Product Code: PM3146
The global district heating market size is expected to reach USD 327.20 billion by 2034, according to a new study by Polaris Market Research. The report "District Heating Market Size, Share, Trends, Industry Analysis Report: By Energy Source (Renewable Energy, Fossil Fuels, and Waste Heat), Application, Technology, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Market Forecast, 2025-2034" gives a detailed insight into current market dynamics and provides analysis on future market growth.
District heating (DH), also known as community heating, is a centralized system that distributes heat generated in a specific location to residential, commercial, and industrial buildings through an insulated pipeline network. This system plays a crucial role in reducing carbon emissions, enhancing energy efficiency, and integrating renewable energy sources, making it highly important in sustainable urban development. The district heating market is growing due to increasing demand for energy-efficient heating solutions, growing urbanization, and a shift toward cleaner energy systems.
The primary heat sources for district heating systems include combined heat and power (CHP) plants, waste-to-energy facilities, geothermal energy, biomass, and surplus heat from industrial processes. Advancements in technology, such as the integration of smart grid systems and IoT-enabled monitoring tools, have enhanced the operational efficiency of district heating networks, reducing energy losses and improving reliability, thereby contributing to their high adoption.
The increasing focus on decarbonization and stringent government regulations aimed at reducing greenhouse gas (GHG) emissions is driving the district heating market demand. District heating systems are becoming integral to urban energy strategies as countries focus to meet their climate targets under frameworks such as the Paris Agreement. European countries have been at the forefront of adopting district heating solutions, supported by favorable policies, subsidies, and investments in renewable energy infrastructure. Countries such as Denmark, Sweden, and Finland have established advanced district heating networks powered by renewable energy sources.
District Heating Market Report Highlights
In terms of energy source, the renewable energy segment is expected to grow at a rapid pace during the forecast period owing to the stringent environmental regulations and a global commitment to reduce greenhouse gas emissions.
Based on application, the residential segment accounted for a major district heating market share in 2024 due to rapid urbanization worldwide.
In the global market Europe accounted for major market share in 2024 due to the strong government policies promoting sustainability, coupled with a well-developed infrastructure.
Asia Pacific is projected to experience the fastest growth during the forecast period, driven by rapid industrialization in countries such as China, India, and South Korea.
Some of the global key market players are Alfa Level, Dall Energy, Danfoss Group, ENGIE, Fortum, FVB Energy Inc., GE, Helen, Ramboll, Statkraft, Uniper, Vattenfall, and Veolia.
Polaris Market Research has segmented the district heating market report based on energy source, application, technology, and region:
By Energy Source Outlook (Revenue - USD Billion, 2020-2034)
- Renewable Energy
- Fossil Fuels
- Waste Heat
By Application Outlook (Revenue - USD Billion, 2020-2034)
- Residential
- Commercial
- Industrial
By Technology Outlook (Revenue - USD Billion, 2020-2034)
- Conventional District Heating
- Smart District Heating
By Regional Outlook (Revenue - USD Billion, 2020-2034)
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Table of Contents
1. Introduction
- 1.1. Report Description
- 1.1.1. Objectives of the Study
- 1.1.2. Market Scope
- 1.1.3. Assumptions
- 1.2. Stakeholders
2. Executive Summary
3. Research Methodology
- 3.1. Overview
- 3.2. Data Source
- 3.2.1. Primary Source
- 3.2.2. Secondary Source
4. Global District Heating Market Insights
- 4.1. District Heating Market - Market Snapshot
- 4.2. District Heating Market Dynamics
- 4.2.1. Drivers and Opportunities
- 4.2.1.1. Increasing Urbanization Worldwide
- 4.2.1.2. Technological Advancements in Heating Systems
- 4.2.2. Restraints and Challenges
- 4.3. Porter's Five Forces Analysis
- 4.3.1. Bargaining Power of Suppliers (Moderate)
- 4.3.2. Threats of New Entrants: (Low)
- 4.3.3. Bargaining Power of Buyers (Moderate)
- 4.3.4. Threat of Substitute (Moderate)
- 4.3.5. Rivalry among existing firms (High)
- 4.4. PESTEL Analysis
- 4.5. District Heating Market Trends
- 4.6. Value Chain Analysis
5. Global District Heating Market, by Energy Source
- 5.1. Key Findings
- 5.2. Introduction
- 5.2.1. Global District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 5.3. Renewable Energy
- 5.3.1. Global District Heating Market, by Renewable Energy, by Region, 2020-2034 (USD Billion)
- 5.4. Fossil Fuels
- 5.4.1. Global District Heating Market, by Fossil Fuels, by Region, 2020-2034 (USD Billion)
- 5.5. Waste Heat
- 5.5.1. Global District Heating Market, by Waste Heat, by Region, 2020-2034 (USD Billion)
6. Global District Heating Market, by Technology
- 6.1. Key Findings
- 6.2. Introduction
- 6.2.1. Global District Heating Market, by Technology, 2020-2034 (USD Billion)
- 6.3. Conventional District Heating
- 6.3.1. Global District Heating Market, by Conventional District Heating, by Region, 2020-2034 (USD Billion)
