe on account of rising construction activities across the downstream industry. Meanwhile, the paper segment is expected to garner a sizable revenue by the end of 2028 due to reduced transmission losses and growing inclination toward safety for gas leakages.