NEW YORK, June 21, 2021 /PRNewswire/ -- Technavio identifies the inclination of governments toward renewables in district heating systems as one of the major factors driving the growth of the district heating market. The source of heat generation is currently dominated by fossil fuels. This is making decarbonization a priority to mitigate climate change.
Hence, governments across the world are introducing several mandatory obligations and incentives such as grants, subsidies, and tax benefits to encourage the use of renewable sources for heat generation. This is increasing the use of biomass and other renewable sources in district heating systems, which is positively influencing the market growth.
In 2020, Europe accounted for about 74% of the global market share, and the region is expected to continue its dominance during the forecast period. The increasing number of network installations and high demand for heating requirements from end-users is one of the key factors driving the demand for district heating in the region. Also, the proliferation of smart cities and zero energy buildings are contributing to the growth of the district heating market in Europe.
Similarly, based on the technology, the market generated maximum revenue in the fossil fuels segment in 2020. The growth of the segment can be attributed to the increasing installation of fossil fuel-powered heating systems in countries with abundant resources. In addition, the cost-effectiveness of fossil fuels compared to renewables is supporting the growth of the segment.
Although the district heating market is expected to record a healthy growth during the forecast period, the competition from fuel-cell-based micro-CHP and the lack of standards for district heating might reduce the growth opportunities for market participants. This report on the district heating market will help businesses become better equipped, make informed decisions, and develop effective strategies to improve their market positions.
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