- 6.4. Smart District Heating
- 6.4.1. Global District Heating Market, by Smart District Heating, by Region, 2020-2034 (USD Billion)
7. Global District Heating Market, by Application
- 7.1. Key Findings
- 7.2. Introduction
- 7.2.1. Global District Heating Market, by Application, 2020-2034 (USD Billion)
- 7.3. Residential
- 7.3.1. Global District Heating Market, by Residential, by Region, 2020-2034 (USD Billion)
- 7.4. Commercial
- 7.4.1. Global District Heating Market, by Commercial, by Region, 2020-2034 (USD Billion)
- 7.5. Industrial
- 7.5.1. Global District Heating Market, by Industrial, by Region, 2020-2034 (USD Billion)
8. Global District Heating Market, by Geography
- 8.1. Key Findings
- 8.2. Introduction
- 8.2.1. District Heating Market Assessment, By Geography, 2020-2034 (USD Billion)
- 8.3. District Heating Market - North America
- 8.3.1. North America: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.3.2. North America: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.3.3. North America: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.3.4. District Heating Market - U.S.
- 8.3.4.1. U.S.: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.3.4.2. U.S.: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.3.4.3. U.S.: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.3.5. District Heating Market - Canada
- 8.3.5.1. Canada: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.3.5.2. Canada: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.3.5.3. Canada: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.4. District Heating Market - Europe
- 8.4.1. Europe: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.4.2. Europe: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.4.3. Europe: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.4.4. District Heating Market - UK
- 8.4.4.1. UK: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.4.4.2. UK: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.4.4.3. UK: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.4.5. District Heating Market - France
- 8.4.5.1. France: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.4.5.2. France: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.4.5.3. France: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.4.6. District Heating Market - Germany
- 8.4.6.1. Germany: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.4.6.2. Germany: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.4.6.3. Germany: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.4.7. District Heating Market - Italy
- 8.4.7.1. Italy: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.4.7.2. Italy: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.4.7.3. Italy: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.4.8. District Heating Market - Spain
- 8.4.8.1. Spain: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.4.8.2. Spain: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.4.8.3. Spain: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.4.9. District Heating Market - Netherlands
- 8.4.9.1. Netherlands: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.4.9.2. Netherlands: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.4.9.3. Netherlands: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.4.10. District Heating Market - Russia
- 8.4.10.1. Russia: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.4.10.2. Russia: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.4.10.3. Russia: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.4.11. District Heating Market - Rest of Europe
- 8.4.11.1. Rest of Europe: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.4.11.2. Rest of Europe: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.4.11.3. Rest of Europe: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.5. District Heating Market - Asia Pacific
- 8.5.1. Asia Pacific: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.5.2. Asia Pacific: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.5.3. Asia Pacific: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.5.4. District Heating Market - China
- 8.5.4.1. China: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.5.4.2. China: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.5.4.3. China: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.5.5. District Heating Market - India
- 8.5.5.1. India: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.5.5.2. India: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.5.5.3. India: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.5.6. District Heating Market - Malaysia
- 8.5.6.1. Malaysia: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.5.6.2. Malaysia: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.5.6.3. Malaysia: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.5.7. District Heating Market - Japan
- 8.5.7.1. Japan: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.5.7.2. Japan: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.5.7.3. Japan: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.5.8. District Heating Market - Indonesia
- 8.5.8.1. Indonesia: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.5.8.2. Indonesia: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.5.8.3. Indonesia: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.5.9. District Heating Market - South Korea
- 8.5.9.1. South Korea: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.5.9.2. South Korea: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.5.9.3. South Korea: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.5.10. District Heating Market - Australia
