International. The global district heating and cooling market is projected to increase from a valuation of US$142.6 billion in 2014 to US$229.4 billion in 2023, growing at a compound annual growth rate (CAGR) of 5.7%, according to a report published by Transparency Market Research.
There are many factors favoring the growth of the global market for heating and cooling, including cost savings and a good return on investment, flexibility in generation options, which is effectively mitigating fuel risks and generation costs, and the favorable regulatory framework and incentive mechanisms that fuel the adoption of cooling and district heating systems in regional markets. The global market is expected to benefit significantly from the high rate of system installation in the Middle East.
Technological advancements in the field of district heating and cooling systems are expected to result in attractive operational and financing benefits in the market throughout the forecast period. However, factors such as high capital costs involved in the construction of heating and cooling plants, connections, and pipeline network could hamper the global growth of the global market.
Asia Pacific led the global market with a 50% share in terms of volume in 2014. Europe emerged as the second largest regional market. North America accounted for the third largest share in the global market and the demand for these systems was driven by growing concern about environmental pollution and the efficient use of available fuels.
