District heating & cooling market to top $400bn by 2024
DUBAI, September 29, 2018
The district heating and cooling market is poised for solid growth over the next six years with its market size likely to exceed $400 billion by 2024, said a new study by Global Market Insights.
Increasing implementation of regulatory policies pertaining to carbon emissions coupled with growing adoption of sustainable energy technologies will stimulate the district heating & cooling market share, it stated.
The district heating includes CHP, Geothermal, Solar, Heat only Boilers, while the district cooling involves use of free cooling, absorption cooling, heat pumps and electric chillers.
According to the study, commercial district heating and cooling market will witness a growth on account of growing adoption of building codes and standards coupled with the development of combined heating and cooling technologies to provide sustainable energy solution.
In addition, the flourishing service sector across the developed nations along with rising investments toward real-estate industry will encourage the product adoption.
Ongoing expansion of efficient heating infrastructure, innovative energy efficiency solutions and energy management systems will further accelerate the industry growth.
Solar district heating and cooling market was valued at over $4 billion in 2017. Ease of installation, lower operating cost, economic viability and environmental performance are some of the major factors which will propel the technology adoption.
The European Commission, as per its SDH plan aims at deploying and promoting of SDH systems across Italy, Denmark, Germany and Czech Republic. The plan further aims to add a capacity of around 8 GW by 2020, said the study.
Changing climatic conditions on account of accelerating surface temperature range will boost the industry growth.
For instance, the US EPA under its Clean Air Act controls the release of air pollutants including NOx, SO2 and CO2 emissions, it stated.
China district heating and cooling market is set to exceed the consumption of 5,000 PJ by 2024. Rapid economic growth along with large scale deployment of heating & cooling systems will encourage the product adoption, it added.
Escalating urbanization & industrialization on account of rising infrastructure development will influence the industry landscape. In 2016, the World Bank approved a loan of $100 million for the development of sustainable heating infrastructure across the Hebai province, said the study.
Increasing investments toward the development of residential & commercial establishments across the emerging economies along with favorable regulatory policies pertaining to energy efficiency will propel the district heating and cooling market size.
Technological advancement, ease of compatibility with various sources, lower thermal loses, and high operational efficiency are some of the underline parameters which makes its adoption preferable when compared with other conventional technologies, it added.-TradeArabia News Service
