The global district heating market is projected to be worth USD 262.0 billion by 2030, growing at a CAGR of 5.6%.

The key trend observed in the industry is the utilization of renewable sources of warmness, including heat pumps, bioenergy, geothermal and solar–thermal, and even unused heat from data centers and industries. Currently, the heat produced from renewable sources holds for just 8% of worldwide production.

One prominent trend in the market is the integration of diverse power sources, a strategy that not only incorporates renewable energy but also harnesses residual heat from industrial facilities and data centers to enhance overall power efficiency. This approach is becoming increasingly prevalent in district heating systems, where a broader range of power sources is contributing to more advanced and efficient energy solutions.

Governments worldwide are taking proactive measures to encourage the adoption of district heating systems featuring advanced technologies and reduced carbon emissions. A case in point is the European Commission's approval of a German initiative worth EUR 2.98 billion. This funding aims to promote the use of environmentally friendly district heating systems powered by waste and renewable heat derived from data centers and industrial facilities.

In this plan, the heating systems installed in Germany will utilize a minimum of 75% green power and waste heat; this will be attended by the decarbonization and improvements in the present systems. This move predicts the fixing of approximately 681 MW of maintainable heat generation potential per annum, which will decrease GHG releases by approximately 4 million tonnes per annum.

The low temperature in the majority of the continent for the majority of the year is also one of the reasons that make Europe the largest industry for such systems.

Moreover, numerous novel geothermal district heating units are being built on the continent to use clean power. By the way, the growth of the region’s largest facility was launched at the start of 2022, and it will be partially functioning by 2025.