The solar district heating market is anticipated to expand its roots at an average CAGR of 6.6% during the forecast period. The market is likely to hold a revenue of US$ 2.77 billion in 2023 while it is anticipated to cross a value of US$ 5.26 billion by 2033.
The global market for solar district heating is growing significantly due to factors such as several people getting jobs and the number of businesses around the world increasing. Power and heat are going to be needed hugely because people require them largely. Further, the global solar district heating market is rising due to government regulations. The market for solar district heating systems is also driving due to certain incentives. As a way to meet this need, solar-powered district heating systems are being looked at.
The global solar district heating market is expanding because of strict government rules to cut carbon emissions. The market for solar district heating systems is also flourishing because of favorable government programs that encourage the use of solar heating systems in public places.
Many businesses and government bodies are switching from a traditional community heating system to solar district heating since they care about the environment.
Rapid urbanization is one of the main factors behind the growth of the global solar district heating market. Growing cities and a need for energy-efficient solutions that don't use a lot of carbon are bolstering the market growth further.
Solar-distributed heating systems offer zero-emission solutions, which consequently increases demand for solar district heating systems. It might be hard for the solar district heating market to grow because there are other options and it takes a lot of space and money to put in solar district heating systems.
| Attributes | Details |
|---|---|
| Solar District Heating Market CAGR (2023 to 2033) | 6.6% |
| Solar District Heating Market Size (2023) | US$ 2.77 billion |
| Solar District Heating Market Size (2033) | US$ 5.26 billion |
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Advanced Infrastructure Advancements, such as Smart Cities and Future Projects Present Significant Possibilities for Solar District Heating Solution Providers.
A traditional community heating system employs a certain type of heat source, such as coal, oil, or natural gas, which means that the cost of heating is entirely determined by the price of that fuel. In a solar-distributed heating system, heat is produced at central units with multiple photon energy generators.
Solar district heating is particularly adaptable when it comes to the choice of the heat source; surplus heat from industrial, CHP, and boilers is a direct transfer to the grid. Solar district heating allows big district heating systems with several heat sources to readily convert on factors such as price, available heat source, and environmental goals.
In solar district heating, photons from direct sunlight are used to generate energy which can be used further to cover heating requirements in several houses instead of utilizing individual heating systems.
Solar district heating firms have the option of selecting the least expensive heat-generating source, i.e. sunlight. This improves production and supply efficiency; as a result, solar district heating solutions provide consumers with cost-effective and efficient heating services, driving the solar district heating market growth.
Solar district heating system consists of a heat-producing unit, which contains photocells to generate energy into the desired form. Here, it is heat that might be further delivered to end users; and auxiliary equipment, including heat exchangers and heat meters.
The establishment of solar district heating systems involves a substantial amount of investments in infrastructure compared with individual heating supply choices. The money may ne be used to set up a heat generation unit and a distribution network.
The investment required for a solar district heating system varies depending on its kind. Large investments are necessary for panels and renewable heat sources, whilst small investments are required for heat obtained from excess heat from industries and data centers.
Panel and grid systems for solar district heating transmission and distribution are critical and need significant investment as well. The connected grid must be of exceptional quality to avoid heat loss. Apart from the significant investment, solar district heating solution suppliers are hesitant to spend since environmental regulations are always changing, limiting the solar district heating market growth.
Principal Consultant
Solar district heating companies are projected to benefit greatly from technological advancements and digitalization. The significant adoption of advanced technology products and solutions, such as smart meters, demand-based heating solutions, home automation, smart infrastructure, and many others, is further accelerating digitalization.
Consumers can play an active role in balancing future heating needs by using these alternatives. Rapid technological advancement reduces heating expenses while increasing efficiency. As new buildings require solar district heating systems, advanced infrastructure developments, such as smart cities and planned projects, create considerable potential for solar district heating solution providers.
