DISTRICT HEATING MARKET ANALYSIS

Market Challenges And Opportunities

Global District Heating Market Drivers:

Augmented demand for energy-efficient and cost-effective heating systems

The growing global demand for energy efficient heating solutions is driving the use of new technologies. According to a 2019 U.S. survey by Johnson Controls, about 75% of surveyed companies plan to increase investment in energy efficiency, renewable energy and smart building technologies, up 16% from 2018. The survey also found that traditional energy efficiency measures top the list of future investments, with more than two-thirds planning to invest in energy education programs. In addition, home heating appliances account for the majority of energy consumption, driving up costs. Government regulations supporting the introduction of district heating systems are also having a positive impact on the market growth. 

Rising urbanization and industrialization

Rapid urbanization around the world is driving demand and driving a shift to renewable energy sources for central heating and cooling. This can help meet the city's growing energy demands, improve efficiency, reduce emissions, and enable cost-effective temperature control. For example, due to urbanization, China is rapidly increasing the use of centralized systems in its northern regions. Major cities in Europe and North America already have DHC solutions. In Denmark, for example, most of the heating demand is already met by district heating systems. Expansion slowed after dense urban center systems reached saturation. 

Global District Heating Market Opportunities:

By 2020, district heating and cooling should reduce 9.3% of CO2 emissions across Europe from district heating, according to the nonprofit EuroHeat. In addition, district cooling was expected to reduce CO2 emissions by 40-50 million tons per year and reduce primary energy consumption by 2.14 EJ per year. Furthermore, the introduction of district heating and district cooling solutions will lead to a fully CO2-neutral energy solution by 2050.

The Dutch government's climate law calls for a 49% reduction in greenhouse gas emissions by 2030 compared to 1930 levels, and a 95% reduction by 2050. Accompanied by these goals are strict guidelines for companies that provide heating and cooling systems, and there is a trend towards increasing installation of district heating and district heating systems cooling. Growing awareness of the benefits of district heating is expected to bring lucrative market growth opportunities. The main advantage of district heating is that it is very versatile and safe to use. They can be created in a variety of ways and are generally classified as natural or man-made. 

• High infrastructure cost 
• Availability of  low-priced  individual  heating  and  cooling  equipment