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The global cooling towers market size was USD 2.52 billion in 2018 and is projected to reach USD 3.76 billion by 2026, exhibiting a CAGR of 5.2% during the forecast period.
The increasing demand to remove heat from machinery and process material is resulting in the growth of this market. The rising product adoption across industries including chemical, oil & gas, food & beverages, and power generation is likely to result in the market growth. Furthermore, the surge in construction activities across commercial and residential sector is expected to drive the market. Cooling tower manufacturers are providing tailor made products for the specific customer requirements and this, in turn, is contributing to the rise in market revenue. The technology advancements resulting in high efficiency and lower environmental impact is further expected to drive the product demand.
Moreover, increasing government initiatives in the developing economies is further expected to result increased demand for the product. For instance, the smart cities mission launched by the government of India in 2015 has significantly contributed in the rise in HVAC systems demand which in turn will result in the high product penetration.
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Evolving Environment Friendly Products are Contributing to the Growth of the Market
The increasing shift towards eco-friendly products owing to the growing concerns regarding environment is evolving as one of the trends in the market. Furthermore, the evolving government initiatives are resulting in the development of sustainable products. For instance, in December 2017 new requirements under an amendment by NSW Public Health Regulation 2012 were published to strengthen the law to efficiently manage the cooling water systems so as to prevent the transmission and growth of the Legionella bacteria. Thus, manufacturers are focusing on the development of the eco-friendly products. For instance, SPX Cooling Technology Inc. designed Marley NC Everest Cooling Tower. This product offers improved energy savings up to 35%, reduced piping and electrical connection and lowest drift rate to 0.0005% of circulating water flow.
Increasing Demand for HVAC Systems Owing to the Rise in Construction Activities is Expected to drive the Market
The rapid infrastructure development worldwide is resulting in the increased market demand. The increasing construction activities in developed and developing economies are creating a subsequent demand for heating, ventilation, cooling and refrigeration equipment which in turn is expected to drive the market. Thus, the increasing transport infrastructures such as airports, bridges and ports development is expected to escalated the growth of market. The airports are likely to witness huge expansion programs. For instance, the John F. Kennedy International Airport is adding two international terminal complexes, this project is expected to complete by 2025. The above-mentioned trends in the construction industry are expected to result in a rise demand for HVAC systems which in turn is driving the market.
Tailor-made Cooling Tower for Specific Application is Gaining Popularity in the Industry
The rising demand for high efficiency with enhanced capabilities is resulting in the tailor made solutions. Thus manufacturers are offering custom made solution for to suite the customer’s absolute need. For instance, Flow Tech Air provides tailor-made RE Series Custom Cooling Towers. These towers come with various features such as designed with specific material specification, customized design conditions, and counter-flow design.
Frequent Corrosion Resulting in the Reduced Efficiency, High Maintenance Cost and Low Life Latency is Expected to fuel the Need for Substitutes.
The increased corrosion of these towers remains a real concern among the customers which can impact the growth of the market. The heavy chemicals found in the water supply including the sodium, air, and other components result in the corrosion of the towers. Thus, threatening the efficiency and safety of the equipment. However, the advent of various solutions to prevent the corrosion including improved feed water filtration, closely managing the cooling tower feed chemistry and increased cycle of concentration is expected to increase the product adoption.
Wet Cooling Towers is Expected to Dominate the Market
Based on the type, the market is segmented into wet, dry, and hybrid.
The wet type, also called as open circuit cooling towers, hold the highest market share owing to the increased demand from the industrial processes. It also includes the petroleum refineries, nuclear power plants, chemical facilities and gas processing facilities. This is attributed to advantages of these towers including the ability to cool down process water below dry bulb temperature, cost efficiency, high cooling capacity per unit. However, the water consumption has raised concerns by the government and people are increasing adopting different technology such as dry and hybrid towers. The dry type offers negligible system fouling, process water contamination, and no water loss, which are the major factors that have contributed to the growth of the market over the past years. The hybrid type is expected to be the fastest owing to the various benefits offered by it such as enhanced efficiency, robustness and operational cost-efficiency. The low maintenance requirement of hybrid type is driving the product adoption.
