District Heating and Cooling Market to Expand at 5.7% CAGR to 2023
There are many factors favoring the growth of the global market
PUNE, India — The global district heating and cooling market is forecast to increase from a valuation of $142.6 billion in 2014 to $229.4 billion by 2023, expanding at a compound annual growth rate (CAGR) of 5.7 percent, according to a report published by Transparency Market Research.
There are many factors favoring the growth of the global market for district heating and cooling, including cost savings and good returns on investment, flexibility of generation options, which is effectively mitigating fuel risks and generation costs, and the favorable regulatory framework and incentive mechanisms fueling the adoption of district heating and cooling systems across regional markets. The global market is also expected to benefit significantly from the high rate of installation of systems in the Middle East.
Technological advancements in the field of district heating and cooling systems are expected to result in attractive operating and financing benefits in the market over the report’s forecast period. However, factors such as the high capital costs involved in the construction of heating and cooling plants, connections, and pipeline network could hamper the overall growth of the global market.
The report segments the global district heating and cooling market on the basis of geography into North America, Asia Pacific, Europe, and Rest of the World.
Of these, Asia Pacific led the global market by accounting for a 50 percent share in terms of volume in 2014. The market in the region is gaining impetus from the rising awareness about the benefits of district heating and cooling systems to the environment and overall finances of a town due to the reduction in consumption of electricity and petroleum-based fuels used for traditional heating and cooling. This factor is leading to an increased adoption of district heating and cooling systems in countries like South Korea, Japan, and China.
In 2014, Europe emerged as the second-largest regional market for district heating and cooling systems. District heating systems accounted for a major share of the market in the region. North America accounted for the third-largest share in the global market and the demand for district heating and cooling systems was fueled by the rising concern about environmental pollution and efficient usage of available fuels.
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Publication date: 1/20/2016