Large thermal transfer surfaces and the ability to deploy modern solar district heating systems are available in new infrastructures. Furthermore, because it procures heat from a reliable and renewable source based on availability, solar district heating networks are expected to play a key role in enabling energy-efficient, environment-friendly, and cost-effective.
Advanced solar district heating systems can take advantage of heating network synergies to improve efficiency, dependability, and cost-effectiveness. As a result, technological advancements in the solar district heating sector are expected to open up a lot of doors for solution providers and manufacturers.
The key equipment in a solar district heating system is heat generation and distribution; solar district heating companies' suppliers confront issues in delivering heat from the source to end users with minimal or no heat loss. Solar panels that deliver heat must be suitably insulated and sturdy for transportation; else, heat will be lost.
Traditional community heating system, on the other hand, does not care if heat is lost through heating pipes linking radiators because it stays within the heating premises. However, in solar district heating, losing heat through distribution channels results in a loss of money and heat, which is not cost-effective.
To limit or avoid heat loss during heat distribution, powerful heat exchangers and smart meters are required. As a result, the demand for durable heat-transporting equipment offers a hurdle to the solar district heating market growth
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Asia Pacific solar district heating industry is growing due to favorable legislative reforms and expanding renewable investments. Current government initiatives, expanding urbanization, and rising residential development spending have greatly boosted the sector's outlook. For example, in the last decade, Japan has had roughly 86 DHC operators.
Increasing economic expansion, increased industrial activity, and rising heating needs might boost solar district heating market demand. The USA solar district heating market is estimated to rise by almost 6% by 2025.
Growing concerned about emissions reduction and increasing expenditures in commercial and residential infrastructure might help the solar district heating market outlook. Demand for sustainable, efficient, and dependable heating systems, as well as strict green construction laws and standards, are all going to help the solar district heating market.
Increasing Spending on Housing and Apartment Building, together with Government Regulations to Minimize Carbon Emissions, might Drive Sector Growth.
The growing expansion of inner-city regions might also increase demand for small-scale systems.
According to the recent projection by Future Market Insights, the global solar district heating market is anticipated to cross US$ 5 billion by 2032. Strict energy efficiency standards and government emission reduction mandates are going to drive the solar district heating sector. Changing climatic circumstances due to increased surface temperatures might spur industry growth.
Investments in key commercial and industrial institutions, including hotels, manufacturing, chemicals, and pulp & paper factories, might drive large-scale systems. A few significant factors that might propel the solar district heating sector include:
The vast potential of thermal energy as a critical source of heat and energy across diverse districts is likely to open up new business opportunities. Rapid urbanization and industrialization in emerging economies also drive the solar district heating market share. Moreover, accelerating infrastructure investments and rising primary energy consumption from developing nations might boost the business picture.
| Country | Revenue Share % (2023) |
|---|---|
| The United States | 26.8% |
| Germany | 6.9% |
| Japan | 4.5% |
| Australia | 0.5% |
| Country | CAGR % (2023 to 2033) |
|---|---|
| China | 7.0% |
| India | 6.2% |
| The United Kingdom | 6.7% |
Solar district heating systems use and distribute heat from a variety of sources that might otherwise be wasted. These sources include waste heat from electricity generation, forestry residuals, and municipal garbage. Also, estimates show that heat waste from energy generation and large companies in Europe is enough to cover all heating needs.
Aarhus, Denmark, is also a city that is notably expanding in population. The AffaldVarme Aarhus announced its focus on energy efficiency. The company sought to reduce energy consumption. Germany is one of the leading users of solar district heating systems. About 14% of houses in Germany use solar district heating systems.
