주거 지역 난방 시장 규모, 점유율, 성장 및 세계 산업 분석 : 유형별, 용도별, 지역별 인사이트 및 예측(2024-2032년)

Growth Factors of residential district heating Market

The global residential district heating market continues to expand steadily as governments and utility operators emphasize low-carbon heating, energy efficiency, and urban infrastructure modernization. According to the latest market assessment, the global residential district heating market size reached USD 101.61 billion in 2024. The market is projected to increase to USD 104.32 billion in 2025 and is forecasted to reach USD 150.62 billion by 2032, registering a stable CAGR of 5.39% during the forecast period. In 2024, Europe dominated the global market with a significant 77.3% share, driven by strong government incentives and advanced adoption of integrated, sustainable heating systems.

Residential district heating systems function by distributing thermal energy from a central plant through insulated pipelines to deliver space heating and hot water to multiple residential structures, including apartments and housing complexes. The system is gaining traction due to its ability to reduce greenhouse gas emissions, improve overall energy efficiency, and minimize the cost per household. Leading market participants such as Danfoss play a vital role in system optimization, smart substation technology, and efficiency enhancement, allowing district networks to meet rising heat demand while managing energy consumption effectively.

Market Drivers

Government policies remain one of the strongest market drivers. Several countries have implemented strict directives promoting the shift toward clean energy and low-carbon heating systems. In Europe, policies such as the EU Energy Efficiency Directive and the European Green Deal emphasize carbon neutrality and encourage the adoption of district heating infrastructure. Incentives for modernizing pipelines, integrating renewables, and upgrading central heating plants are accelerating installations in new and existing residential areas. As cities aim to reduce localized air pollution and energy waste, district heating has become a critical part of long-term decarbonization strategies.

Market Restraints

Despite the strong outlook, the residential district heating market faces challenges associated with high upfront installation and development costs. Central heating plants, extensive underground pipeline networks, and advanced metering systems require substantial capital investment. Retrofitting existing buildings-especially older infrastructure-also demands significant structural modifications. Many older buildings lack compatibility with modern district heating configurations, making deployment time-consuming and expensive. These factors slow the adoption rate in regions with aging construction stock or limited budgets.

Market Opportunities

Growing urbanization offers one of the most promising opportunities for the market. The increasing population in urban centers, rising housing development projects, and the demand for reliable heating solutions support accelerated market growth. Countries such as Germany and France are aligning residential development plans with district heating to reduce carbon emissions, improve energy efficiency, and lower annual heating expenses for consumers. As smart cities expand, district heating networks are being integrated with digital monitoring tools, renewable heat sources, and automated control systems, further improving performance.

Key Market Trends

A major trend shaping the market is the integration of renewable energy sources into district heating infrastructure. Biomass, geothermal heat, solar thermal panels, and waste heat recovery systems are increasingly used to replace fossil-fuel-based heating. Waste heat captured from data centers, wastewater treatment plants, and industrial facilities is being repurposed for residential heating. Additionally, smart grids, heat pumps, and digitalization enhance operational flexibility and reduce carbon footprints across networks.

Segmentation Analysis

By Heat Source

The renewables segment is projected to dominate due to rising adoption of biomass, geothermal heat, and waste heat systems. Coal remains widely used in some regions because of low cost, but its share is declining because of stringent environmental regulations.

By Plant Type

Combined Heat & Power (CHP) plants are expected to grow the fastest, as they generate both electricity and heat using one fuel source. Boiler plants continue to serve densely populated regions requiring flexible and cost-effective heat generation.

Regional Outlook

Europe leads the global market with a strong regulatory framework and established networks, recording USD 78.55 billion in 2024. North America is expanding due to decarbonization goals and the need for efficient heating systems in urban centers. Asia Pacific, led by China and South Korea, is rapidly developing district heating infrastructure as part of smart city programs. The Rest of the World is increasingly adopting district heating for energy-efficiency and sustainability goals.

