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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
For More Details on This Report - Request for Sample
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”
Related Reports
Heating,
Ventilation and Air Conditioning (HVAC) Market - Forecast(2021 - 2026)
Report Code: AIR 0393
Report Code: EPR 58945
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