Hamburg's solar district heating network supplies 19% of all houses. According to Fluid Flow, this number is going to climb by 50,000 dwellings by 2020. In addition, NEFCO initiated the Sweden-Ukraine solar district heating program in Kyiv in October 2019. It aims to fund and assist ecological-friendly and energy-efficient solar district heating projects across Ukraine. Sweden provides funds for co-financing investments and technical assistance to the program. These elements might propel Europe’s growth in the future years.
| Category | By Application |
|---|---|
| Leading Segment | Commercial |
| Market Share (2023) | 47.8% |
| Category | By System |
|---|---|
| Leading Segment | Small System |
| Market Share (2023) | 41.2% |
The global solar district heating market can be divided into three types of end-users: residential, commercial, and industrial. During the forecast period, the industrial and commercial industries are expected to increase significantly. This is due to the significant development in commercial building construction, such as hotels, malls, hospitals, and industrial complexes, which are likely to feed the demand for solar district heating systems.
Solar district heating plants are large-scale solar thermal plants that produce and distribute heat to end consumers via district heating systems. District heating and solar thermal energy are essential components of the heat-producing sector's energy transition.
The availability of conventional energy sources is limited, allowing for the utilization of renewable energy. Renewable energy is predicted to take a substantial share of the global energy market in the future due to its environmentally beneficial characteristics.
The solar district heating market is not competitive, but there are a lot of big global and local players operating in the market. These companies are spending a lot of money on research and development to come up with new solutions, make strategic alliances, and adopt other organic and inorganic growth strategies to stay ahead of their competitors over the next few years.
Market Developments:
The solar district heating market CAGR for 2033 is 6.6%.
The market is estimated to reach US$ 5.26 billion by 2033.
Key solar district heating market players are developing by collaborating with other companies.
The market is estimated to secure a valuation of US$ 2.77 billion in 2023.
Aalborg CSP, Vattenfall, and Fortum. are the three key solar district heating market players.
1. Executive Summary
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022
4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By System
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) Analysis By System, 2018 to 2022
5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By System, 2023 to 2033
5.3.1. Small systems
5.3.2. Large systems
5.4. Y-o-Y Growth Trend Analysis By System, 2018 to 2022
5.5. Absolute $ Opportunity Analysis By System, 2023 to 2033
6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) Analysis By Application, 2018 to 2022
