Solar District Heating Market 2025-2029: Unveiling Growth Developments with the Latest Updates

The Business Research Company

The Business Research Company’s Solar District Heating Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, September 19, 2025 /EINPresswire.com/ -- What Is The Expected Cagr For The Solar District Heating Market Through 2025?
In recent times, the solar district heating market size has experienced significant growth. It is projected to increase from a worth of $3.67 billion in 2024 to approximately $4.15 billion in 2025, displaying a compound annual growth rate (CAGR) of 12.9%. The surge experienced in the historic period is linked to environmental considerations, government motivations, energy security, and community driven actions.

Rapid expansion is predicted in the solar district heating market size over the coming years. It's anticipated to surge to a value of $6.36 billion by 2029, with a compound annual growth rate (CAGR) of 11.3%. Various facets like policy evolutions, economic influences, efforts for climate change reduction, public knowledge, city planning, and amalgamation contribute to the growth in the forecasted period. The period is also marked by major trends such as innovations and research, technological progress, integration of intelligent technologies, hybrid models, modular and extendable designs, along with global collaborations.

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What Are The Driving Factors Impacting The Solar District Heating Market?
The rise in the utilization of sustainable energy sources is contributing significantly to the expansion of the solar district heating market. There is a global emphasis among governments, civilians, and various industries to shift towards sustainable energy usage, in an effort to diminish reliance on traditional energy consumption and augment the use of ecological sources like solar, wind, hydropower, and bioenergy. An increased reliance on sustainable energy is projected to fuel the use of solar district heating systems, which present the most cost-efficient heating solutions to industrial, residential, and commercial consumers, compared to prevailing heating methods. For instance, a report from the National Renewable Energy Laboratory (NREL), a U.S. research institution specializing in the progression of renewable energy and energy efficiency technologies, stated that in April 2023, global photovoltaic (PV) installations achieved 231 gigawatts of direct current (GWdc), amounting to 1.2 terawatts of direct current (TWdc) collectively in 2022. Annual installations are expected to go beyond 300 GW by 2023 and cross the 400 GW mark by 2025. Consequently, the increasing use of sustainable energy is predicted to spur the adoption of solar district heating in the projected time frame.

Which Players Dominate The Solar District Heating Industry Landscape?
Major players in the Solar District Heating include:
• DESMI A/S
• Göteborg Energi AB
• Keppel District Heating and Cooling Services Pte. Ltd.
• Korea District Heating Corporation
• LOGSTOR A/S
• Arcon-Sunmark A/S
• Savosolar Oyj
• Solvis GmbH
• S. O. L. I. D. GmbH
• Sunamp Ltd.

What Are The Future Trends Of The Solar District Heating Market?
The primary trends in the solar district heating market are based on strategic alliances and partnerships. Major players in this market are forming strategic collaborations with technology companies to advance their systems technologically and grow their global business footprint. For example, ENGIE Africa, a natural gas and energy enterprise based in South Africa, formalized a partnership agreement with the Gabon’s Ministry of Energy in May 2022. The aim of this venture is to provide electricity to off-grid households across the nation through the sale and delivery of top-grade solar home system kits.

Global Solar District Heating Market Segmentation By Type, Application, And Region
The solar district heatingmarket covered in this report is segmented –

1) By System: Small System, Large System
2) By Application: Residential, Commercial, Industrial

Subsegments:
1) By Small System: Residential Solar District Heating, Community Solar Heating Systems
2) By Large System: Industrial Solar District Heating, District Heating Networks, Combined Heat and Power (CHP) Systems

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Which Region Holds The Largest Market Share In The Solar District Heating Market?
In 2024, Western Europe led the solar district heating market. Anticipated to be the most rapidly expanding region in this market is Asia-Pacific. This report comprises a market analysis of the following regions: Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

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