- 8.5.10.1. Australia: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.5.10.2. Australia: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.5.10.3. Australia: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.5.11. District Heating Market - Rest of Asia Pacific
- 8.5.11.1. Rest of Asia Pacific: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.5.11.2. Rest of Asia Pacific: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.5.11.3. Rest of Asia Pacific: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.6. District Heating Market - Middle East & Africa
- 8.6.1. Middle East & Africa: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.6.2. Middle East & Africa: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.6.3. Middle East & Africa: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.6.4. District Heating Market - Saudi Arabia
- 8.6.4.1. Saudi Arabia: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.6.4.2. Saudi Arabia: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.6.4.3. Saudi Arabia: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.6.5. District Heating Market - UAE
- 8.6.5.1. UAE: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.6.5.2. UAE: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.6.5.3. UAE: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.6.6. District Heating Market - Israel
- 8.6.6.1. Israel: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.6.6.2. Israel: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.6.6.3. Israel: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.6.7. District Heating Market - South Africa
- 8.6.7.1. South Africa: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.6.7.2. South Africa: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.6.7.3. South Africa: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.6.8. District Heating Market - Rest of Middle East & Africa
- 8.6.8.1. Rest of Middle East & Africa: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.6.8.2. Rest of Middle East & Africa: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.6.8.3. Rest of Middle East & Africa: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.7. District Heating Market - Latin America
- 8.7.1. Latin America: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.7.2. Latin America: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.7.3. Latin America: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.7.4. District Heating Market - Mexico
- 8.7.4.1. Mexico: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.7.4.2. Mexico: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.7.4.3. Mexico: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.7.5. District Heating Market - Brazil
- 8.7.5.1. Brazil: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.7.5.2. Brazil: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.7.5.3. Brazil: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.7.6. District Heating Market - Argentina
- 8.7.6.1. Argentina: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.7.6.2. Argentina: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.7.6.3. Argentina: District Heating Market, by Application, 2020-2034 (USD Billion)
- 8.7.7. District Heating Market - Rest of Latin America
- 8.7.7.1. Rest of Latin America: District Heating Market, by Energy Source, 2020-2034 (USD Billion)
- 8.7.7.2. Rest of Latin America: District Heating Market, by Technology, 2020-2034 (USD Billion)
- 8.7.7.3. Rest of Latin America: District Heating Market, by Application, 2020-2034 (USD Billion)
9. Competitive Landscape
- 9.1. Expansion and Acquisition Analysis
- 9.1.1. Expansion
- 9.1.2. Acquisitions
- 9.2. Partnerships/Collaborations/Agreements/Exhibitions
10. Company Profiles
- 10.1. Alfa Level
- 10.1.1. Company Overview
- 10.1.2. Financial Performance
- 10.1.3. Product Benchmarking
- 10.1.4. Recent Development
- 10.2. Dall Energy
- 10.2.1. Company Overview
- 10.2.2. Financial Performance
- 10.2.3. Product Benchmarking
- 10.2.4. Recent Development
- 10.3. Danfoss Group
- 10.3.1. Company Overview
- 10.3.2. Financial Performance
- 10.3.3. Product Benchmarking
- 10.3.4. Recent Development
- 10.4. ENGIE
- 10.4.1. Company Overview
- 10.4.2. Financial Performance
- 10.4.3. Product Benchmarking
- 10.4.4. Recent Development
- 10.5. Fortum
- 10.5.1. Company Overview
- 10.5.2. Financial Performance
- 10.5.3. Product Benchmarking
- 10.5.4. Recent Development
- 10.6. FVB Energy Inc.
- 10.6.1. Company Overview
- 10.6.2. Financial Performance
- 10.6.3. Product Benchmarking
- 10.6.4. Recent Development
- 10.7. GE
- 10.7.1. Company Overview
- 10.7.2. Financial Performance
- 10.7.3. Product Benchmarking
- 10.7.4. Recent Development
- 10.8. Helen
- 10.8.1. Company Overview
- 10.8.2. Financial Performance
- 10.8.3. Product Benchmarking
- 10.8.4. Recent Development
- 10.9. Ramboll
- 10.9.1. Company Overview
- 10.9.2. Financial Performance
- 10.9.3. Product Benchmarking
- 10.9.4. Recent Development
- 10.10. Statkraft
- 10.10.1. Company Overview
- 10.10.2. Financial Performance
- 10.10.3. Product Benchmarking
- 10.10.4. Recent Development
- 10.11. Veolia
- 10.11.1. Company Overview
- 10.11.2. Financial Performance
- 10.11.3. Product Benchmarking
- 10.11.4. Recent Development
- 10.12. Uniper
- 10.12.1. Company Overview
- 10.12.2. Financial Performance
- 10.12.3. Product Benchmarking
- 10.12.4. Recent Development