Geothermal District Heating Market: Introduction
Geothermal district heating utilizes geothermal energy for distributing heat generated in a centralized location through a system of insulated pipes for commercial and residential heating requirements such as water and space heating. It is extensively used in areas with sufficiently high density of population and need for heat during winters.
Currently, more than 5,000 district heating systems are operational in Europe. This includes more than 240 geothermal district heating systems. The size of the geothermal district heating system can vary from 0.5 MWth to 50 MWth.
Key Drivers and Restraints of Global Geothermal District Heating Market
Increase in installation of cost effective and compact size district heating system to meet the demand for hot water and space heating applications in commercial and residential sectors is likely to drive the global geothermal district heating market. Minimal maintenance requirements, high efficiency, and low fuel consumption are some of the key parameters of the geothermal district heating system that are projected to drive its adoption.
Introduction of government initiatives and rise in funding for the construction sector; increase in spending on commercial & residential embodiment; and strong economic growth are expected to augment the global geothermal district heating market during the forecast period
Rise in need to retrofit the existing district heating systems and abundant availability of geothermal resources are anticipated to fuel the global geothermal district heating market during forecast period
Technological innovations in designs of district heating systems to optimize energy efficiency are projected to drive the demand for geothermal district heating during the forecast period. However, high upfront cost and lack of awareness about the benefits of installation of district heating systems are some of the key factors that are likely to hamper the global geothermal district heating market.
Residential Segment to Hold Major Share of Global Market
The global geothermal district heating market can be segmented based on application and region
In terms of application, the global geothermal district heating market can be classified into residential, industrial, and commercial. The residential segment is expected to expand significantly in the near future due to the increase in construction of single and multi-housing units; and growth in per capita income of consumers. The industrial segment is anticipated to expand owing to the introduction of ambitious targets for carbon emission reduction. Increase in demand for revamping and replacement of conventional district heating systems is also projected to boost the market during the forecast period. Geothermal district heating possesses cost saving and low maintenance requirement features. It is also reliable. This is anticipated to propel the adoption of geothermal district heating in the residential sector.
Purchase A Report- https://www.transparencymarketresearch.com/checkout.php?rep_id=74443<ype=S
Europe to Dominate Global Geothermal District Heating Market
In terms of region, the global geothermal district heating market can be divided into North America, Europe, Asia Pacific, and Rest of World
Europe is anticipated to account for major share of the market during the forecast period due to rise in efforts to minimize carbon emissions and reduce dependence on foreign oil supplies by enhancing utilization of renewable technologies such as solar, wind, and geothermal energy in the region. For instance, the European Commission introduced Energy Performance of Building Directive to minimize GHG emissions. As per the directive, all new buildings need to be nearly zero-energy by 2020.
North America is also projected to hold large share of the global market during the forecast period owing to the vast potential of indigenous geothermal resources. Increase in focus to improve air quality and enhance energy security are some of the key factors propelling the demand for geothermal district heating.
The geothermal district heating market in Asia Pacific is estimated to expand at a moderate pace during the forecast period. Rise in construction activities in developed and developing nations, including India and China, is projected to boost the market in the near future. Population migration from rural to urban areas, increase in purchasing power, and rapid urbanization are further likely to augment the market during the forecast period.
The geothermal district heating market in Rest of World is anticipated to expand at a sluggish pace during the forecast period owing to the growth in government mandates to diversify energy mix
Comments