The global district heating market is projected to be worth USD 262.0 billion by 2030, growing at a CAGR of 5.6%, according to P&S Intelligence.

The key trend observed in the industry is the utilization of renewable sources of warmness, including heat pumps, bioenergy, geothermal and solar–thermal, and even unused heat from data centers and industries. Currently, the heat produced from renewable sources holds for just 8% of worldwide production.

The mixture of numerous power sources is also one of the key trends observed in the market. Such systems not only utilize renewable sources of power but also function with the left-over heat from industrial units and data centers, which aids in attaining advanced power effectiveness.

With even more variation of the power sources in district heating arrangements, the shift toward more-progressive systems will accelerate. Instances of these systems comprise a waste treatment unit in Sweden in Högbytorp which produces energy and heat, coupled with biofertilizers, biogas, and compost.

Several steps are being taken by the government of many nations to fuel the acceptance of district heating systems with advanced technologies and reduced carbon releases. For example, the European Commission has permitted a German scheme of EUR 2.98 billion to boost the utilization of eco-friendly district heating systems driven by waste and renewable heat from data centers and industries.

In this plan, the heating systems installed in Germany will utilize a minimum of 75% green power and waste heat; this will be attended by the decarbonization and improvements in the present systems. This move predicts the fixing of approximately 681 MW of maintainable heat generation potential per annum, which will decrease GHG releases by approximately 4 million tonnes per annum.

In 2022, the European region dominated the industry, with a revenue share of above 36%. This growth can be credited to the growing requirement for electricity in the continent, supported by the growing urbanization and industrialization, and also the increasing fondness for power-effective systems, and government guidelines to lessen greenhouse releases.

The low temperature in the majority of the continent for the majority of the year is also one of the reasons that make Europe the largest industry for such systems.

Moreover, numerous novel geothermal district heating units are being built on the continent to use clean power. By the way, the growth of the region’s largest facility was launched at the start of 2022, and it will be partially functioning by 2025.

The industry is boosted by the growing populace of metropolises, which leads to fast urbanization throughout the world. Because of this shift from rural to urban areas, the need for power is growing across all the end-use industries. Because of this, significant investments have been made in district heating systems.