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HVAC is the Fastest Growing Application Owing to its Increasing Adoption in the Construction Sector.
Based on the application, the global market is divided into chemical & petrochemicals, pharmaceutical, power generation, HVAC, food & beverages and others.
Power generation holds the major share of global cooling towers market. This is attributed to the expansion of thermal and nuclear power plants over the past few years. Chemical & petrochemical plants need these towers for the removal of heat from various process and heavy industrial equipment. The pharmaceutical industry is expected to positively contribute to the growth of market owing to the need for cooling treatment high dependency of product integrity on environment control process. For instance, heating and cooling requirements while sterilizations of liquid processes. The increase in residential and commercial construction activities is expected to drive the adoption HVAC system which in turn is likely to contribute to the growth of cooling towers market revenue. The increasing demand for process and frozen food owing to the changing lifestyle preferences of the customers is expected to result in the growth of the market.
Asia Pacific Cooling Towers Market Size, 2018 (USD Billion)
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Geographically, the global cooling tower market is segmented into five major regions, as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
Asia Pacific market holds major share followed by Europe. This is attributed to the increased demand for industrial cooling requirements. The petrochemicals demand is growing in Asia Pacific by 4-5%; thus key players in petrochemicals such as Royal Dutch Shell PLC is building new chemical plants and upgrading refineries. Moreover, the food and beverage industry is growing in the Asia with an increase in demand for the goods including dairy, poultry, confectionery and ready-to-eat products. The demand for energy and power from the developing regions owing to the surge in industrialization and urbanization is resulting in the high product penetration. Government initiatives such as ‘Make in India’ by government of India is promoting the manufacturing industry in India which is further expected to drive the product adoption.
Europe market holds a significant share in the global market owing to the high penetration of products in the industries including pharmaceutical, food & beverage, and power generation. According to various sources, Europe accounts for more than 22% of world pharmaceutical sales and is the second biggest pharmaceuticals market and is expected to significantly contribute to the product demand. The surge in U.S. industries including the chemical, pharmaceutical, and energy sector is contributing to the cooling towers market growth. For instance, in 2018 according to the International Energy Agency in the U.S. energy sector the total investment was more than USD 350 billion. Increasing construction and industrial activities in the Middle East & Africa is expected to positively contribute in the product adoption. The expansion of construction projects such as Dubai World Central known as Al Maktoum International Airport under The Dubai Aviation Engineering Projects completed its terminal expansion in 2018. The industrial expansion in the Mexico is expected to drive the product demand in the Latin America.
Leading Players are Focusing on Developing Cooling Towers with Expanded Capabilities
Key players in the global market such as Delta Cooling Towers is expanding its product capacities. In January 2020, the Delta launched its TM series with expanded single unit capacity up to 2,400 tons. Furthermore, the TM series has various features including seamless double-wall engineered plastic shell, direct drive fan systems, and VFD rated motors.
Players are Developing Next Generation Products Through Advancement in Technologies
The manufacturers are striving for ease of installation and development of product with high efficiency. Thus companies are designing factory assembled cooling towers providing enhanced support to HVAC and industrial process. For instance, Delta's Paragon Induced Draft, is a factory assembled counter flow cooling tower. In addition, the new product and accessories launch is expected to drive the market in the future. Also the key players are performing mergers and acquisition to expand their product lines.
The market report provides detailed information regarding various insights of the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2019 to 2026 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.
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Value (USD billion)
As per Fortune Business Insights, the market was worth USD 2.52 billion in 2018.
The market is expected to reach USD 3.76 billion in the future
The market is projected to grow at a CAGR of 5.2% during the forecast period (2019-2026).
Hybrid towers under the product type criterion is expected to lead the market.
Rise in the HVAC demand from the residential and commercial construction activities is expected to propel the market.
Baltimore Aircoil Company, Paharpur Group, SPX Corporation, Johnson Controls, Thermax Global are the top companies in the market.
Asia Pacific is expected to hold the share of the market.
The power generation application holds the major market share.
The HVAC application holds the highest CAGR in the market.
The increasing adoption of environmental friendly products is emerging as one of the trends in the market
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