PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1635158
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1635158
Solar District Heating Market Assessment, By System [Large System, Small System], By End-user [Residential, Commercial, Industrial], By Region, Opportunities and Forecast, 2018-2032F
Global solar district heating market is projected to witness a CAGR of 8.77% during the forecast period 2025-2032, growing from USD 4.54 billion in 2024 to USD 8.88 billion in 2032. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.
The demand for solar district heating is driven by several factors, including the rapid pace of urbanization as well as environmental, economic, and technological considerations. Solar district heating systems can integrate into existing heating networks, allowing municipalities to leverage abundant solar energy while minimizing reliance on non-renewable energy sources.
Furthermore, governments and regulatory authorities are implementing regulations aimed at reducing carbon emissions, along with providing financial incentives for renewable energy investments. These initiatives are propelling the adoption of solar heating technologies. Incentive programs and rebates from governments across various regions also promote the use of solar technologies, creating significant opportunities for the solar district heating market in the coming years.
For instance, in December 2024, The European Bank for Reconstruction and Development (EBRD) provided a loan of up to USD 108 million to Novosadska Toplana Novi Sad company in Serbia for the construction of a large-scale solar-thermal power plant for decarbonize district heating. The project was co-financed by an investment grant of USD 25 million from the European Union (EU) and other donors through the Western Balkans Investment Framework (WBIF). The plant will feature 38,600 m2 of solar collector fields, an 850,000 m3 seasonal heat storage system, a 17-megawatt (MW) heat pump, a 60 MW electric boiler, and lastly, incorporating advanced power-to-heat technology. This development highlights the investment by the government and higher authorities for the establishment of solar plants that will drive the growth in solar district heating in the coming years.
Rising Investment in Sustainable Heating Solutions Accelerate Market Growth
Rising awareness of climate change and the need to reduce carbon emissions drives the adoption of solar district heating solutions. Solar district heating solutions are considered eco-friendly options that help reduce carbon footprints by harnessing renewable energy. The residential sector is looking to invest in implementing shared solar heating systems that allow homeowners to participate in solar energy generation, thus promoting sustainable development. The residential sector seeks cost-effective centralized heating solutions due to the high demand for hot water in residential premises. Solar district heating systems can provide clean energy to fulfill the heating needs of urban areas.
District heating has gained utmost prominence in Germany. For instance, Germany currently has 4,100 district heating systems with 34,000 km of pipeline which is supplying around 140 TWh of energy and covering 14% of the heat demand in the buildings sector. Germany is rapidly expanding its networks to ensure better profitability and double its annual investments in technology.
As of January 2024, Germany has 55 solar district heating plants with 112 MW in operation. The country seeks to invest in nine more plants with 79 MW capacity in the realization phase and 70 plants with 277 MW in preparation. The investment in Germany for the technology will reach USD 5.1 billion by 2045, supplying energy to the residential sector.
Technological Advancement in Solar Collectors and Energy Storage Solutions Creates Market Opportunities
The upcoming innovation in solar collectors and energy storage solutions enhances the efficiency, reliability, and economic viability of solar district heating systems. The ongoing advancement in flat-plate collectors and evacuated tube collectors allows the system to operate at higher temperatures and improve overall energy output. Furthermore, the tracking systems are installed in the collectors which optimize the angle of solar collectors to maximize sunlight capture throughout the day which increases the productivity of the system.
In addition, the excess energy generated from solar district heating can be stored in energy storage technologies, such as large water tanks or underground storage solutions, which could be distributed at peak energy demand. The capability of systems makes it more economically viable for municipalities and businesses looking to invest in renewable energy infrastructure, thereby creating an opportunity for the solar district heating market in the coming years.
For instance, in November 2024, the report published by the International Energy Agency (IEA) on the Solar Heating and Cooling Programme mentioned that the use of CPC (Compound Parabolic Concentrator) technologies in the evacuated tubes helps improve the efficiency of the collector, which resulted in higher yields. Furthermore, Taylormade Solar Solutions Pvt. Ltd. from India produces evacuated tube collectors according to German quality standards. The company is adopting the weather-proof CPC reflector technology to increase the efficiency of evacuated tube collectors. This development testifies that companies are adopting new technologies to improve the collectors, which help increase the energy production from solar district heating systems.
