District Heating Market - Forecast(2021 - 2026)

Report Code: ESR 84683 Report Format: PDF + Excel (Delivery in 48 Hrs)

District Heating Market Overview

The District Heating market size is forecast to reach $203.42 billion by 2026, growing at a CAGR of 4.7% from 2021 to 2026. District heating also known as teleheating which is a system of distributing heat generated in a centralized location through insulated pipes for residential and commercial heating requirements like space heating and water heating. The heat is generally achieved by geothermal heating, central solar heating and heat waste from the nuclear power plants, air conditioning and industrial refrigeration systems. District heating with combined heat and power is the cheapest method of cutting carbon emissions and has lowest carbon footprints of all fossil generation plants. As the trend has shifted from power generation through fossil fuels to natural gas it has good percentage of market share in district heating market across the world. The benefits of natural gas are it is cheaper and releases lower carbon emissions with higher efficiency.

District Heating Market Report Coverage

The report: “District Heating Industry Outlook (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the District Heating market.

By Heat Source – Coal, Natural Gas, Renewable, Oil and Petroleum Products and Others.
By Plant Type – Boiler, CHP and Others.
By Application – Residential, Commercial (Education, Offices, Government and Others), Industrial (Chemical, Refinery, Paper and Others).
By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), South America(Brazil, Argentina and others), and RoW (Middle East and Africa).

Key Takeaways

  • The demand for district heating system is increasing due to surging urban population along with rising investment across the real-estate industry.
  • District heating with combined heat and power is the cheapest method of cutting carbon emissions and has lowest carbon footprints of all fossil generation plants.
  • Better air quality, sustainability and low thermal losses are prominent features of district heating systems.
  • District heating market in APAC is expected to grow at the highest CAGR in the forecast period due to growing urbanization and increasing demand for energy-efficient and cost-effective heating solutions.

District Heating Market, By Region, 2020

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District Heating Market Segment Analysis - By Heat Source

District Heating market is dominated by coal which accounts for 41% of the market in 2020. District heating systems now-a-days have the flexibility of allowing substitution to environmentally friendly alternatives. Renewable energy is energy generated by natural sources and includes geothermal heating, biomass, wind energy, water energy and solar energy. These energies are greenhouse neutral energies which doesn’t increase the concentration of greenhouse gases. Heat sources which are usually utilized in electricity generation such as water and wind energy are rarely used in district heating but the majority of renewables are used to a high degree in district heating.

District Heating Market Segment Analysis - By Plant Type

The core element of many district heating systems is a heat-only boiler stations. The CHP segment how ere is set to grow faster at 5.4% CAGR through 2026. A co-generation plant which is also called as combined heat and power (CHP) is added in parallel with the boilers. Both plants are based on combustion of primary energy carriers. The only difference between CHP and boiler is in cogeneration plant, heat and electricity is generated simultaneously but in boiler stations only heat is generated. CHP plant works based on supply of high temperature heat from a biomass boiler or fossil fuel driven boiler which can be easily and efficiently transported to other locations. Thus district heating systems are well suited for CHP because they expand the potential thermal load and reduce the requirement for capital investment.

District Heating Market Segment Analysis – By Geography

Asia-Pacific is expected to witness highest growth in the forecast period at 6.2% through 2026. Increase in number of households connected to district heating, rise in demand for thermal comfort, growing urbanization, demand for energy-efficient and cost effective heating solutions are increasing the market growth. In addition to those Increase in population, rise in disposable income and growth in government initiatives are the major factors that drive district heating market growth in this region.

District Heating market Drivers

Implementation of district heating projects in smart cities

District heating companies are focusing on increasing investment to develop smart cities in multiple countries across the world. They are more focused on High capacity heating boilers which are more cost effective and generate lower emissions than individual heating systems even if based on fossil fuels. Heat distribution networks would help smart cities generate energy savings if they use solar, geothermal and biomass energies. By using these techniques it will further increase the market growth.

Increasing demand for energy-efficient and cost-effective heating systems

Traditional heating is completely different from modern district heating. Earlier there was only specific type of heat source like coal, oil and natural gas. In district heating, heat is produced at centralized location with several fuel types and it is extremely flexible when it comes to choice of heart source. It can accommodate all types of heat sources like solar, wind, biomass and geothermal. District heating has the flexibility to switch from one fuel source to another with less carbon emissions and high efficiency. This increases production and supply which offers cost-effective and energy efficient to consumers which drives the growth of the market.

