Press Release

Solar District Heating Market is expected to grow at a CAGR of 9.73%

Global Solar District Heating Market is expected to grow owing to renewable energy targets to shift their energy mix towards sustainable sources by various countries throughout the forecast period.

According to TechSci Research report, “Solar District Heating Market - Global Industry Size, Share, Trends, Opportunity, and Forecast 2019-2029”, the Global Solar District Heating Market is expected to register robust growth during the forecast period. A primary driver for the adoption of solar district heating is the global commitment to reducing carbon emissions and mitigating climate change. Solar thermal energy is a clean and renewable resource, and its integration into district heating systems helps decrease reliance on fossil fuels, leading to a substantial reduction in greenhouse gas emissions.

The increasing global commitment to decarbonize the energy sector presents a significant opportunity for the solar district heating market. Countries and regions aiming to transition to renewable energy sources as part of their climate action plans can leverage solar district heating to replace or complement conventional heating systems, reducing carbon emissions. Solar district heating systems can be integrated into broader renewable energy portfolios. Combining solar thermal energy with other renewable sources, such as wind and geothermal, creates opportunities for hybrid systems that offer reliable, resilient, and sustainable heating solutions.


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Based on system, the Large-scale segment is expected to dominate the market during the forecast period. Large-scale systems often feature centralized infrastructure, consolidating the collection, storage, and distribution components. This centralized approach allows for optimized energy management, easier maintenance, and the ability to serve diverse end-users within a concentrated area. While flat-plate and evacuated tube collectors are common in large-scale systems, technological advancements in these collector types continue to enhance their efficiency and cost-effectiveness for large-scale applications. The large-scale segment is particularly relevant for industrial applications, providing the necessary high-temperature heat for various industrial processes. Industries with significant heat demand, such as manufacturing, food processing, and chemical production, benefit from the reliable and sustainable heat supply offered by large-scale solar district heating. Countries in the Asia-Pacific region, especially China, are witnessing a surge in large-scale solar district heating projects. Rapid urbanization and the need for sustainable heating solutions are driving significant investments in infrastructure to meet the heat demand of growing urban populations. The United States and Canada are also exploring large-scale solar district heating initiatives, with a focus on integrating renewable energy into district heating systems. Urban planning and sustainability goals contribute to the adoption of large-scale solutions in metropolitan areas.

Based on end-user, the Residential segment is projected to dominate the market throughout the forecast period. The prospect of long-term cost savings is a significant driver for residential solar district heating. While the upfront costs may be a consideration, the reduced reliance on conventional energy sources leads to lower operational costs over the system's lifespan, providing an attractive proposition for homeowners seeking energy-efficient solutions. In some regions, community-based solar district heating initiatives are gaining traction. Residential communities, housing cooperatives, or neighborhood associations collaborate to implement shared solar heating systems, making the technology more accessible and cost-effective for individual homeowners. Advancements in thermal storage technologies enhance the efficiency and reliability of residential solar district heating. Improved storage solutions allow homeowners to store excess solar heat for later use, ensuring a continuous and reliable supply of thermal energy, even during periods of low sunlight. In North America, particularly in the United States and Canada, the residential segment is gaining momentum. Government incentives, energy efficiency programs, and a growing interest in sustainable living contribute to the increasing adoption of solar district heating in residential areas. In the Asia-Pacific region, countries like China are witnessing a rise in residential solar district heating projects. Urbanization, coupled with governmental initiatives to promote renewable energy, is driving the adoption of solar thermal systems in residential developments.


Key market players in the Global Solar District Heating Market are:-

  • Aalborg CSP A/S
  • Alfa Laval AB
  • Bosch Thermotechnology Ltd
  • Fortum Corporation
  • Göteborg Energi AB
  • Ramboll Group A/S
  • Savosolar Oyj
  • Soltigua S.r.l
  • Vattenfall AB


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“The Global Solar District Heating Market in Europe is poised to be the dominant force in the industry. Europe stands out as a leading market for solar district heating, with countries like Denmark, Germany, and Sweden taking significant strides in the adoption of solar thermal systems for district heating applications. The European solar district heating market has experienced steady growth, driven by a combination of government support, environmental consciousness, and advancements in technology. The market is expected to continue expanding as more regions within Europe embrace renewable heating solutions.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

“Solar District Heating Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By System (Small-scale and Large-scale), By End-User (Residential, Commercial and Industrial), By Region, and By Competition 2019-2029 has evaluated the future growth potential of Global Solar District Heating Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Solar District Heating Market.


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