District heating market to reach $280bn by 2024

New research performed by MarketStudyReport.com indicates significant growth for global district heating projects, reaching an overall market value of $280bn by 2024.

Rising concerns toward greenhouse gas emissions coupled with strong demand for efficient and cost effective systems will drive the District Heating market size, according to the report.

Introduction of emissions reduction target by countries including China, UK, Denmark, Germany, and Russia under their climate action plans will complement the business outlook. Denmark, in its National Energy Policy and National Energy Efficiency Action Plan (NEEAP) has setup a target to completely phase out the usage of oil from heating applications across the building structure by 2035.

Growing industrialization and urbanization with introduction of building standards code towards energy efficiency will further foster the district heating market. As per the World bank, in 2014 over 54% of the world’s population have shifted their base from rural to urban areas and the proportion is anticipated to rise to 66% by 2050.

Germany district heating market size is set to exceed 300 PJ by 2024. Growing investment toward replacement of conventional heat and electricity generating systems with sustainable technologies including CHP and solar thermal will stimulate the business landscape. Regulators are planning to increase CHP electricity generation share from 18% in 2013 to 25% by 2020 through the introduction of incentives on adoption of these technologies.

Economic viability, affordable price, reliable source, high quality service and low carbon footprints are some of the key features that will propel the district heating market share. European Union aim towards zero emission building by 2020, will further complement the industry outlook.

Growing measures toward energy security coupled with rising demand for renewable and cogeneration system will also drive the Japan district heating market size. Government and financial institutions are making significant investments towards the development of gas fired district heating systems to cater their 2030 target of delivering 15% of total power from CHP technology.

Source: Decentralised Energy