District Heating Market to Exceed USD 1.9 trillion by 2031, Expanding at a CAGR of 3.4% Says, Transparency Market Research


Increase in focus on energy efficiency and decarbonization and increased demand for sustainable heating solutions is also projected to augment market expansion in the next few years.

Wilmington, Delaware, United States, Aug. 15, 2023 (GLOBE NEWSWIRE) — Transparency Market Research Inc. – The global district heating market is projected to flourish at a CAGR of 3.4% from 2023 to 2031. As per the report published by TMR, a valuation of US$1.9 trillion is anticipated for the market in 2031. As of 2023, the market for district heating is expected to close at US$ 1.45 trillion.

Increasing demand for energy efficiency to boost the district heating systems market as these systems are inherently more energy-efficient compared to individual heating systems, as they enable the utilization of waste heat from various sources such as power generation and industrial processes.


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Competitive Landscape

The global district heating industry is fragmented with the presence of several large and medium-sized district heating companies operating across the world. The leading players in the market are investing in new product development, mergers, and acquisitions to gain a competitive edge. Transparency Market Research has profiled the following players in its global district heating market report

Fortum, Vattenfall AB, Engie, Danfoss, Clearway Energy, Inc., Statkraft, Shinryo Corporation, LOGSTOR A/S, Vital Energi Ltd., Kelag, Göteborg Energi, FVB Energy, Inc., Excell Battery Co., Alfa Laval AB, Contemporary Amperex Technology Co., Limited, Ramboll Group A/S, and Helen Ltd. are the prominent players operating in this district heating industry.

Key Developments in the District Heating Market

  • Engie, a multinational electric utility company, was involved in various district heating projects worldwide. The company focused on integrating innovative technologies like digital solutions, energy storage, and renewable energy sources into its district heating systems.
  • Fortum, a Finnish energy company, had been actively involved in developing sustainable district heating solutions. The company had projects aimed at utilizing renewable and waste heat sources to provide efficient heating to communities.
  • Göteborg Energi, a Swedish energy company, worked on expanding their district heating network and incorporating renewable energy sources such as biomass and biogas into their heating solutions.

With increasing urbanization, the demand for efficient heating solutions such as district heating increases as it can provide a reliable and scalable solution for densely populated areas.

Growing government emphasis on renewable energy, energy efficiency, and carbon reduction is driving the adoption of district heating systems that align with these goals. Increased concern about recycling waste energy from various sources like industrial processes, power generation, and data centers, propelling the district heating market

Key Takeaways from the Market Study

  • As of 2022, the district heating market was valued at US$ 1.4 trillion
  • The insulated pipeline segment remains prominent in terms of components, accumulating a high revenue share during the forecast period
  • Based on plant type, the combined heat & power segment accounts for the highest market share
  • Based on the source, the coal segment to the gain highest share of the market, as coal is the highest-used energy source for district heating

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District Heating Market: Key Trends and Opportunistic Frontiers

  • Increasing demand for sustainable energy solutions in both urban and rural areas to fuel the district heating market growth during the forecast period.
  • Increasing awareness among communities, consumers, and decision-makers about the benefits of district heating systems plays a role in driving their adoption.
  • The rising integration of renewable energy sources such as biomass, geothermal, and solar thermal energy into district heating systems is a key driver for reducing reliance on fossil fuels and promoting sustainable energy solutions.
  • Advances in technology related to heat distribution, heat exchangers, insulation, and control systems are improving the efficiency, reliability, and flexibility of district heating systems.
  • The growing technological developments and increased application of artificial intelligence by market players to regulate the operation of the district heating systems, boost the market demand during the forecast period.

District Heating Market – Regional Analysis

  • Europe is expected to account for a dominant share of the district heating market during the forecast period. Many European countries have well-established district heating networks that utilize a combination of renewable energy sources and waste heat from industries. Countries like Denmark, Sweden, and Finland have particularly advanced district heating systems that contribute significantly to energy efficiency and carbon reduction goals.
  • Asia Pacific accounts for a significant share of the district heating market Rapid urbanization, industrial growth, and government initiatives have contributed to the interest in district heating solutions in the region

District Heating Market – Key Segments


  • Geothermal
  • Coal
  • Natural Gas
  • Solar Energy
  • Others

Plant Type

  • Combined Heat & Power
  • Dedicated Plant


  • Boilers
  • Insulated Pipelines
  • Pumps
    • Centrifugal Pumps
    • Heat Pumps
  • Heat Exchangers
  • Heat Meters
  • Others


  • Residential
  • Commercial
  • Industrial


  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • South America

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About Transparency Market Research

Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.


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