Solar District Heating Market will be valued at $7bn by 2025

Depleting climatic conditions on account of global warming along with the introduction of green buildings will support market penetration over the years

Solar, District heating

Solar district heating market share is slated to witness remarkable growth prospects in the forthcoming years owing to stringent regulations set by the government to adopt sustainable energy forms in order to control carbon emission levels.

Depleting climatic conditions on account of global warming along with the introduction of green buildings will support market penetration over the years.

In 2019, the U.S. Environmental Protection Agency (EPA) launched Affordable Clean Energy (ACE) rule that aimed at reducing the levels of greenhouse gas emissions.

Rise in disposable income among people across developing nations such as China, India, Japan, Singapore, and Korea have steered construction of commercial and residential spaces. Additionally, increasing foreign investment in the region has accelerated the prevalence of industries thereby spurring the demand for electricity.

However, with the rising cost of electricity along with adequate awareness among the people regarding the use of sustainable sources of energy will boost the need for a robust solar district heating system.

As per statistics furnished by United Nations, 55% of the global population is comprising of urban populace and is likely to increase to 68% by the end of 2050.

According to reports, U.S. solar district heating industry size is estimated to showcase growth of more than 6% over 2019-2025.

Surging investments towards the construction of residential and commercial infrastructures such as hotels, residential complexes, data centers, and manufacturing units coupled with concerns regarding the control of carbon emission will support the product demand over the years.

Growing prevalence of green buildings in the region along with strict standards and codes to be followed in order to reduce the rate of carbon emission will intensify SDH requirements. Moreover, the region is witnessing extensive demand for reliable, continuous, cost-effective and sustainable forms of heating mechanisms due to occasional weather changes. Constant efforts to bolster heating facilities across communities will bolster solar district heating market outlook.

Stimulated government support to carry out research and innovations in heating techniques has given rise to large-scale adoption of solar district heating. Accelerated penetration of DH systems in tier II and III cities will support the demand for small-scale systems.

These units’ capacity range between 3-10 KWth. Furthermore, this mechanism renders renewable thermal facilities to single and multi-family houses, commercial buildings and small and medium industries.

Due to the rise in investment towards the adoption of sustainable forms of energy sources, there has been an escalation in technological advancements pertaining to product design and development for lowering thermal losses and enhancing energy efficiencies.

Proliferating adoption of solar thermal power across several districts and communities due to environmental benefits and cost-effectiveness will magnify the industry landscape. 

Residential solar district heating market size is predicted to amass USD 3 billion in revenues over the forecasted period. Rapid construction of single-family houses and apartments along with stringent norms and mandates set by the government to reduce carbon emission levels has supported the residential sector across the globe.

The industry is also fueled by the rapid urbanization in the emerging economies due to the rise in purchasing power among people.

Key players comprising SDH industry's competitive dynamics include Aalborg, Goteberg Energi, STEAG, Korea Strict Heating and Arcon-Sunmark, among various others.


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