The Global Cooling Towers Market size is expected to reach $4,585.4 million by 2027, rising at a market growth of 4.4% CAGR during the forecast period.
The cooling tower refers to a heat elimination device that transfers heat to the atmosphere by cooling the water stream to a lower temperature. These devices are developed with benefits and challenges across industrial applications like oil & gas, power generation, pharmaceuticals, HVAC, and others. Factors such as the fast pace of industrialization and growing installation of different kinds of devices for cooling towers to minimize wear & tear are acting as growth catalysts for the cooling tower market. Additionally, industries like manufacturing, HVAC, cold storage, renewable energy power plant, and others are increasingly adopting cooling towers.
Cooling towers find potential applications in power plants, specifically in thermoelectric power plants to eliminate extra heat from the plant. The number of power plants is directly proportional to the global demand for electricity, hence opening new growth avenues for the cooling towers market. In addition, the growth for cooling towers would unlock growth prospects due to the increasing number of construction activities across the residential as well as commercial sectors in emerging nations. Moreover, the market growth is further fueled by the high pace of global industrialization.
The cooling tower market had suffered a drastic downfall due to the global pandemic and the resulting restrictions & disruptions in supply chain and production activities across a multitude of different industries. Many industries and other market verticals that use cooling towers had witnessed a declined demand for cooling towers. The deployment of cooling towers had significantly reduced by the revenue loss of HVAC and the power generation industries in 2020.
The outbreak of the COVID-19 pandemic has negatively impacted the sales of equipment and machinery during the first quarter of 2020 and would cause an adverse impact on the growth of the market during the year. Major manufacturing economies like the US, China, Italy, Germany, and the UK have the maximum demand for equipment and machinery but these countries were hit hard by the global pandemic which had declined the demand for equipment and machinery.
One of the key market trends is the growing transition to eco-friendly products due to the rise in environmental concerns. In addition, the changing scenario of government regulations and norms is leading to creating products that cause minimum harm to the environment. For example, in December 2018, the latest requirements under an amendment by the NSW Public Health Regulation 2012 were introduced in order to support the law to effectively manage cooling water systems to avoid the transmission ad growth of the Legionella bacteria. Hence, manufacturers are striving and working towards developing sustainable products.
The demand for heating, ventilation, cooling, and refrigeration (HVAC) systems is directly proportional to the rise in construction activities in well-established and emerging countries. This eventually creates the demand for cooling towers, thereby helping the market to expand further. The arrival of the latest technologies in cooling like crossflow designs enables the flexible flow of operation and because of this the water flow rate and energy consumption during cool months is significantly reduced.
One of the major concerns among the end-use industries of cooling towers is the issue of corrosion in these towers, which may negatively impact the demand & growth of cooling towers during the forecast period. Water supply often has thick chemicals that could lead to corrosion, hence hampering the efficiency and safety of the equipment. In addition, one of the major obstacles to the growth of the cooling tower market is the massive cost of deployment, repairs, and regular maintenance of the cooling tower.
Based on Type, the Cooling Tower market is segregated into Open-circuit, Closed-circuit, and Hybrid. In 2020, the open-circuit segment procured the maximum revenue share of the cooling tower market. Open-circuit cooling towers have a larger surface area exposed to the atmosphere to boost rapid evaporation and provide a superior cooling effect. These cooling towers provide a high heat rejection capability and hence, are well-suited for cooling large facilities.
Based on Material, the Cooling Tower market is segmented into Fiber Reinforced Plastic (FRP), Steel, Concrete, Wood, and High-Density Polyethylene (HDPE). The high-density polyethylene (HDPE) segment is likely to exhibit a prominent CAGR during the forecast period. HDPE cooling towers are less costly, have high resistance to corrosion, are lightweight, and thus easy to deploy and transport.
Based on Application, the Cooling Tower market is classified into HVAC, Power Generation, Oil & Gas, and Industrial. The power generation segment acquired the maximum revenue share in 2020. The new power plants are being set up around the world in order to fulfill the growing demand for power coupled with rapid industrialization. Cooling towers are crucial in eliminating the excessive heat from power plants, thus creating growth possibilities for cooling towers during the forecast period.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 3.4 Billion |
| Market size forecast in 2027 | USD 4.6 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 4.4% from 2021 to 2027 |
| Number of Pages | 237 |
| Number of Tables | 394 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Material, Type, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
|
| Restraints |
|
Based on Region, the Cooling Tower market is analyzed across North America, Europe, APAC, and LAMEA. In 2020, the APAC emerged as the leading region by obtaining the maximum revenue share in the cooling tower market. Factors such as the rapid rate of industrialization and the surge in the number of manufacturing units are expected to create lucrative growth opportunities for the regional market. The adoption of cooling towers would be driven by the rising number of government initiatives towards building nuclear power plants. Moreover, the growth of the regional market would be further boosted by the thriving IT and telecommunications industry across this region.
Free Valuable Insights: Global Cooling Towers Market size to reach USD 4,585.4 million by 2027
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Baltimore Aircoil Company Inc., ENEXIO Water Technologies GmbH, Hamon & CIE International SA, B&W Spig S.P.A., SPX Corporation, Paharpur Cooling Tower Limited, Brentwood Industries, Inc., Johnson Controls Inc., Engie Refrigeration GmbH, and EVAPCO, Inc.
By Material
By Type
By Application
By Geography
The cooling towers market size is projected to reach USD 4 billion by 2027.
The emerging trend of eco-friendly products are driving the market in coming years, however, Corrosion and scaling may lead to lower deployment of cooling tower have limited the growth of the market.
Baltimore Aircoil Company Inc., ENEXIO Water Technologies GmbH, Hamon & CIE International SA, B&W Spig S.P.A., SPX Corporation, Paharpur Cooling Tower Limited, Brentwood Industries, Inc., Johnson Controls Inc., Engie Refrigeration GmbH, and EVAPCO, Inc.
In 2020, the fiber-reinforced plastic (FRP) segment garnered the maximum revenue share of the cooling tower market.
The HVAC segment is likely to display the fastest growth rate during the forecast period. This is attributed to the growing number of construction activities in residential as well as commercial establishments.
The Asia Pacific market dominated the Global Cooling Towers Market by Region 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $1,690.8 million by 2027.
Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
Unique Offerings 