District Heating Market to Reach USD 205.55 Billion by 2029; SWEP Declares Multi-Year Agreement with Kvitebjørn Varme AS to Bolster Business Prospects

The global district heating market size was USD 165.62 billion in 2021. The global market is expected to grow from USD 166.84 billion in 2022 to USD 205.55 billion by 2029 at a CAGR of 3.0% in the 2022-2029 period.

This information is provided by Fortune Business Insights in its report titled, “District Heating Market Size, Share & COVID-19 Impact Analysis, By Heat Source (Coal, Natural Gas, Renewables, Oil & Petroleum Products, and Others), By Plant Type (Boiler, CHP, and Others), By Application (Residential, Commercial, and Industrial), and Regional Forecast, 2022-2029.”

COVID-19 Swayed Numerous Impending Assignments on Heating Networks

Throughout the COVID-19 pandemic, various economies inflicted nationwide restrictions to avoid the further spread of the deadly virus, which disturbed several happenings involving construction, novel infrastructure development, installation of turbines, and others. This led to government organizations and personal firms regarding the construction of heating networks suspending several District Heating (DC) projects. This is due to the unreachability of the workforce to conclude the project in an extraordinarily detailed time along with interruptions in supply chains, owing to travel restrictions across numerous states and economies. 

Veolia Possesses Concession Agreement for Multibillion DC Assignment in Uzbekistan

Veolia was presented with a 30-year concession agreement for the operation, repairing, and management of the DC system of the city of Tashkent, Uzbekistan.

Tashkent is the capital of the Republic of Uzbekistan and also its biggest city, with over 2.5 million residents. It possesses the largest heating network, which provides heat and hot water to around 1.2 million citizens, which is about half of the city’s population. Veolia will be accountable for functioning and preserving the urban heating network and hot water installations, measuring the state of these amenities, recognizing essential investments, funding the program of the functioning assets, and project management.

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Upsurge in the Source of Heat Generation to Bolster Growth  

District heating offers the choice of heat generation utilizing various sources such as coal, renewables, gas, oil & crude product, and substitute available sources. Recent trends observed that renewables and gas to be expansively employed in DC systems as these resources openly enable decreasing gas emissions and serve in accomplishing energy goals.  

However, the setting up of district heating capacity necessitates a preliminary substantial capital investment as installing a secure transmission and distribution lines network can be expensive. Also, the absence of necessary infrastructure and obtainability of other economical options for space heating and water heating may hinder the district heating market growth in the forthcoming years.

Prime Players Engage in Considerable Deals to Make Notable Changes in Market

The players functioning in the market often employ various tactics that will assist the market growth and product demand. One such remarkable stratagem to extend the business prospect is signing multimillion dollar agreements with government bodies and safeguarding a profitable revenue for one’s company.

Notable Industry Development:

• March 2021: SWEP declared that it would involve a multi-year agreement with Kvitebjørn Varme AS. Under the deal, the company will offer Energy Transfer Stations (ETS) to progress the extension of DC from an energy provider located in Norway.

List of Key Players Mentioned in the Report:

• Danfoss Group (Denmark)


• Ramboll (Denmark)


• Dall Energy (Denmark)


• Veolia (France)


• Helen (Finland)


• Alfa Level (Sweden)


• GE (U.S.)


• Statkraft (Norway)


• Uniper (Germany)


• ENGIE (France)


• FVB Energy Inc. (U.S.)

Further Report Findings

In terms of application, the global market is segmented into residential, commercial, and industrial. The residential segment holds the largest market share, owing to the increased requirement for heating networks at residential locations for various uses such as space heating and water heating.

Europe has dominated the district heating market share as the region has low-temperature conditions for most of the year. Europe consists of large industries and power plants from which heat is generated that goes to waste.

Table of Segmentation