District Heating Market is estimated to be valued at USD 52.33 Bn in 2025 and is expected to reach USD 58.08 Bn by 2032, growing at a compound annual growth rate (CAGR) of 1.5% from 2025 to 2032.
Report Coverage
Report Details
Base Year:
2024
Market Size in 2025:
USD 52.33 Bn
Historical Data for:
2020 To 2024
Forecast Period:
2025 To 2032
Forecast Period 2025 to 2032 CAGR:
1.50%
2032 Value Projection:
USD 58.08 Bn
District heating helps improve energy efficiency, reduce emissions, enable fuel flexibility, simplify building operations and maintenance, reduce costs, serve as critical infrastructure, and create quality jobs. Increase Heat energy is supplied to the building in a usable form, thus customers avoid installing expensive boilers and avoiding operating, maintenance, repair and replacement costs. District heating services simplify building operations, give customers precise control over heating, and provide flexibility to adapt to changing occupant needs or improve building efficiency. A key benefit is that connecting multiple buildings to her single district system creates economies of scale, enabling the deployment of more efficient and resilient local energy resources.
Market Dynamics:
The global demand for energy-efficient heating solutions is on the rise, which is pushing for the adoption of new technologies. Government regulations that are helping adopt district heating systems are positively influencing the market growth as well. Although rapid urbanization across the world is driving the demand and pushing to switch to renewable energy sources for centralized heating and cooling. The district heating systems are more capital intensive as compared to alternatives in the market.
Key features of the study:
This report provides in-depth analysis of the global District Heating market, and provides market size (US$ Billion) and compound annual growth rate (CAGR%) for the forecast period 2025-2032, considering 2024 as the base year
It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends, regional outlook, and competitive strategies adopted by key players
It profiles key players in the global District Heating market based on the following parameters - company highlights, products portfolio, key highlights, financial performance, and strategies
Key companies covered as a part of this study include Vattenfall AB, SP Group, Danfoss Group, Engie, NRG Energy Inc., Statkraft AS, Logstor AS, Shinryo Corporation, Vital Energi Ltd, Goteborg Energi, Alfa Laval AB, Ramboll Group AS, Keppel Corporation Limited, FVB Energy
Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
The global District Heating market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global District Heating market
Detailed Segmentation:
Global District Heating Market, By Plant Type
Boiler Plant
Combined Heat And Power (Chp)
Global District Heating Market, By Heat Source
Coal
Natural Gas
Renewables
Oil And Petroleum Products
Global District Heating Market, By Application
Residential
Commercial and Industrial
Global District Heating Market, By Region
North America
Latin America
Europe
Asia Pacific
Middle East
Africa
Company Profiles
Vattenfall AB
SP Group
Danfoss Group
Engie
NRG Energy Inc.
Statkraft AS
Logstor AS
Shinryo Corporation
Vital Energi Ltd
Goteborg Energi
Alfa Laval AB
Ramboll Group AS
Keppel Corporation Limited
FVB Energy
Table of Contents
1. Research Objectives and Assumptions
Research Objectives
Assumptions
Abbreviations
2. Market Purview
Report Description
Market Definition and Scope
Executive Summary
Market Snapshot, By Plant Type
Market Snapshot, By Heat Source
Market Snapshot, By Application
Market Snapshot, By Region
Coherent Opportunity Map (COM)
3. Market Dynamics, Regulations, and Trends Analysis
Market Dynamics
Augmented demand for energy-efficient and cost-effective heating systems
Rising urbanization and industrialization
High infrastructure cost
Impact Analysis
Key Highlights
Regulatory Scenario
Product launch/Approvals
PEST Analysis
PORTER's Analysis
Merger and Acquisition Scenario
4. Global District Heating Market - Impact of Coronavirus (COVID-19) Pandemic
COVID-19 Epidemiology
Supply Side and Demand Side Analysis
Economic Impact
5. Global District Heating Market, By Plant Type, 2020-2032, (US$ Bn)
Introduction
Market Share Analysis, 2025 and 2032 (%)
Y-o-Y Growth Analysis, 2021 - 2032
Segment Trends
Boiler Plant
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Bn)
Combined Heat and Power (CHP)
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Bn)
6. Global District Heating Market, By Heat Source, 2020-2032, (US$ Bn)
Introduction
Market Share Analysis, 2025 and 2032 (%)
Y-o-Y Growth Analysis, 2021 - 2032
Segment Trends
Coal
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Billion)
Natural Gas
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Billion)
Renewables
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Billion)
Oil and Petroleum Products
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Billion)
7. Global District Heating Market, By Application, 2020-2032, (US$ Bn)
Introduction
Market Share Analysis, 2025 and 2032 (%)
Y-o-Y Growth Analysis, 2021 - 2032
Segment Trends
Residential
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Billion)
Commercial and Industrial
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2020-2032,(US$ Billion)
8. Global District Heating Market, By Region, 2020-2032, (US$ Bn)
Introduction
Market Share Analysis, By Country, 2025 and 2032 (%)
Y-o-Y Growth Analysis, For Country 2021 -2032
Country Trends
North America
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Plant Type, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Heat Source, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By End User, 2020-2032,(US$ Bn)
Europe
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Plant Type, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Heat Source, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By End User, 2020-2032,(US$ Bn)
Asia Pacific
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Plant Type, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Heat Source, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By End User, 2020-2032,(US$ Bn)
Latin America
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Plant Type, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Heat Source, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By End User, 2020-2032,(US$ Bn)
Middle East & Africa
Introduction
Market Size and Forecast, and Y-o-Y Growth, By Plant Type, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By Heat Source, 2020-2032,(US$ Bn)
Market Size and Forecast, and Y-o-Y Growth, By End User, 2020-2032,(US$ Bn)