6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Application, 2023 to 2033
6.3.1. Residential
6.3.2. Commercial
6.3.2.1. College/university
6.3.2.2. Office Buildings
6.3.2.3. Government/Military
6.3.2.4. Others
6.3.3. Industrial
6.3.3.1. Chemical
6.3.3.2. Refinery
6.3.3.3. Paper
6.3.3.4. Others
6.4. Y-o-Y Growth Trend Analysis By Application, 2018 to 2022
6.5. Absolute $ Opportunity Analysis By Application, 2023 to 2033
7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
7.1. Introduction
7.2. Historical Market Size Value (US$ Million) Analysis By Region, 2018 to 2022
7.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. South Asia
7.3.5. East Asia
7.3.6. Oceania
7.3.7. MEA
7.4. Market Attractiveness Analysis By Region
8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
8.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
8.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
8.2.1. By Country
8.2.1.1. U.S.
8.2.1.2. Canada
8.2.2. By System
8.2.3. By Application
8.3. Market Attractiveness Analysis
8.3.1. By Country
8.3.2. By System
8.3.3. By Application
8.4. Key Takeaways
9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
9.2.1. By Country
9.2.1.1. Brazil
9.2.1.2. Mexico
9.2.1.3. Rest of Latin America
9.2.2. By System
9.2.3. By Application
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By System
9.3.3. By Application
9.4. Key Takeaways
10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
10.2.1. By Country
10.2.1.1. Germany
10.2.1.2. U.K.
10.2.1.3. France
10.2.1.4. Spain
10.2.1.5. Italy
10.2.1.6. Rest of Europe
10.2.2. By System
10.2.3. By Application
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By System
10.3.3. By Application
10.4. Key Takeaways
11. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
11.2.1. By Country
11.2.1.1. India
11.2.1.2. Malaysia
11.2.1.3. Singapore
11.2.1.4. Thailand
11.2.1.5. Rest of South Asia
11.2.2. By System
11.2.3. By Application
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By System
11.3.3. By Application
11.4. Key Takeaways
12. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
12.2.1. By Country
12.2.1.1. China
12.2.1.2. Japan
12.2.1.3. South Korea
12.2.2. By System
12.2.3. By Application
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By System
12.3.3. By Application
12.4. Key Takeaways
13. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
13.2.1. By Country
13.2.1.1. Australia
13.2.1.2. New Zealand
13.2.2. By System
13.2.3. By Application
13.3. Market Attractiveness Analysis
13.3.1. By Country
13.3.2. By System
13.3.3. By Application
13.4. Key Takeaways
14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
14.2.1. By Country
14.2.1.1. GCC Countries
14.2.1.2. South Africa
14.2.1.3. Israel
14.2.1.4. Rest of MEA
14.2.2. By System
14.2.3. By Application
14.3. Market Attractiveness Analysis
14.3.1. By Country
14.3.2. By System
14.3.3. By Application
14.4. Key Takeaways
15. Key Countries Market Analysis
15.1. U.S.
15.1.1. Pricing Analysis
15.1.2. Market Share Analysis, 2022
15.1.2.1. By System
15.1.2.2. By Application
15.2. Canada
15.2.1. Pricing Analysis
15.2.2. Market Share Analysis, 2022
15.2.2.1. By System
15.2.2.2. By Application
15.3. Brazil
15.3.1. Pricing Analysis
15.3.2. Market Share Analysis, 2022
15.3.2.1. By System
15.3.2.2. By Application
15.4. Mexico
15.4.1. Pricing Analysis
15.4.2. Market Share Analysis, 2022
15.4.2.1. By System
15.4.2.2. By Application
15.5. Germany
15.5.1. Pricing Analysis
15.5.2. Market Share Analysis, 2022
15.5.2.1. By System
15.5.2.2. By Application
15.6. U.K.
15.6.1. Pricing Analysis
15.6.2. Market Share Analysis, 2022
15.6.2.1. By System
15.6.2.2. By Application
15.7. France
15.7.1. Pricing Analysis
15.7.2. Market Share Analysis, 2022
15.7.2.1. By System
15.7.2.2. By Application
15.8. Spain
15.8.1. Pricing Analysis
15.8.2. Market Share Analysis, 2022
15.8.2.1. By System
15.8.2.2. By Application
15.9. Italy
15.9.1. Pricing Analysis