District Heating market Challenges

Robust transportation equipment

One of the challenging factors in district heating market is transportation of heat from source to end users without any loss. Transporting heat pipes carrying heat must be properly insulated and robust while transporting if not it will result in heat loss. Losing heat from distribution pipes while carrying equipment is loss of money and heat. Equipment like heat exchangers and smart meters are needed to prevent the heat loss during distribution. Hence, robust equipment is a challenging factor for growth of district heating market.

District Heating market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the District Heating market. The District Heating market is dominated by major companies such Fortum, Vattenfall, ENGIE, Danfoss, NRG Energy, StatKraft, Shinryo Corporation, LOGSTOR, Goteborg Energi and Kelag.

Acquisitions/Technology Launches/Partnerships

  • In May 2020, ENGIE Austria acquired “Naturwärme Montafon Biomasseheizkraftwerk GmbH”

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1. District Heating Market Overview
    1.1 Definitions and Scope
2. District Heating Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By Application
    2.3 Key trends By Heat Source
    2.4 Key trends segmented by Geography
3. District Heating Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis (Comparison of General Price of Industry Solutions)
4. District Heating Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies
    4.4 Customer Analysis
5. District Heating Market – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6. District Heating Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. District Heating Market – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
8. District Heating Market – By Technology (Market Size -$Million/Billion)
    8.1 Software Defined Network
    8.2 Network Functions Virtualization
9. District Heating Market – By Heat Source (Market Size -$Million/Billion)
    9.1 Coal
    9.2 Natural Gas
    9.3 Renewables
    9.4 Oil and Petroleum Products
    9.5 Others
10. District Heating Market – By Plant Type (Market Size -$Million/Billion)
    10.1 Boiler
    10.2 CHP
    10.3 Others
11. District Heating Market – By Application (Market Size -$Million/Billion)
    11.1 Residential, Commercial
        11.1.1 Education
        11.1.2 Offices
        11.1.3 Government
        11.1.4 Others
    11.2 Industrial
        11.2.1 Chemical
        11.2.2 Refinery
        11.2.3 Paper
        11.2.4 Others
12. District Heating Market - By Geography (Market Size -$Million/Billion)
    12.1 North America
        12.1.1 U.S
        12.1.2 Canada
        12.1.3 Mexico
    12.2 South America
        12.2.1 Brazil
        12.2.2 Argentina
        12.2.3 Chile
        12.2.4 Colombia
        12.2.5 Others
    12.3 Europe
        12.3.1 Germany
        12.3.2 France
        12.3.3 UK
        12.3.4 Italy
        12.3.5 Spain
        12.3.6 Russia
        12.3.7 Netherlands
        12.3.8 Others
    12.4 APAC
        12.4.1 China
        12.4.2 Japan
        12.4.3 South Korea
        12.4.4 India
        12.4.5 Australia
        12.4.6 Indonesia
        12.4.7 Malaysia
        12.4.8 Others
    12.5 RoW
        12.5.1 Middle East
        12.5.2 Africa
13. District Heating Market - Market Entropy
    13.1 New product launches
    13.2 M&A's, collaborations, JVs and partnerships
14. District Heating Market – Industry Competitive Landscape (Premium)
    14.1 Market Share – Global
    14.2 Market Share by Region
    14.3 Market Share By Application
    14.4 Market Share By Heat Source
15. District Heating Market – Key Company List by Country Premium (Premium)
16. District Heating Market - Company Analysis
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10

List of Tables

1 US District Heating Market Size 2018
2 Canada District Heating Market Share 2018
3 Brazil District Heating Market Outlook 2019 - 2023
4 Mexico District Heating Market Research 2018
5 Germany District Heating Market Trends 2019 - 2023 
6 France District Heating Market Growth 2019 - 2023 
7 UK District Heating Market Demand 2019 - 2023 
8 Italy District Heating Market Segmentation 2018
9 Russia District Heating Market Analysis 2019 - 2023
10 China District Heating Market Revenue 2019 - 2023
11 Japan District Heating Market Volume 2019 - 2023
12 South Korea District Heating Market Potential 2019 - 2023
13 India District Heating Market Leaders 2018
14 Saudi Arabia District Heating Market Forecast 2019 - 2023 
15 Kuwait District Heating Market Value 2018

List of Figures

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