Industry Outlook

The technique of district heating, as well as district cooling, are making a strong comeback, registering a market value of US$ 15.60 Bn in 2019 and projected to flourish and reach US$ 26.13 Bn by 2028 with a notable CAGR of 5.9% compared to other space heating and cooling methods. High cost, improper utilization of available resources, and long-term solution to domestic and commercial heat & cooling energy requirements are a few of the several factors responsible for the revival of district heating and cooling systems. Significant reduction of carbon emission and better efficiency in heating & cooling encouraged nations to incorporate district heating & cooling plants as a part of their contribution towards saving the environment.

Combined Heat Power is Widely Used across Various Industries due to Various Advantages Offered by the Technique

At present combined heat and power district heating dominate the global district heating market. Combined heat and power (CHP) plants or cogeneration plants generate heat as well as electricity simultaneously. A conventional thermal power plant can achieve 25% to 30% efficiency, besides, a CHP plant can achieve an efficiency of more than 80% and go beyond 100% by condensing the flue gases. This makes a significant reduction in overall carbon emission and allows complete utilization of heat sources such as fossil fuels.  However, the use of fossil fuels or other heating power sources does involve more carbon emission compared to solar heating for district heating. The aforementioned factor and long-term cost-efficiency projected to stimulate the demand for solar-powered district heating beyond the forecast period.

Vapor Absorption District Cooling to Bag More Market Value in Coming Years

Compression cooling has effective and fast cooling; hence, leads the global district cooling market in terms of market value. The system uses compressors or electric chillers to produce a cooling effect through refrigerants. Compression cooling offered more tons of cooling compared to absorption with respect to the same system size, however, the electricity consumption and carbon emission are on the higher side compared to the absorption district cooling system. Consequently, the market for absorption district cooling growing at a considerable rate and projected to surpass vapor compression district cooling in upcoming years.

Residential End-user is the Primary Consumer of District Heating and Cooling

Currently, the residential sector is the biggest consumer of district heating and cooling in terms of market value. The majority of district heating and cooling plants are designed and installed to reduce the burden of domestic expenditure for cooling and heating. These plants have the capability to provide necessary heating or cooling to small sections of a city if the,y not a complete city. Industrial end-user trails residential segment and expected to grow continuously. Industries are starting to rely on district cooling and heating as they reduce heavy expenses and generate a smaller carbon footprint. Commercial end-user is the fastest-growing segment and projected to surpass the industrial end-user segment during the forecast period. 

Changing Government Rules and Regulations is Likely to Propel the Growth of District Heating and Cooling Market across the Globe

The role of government initiatives for smart cities and efficient buildings are influencing the significance of district heating and cooling across the globe. These contemporary norms are posing challenges for an existing conventional comforting methods to comply with rapidly changing environmental conditions. Consequently, nations across the globe are shifting towards efficient alternatives such as the use of renewable energy sources and district cooling and heating alternatives. At present, Europe is the biggest consumer of district heating while the Middle East dominates the district cooling market. North America trails Europe and the Middle East in the combined district heating and cooling market in terms of market value.

District Heating & Cooling Companies Showing Perseverance to be Rewarded in Years to Come

Installation of district heating and cooling plants involves heavy investments, formidable energy generation, and distribution companies score a better chance of survival with limited competition around. Companies have to be persistent for the long process of government acceptance, infrastructure erection, and commencement of the project before reaching the break-even point. Some of the most prominent and notable players from the district heating and cooling market profiled in this research study include ADC Energy Systems LLC, Emirates Central Cooling Systems Corporation (EMPOWER), Emirates District Cooling LLC (Emicool), Emirates National Central Cooling Company PJSC (Tabreed), Keppel DHCS Pte. Ltd., Logstor A/S, KELAG Wärme GmbH, Shinryo Corporation, Vattenfall AB, Fortum Oyj, Statkraft AS, The Korea District Heating Corporation, Hafslund AS, Goteborg Energi, Tekla Corporation, and Ramboll Group A/S among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of District Heating & Cooling market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the District Heating & Cooling market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of District Heating & Cooling market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the District Heating & Cooling market?
• Which is the largest regional market for District Heating & Cooling market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving District Heating & Cooling market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the District Heating & Cooling market worldwide?