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Cooling Towers Market Size, Share & Covid-19 Impact Analysis, By Type (Wet Towers, Dry Towers, and Hybrid Towers), By Application (Chemicals & Petrochemicals, Pharmaceutical, Power Generation, HVAC, Food & Beverages and Others), and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI102747

 

KEY MARKET INSIGHTS

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The global cooling towers market size was USD 3.50 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with these towers witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market will exhibit a huge decline of 2.7% in 2020. It is projected to grow from USD 3.60 billion in 2020 to USD 4.63 billion in 2027 at a CAGR of 3.7% in the 2020-2027 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


The rising construction industry, stringent government regulations, and massive investments to expand the industrial sector are set to propel the global market. Also, technological advancements in cooling towers, heat exchangers, and their components create a potential impact on the product demand. For instance, Delta introduced anti-microbial towers to substantially reduce the risk of harmful cooling tower-borne pathogens, such as legionnaire’s disease. Similarly, in October 2019, drift eliminators were used in these towers so that vapors and mist can escape from them and get rid of unwanted or excess heat in the cooling system.


Disruptions in Supply Chain Ecosystem to Obstruct Growth amid COVID-19 Pandemic     


The impact of COVID-19 is being perceived across the globe and is expected to sustain for a considerable period in the near future. The sudden lockdown imposed by various governmental bodies across countries, including India, China, and others, are creating challenges that are further impacting organizations of all sizes. According to the estimates of the International Labour Organization (ILO), approximately 25 million jobs are under the threat of the COVID-19 pandemic.


Moreover, the UN Department of Economic and Social Affairs (DESA) stated that the global economy would possibly shrink up to 1% in 2020 in accordance with the previously forecasted growth of 2.5%. These factors represent a weaker global economy, owing to the COVID-19 outbreak. Further, major suppliers acknowledged that the revenue generation and working of their businesses require in-person contact to complete the sales and installation process. Also, the delivery of the modern locatable towers system and conducting training in some cases was a challenging factor for vendors owing to the disruption in the supply chain ecosystem, as well as the widespread shutdown of industries, commercial spaces, and others.


LATEST TRENDS


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Evolvement of Environment-friendly Products is a Prominent Trend


The increasing shift towards eco-friendly products owing to the growing concerns regarding the environment is evolving as one of the major trends in the market. Also, the changing government initiatives are resulting in the development of sustainable products. For instance, in December 2018, new requirements under an amendment by the NSW Public Health Regulation 2012 were published to strengthen the law to efficiently manage cooling water systems to prevent the transmission and growth of the Legionella bacteria. Therefore, manufacturers are focusing on the development of eco-friendly products.


For instance, in May 2019, SPX Cooling Technology Inc. designed the Marley NC Everest cooling tower. The product offers enhanced energy savings, i.e., ~35%. It also has less piping and electric connection along with the lowest drift rate of circulating the water flow. Besides, the new design of these towers consists of antimicrobial properties in resins. This aids in reducing and even eliminating the threat of outbreaks of diseases such as Legionnaires disease, often originating from cooling towers.


DRIVING FACTORS


Emergence of Advanced Technologies in Cooling Towers and Rising Construction Activities to Bolster Growth


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 rising transport infrastructures such as airports, bridges, and ports development is 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 complete by 2025. The above-mentioned trends in the construction industry are expected to result in high demand for HVAC systems, which is further responsible for driving the cooling towers market growth.


Besides, the emergence of new technology in cooling, such as crossflow designs of cooling towers, allows an adjustable flow of operation, which has reduced the water flow rate & energy consumption during cool months. Hence, it ensures that the energy is only consumed for cooling when the facility needs it, thereby maximizing productivity. Also, crossflow design shields cold water basins from direct sun exposure, thus reducing evaporation and algae growth, which can compromise the tower’s performance and increase maintenance. 


RESTRAINING FACTORS


Frequent Corrosion Resulting in Reduced Efficiency and High Maintenance Cost May Hinder Growth


The increased corrosion of these towers remains a real concern among customers, which can impact the market's growth. Heavy chemicals found in the water supply, including sodium, air, and other components, resulting in the corrosion of these towers, thus, threatening the efficiency and safety of the equipment. In addition to that, the high cost associated with installation, repairs, and timely maintenance is a major factor restraining the demand for these towers.


Apart from this, the availability of various substitutes such as geothermal cooling technology is set to hinder the product demand. The geothermal cooling method provides improved energy effectiveness and also eliminates the drawbacks of cooling towers. Some of them are high water consumption, public health risk, size of the towers, and others. With water conservation and other factors, the U.S. could save a minimum of 2 trillion gallons of water per year by converting traditional towers to the geothermal cooling technology.


SEGMENTATION


By Type Analysis


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Wet Towers Segment to Show High Growth Backed by Upgradation of Existing Technologies


Based on the type, the market is segmented into wet towers, dry towers, and hybrid towers.


