Cooling Towers Market Size, Share & COVID-19 Impact Analysis, By Type (Wet, Dry, and Hybrid), By Application (Chemicals & Petrochemicals, Pharmaceutical, Power Generation, HVAC, Food & Beverages, and Others), and Regional Forecast, 2022-2029

The global cooling towers market size was valued at USD 3.82 billion in 2021 and is projected to grow from USD 3.94 billion in 2022 to USD 5.29 billion by 2029, exhibiting a CAGR of 4.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with cooling towers experiencing an average growth than anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 3.8% in 2020 as compared to 2019.

A cooling tower is a device that rejects waste heat to the environment by cooling a stream of coolant, essentially a stream of water, to a lower temperature. These towers can either utilize the evaporation of water to expel process heat and cool the working fluid to approach the wet-bulb air temperature, or within the case of drying towers, depend exclusively on air to cool the working liquid to approach the dry-bulb and later adjust temperature with radiators.

The foremost utilized applications include cooling the circulating water utilized in petrochemical other chemical plants, oil refineries, control stations, atomic control stations, and HVAC frameworks for cooling buildings. The classification is based on the sort of air induction into the tower; the majority of which are normal draft and initiated draft.

COVID-19 IMPACT

Considerable Risk of Increasing Legionella Bacteria & Drop-in Demand Decelerated the Growth During COVID-19 Pandemic

During the lockdown phase, buildings were left unused or unoccupied for an extended time in both HVAC systems & potable water systems and these towers, which created the considerable risk of growing legionella bacteria in these buildings. Therefore, it was important to ensure a safe re-opening of offices and buildings with thorough preventive maintenance of these buildings’ cooling towers.

Furthermore, the oil and gas sector also witnessed a considerable drop in demand as a result of the pandemic. The oil and gas industry was already affected in recent years as a result of the dramatic drop in oil prices that began in mid-2014 and escalated. In 2020, the sector was hit by another setback as COVID-19 broke out. Major refiners were compelled to shut down their operations due to the COVID-19 pandemic and dwindling demand due to lockdowns.

LATEST TRENDS

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Evolving Environment-friendly Products are Contributing to Accelerate the Market

The cumulative change toward eco-friendly products owing to the growing concerns regarding the environment is evolving as one of the trends in the market. Furthermore, the evolving government initiatives are resulting in the development of sustainable products. The manufacturers are focusing on the development of eco-friendly products. For instance, Marley NC Everest Cooling Tower was designed by SPX Cooling Technology Inc. The product offers enhanced energy savings, i.e., ~35%, and also has less piping and electric connection along with the lowest drift rate of circulating water flow.

Furthermore, the transition of towers from metal-clad towers into engineered plastic High-density polyethylene (HDPE) towers provides users with highly resilient towers, requiring low maintenance and fast installation time. Also, the new design of the towers consists of antimicrobial properties in the resins. This aids in reducing and even eliminating the threat of outbreaks of diseases such as Legionnaires’ disease, often originating from the cooling towers. Additionally, these HDPE towers consume less water treatment, thereby improving water conservation, and thus making them an environment-friendly choice. Moreover, HDPE also saves energy owing to Variable-frequency Drive (VFD) motors. Therefore, the aforementioned factors are further contributing to the market growth.

DRIVING FACTORS

New Technology HVAC Systems and Rise in Construction Activities to Propel the Market Growth

The rapid infrastructure development worldwide is resulting in the increased demand for these towers. The aggregate construction activities in advanced and developing economies are creating an ensuing 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 port development are expected to escalate the growth of the market.

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 be completed by 2025. The above-mentioned trends in the construction industry are expected to result in a rising demand for HVAC systems which, in turn, is driving the market. Furthermore, rising demand for high efficiency along with improved capabilities is resulting in towering tailor-made solutions. This results in manufacturers offering a tailored solution to cater to varied customer needs.

