HomeDecentralized EnergyDistrict EnergyDistrict Heating Market size will exceed $280 billion by 2024- report

District Heating Market size will exceed $280 billion by 2024- report

Rising energy demand along with rapid urbanization and industrialization is set to boost global district heating market growth over the next decade, according to a new report. Improved air quality, low heat loses and sustainable energy usage are some of the advantages of these systems over other available alternatives, according to Global Market Insights.

“District Heatingà‚ Market size will exceed $280 billion by 2024″, the report asserts, as rising concerns toward greenhouse gas emissions coupled with strong demand for efficient and cost effective systems will drive the district heating market size.
Heat system
The report highlights the state of the sector in different countries. Introduction of emissions reduction target by countries including China, UK, Denmark, Germany, and Russia under their climate action plans will complement the business outlook, the report states.

Denmark, for example, in its National Energy Policy and National Energy Efficiency Action Plan (NEEAP) has setup a target to completely phase out the usage of oil from heating applications across the building structure by 2035.à‚ 

Growing industrialization and urbanization with introduction of building standards code towards energy efficiency will foster the district heating market.

As per the World Bank, in 2014 over 54% of the world’s population have shifted their base from rural to urban areas and the proportion is anticipated to rise to 66 per cent by 2050, making heat networks more and more relevant.

German district heating market size is set to exceed 300 PJ by 2024. Growing investment toward replacement of conventional heat and electricity generating systems with sustainable technologies including CHP and solar thermal will stimulate the business landscape. Regulators are planning to increase CHP electricity generation share from 18% in 2013 to 25% by 2020 through the introduction of incentives on adoption of these technologies.à‚ 

Adoption of clean energy over fossil fuels and flexibility to choose heat source is also set to stimulate solar district heating market growth. In 2017, Finland based Savo-Solar announced the development of new 300 MW solar thermal heating system with a view to deliver surplus energy across the DH networks catering to Hàƒ¤meenlinna city.

Pamela Largue
Pamela is a senior content creator and editor and has been a part of the Clarion content team for over seven years. She specializes in international power and energy-related content.