Large-Scale Systems to Dominate the Market Share
Large-scale systems have the largest market share and dominate the market. Large-scale systems benefit from economies of scale as systems significantly lower the cost per unit of energy produced than smaller installations. The cost-effectiveness of large-scale systems makes it an appealing option for utility operators to invest in the market. The system can fulfill 50% to 80% of a household's hot water needs while reducing reliance on conventional energy sources, which boosts the demand for large-scale systems in the market.
Large-scale systems are adopting upcoming advancements in solar technology that will improve the efficiency and reliability of these systems in the coming years. In addition, innovations in solar collector designs and integration with smart home systems create better opportunities for large-scale systems in the market. Furthermore, forthcoming government policies are implementing regulations to promote the adoption of renewable energy, driving investment in large-scale systems.
Europe Leads the Solar District Heating Market
Europe has dominated the solar district heating market and is expected to reign supreme during the forecast period. The European region has become a leader in global solar district heating due to the presence of major countries such as Denmark, Germany, and Sweden. These countries are heavily investing in the adoption of solar technologies and experiencing significant urbanization and economic growth. In addition, Denmark has successfully implemented solar district heating technology because of its established district heating infrastructure in the country. The government also encourages the utility sector to adopt solar district heating systems which is boosting the market size in the region.
Furthermore, European governments are actively promoting renewable energy through incentives and regulations aimed at reducing carbon emissions, further driving the adoption of solar district heating systems. During recent years, the solar sector in the region has witnessed robust growth owing to the increasing adoption rate of solar technology in the generation of hot water. In addition, countries in the region are proactively focusing on decarbonization and sustainability goals, which further enhances the investment in solar district heating systems.
For instance, as per the International Energy Association and SHC solar heating and cooling program (July 2023), 266 cities and towns in Europe were receiving energy through the solar district heating plant. The region plans to expand and develop new district heating systems to reduce the dependency on fossil fuels. Furthermore, the IEA (International Energy Agency) SHC Task 68: Efficient Solar District Heating (SDH) Systems has developed a specific solar district heating info package for the region. This development highlights that the region is looking to invest in solar district heating plants, which will make the region dominant in the global market.
Future Market Scenario (2025 - 2032F)
Ongoing improvements in the technology and design of solar district heating systems will enhance efficiency, thereby increasing the productivity of hot water generated by these systems.
Environmental concerns are driving the adoption of sustainable technological solutions for energy generation, creating market opportunities.
The residential sector is heavily investing in solar water heater technologies to ensure a reliable hot water supply for household needs.
Supportive government policies and financial incentives for deploying new technologies aimed at sustainability in developing countries will continue to significantly impact the creation of market opportunities for the solar district heating market in the coming years.
Key Players Landscape and Outlook
Continuous innovation characterizes the landscape of solar district heating globally, as the companies compete in terms of energy efficiency, product life, and unique features. The market outlook remains positive, owing to increased demand for renewable energy for heating water and the adoption of innovative solar technologies. Product launches, agreements, business expansions, collaborations, and developing technologies are projected to increase competition in the fast-paced market.
For instance, in September 2024, TVP Solar inaugurated the first utility-scale solar district heating plant in Germany. The plant features 6,086 m2 of advanced TVP MT-Power v4 high-vacuum solar thermal panels, for 4.7 MW generating renewable heat, and 1,000 m3 TES capacity. The system is set to deliver over 3 GWh/year of heat to Germany. This development will help the company to increase renewable energy in the coming years.