15.9.2. Market Share Analysis, 2022
15.9.2.1. By System
15.9.2.2. By Application
15.10. India
15.10.1. Pricing Analysis
15.10.2. Market Share Analysis, 2022
15.10.2.1. By System
15.10.2.2. By Application
15.11. Malaysia
15.11.1. Pricing Analysis
15.11.2. Market Share Analysis, 2022
15.11.2.1. By System
15.11.2.2. By Application
15.12. Singapore
15.12.1. Pricing Analysis
15.12.2. Market Share Analysis, 2022
15.12.2.1. By System
15.12.2.2. By Application
15.13. Thailand
15.13.1. Pricing Analysis
15.13.2. Market Share Analysis, 2022
15.13.2.1. By System
15.13.2.2. By Application
15.14. China
15.14.1. Pricing Analysis
15.14.2. Market Share Analysis, 2022
15.14.2.1. By System
15.14.2.2. By Application
15.15. Japan
15.15.1. Pricing Analysis
15.15.2. Market Share Analysis, 2022
15.15.2.1. By System
15.15.2.2. By Application
15.16. South Korea
15.16.1. Pricing Analysis
15.16.2. Market Share Analysis, 2022
15.16.2.1. By System
15.16.2.2. By Application
15.17. Australia
15.17.1. Pricing Analysis
15.17.2. Market Share Analysis, 2022
15.17.2.1. By System
15.17.2.2. By Application
15.18. New Zealand
15.18.1. Pricing Analysis
15.18.2. Market Share Analysis, 2022
15.18.2.1. By System
15.18.2.2. By Application
15.19. GCC Countries
15.19.1. Pricing Analysis
15.19.2. Market Share Analysis, 2022
15.19.2.1. By System
15.19.2.2. By Application
15.20. South Africa
15.20.1. Pricing Analysis
15.20.2. Market Share Analysis, 2022
15.20.2.1. By System
15.20.2.2. By Application
15.21. Israel
15.21.1. Pricing Analysis
15.21.2. Market Share Analysis, 2022
15.21.2.1. By System
15.21.2.2. By Application
16. Market Structure Analysis
16.1. Competition Dashboard
16.2. Competition Benchmarking
16.3. Market Share Analysis of Top Players
16.3.1. By Regional
16.3.2. By System
16.3.3. By Application
17. Competition Analysis
17.1. Competition Deep Dive
17.1.1. Aalborg CSP A/S
17.1.1.1. Overview
17.1.1.2. Product Portfolio
17.1.1.3. Profitability by Market Segments
17.1.1.4. Sales Footprint
17.1.1.5. Strategy Overview
17.1.1.5.1. Marketing Strategy
17.1.2. Alfa Laval
17.1.2.1. Overview
17.1.2.2. Product Portfolio
17.1.2.3. Profitability by Market Segments
17.1.2.4. Sales Footprint
17.1.2.5. Strategy Overview
17.1.2.5.1. Marketing Strategy
17.1.3. Bosch Thermotechnology Ltd
17.1.3.1. Overview
17.1.3.2. Product Portfolio
17.1.3.3. Profitability by Market Segments
17.1.3.4. Sales Footprint
17.1.3.5. Strategy Overview
17.1.3.5.1. Marketing Strategy
17.1.4. Fortum
17.1.4.1. Overview
17.1.4.2. Product Portfolio
17.1.4.3. Profitability by Market Segments
17.1.4.4. Sales Footprint
17.1.4.5. Strategy Overview
17.1.4.5.1. Marketing Strategy
17.1.5. Göteborg Energi
17.1.5.1. Overview
17.1.5.2. Product Portfolio
17.1.5.3. Profitability by Market Segments
17.1.5.4. Sales Footprint
17.1.5.5. Strategy Overview
17.1.5.5.1. Marketing Strategy
17.1.6. LOGSTOR A/S
17.1.6.1. Overview
17.1.6.2. Product Portfolio
17.1.6.3. Profitability by Market Segments
17.1.6.4. Sales Footprint
17.1.6.5. Strategy Overview
17.1.6.5.1. Marketing Strategy
17.1.7. Ramboll Group A/S
17.1.7.1. Overview
17.1.7.2. Product Portfolio
17.1.7.3. Profitability by Market Segments
17.1.7.4. Sales Footprint
17.1.7.5. Strategy Overview
17.1.7.5.1. Marketing Strategy
17.1.8. Savosolar
17.1.8.1. Overview
17.1.8.2. Product Portfolio
17.1.8.3. Profitability by Market Segments
17.1.8.4. Sales Footprint
17.1.8.5. Strategy Overview
17.1.8.5.1. Marketing Strategy
17.1.9. Soltigua
17.1.9.1. Overview
17.1.9.2. Product Portfolio
17.1.9.3. Profitability by Market Segments
17.1.9.4. Sales Footprint
17.1.9.5. Strategy Overview
17.1.9.5.1. Marketing Strategy
17.1.10. Vattenfall AB
17.1.10.1. Overview
17.1.10.2. Product Portfolio
17.1.10.3. Profitability by Market Segments
17.1.10.4. Sales Footprint
17.1.10.5. Strategy Overview
17.1.10.5.1. Marketing Strategy
18. Assumptions & Acronyms Used
19. Research Methodology
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Solar District Heating Market