RESTRAINING FACTORS

High Maintenance Cost and Frequent Corrosion to Hinder the Market

The augmented corrosion of these towers remains an actual concern among customers, which can impact the growth of the market. The heavy chemicals found in the water supply, including sodium, air, and other components resulted in the corrosion of the towers, threatening the efficiency and safety of the equipment. Besides, the geothermal cooling method provides improved energy effectiveness and also eliminates the drawbacks of these towers. Some of them are high water consumption, public health risk, and size of the towers. With water conservation and other factors, the U.S. in itself could save a minimum of 2 trillion gallons of water per year by converting traditional cooling towers to geothermal. Also, these will benefit in reducing immense CO2 emissions in due course.

SEGMENTATION

By Type Analysis

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Wet Towers to Hold Highest CAGR Owing to Rising Industrial Activities

By type, the market is bifurcated into wet, dry, and hybrid.

The wet segment is expected to have the highest CAGR during the forecast period. Wet towers, also known as open circuit towers, are an important component in industrial units. With the passage of time, renewable technology has grown in acceptance. They employ the evaporation process to cool down the hot gear. Drift emissions are produced, and several drift eliminators are utilized to reduce them.

Whereas, the dry segment tends to have a steady growth. Dry towers do not require water to cool the equipment. The evaporation process meets the cooling requirements. However, the dry cooling tower offers many benefits such as the removal of mist, icing, and fog. The water purification system provides a conclusive resolution to water problems by avoiding its use, thermal pollution, and evaporative losses. The dry cooling tower has a high demand in Heating, Ventilation, Air Conditioning, and Refrigeration (HVACR) systems and food & beverage applications.

Furthermore, hybrid towers are projected to experience a significant increase in popularity due to their ability to avoid visible plumes in cool, humid ambient conditions, and when local constraints require this technology such as at airports and residential areas. These towers have a few or no plume visibility and are relatively cost-effective. Compared to other types of towers, they also perform well.

By Application Analysis

HVAC Industry to Have Significant Growth Due to Rising Government Investments

By application, the market is further divided into chemicals & petrochemicals, pharmaceuticals, power generation, HVAC, food & beverage, and others (pulp & paper, plastic).

The HVAC segment is expected to have major growth in upcoming years. The growth is attributed to increased government investments in this industry that have resulted in an increase in HVACR deployments, which is fueling the market growth. These towers are commonly utilized to remove surplus heat from chillers as part of building HVACR systems. As a result, this market is likely to be driven by rising demand for HVACR equipment in buildings and industrial applications.

In addition, during the forecast period, the pharmaceuticals segment is predicted to increase significantly. The towers are frequently regarded as a vital component in the pharmaceuticals industry operations since their effectiveness is dependent on how effectively and efficiently cooling water is used. Many of the most critical operations in the pharmaceuticals sector create heat, necessitating the need for a suitable cooling system.

Moreover, due to its needs for energy conservation, energy efficiency, and the strengthening of pipelines, machinery, tanks, and boilers, power generation is one of the largest consumers of these towers. The industrial sector consumes the most power, followed by the residential, commercial, and service sectors.

Furthermore, the chemicals & petrochemicals segment is anticipated to have moderate growth. These industries use cooling towers & other equipment to cool the water integral to their operations.

REGIONAL INSIGHTS

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The market report's scope comprises five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

The Asia Pacific market is estimated to witness progressive growth owing to the robust economic progress of the countries, such as China, India, Australia, and certain countries within ASEAN, with cumulative development of the market in Asia Pacific.

In the Asia Pacific region, raw materials and labor are both affordable. Domestic demand is also expanding in the region, making it an appealing investment destination for cooling tower players. The market in this region will be driven by expanding population, urbanization, industrialization, and growing concerns about infrastructure development in China and India.

