Press release
Comprehensive Solar District Heating Market Forecast 2025-2034: Growth Trends and Strategic Shifts
Solar District Heating
Solar District Heating Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The scale of the solar district heating market has seen swift expansion in the past few years. The market, which was valued at $3.67 billion in 2024, is predicted to expand to $4.18 billion in 2025, representing a compound annual growth rate (CAGR) of 13.9%. The significant growth witnessed during the historical interval is a result of environmental apprehensions, government incentives, energy security considerations, and community-based initiatives.
Solar District Heating Market Size Forecast: What's the Projected Valuation by 2029?
Rapid expansion is foreseen in the solar district heating market in the near future with its size projected to rise to $6.49 billion in 2029, growing at a compound annual growth rate (CAGR) of 11.6%. The growth observed in the forecast period can be linked to policy evolution, economic elements, climate change countermeasures, community cognizance, city planning, and integration. Key trends for this same period consist of advancements in innovation and research, technological progression, combined integration with intelligent tech, hybrid systems, modular, scalable designs and partnerships at a global level.
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What Are the Drivers Transforming the Solar District Heating Market?
The escalating embrace of environmentally friendly energy is propelling the expansion of the solar district heating market. Governments, inhabitants, and industries around the world are shifting their focus to sustainable energy to reduce reliance on traditional energy consumption and enhance the use of clean energy such as solar, wind, hydroelectric power, and bioenergy. This boost in sustainable energy adoption is anticipated to stimulate the use of solar district heating systems, providing economical heating solutions to commercial, residential, and industrial customers compared to the current heating solutions. For instance, the National Renewable Energy Laboratory (NREL), a US-based research institution focused on progressing renewable energy and energy efficiency technologies, reported in April 2023 that worldwide photovoltaic (PV) installations amounted to 231 gigawatts of direct current (GWdc), totaling 1.2 terawatts of direct current (TWdc) cumulatively in 2022. Moreover, annual installations are projected to surpass 300 GW by 2023 and exceed 400 GW by 2025. Thus, as the adoption of sustainable energy expands, so will the usage of solar district heating in the forecasted period.
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What Long-Term Trends Will Define the Future of the Solar District Heating Market?
The primary trend in the solar district heating market is strategic alliances and partnerships. Companies leading the market for solar district heating are forming strategic partnerships with tech-oriented firms to advance their systems technologically and broaden their global business activities. For instance, ENGIE Africa, a South African energy company specializing in natural gas, entered a collaboration agreement with the Ministry of Energy in Gabon in May 2022. The initiative aims to supply and sell high-quality solar home system kits to off-grid families nationwide.
Which Segments in the Solar District Heating Market Offer the Most Profit Potential?
The solar district heating market covered in this report is segmented -
1) By System: Small System, Large System
2) By Application: Residential, Commercial, Industrial
Subsegments:
1) By Small System: Residential Solar District Heating, Community Solar Heating Systems
2) By Large System: Industrial Solar District Heating, District Heating Networks, Combined Heat and Power (CHP) Systems
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Which Firms Dominate the Solar District Heating Market by Market Share and Revenue in 2025?
Major companies operating in the solar district heating market include DESMI A/S, Göteborg Energi AB, Keppel District Heating and Cooling Services Pte. Ltd., Korea District Heating Corporation, LOGSTOR A/S, Arcon-Sunmark A/S, Savosolar Oyj, Solvis GmbH, S. O. L. I. D. GmbH, Sunamp Ltd., WOLF GmbH, Aalborg CSP A/S, Absolicon Solar Collector AB, Institut für Nachhaltige Technologien, BrightSource Energy Inc., CitrinSolar GmbH, Energie Solaire SA, Frenell GmbH, Heliodyne Inc., Industrial Solar GmbH, Sunlumo Technology GmbH, Sunoptimo SA, Suntrix Company Limited, TSK Flagsol Engineering GmbH, TVP Solar SA, Viessmann Werke GmbH & Co. KG, Wagner Solar GmbH, Institute for Sustainable Technologies, KBB Kollektorbau GmbH, Alfa Laval AB
Which Regions Offer the Highest Growth Potential in the Solar District Heating Market?
Western Europe was the largest region in the solar district heating market in 2024.Asia-Pacific is expected to be the fastest-growing region in the solar district heating market share during the forecast period. The regions covered in the solar district heating market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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