Global District Heating market growth 2024, Forecast To 2033

The district heating market has grown steadily, increasing from $177.73 billion in 2023 to $185.33 billion in 2024, with a compound annual growth rate (CAGR) of 4.3%. The growth in the historic period is attributed to the increased focus on energy efficiency and sustainability, urbanization, government initiatives for decentralized energy systems, the transition to low-carbon and renewable energy sources, and the rise in consumer demand for reliable and affordable heating solutions. Looking ahead to 2028, the market is projected to see steady growth, reaching $221.92 billion with a CAGR of 4.6%. The anticipated expansion is linked to the integration of heat pumps and thermal storage in district heating, the expansion of renewable district heating networks, the adoption of waste heat recovery technologies, a focus on electrification and integration with smart grids, and investments in the modernization and rehabilitation of district heating infrastructure. Major trends in the forecast period include the integration of low-temperature district heating, smart district heating systems, the utilization of industrial waste heat, hybrid district heating systems, the expansion of fourth-generation district heating (4GDH), and advancements in energy storage and thermal energy batteries.