Solar District Heating Global Market Report 2024

Solar district heating systems involve thermal collectors that capture solar heat to generate hot water. In this system, the thermal collector captures energy from the sun and transfers it to a thermal transfer fluid. This fluid is then transported to the mechanical room, where the heated water circulates through pipes, transferring heat as a utility to customers, residents, and other users.

There are different types of systems in solar district heating, categorized into small systems and large systems. Small solar heating district systems are those with less than 1000 m2 of solar collector area and less than 1000 m3 of seasonal thermal energy storage volume. Solar district heating systems find widespread applications in residential, commercial, and industrial settings.

The solar district heating market research report is one of a series of new reports that provides solar district heating market statistics, including solar district heating industry global market size, regional shares, competitors with a solar district heating market share, detailed solar district heating market segments, market trends and opportunities, and any further data you may need to thrive in the solar district heating industry. This solar district heating market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The solar district heating market size has grown rapidly in recent years. It will grow from $3.23 billion in 2023 to $3.68 billion in 2024 at a compound annual growth rate (CAGR) of 14.1%. The growth observed in the historical period can be attributed to various factors, including environmental concerns, government incentives, a focus on energy security, and community initiatives. These factors have collectively contributed to the development and adoption of solar district heating systems.

The solar district heating market size is expected to see rapid growth in the next few years. It will grow to $5.79 billion in 2028 at a compound annual growth rate (CAGR) of 12.0%. The anticipated growth in the forecast period can be attributed to several factors, including policy developments, economic considerations, climate change mitigation efforts, increased public awareness, and advancements in urban planning and integration. Key trends expected during this period encompass innovation and research, technological advancements, integration with smart technologies, the adoption of hybrid systems, and the implementation of modular and scalable designs

The solar district heating market is experiencing growth driven by the increasing adoption of sustainable energy. Globally, governments, residents, and industries are emphasizing the shift to sustainable energy sources, such as solar, wind, hydropower, and bioenergy, to reduce reliance on conventional energy and promote cleaner alternatives. The anticipated surge in sustainable energy adoption is expected to drive the utilization of solar district heating systems, providing cost-effective heating solutions for commercial, residential, and industrial users compared to existing heating methods. According to the International Energy Agency (IEA) Renewable Energy Market Update 2021, there is an estimated increase in net renewable capacity additions from 269.9GW in 2021 to 279.6GW in 2022, with solar renewable energy expanding from 145GW in 2021 to 162GW in 2022. This underscores the anticipated growth in the use of solar district heating due to the growing adoption of sustainable energy.

The solar district heating market is also poised for growth due to the rise in urbanization. Urbanization, characterized by population shifts from rural to urban areas, is a driving force behind the increased demand for solar district heating. As cities grow and become more densely populated, there is a need for efficient, sustainable, and centralized energy solutions to meet heating requirements. This trend aims to reduce environmental impacts and energy costs associated with heating densely populated urban areas. For instance, the World Economic Forum reported in April 2022 that over 4.3 billion people, or 55% of the global population, lived in urban settings, with expectations of reaching 80% by 2050. Thus, the solar district heating market is benefitting from the ongoing trend of urbanization.

Strategic collaborations and partnerships emerge as key trends in the solar district heating market. Major players in the market are forming strategic partnerships with technology-based companies to develop advanced systems and expand their global business operations. An example of this trend is ENGIE Africa's collaboration with Gabon's Ministry of Energy in May 2022. The partnership aims to electrify off-grid families by selling and delivering high-quality solar home system kits, showcasing the significance of strategic collaborations in advancing solar district heating solutions.

Major companies operating in the solar district heating market are intensifying their focus on introducing advanced heating systems to gain a competitive advantage. Advanced heating systems in solar district heating involve high-efficiency technologies that harness solar energy for centralized heating. This typically involves the use of solar collectors and thermal storage to provide sustainable and environmentally friendly heat to entire districts or communities. Holtec International's launch of the HI-HEAT District Heater System in July 2022 exemplifies this trend. The system, designed to eliminate global dependence on fossil fuels for heating, offers a clean alternative to traditional heating systems, contributing to sustainability goals.

In March 2023, Solar, a Europe-based company, acquired a 51% stake in ThermoNova A/S, a Denmark-based company specializing in high-capacity heat pumps for heating buildings. This acquisition is expected to accelerate the green transition in both small and large companies, particularly in the industrial sector, by offering energy-efficient heating solutions to replace traditional gas and oil-based systems. ThermoNova A/S's expertise in producing heat pumps aligns with the broader objective of advancing energy-efficient solutions in the solar district heating market.

Major companies operating in the in the solar district heating market report are DESMI A/S, Göteborg Energi AB, Keppel District Heating and Cooling Services Pte. Ltd., Korea District Heating Corporation, LOGSTOR A/S, Arcon-Sunmark A/S, Savosolar Oyj, Solvis GmbH, S. O. L. I. D. GmbH, Sunamp Ltd., WOLF GmbH, Aalborg CSP A/S, Absolicon Solar Collector AB, Institut für Nachhaltige Technologien, BrightSource Energy Inc., CitrinSolar GmbH, Energie Solaire SA, Frenell GmbH, Heliodyne Inc., Industrial Solar GmbH, Sunlumo Technology GmbH, Sunoptimo SA, Suntrix Company Limited, TSK Flagsol Engineering GmbH, TVP Solar SA, Viessmann Werke GmbH & Co. KG, Wagner Solar GmbH, Institute for Sustainable Technologies, KBB Kollektorbau GmbH, Alfa Laval AB

Western Europe was the largest region in the solar district heating market in 2023. Asia-Pacific is expected to be the fastest-growing region in the solar district heating market share during the forecast period. The regions covered in the solar district heating market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the solar district heating market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The solar district heating market includes revenues earned by entities by providing services such as thermal energy storage, district heating system, and seasonal storage with the aid of solar thermal collectors and flat-plate collectors. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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