Table of Contents
1. Project Scope and Definitions
2. Research Methodology
3. Executive Summary
4. Voice of Customer
- 4.1. Respondent Demographic
- 4.2. Factors Considered in Purchase Decisions
- 4.2.1. Efficiency of Solutions
- 4.2.2. Cost Effectiveness
- 4.2.3. Supply Agreement
- 4.2.4. Overall cost and size of the system
5. Global Solar District Heating Market Outlook, 2018-2032F
- 5.1. Market Size Analysis & Forecast
- 5.1.1. By Value
- 5.2. Market Share Analysis & Forecast
- 5.2.1. By System
- 5.2.1.1. Large System
- 5.2.1.2. Small System
- 5.2.2. By End-user
- 5.2.2.1. Residential
- 5.2.2.2. Commercial
- 5.2.2.3. Industrial
- 5.2.3. By Region
- 5.2.3.1. North America
- 5.2.3.2. Europe
- 5.2.3.3. Asia-Pacific
- 5.2.3.4. South America
- 5.2.3.5. Middle East and Africa
- 5.2.4. By Company Market Share Analysis (Top 5 Companies and Others - By Value, 2024)
- 5.2.1. By System
- 5.3. Market Map Analysis, 2024
- 5.3.1. By System
- 5.3.2. By End-user
- 5.3.3. By Region
6. North America Solar District Heating Market Outlook, 2018-2032F*
- 6.1. Market Size Analysis & Forecast
- 6.1.1. By Value
- 6.2. Market Share Analysis & Forecast
- 6.2.1. By System
- 6.2.1.1. Large System
- 6.2.1.2. Small System
- 6.2.2. By End-user
- 6.2.2.1. Residential
- 6.2.2.2. Commercial
- 6.2.2.3. Industrial
- 6.2.3. By Country Share
- 6.2.3.1. United States
- 6.2.3.2. Canada
- 6.2.3.3. Mexico
- 6.2.1. By System
- 6.3. Country Market Assessment
- 6.3.1. United States Solar District Heating Market Outlook, 2018-2032F*
- 6.3.1.1. Market Size Analysis & Forecast
- 6.3.1.1.1. By Value
- 6.3.1.2. Market Share Analysis & Forecast
- 6.3.1.2.1. By System
- 6.3.1.2.1.1. Large System
- 6.3.1.2.1.2. Small System
- 6.3.1.2.2. By End-user
- 6.3.1.2.2.1. Residential
- 6.3.1.2.2.2. Commercial
- 6.3.1.2.2.3. Industrial
- 6.3.1.2.1. By System
- 6.3.1.1. Market Size Analysis & Forecast
- 6.3.2. Canada
- 6.3.3. Mexico
- 6.3.1. United States Solar District Heating Market Outlook, 2018-2032F*
All segments will be provided for all regions and countries covered
7. Europe Solar District Heating Market Outlook, 2018-2032F
- 7.1. Germany
- 7.2. France
- 7.3. Italy
- 7.4. United Kingdom
- 7.5. Russia
- 7.6. Netherlands
- 7.7. Spain
- 7.8. Turkey
- 7.9. Poland
8. Asia-Pacific Solar District Heating Market Outlook, 2018-2032F
- 8.1. India
- 8.2. China
- 8.3. Japan
- 8.4. Australia
- 8.5. Vietnam
- 8.6. South Korea
- 8.7. Indonesia
- 8.8. Philippines
9. South America Solar District Heating Market Outlook, 2018-2032F
- 9.1. Brazil
- 9.2. Argentina
10. Middle East and Africa Solar District Heating Market Outlook, 2018-2032F
- 10.1. Saudi Arabia
- 10.2. UAE
- 10.3. South Africa
11. Porter's Five Forces Analysis
12. PESTLE Analysis
13. Market Dynamics
- 13.1. Market Drivers
- 13.2. Market Challenges
14. Market Trends and Developments
15. Competitive Landscape
- 15.1. Competition Matrix of Top 5 Market Leaders
- 15.2. SWOT Analysis for Top 5 Players
- 15.3. Key Players Landscape for Top 10 Market Players
- 15.3.1. ENGIE
- 15.3.1.1. Company Details
- 15.3.1.2. Key Management Personnel
- 15.3.1.3. Products and Services
- 15.3.1.4. Financials (As Reported)
- 15.3.1.5. Key Market Focus and Geographical Presence
- 15.3.1.6. Recent Developments/Collaborations/Partnerships/Mergers and Acquisition
- 15.3.2. Alfa Laval Corporate AB
- 15.3.3. LOGSTOR Denmark Holding ApS
- 15.3.4. Absolicon Solar Collector AB
- 15.3.5. Aalborg CSP A/S
- 15.3.6. Keppel DHCS Pte Ltd
- 15.3.7. Statkraft AS
- 15.3.8. Danfoss A/S
- 15.3.9. Meriaura Group
- 15.3.10. TVP Solar
- 15.3.1. ENGIE
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.
