District Heating Market 2024: Complete Research Report
Introduction of building standard codes to promote energy efficient buildings and rising urbanization and industrialization will stimulate district heating market share. As per 2014 World Bank data, 54% of the world population resided in urban areas and growing urbanization is expected to raise this figure to 66% by 2050.In line with growing urbanization, European Union has introduced Energy Performance of Building Directive which requires all new buildings to be nearly zero emission by 2018. District heating systems can aid in reduction of carbon emissions from existing and new buildings.
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Extreme weather conditions coupled with affordable price, reliability, economic viability of district heating will boost the product demand. Parts of northern and eastern Europe experience some the coldest weather conditions on earth with average daily temperatures near 0°C. District heating provides viable and cost-effective option for heating requirements in colder regions.
Flexibility with choice of heat source coupled with adoption of green energy technologies will positively influence the district heating market. In 2017, Savo-Solar announced to develop 300 MW solar thermal systems to deliver surplus energy to district heating systems operating in Hämeenlinna city.
Geothermal based district heating market will experience substantial growth owing to its cost effectiveness, economic feasibility and reduced reliance on conventional energy sources. Currently, many district heating projects based on geothermal energy sources are being promoted all over the world. In Spain, mayor of Ourense City has signed partnership framework with the Minister of Energy, Tourism and Digital Agenda for the development of district heating system in the city.
District heating market demand from commercial sector is set to exceed CAGR of 4% by 2024 owing to thriving service sector and growth of new commercial spaces in the developing economies. In 2017, government of Glenrothes approved Next Generation District Heating Scheme worth USD 219 million, to serve public and commercial. In Ukraine, the ministry of regional development has established DemoUkrainaDH, a funding initiative, in partnership with Nordic Environment Finance Commission to promote district heating systems and technologies.
Germany district heating Market is predicted to cross 300 PJ by 2024. Replacement of less efficient electricity and heat generating systems with reliable and sustainable technologies including solar thermal and CHP will boost the product demand. In Germany, adoption of these technologies is being promoted by regulators by offering incentives with an aim to raise share of CHP electricity generation over 25% by 2020.
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Growing demand for cogeneration and renewable energy systems coupled with measures towards improving energy security will positively impact the district heating market in Asia-Pacific region. In Japan, Financial institutions and the government has setup target of improving share of CHP technology to 15% in delivering total power.
Key players across the district heating market include Fortum, Vattenfall, Ramboll, Stat Kraft KDHC, Keppel DHCS, Logstor, STEAG, RWE Kelag Warme, AG,Dong Energy, NRG Energy, Goteborg Energi, Hafslund ASA, and Shinryo.
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