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District Heating & Cooling Market By Heating Type (Heat-Only Boilers, Combined Heat & Power, Geothermal Heating, Solar Heating, Heat Pumps), By Cooling Type (Free Cooling, Absorption Cooling, Compression Cooling), By End-User (Residential, Commercial, Industrial) - Growth, Share, Opportunities & Competitive Analysis, 2018 – 2026

Industry Outlook

The Technique of district heating as well as district cooling, are making a strong comeback, registering a market value of US$ 13.89 Bn in 2017 and projected to flourish and reach US$ 23.66 Bn by 2026 with a notable CAGR of 6.1% compared to other space heating and cooling methods. High cost, improper utilization of available resources, and long-term solutions 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 emissions and better efficiency in heating & cooling encouraged nations to incorporate district heating & cooling plants as a part of their contribution towards saving the environment.

Market Synopsis

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

At present, combined heat and power district heating dominates 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 emissions 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 emissions compared to solar heating for district heating. The aforementioned factor and long-term cost-efficiency are 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, it 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 is growing at a considerable rate and is projected to surpass vapor compression district cooling in upcoming years.

The 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 a small section of a city if it the not a complete city. The Industrial end-user trails the residential segment and is 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 is projected to surpass the industrial end-user segment during the forecast period. 

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

The role of government initiatives for smart cities and efficient buildings is influencing the significance of district heating and cooling across the globe. These contemporary norms are posing challenges for 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, and formidable energy generation and distribution companies score a better chance of survival with limited competition around. Companies have to be persistent during the long process of government acceptance, infrastructure erection, and commencement of projects 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.

Market Segmentation

By Heating Type

  • Heat-only Boilers
  • Combined Heat & Power
  • Geothermal Heating
  • Solar Heating
  • Heat Pumps

By Cooling Type

  • Free Cooling
  • Absorption Cooling
  • Compression Cooling

By End-user

  • Residential
  • Commercial
  • Industrial

By Geography Segment

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • Japan
    • Australasia
    • Rest of Asia Pacific
  • Middle East
    • Unite the Arab Emirates
    • Saudi Arabia
    • Rest of the Middle East
  • Rest of the World (RoW)
    • Latin America
    • Africa

Frequently Asked Questions:

The market for District Heating & Cooling Market is expected to reach US$ 23.66 Bn by 2026.

The District Heating & Cooling Market is expected to see significant CAGR growth over the coming years, at 6.1%.

The report is forecasted from 2018-2026.

The base year of this report is 2017.

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 Corporatio are some of the major players in the global market.

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Trusted By
Godaddy
Published Date:  Jul 2018
Category:  Energy
Report ID:   59230
Report Format:   PDF
Pages:   120
Rating:    4.5 (65)
Delivery Time: 24 Hours to 48 Hours   
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