District Heating and cooling market to rise due to technological advancements and rise in consumer awareness

Date: 19/08/2015

The present global district heating and cooling (DHC) systems market has evolved rapidly and has attained a lot of demand in the past few years. DHC systems help in the production of steam, hot water, chilled water, and cool and hot air at a central site. After this, it is transferred with the help of underground tubes and pipes to each building in a particular district. This entire process is considered to be quite reliable as well as energy-efficient. DHC technology is known to be a versatile technology, as it is able to utilize a large number of fuel sources. These various fuel sources utilized in DHC systems comprise energy sources that are renewable, namely geothermal, natural, and biomass sources.

DHC systems facilitate cost efficiency and pollution control
By utilizing DHC systems, benefits such as cost efficiency, pollution control, and stability of supply can be achieved. Owing to these advantages related to DHC systems, the overall market for DHC systems is poised to expand in the forthcoming years. Additionally, the rise in consumer awareness and new technological advancements are predicted to stimulate the market for DHC systems. On the other hand, absence of government support and reduced system maintenance may impede the growth of the DHC systems market. On the basis of application, the market for DHC systems is segmented into the commercial, industrial, and residential application segments.

CHP technology utilized by DHC systems for producing steam and hot/chilled water
DHC systems utilize combined heat and power (CHP) or technologies of cogeneration for the production of chilled and hot water, and steam. CHP is the simultaneous heat and electricity production out of a single fuel source. CHP technology is an interlinked and interdependent technology utilized for producing cooling and heating services via the inter-system linkage. The cooling service that is transferred to houses releases waste heat, which is further processed for providing heating services to more homes. This entire interlinked system helps in reducing the cost and usage of additional energy resources. These factors help in limiting the amount of pollutants released into the environment and thus also limit the effect of greenhouse gases.

China DHC systems market surfaces as one of the prime regional markets
On the basis of geography, the global DHC systems market is segmented into Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa, several countries in which have emerged as large markets for DHC systems. There are a large number of installations of DHC systems observed in countries such as Denmark, Sweden, Finland, Russia, and Austria. In Russia alone, over 60,000 DHC systems have been established. In addition, other European countries along with Russia have also emerged as some of the biggest exporters of DHC systems. On the other hand, China is presently considered to be one of the prime markets for DHC systems in the region of Asia Pacific and in the global hierarchy.


FVB Energy Inc., COWI, Helen Ltd., VEKS – Vestegnens Kraftvarmeselskab, NRG Energy Inc., Vital Energi Ltd., Korea District Heating Corporation, and Xylem Inc. are amongst the key players in the global DHC systems market.

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