Unveiling district heating pipeline network market in terms of the regional landscape: Denmark and UK to emerge as promising growth avenues over 2017-2024

With district heating being a precondition for energy saving & CO2 emission reduction, district heating pipeline network market seems to have received significant stimulus in recent times. Combined heat and power (CHP) plants can produce heat that can save more than 50% of fuel used by boilers for heating. Having recognized the same, numerous geographies have been striving to set up myriad such plants to save up energy. In this regard, a country which can be considered a forerunner in the district heating pipeline network industry is Denmark. Denmark has done away with using fossil fuel for its heating purposes and instead of using individual boilers to heat each house, district heating has been largely adopted.

Denmark can be considered a pioneer in district heating pipeline network industry as far as capturing and redistributing heat is considered. This surplus heat from factories, electricity generating stations and public transport networks, in the absence of the district heating network, would have otherwise been wasted. However, the nation has efficiently striven to channel this heat into the district heating network, saving up on energy and costs. Amidst a backdrop of dwindling fossil fuel reserves across Europe and North America, Denmark example certainly proves to be enlightening for the regional district heating pipeline network industry.

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Speaking of Europe, it is prudent to mention that the European Union has been highly optimistic about establishing district heating pipeline networks so as to create a greener continent and eradicate fuel usage. In consequence, Europe district heating pipeline network industry has witnessed quite a revolution in the last couple of decades. For instance, as on 2013, the district heating method has been supplying heat to 63% of Denmark households, leading to the nation becoming a net exporter of fossil fuels.

On the other hand, UK which has been using its fossil fuel reserves in the North Sea for heating purposes is struggling to meet fuel demands, as the North Sea reserves are dwindling. Studies have pointed out that heat being wasted in London can be used to meet 70% of the city’s heating requirement. If the wasted heat is harnessed, CHPs can supply the remaining heating requirements by using the heat generated during electricity production in standard power stations to heat homes as well as commercial spaces.

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With reference to the aforementioned, the British government has undertaken initiatives that will spur the regional district heating pipeline network market. For instance, the Department for Environment and Climate Change (DECC) is trying to popularize district heating and ensure that 20% of British properties will deploy district heating by 2030. The Greater London Authority has set its target to incur 25% of its energy supply from decentralized sources by 2025. UK district heating pipeline network market thus, is poised to register a massive growth rate, with Bristol, Leicester, Sheffield and Nottingham also joining London in investing in district heating pipeline networks. With the lucrative promise of lower energy bills, a greener planet and reduced fuel poverty, the general population is also expressing interest in establishing a well-equipped district heating pipeline network.

Unlike Europe, North America did not face a fuel crisis in the 1970s and fossil fuels had also been abundant and relatively more affordable in the U.S. But with concerns about rising levels of CO2 emissions, district heating pipeline network industry is gaining momentum in the U.S. and greater emphasis is being laid on providing district heating using renewable energy resources. The U.S. already has a well-established district heating pipeline network since the 1880s, however, due to sheer neglect, the network had become an energy wasting monstrosity. With renewed political support from Washington and emphasis for environmental welfare from EPA, U.S. district heating pipeline network industry is set to revive itself and become a multibillion dollar business by 2024.

District heating pipeline network market will continue to garner commendable profits as the demand for heating and energy continue to surge. Since district heating offers a viable option of energy provision for cities while lowering emissions, subsidies and grants are being provided to municipalities, consumers and utility companies to implement the same. An encouraging financial framework is also adding potential to the district heating pipeline network industry as local, state and national policies are being implemented. With the rise in awareness regarding the advantages of this methodology, district heating pipeline network industry is likely to witness extensive gains over 2017-2024.

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