Albany, New York, Oct. 11, 2018 (GLOBE NEWSWIRE) -- The global district heating and cooling (DHC) market is expected to register healthy growth in the forthcoming years, as reported by Transparency Market Research (TMR). The vendor landscape of the global market comprises of a low number of component suppliers. The market features no big players, and most enterprises operate at regional levels. Due to this, companies have formed a close bond with consumer, and due to their proximity, these companies function at very low operational costs. However, with the development and changes due to emergence of novel technologies, the market dynamics is likely to change in the forthcoming years. Presently, DHC systems are owned by state-owned bodies. Thus, garnering funding and government support is expected to establish a pivotal role in impacting the operational efficiency of a DHC project.

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Some of the prominent vendors participating in the global district heating and cooling market are ADC Energy Systems LLC, Emirates Central Cooling Systems Corporation (EMPOWER), Shinryo Corporation, KELAG Wärme GmbH, Tekla Corporation, and Ramboll Group A/S.

According to TMR analysts, the global market for direct heating and cooling systems is projected to rise at a 5.8% CAGR in terms of energy sales volumes over the forecast period of 2016 and 2024. In terms of revenue, the market is prognosticated to rise a 6.2% CAGR over the same period. 

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Soaring Demand for Sustainable Energy Solutions to Drive Growth

As the demand for sustainable generation of energy is moving towards becoming the need of the hour, efficient solutions for heating and cooling are coming to the forefront. In Europe, nearly 50% of the total energy consumed each year is utilized for the generation of heat for domestic or industrial both industrial and domestic applications. Recently, the International Energy Agency reported co-generation and district heating as 'an essential part of strategies for greenhouse gas emissions mitigation and energy security'. Thus, lately, as co-generation (combined heat and power or CHP) technologies enable the simultaneous generation of heat and electricity, there is an increased energy efficiency as part of the heat is recovered during the generation of electricity and put to use.

The swift uptake of these technologies for maintaining ecological balance by more and more countries, both developing and developed, is expected to serve as a key factor propelling the district heating and cooling market in the years to come.

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Cost Efficiency of Solution to Boost Market Opportunity

According to research, the adoption of district wide heating and cooling solutions may result in a substantial cost drop in the costs incurred on boilers and staffing. The solution also leads to improved efficiency of the boilers. Adoption of district heating and cooling systems has also reportedly reduced fuel consumption in instances where the system has been adopted. Further, use of DHC systems scale up quite efficiently, and additionally utilizes reduced operational space. Being easier to manage is another added advantage offered by DHC systems. On account of the following advantages, the uptake of DHC systems is bound to increase, offering lucrative growth opportunity to the vendors.

While some factors such as the steep initial costs, pricey equipment, and longer payback periods may hinder investments form private enterprises in this industry, the overall flexibility of DHC systems may help bolster growth of the market in the forthcoming years. DHC systems can be easily switched between using available sources, in case of sudden variations in heat generation. This is a pivotal factor that could help overcome market restraints and aid the development of the global district heating and cooling market in coming years.

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This review is based on TMR’s report titled, “District Heating and Cooling Market (Consumption Analysis (by Type-District Heating and District Cooling); Generation Analysis (by Component Type - Boilers and Chillers); Distribution Analysis (by Component - Pipes, Pressure Pumps, and Valves)) - Global Industry Analysis, Size, Share, Growth Trends and Forecast 2016 - 2024.”

The market is segmented along the following lines:

Global District Heating and Cooling Market: Consumption Analysis by Technology Type

  • District Heating
  • District Cooling

Global District Heating and Cooling Market: Generation Analysis by Components Type

  • Chillers
  • Boilers

Global District Heating and Cooling Market: Distribution Analysis by Components Type

  • Pipes
  • Pressure Pumps
  • Valves

Global District Heating and Cooling Market: Regional Analysis

  • North America
    • The U.S.
    • Canada
    • Mexico
  • Europe
    • Denmark
    • Germany
    • Sweden
    • Poland
    • Austria
    • France
    • Finland
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Taiwan
  • Rest of World
    • GCC Countries

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