Competitive Landscape

Key companies include Danfoss, Veolia, Engie, Fortum, Vattenfall, ALFA LAVAL, Statkraft, GE Vernova, DALL ENERGY, and SHINRYO CORPORATION. Recent developments include major waste-heat recovery projects by NTT Data, Equinix, Google, and U.K. government-supported district heating expansions.

Segmentation By Heat Source

• Coal
• Natural Gas
• Renewable
• Oil & Petroleum Products
• Others

By Plant Type

• Boiler
• CHP
• Others

By Geography

• North America (By Heat Source, Plant Type, and Country)
  • U.S.
  • Canada
• Europe (By Heat Source, Plant Type, and Country)
  • Germany
  • Finland
  • Czech Republic
  • Switzerland
  • Slovakia
  • Poland
  • Denmark
  • Romania
  • France
  • U.K.
  • Netherlands
  • Russia
  • Rest of Europe
• Asia Pacific (By Heat Source, Plant Type, and Country)
  • China
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Rest of the World (By Heat Source, Plant Type, and Country)

Table of Content

1. Introduction

• 1.1. Research Scope
• 1.2. Market Segmentation
• 1.3. Research Methodology
• 1.4. Definitions & Assumptions

2. Executive Summary

3. Market Dynamics

• 3.1. Market Drivers
• 3.2. Market Restraints
• 3.3. Market Opportunities

4. Key Insights

• 4.1. Key Emerging Trends - For Major Countries
• 4.2. Latest Technological Advancement
• 4.3. Insight on Regolatory Landscape
• 4.4. Porters Five Forces Analysis
• 4.5. Impact of Tariffs on the Global Residential District Heating Market

5. Global Residential District Heating Market (USD Billion, & GWth) Analysis, Insights, and Forecast, 2019-2032

• 5.1. Key Findings
• 5.2. Market Analysis, Insights, and Forecast - By Heat Source
  • 5.2.1. Coal
  • 5.2.2. Natural Gas
  • 5.2.3. Renewable
  • 5.2.4. Oil & Petroleum Products
  • 5.2.5. Others
• 5.3. Market Analysis, Insights, and Forecast - By Plant Type
  • 5.3.1. Boiler
  • 5.3.2. CHP
  • 5.3.3. Others
• 5.4. Market Analysis, Insights, and Forecast - By Region
  • 5.4.1. North America
  • 5.4.2. Europe
  • 5.4.3. Asia Pacific
  • 5.4.4. Rest of World

6. North America Residential District Heating Market (USD Billion, & GWth) Analysis, Insights, and Forecast, 2019-2032

• 6.1. Key Findings
• 6.2. Market Analysis, Insights, and Forecast - By Heat Source
  • 6.2.1. Coal
  • 6.2.2. Natural Gas
  • 6.2.3. Renewable
  • 6.2.4. Oil & Petroleum Products
  • 6.2.5. Others
• 6.3. Market Analysis, Insights, and Forecast - By Plant Type
  • 6.3.1. Boiler
  • 6.3.2. CHP
  • 6.3.3. Others
• 6.4. Market Analysis, Insights, and Forecast - By Country
  • 6.4.1. U.S.
  • 6.4.2. Canada

7. Europe Residential District Heating Market (USD Billion, & GWth) Analysis, Insights, and Forecast, 2019-2032

• 7.1. Key Findings
• 7.2. Market Analysis, Insights, and Forecast - By Heat Source
  • 7.2.1. Coal
  • 7.2.2. Natural Gas
  • 7.2.3. Renewable
  • 7.2.4. Oil & Petroleum Products
  • 7.2.5. Others
• 7.3. Market Analysis, Insights, and Forecast - By Plant Type
  • 7.3.1. Boiler
  • 7.3.2. CHP
  • 7.3.3. Others
• 7.4. Market Analysis, Insights, and Forecast - By Country
  • 7.4.1. Germany
  • 7.4.2. Finland
  • 7.4.3. Czech Republic
  • 7.4.4. Switzerland
  • 7.4.5. Slovakia
  • 7.4.6. Poland
  • 7.4.7. Denmark
  • 7.4.8. Romania
  • 7.4.9. France
  • 7.4.10. UK
  • 7.4.11. Netherlands
  • 7.4.12. Russia
  • 7.4.13. Rest of Europe