Furthermore, India is witnessing phenomenal growth in this industry. The massive expenditures in industrial expansion would drive cooling tower growth in the area industry in the country. Moreover, throughout the projected period, the growing demand for energy-efficient systems in the food and beverage industry will enhance the market growth in the country and is expected to increase the global cooling towers market share.

The North American market is expected to have significant growth during the forecast period. The region's strict government policies are expected to fuel market growth. Government policies that limit the water depletion for power generating plants and cooling machinery are favoring the market in the region.  The strong presence of prominent companies, such as SPX CORPORATION, Babcock & Wilcox Enterprises, Inc. & EVAPCO, Inc., in North America are also aiding the growth of the market.

Additionally, the European market is experiencing moderate growth. A key driver for the growth of the market is the rise in demand for energy-efficient cooling systems in commercial as well as industrial applications in the region. Moreover, these types of towers are excellent tools for cooling large commercial spaces and for cooling processes in several industries and industry verticals.

Whereas the Middle East & Africa is witnessing a steady growth of the market. The market is expected to grow due to increased industrialization and a spike in the deployment of various types of cooling tower equipment to reduce wear and tear. Furthermore, high-density polyethylene towers are widely used in a variety of industries, including HVAC, manufacturing, renewable energy generating plants, cold storage, and others.

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Latin America is projected to grow sluggish, owing to less presence of the players in the region. The need for a wet cooling tower will be driven by rapid innovations in HVACR systems as well as continual technical breakthroughs to create cost-effective components, drift eliminators, and PVC fills in the region.

KEY INDUSTRY PLAYERS

Major Players are Focused on Introducing Advanced Technology to Strengthen Competition

Key players are focusing on implementing modular designs to increase customer efficiency in the increasingly decentralized and digital energy markets. Manufacturers are emphasizing expanding the range of products. For instance, Aggreko introduced a mobile modular cooling tower to save space on industrial land and decrease customer’s energy costs. In addition, market participants engage in exhibitions and place advertisements in various magazines, websites, and newspapers to increase the demand for their products.

LIST OF KEY COMPANIES PROFILED:

• Krones AG (Germany)


• SPX CORPORATION (U.S.)


• Babcock & Wilcox Enterprises, Inc. (U.S.)


• EWK (Spain)


• Kelvion Holding GmbH (Germany)


• HAMON & CIE (INTERNATIONAL) S.A. (Belgium)


• MITA Cooling Technologies Srl (Italy)


• JACIR – GOHL (Romania)


• ILMED IMPIANTI SRL (Italy)


• JAEGGI Hybridtechnologie AG (U.S.)


• EVAPCO, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2020 – Linde GmbH picked HAMON & CIE (INTERNATIONAL) S.A. to install & design an 18-cell cooling tower for Amur CGG i.e., Amur Gas Chemical Complex located in Russia. The crucial tower is made of Fiberglass Reinforced Plastic (GRP) and has an automatic louver system for the nonstop process at very low temperatures.


• January 2019 - SPX Cooling Technologies announced the accessibility of several monitoring equipment and control panels, which streamlines cooling tower operation, data collection & installation. Control panels of Marley allow building management systems to appropriately connect cooling tower conditions over visual displays, network communications, and relay status outputs.


• October 2020 – EWK mounted 8 towers in Spain at Alicante Airport. These towers are fortified with "smart cooling tower" technology that provides automatic detection and information about tower operation.


• July 2021 - Baltimore Aircoil Company purchased Eurocoil Spa in Italy, a European refrigeration and commercial manufacturer. This acquisition has boosted the company’s position in the global market.


• December 2020 – ESINDUS, a Spanish company engaged in the cooling business in Mexico, South America, and Iberian Peninsula, was acquired by Hamon. Hamon & CIE focuses on strengthening its regional presence in EMEA, North America, and Asia Pacific.

REPORT COVERAGE

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The global cooling towers market research report provides a detailed analysis of the types, applications, and industries. It provides information about leading companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, and current key market trends, and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation