A recent study predicts the global district heating market to gain from constantly increasing pollution. Fortune Business Insights has announced a report, titled “District Heating Market Size, Share and Global Trend by Heat Source (Coal Natural Gas, Renewable, Oil and Petroleum Products, Others) Plant Type (Boilers, Combine Heat and Power (CHP), Others) Application (Residential, Commercial, Industrial) and Geography Forecast till 2025.” As per the report, in 2017 North America held a major share in the global market. The region is expected to witness impressive growth during the forecast period 2018-2025. The growth witnessed is attributable to the extreme weather conditions in the region. Additionally, government support to curb pollution is also expected to contribute towards the North America district heating market.
Besides this, Europe holds a significant share in the global market. Growth in Europe is driven by the rapid adoption of district heating in the nations such as France, Germany, and others. The market is expected to gain impetus from the support from the European Union as they intent to implement district heating system across the region to curb pollution. The district heating market in Asia Pacific is anticipated to expand at a relatively higher CAGR. In Asia Pacific the market is expected to gain from the rapid industrialization witnessed in the nations such as China, India, and others. Moreover, high adoption of luxurious lifestyle in the region is further generating high demand to curb the pollution and increasing demand for energy. This is anticipated to fuel the development of advanced district heating system.
“Key players are expected to raise awareness about benefits of installing district heating system. This in response is anticipated to boost the global market and fuel demand for district heating system, pipe, and other equipment.” Said a lead analyst at Fortune Business Insights.
Increasing Adoption of Cars to Propel Growth
Increasing utilization of cars and growing commercialization are a few factors expected to propel the growth in the global district heating market. Additionally, construction of new centrally heated houses and buildings is further expected to fuel the demand for district heating system.
The government of the U.K. has introduced Heat Networks Investment Project (HNIP) as a part of the Green GB Week. The main aim of the project is to leverage the £1 Bn to accelerate the development of district heating system. Loans and investments by major energy firms (Engie, Vattenfall, SSE, and Metropolitan) have financed the project with £320 Mn. This is expected to enable growth in the global district heating market.
Contrary to this, the high cost of deploying district heating systems and the high amount of resources required to fuel the system are a few factors that may restrain the global market.
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Entry of New Players to Facilitate Frequent Development of New Technology
The global district heating market is expanding and witnessing entry of new players. The competition among the players is increasing and leading in development of advanced district heating system. Key market players are adopting industry leading strategies to strengthen their market position. Some of the organizations operating in the global district heating market are NRG Energy, Fortum, Engie, Vattenfall, Alfa Laval, Korea District Heating Corporation, Radet, Danfoss, Metropolitan, SSE Enterprise, Veolia, Statkraft, Goteborg Energi, Dortmund cogeneration plant (RWE AG), and Keppel DHCS.