8. Asia Pacific Residential District Heating Market (USD Billion, & GWth) Analysis, Insights, and Forecast, 2019-2032

• 8.1. Key Findings
• 8.2. Market Analysis, Insights, and Forecast - By Heat Source
  • 8.2.1. Coal
  • 8.2.2. Natural Gas
  • 8.2.3. Renewable
  • 8.2.4. Oil & Petroleum Products
  • 8.2.5. Others
• 8.3. Market Analysis, Insights, and Forecast - By Plant Type
  • 8.3.1. Boiler
  • 8.3.2. CHP
  • 8.3.3. Others
• 8.4. Market Analysis, Insights, and Forecast - By Country
  • 8.4.1. China
  • 8.4.2. Japan
  • 8.4.3. Australia
  • 8.4.4. South Korea
  • 8.4.5. Rest of Asia Pacific

9. Rest of the World Residential District Heating Market (USD Billion, & GWth) Analysis, Insights, and Forecast, 2019-2032

• 9.1. Key Findings
• 9.2. Market Analysis, Insights, and Forecast - By Heat Source
  • 9.2.1. Coal
  • 9.2.2. Natural Gas
  • 9.2.3. Renewable
  • 9.2.4. Oil & Petroleum Products
  • 9.2.5. Others
• 9.3. Market Analysis, Insights, and Forecast - By Plant Type
  • 9.3.1. Boiler
  • 9.3.2. CHP
  • 9.3.3. Others

10. Competitive Analysis

• 10.1. Company Market Share Analysis, 2024
• 10.2. Company Profile
  • 10.2.1. Danfoss
    • 10.2.1.1. Business Overview
    • 10.2.1.2. Function and Service Offerings
    • 10.2.1.3. Recent Developments
    • 10.2.1.4. Financials (Based on Availability)
  • 10.2.2. DALL ENERGY
    • 10.2.2.1. Business Overview
    • 10.2.2.2. Function and Service Offerings
    • 10.2.2.3. Recent Developments
    • 10.2.2.4. Financials (Based on Availability)
  • 10.2.3. Veolia
    • 10.2.3.1. Business Overview
    • 10.2.3.2. Function and Service Offerings
    • 10.2.3.3. Recent Developments
    • 10.2.3.4. Financials (Based on Availability)
  • 10.2.4. ALFA LAVAL
    • 10.2.4.1. Business Overview
    • 10.2.4.2. Function and Service Offerings
    • 10.2.4.3. Recent Developments
    • 10.2.4.4. Financials (Based on Availability)
  • 10.2.5. Engie
    • 10.2.5.1. Business Overview
    • 10.2.5.2. Function and Service Offerings
    • 10.2.5.3. Recent Developments
    • 10.2.5.4. Financials (Based on Availability)
  • 10.2.6. GE Vernova
    • 10.2.6.1. Business Overview
    • 10.2.6.2. Function and Service Offerings
    • 10.2.6.3. Recent Developments
    • 10.2.6.4. Financials (Based on Availability)
  • 10.2.7. Fortum
    • 10.2.7.1. Business Overview
    • 10.2.7.2. Function and Service Offerings
    • 10.2.7.3. Recent Developments
    • 10.2.7.4. Financials (Based on Availability)
  • 10.2.8. Vattenfall
    • 10.2.8.1. Business Overview
    • 10.2.8.2. Function and Service Offerings
    • 10.2.8.3. Recent Developments
    • 10.2.8.4. Financials (Based on Availability)
  • 10.2.9. Statkraft
    • 10.2.9.1. Business Overview
    • 10.2.9.2. Function and Service Offerings
    • 10.2.9.3. Recent Developments
    • 10.2.9.4. Financials (Based on Availability)
  • 10.2.10. SHINRYO CORPORATION
    • 10.2.10.1. Business Overview
    • 10.2.10.2. Function and Service Offerings
    • 10.2.10.3. Recent Developments
    • 10.2.10.4. Financials (Based on Availability)