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Heating Systems to Report Higher Sales in Global District Heating and Cooling Market, says TMR

District Heating and Cooling Market - Global Industry Analysis, Size, Share, Trends, Growth and Forecast 2015 - 2023
John Collins | 09.08.2016
With no clear established leader, the global market for district heating and cooling (DHC) demonstrates a low concentration in its competitive landscape, reports Transparency Market Research (TMR). Local players exhibit a monopoly over their respective regional markets as these heating and cooling systems are mostly traded at the local municipality or the district level. Currently, these players cater to a number of industries and applications.

As this market is highly susceptible to changes in terms of technology and the scale of projects, players are recommended to keep updating themselves with the latest technologies in order to meet the requirements of consumers.

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Benefits Offered by DHC Systems to Boost Installations

“With overall energy sales of more than 6,300,000 TJ, leading to a revenue of over US$132 bn in 2014, the global district heating sector is growing rapidly,” an analyst at TMR states. Similarly, cooling systems are also witnessing a significant rise in their sales. As district heating and cooling systems help reduce the overall cost of the boiler (including other expenditures such as installing and staffing), fuel boiler’s efficiency, and are environment-friendly, they have proved to be much more beneficial than that of standalone boilers. The growing awareness regarding these benefits offered by DHC systems has added considerably to their sales in the recent times and will continue to do so over the forthcoming years, states TMR.

The flexibility in heat generation offered by these systems, depending upon the load profile and the condition of the utility grid, is expected to increase their adoption across the world in the near future. The Middle East, especially the GCC countries, are also expected to witness a strong rise in the installation of these devices in the years to come due to the increasing need for optimization in the existing methods of air conditioning as well as for more energy efficient technologies.

High Initial Capital Limiting Adoption of DHC Systems

In spite of the convenience offered by DHC systems, a steady adoption rate is not the case with them. The high initial capital required for the construction of utility, pipeline network, and connections has been limiting their installation in the recent times, hampering the market’s growth. However, players are very much positive about the future of this market, owing to the continual advancement of the technologies utilized in these systems.

Strong Project Pipeline in China Aids Sales of Heating and Cooling Systems in Asia Pacific

The government incentives and a strong project pipeline in China enable Asia Pacific to report the highest sales of heating and cooling systems, says TMR. Currently, the region holds a share of more than 50% of the overall heat and cooling sales across the world and is expected to remain the leading regional market for district heating and cooling over the next few years. Between, heating and cooling systems, the former is registering higher sales. Analysts expect this trend to continue in the years to come.

On the whole, the global market’s opportunity is likely to rise at a CAGR of 5.70% between 2015 and 2023 and increase from US$142.6 bn in 2014 to an estimated value of US$229.4 bn by the end of the forecast period.

Key Takeaways

The global district heating sector reports rapid growth with energy sales of over 6,300,000 TJ in 2014
As of 2014, Asia Pacific held more than 50% of the overall sales of DHC
The global DHC market is likely to reach US$229.4 bn by 2023

The global district heating and cooling market is segmented into:

By Technology
District Heating Systems
District Cooling Systems

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Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

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