Solar district heating market seen topping $7B by 2030

The solar district heating market is projected to grow 11% a year through 2030 and surpass $7 billion, according to The Business Research Company. Alfa Laval AB led the market in 2025 with a 12% share as Asia Pacific and China emerge as the largest growth centers.

Why it matters: - Solar district heating is becoming a bigger part of the clean-heating transition as cities and utilities look to cut emissions and improve energy efficiency. - The market's projected growth signals rising investment in renewable heat infrastructure, thermal storage and district energy networks.

What happened: - The Business Research Company forecast the global solar district heating market will grow at an 11% CAGR through 2030. - The market is expected to surpass $7 billion by 2030. - Alfa Laval AB held the largest global market share in 2025 at 12%. - The report puts Asia Pacific in the top regional position by 2030, with China as the largest national market.

The details: - Solar district heating is forecast to represent about 3% of the broader solar electricity market by 2030. - The segment is expected to equal roughly 0.1% of the utilities industry by 2030. - Asia Pacific market value is projected to rise to $3.1 billion in 2030 from $1.9 billion in 2025. - China is projected to grow to $1.2 billion in 2030 from $0.7 billion in 2025. - Large systems are expected to hold 59% of the market in 2030, equal to about $4 billion. - The large-system segment includes utility-scale solar thermal plants feeding district heating networks. - The technology mix includes flat-plate collectors, evacuated tube collectors and concentrated solar thermal systems. - Applications span residential, commercial and industrial heating. - Supportive government incentives, subsidies, tax credits, grants and carbon reduction mandates are driving adoption. - Integration of solar thermal systems into existing district heating networks is also boosting growth. - Decarbonization pressure and stricter emission rules are adding momentum. - Large and small system segments are expected to add more than $3 billion in new value from 2025 to 2030. - Large systems are projected to add $2 billion, while small systems add $1 billion. - The market was relatively fragmented in 2025, with the top 10 firms accounting for 27% of revenue. - Other notable 2025 market shares included Korea District Heating Corporation at 5%, Keppel District Heating and Cooling Services Pte. Ltd. at 4%, Aalborg CSP A/S at 3% and Viessmann Werke GmbH & Co. KG at 0.5%.

Between the lines: - The forecast suggests solar district heating is moving from a niche industrial segment into a more established part of municipal energy planning. - The concentration of growth in Asia Pacific and China points to policy support and urban buildout as the main demand drivers. - A fragmented market gives suppliers room to win share, but it also suggests project complexity and infrastructure scale remain barriers. - The Kosovo Energy Corporation project launched in December 2025 shows how large solar thermal systems and seasonal storage are becoming reference projects for the sector.

What's next: - The market's next growth phase will likely depend on more seasonal thermal storage, hybrid solar-and-heat-pump systems and digital energy management tools. - Companies are expected to focus on scalable solar thermal technology, better collector and storage reliability, and broader district heating buildouts. - The report says future upside will come from smarter heat distribution systems that improve reliability and lower costs.

The bottom line: - Solar district heating remains a small slice of the energy market today, but strong policy support and utility-scale projects are pushing it toward mainstream renewable-heating infrastructure.