16. Strategic Recommendations
17. About Us and Disclaimer
List of Tables
- Table 1. Pricing Analysis of Products from Key Players
- Table 2. Competition Matrix of Top 5 Market Leaders
- Table 3. Mergers & Acquisitions/ Joint Ventures (If Applicable)
- Table 4. About Us - Regions and Countries Where We Have Executed Client Projects
List of Figures
- Figure 1. Global Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 2. Global Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 3. Global Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 4. Global Solar District Heating Market Share (%), By Region, 2018-2032F
- Figure 5. North America Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 6. North America Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 7. North America Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 8. North America Solar District Heating Market Share (%), By Country, 2018-2032F
- Figure 9. United States Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 10. United States Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 11. United States Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 12. Canada Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 13. Canada Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 14. Canada Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 15. Mexico Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 16. Mexico Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 17. Mexico Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 18. Europe Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 19. Europe Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 20. Europe Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 21. Europe Solar District Heating Market Share (%), By Country, 2018-2032F
- Figure 22. Germany Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 23. Germany Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 24. Germany Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 25. France Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 26. France Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 27. France Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 28. Italy Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 29. Italy Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 30. Italy Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 31. United Kingdom Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 32. United Kingdom Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 33. United Kingdom Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 34. Russia Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 35. Russia Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 36. Russia Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 37. Netherlands Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 38. Netherlands Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 39. Netherlands Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 40. Spain Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 41. Spain Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 42. Spain Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 43. Turkey Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 44. Turkey Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 45. Turkey Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 46. Poland Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 47. Poland Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 48. Poland Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 49. South America Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 50. South America Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 51. South America Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 52. South America Solar District Heating Market Share (%), By Country, 2018-2032F
- Figure 53. Brazil Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 54. Brazil Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 55. Brazil Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 56. Argentina Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 57. Argentina Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 58. Argentina Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 59. Asia-Pacific Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 60. Asia-Pacific Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 61. Asia-Pacific Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 62. Asia-Pacific Solar District Heating Market Share (%), By Country, 2018-2032F
- Figure 63. India Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 64. India Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 65. India Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 66. China Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 67. China Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 68. China Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 69. Japan Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 70. Japan Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 71. Japan Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 72. Australia Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 73. Australia Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 74. Australia Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 75. Vietnam Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 76. Vietnam Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 77. Vietnam Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 78. South Korea Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 79. South Korea Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 80. South Korea Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 81. Indonesia Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 82. Indonesia Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 83. Indonesia Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 84. Philippines Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 85. Philippines Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 86. Philippines Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 87. Middle East & Africa Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 88. Middle East & Africa Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 89. Middle East & Africa Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 90. Middle East & Africa Solar District Heating Market Share (%), By Country, 2018-2032F
- Figure 91. Saudi Arabia Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 92. Saudi Arabia Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 93. Saudi Arabia Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 94. UAE Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 95. UAE Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 96. UAE Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 97. South Africa Solar District Heating Market, By Value, In USD Billion, 2018-2032F
- Figure 98. South Africa Solar District Heating Market Share (%), By System, 2018-2032F
- Figure 99. South Africa Solar District Heating Market Share (%), By End-user, 2018-2032F
- Figure 100. By System Map-Market Size (USD Billion) & Growth Rate (%), 2024
- Figure 101. By End-user Map-Market Size (USD Billion) & Growth Rate (%), 2024
- Figure 102. By Region Map-Market Size (USD Billion) & Growth Rate (%), 2024