The wet towers segment is forecast to grow at a higher rate in the upcoming years owing to their characteristics to perform reliable operations in hot ambient conditions. Also, their ability to cool vast volumes of water and high cooling capacity per unit across manufacturing industries is likely to drive this segment in the near future. Besides, the focus of major manufacturers to upgrade the existing wet cooler technology is a vital factor augmenting the product demand. For instance, in October 2020, Sumitomo Drive Technologies introduced the new Hansen M5CT industrial gearbox, ideally for wet cooling towers and air-cooled condenser ACC. This gearbox is designed and built in accordance with the specifications of the Cooling Technology Institute (CTI). Also, this would significantly reduce maintenance costs and has the ability to withstand corrosive and extremely humid environments.


Following wet towers, the dry and hybrid towers segments are anticipated to show moderate growth in the upcoming years. This is mainly due to their low operating and maintenance costs. Also, their flexibility to work in any climatic conditions is likely to drive growth.


By Application Analysis


HVAC Segment to Hold the Highest Share Fueled by Rising Industrialization across Developed Economies


Based on the application, the market is segmented into chemicals & petrochemicals, pharmaceuticals, power generation, HVAC, and others.


The HVAC segment holds a major share in the cooling towers market owing to the rising industrialization across major countries, mainly in the United States, China, Germany, the United Kingdom, and others. Further, the installation of such towers in HVAC industries reduces energy consumption, delivers ease of operation, cost-effective maintenance, and great performance.


Following HVAC, the penetration of these towers across chemicals & petrochemicals, power generation, and pharmaceutical industries are likely to be moderate with the rising government initiatives to reduce energy consumption, deliver optimum efficiency, and lower environmental pollution. Besides, the rising infrastructure development and construction of nuclear plants and manufacturing plants across developed and developing economies are further creating a potential impact on the market.


REGIONAL INSIGHTS


North America Cooling Towers Market Size, 2019 (USD Billion)

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Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East, and Africa, and Latin America. They are further categorized into countries.


North America is anticipated to emerge dominant in the global market during the forecast period. This dominance is attributable to the stringent government regulations related to water consumption, hazardous environmental emissions released from towers, and rising infrastructure development. Also, the presence of major manufacturers and rapid adoption of advanced technologies across this geography is a crucial factor driving the market growth.


Following North America, Asia Pacific is anticipated to grow significantly in the forecast period owing to the presence of authorized and unauthorized local players operating under this business segment. Also, countries such as China, Japan, and India wherein the penetration of these towers is upscaling backed by the rising industrialization and infrastructure development. Also, the construction of nuclear and power generation plants, stringent emissions, and water consumption norms are together creating a potential impact on the cooling towers market.


The adoption of towers is anticipated to grow significantly in the Middle East and Africa in the future, mainly due to the rising number of oil & gas and power generation plants. Also, massive investments by regulatory bodies to construct smart manufacturing facilities are set to augment the product demand.


Following the Middle East and Africa, Europe and Latin America are forecast to grow at a steady rate owing to the less adoption of these towers in European countries, majorly due to cool climatic conditions. Also, several manufacturers are wide-spreading their geographical reach by setting up manufacturing plants and distribution centers in emerging economies, such as Brazil and Argentina, to cater to the unattended market. It is further expected to fuel the market growth in Latin America.


KEY INDUSTRY PLAYERS


Key Players to Focus on Introducing Advanced Cooling Towers Technology to Intensify Competition


Prominent players are focusing on introducing modular cooling tower designs to increase customer efficiency in an increasingly decentralized and digitalized energy market. For instance, in December 2018, Aggreko launched a mobile, modular cooling tower to reduce customer energy costs and save space on industrial sites. Besides, major vendors are building product awareness by participating in exhibitions and placing advertisements of cooling towers in various magazines, websites, newspapers, and others, to enhance the product's demand.


LIST OF KEY COMPANIES PROFILED IN THIS REPORT:



  • Krones AG (Germany)

  • SPX CORPORATION (United States)

  • Babcock & Wilcox Enterprises, Inc. (United States)

  • EWK (Spain)

  • Kelvion Holding GmbH (Germany)

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

  • MITA Cooling Technologies Srl (Italy)

  • Johnson Controls (Ireland)

  • Paharpur Cooling Towers Ltd (India)

  • Baltimore Aircoil Company (United States)

  • EVAPCO, Inc. (United States)


KEY INDUSTRY DEVELOPMENTS:



  • October 2020 EWK has installed eight towers at Alicante Airport in Spain. These installed towers are equipped with the ‘Smart Cooling Tower’ technology that offers automatic detection and provides information on the tower's working.

  • November 2020 – Linde GmbH has selected HAMON & CIE (INTERNATIONAL) S.A. to design and install an 18-cell cooling tower for Amur Gas Chemical Complex (Amur CGG) Russia. The required cooling tower will be made from fiberglass-reinforced plastic (FRP) and have an automatic louver system for continuous operation in extremely low temperatures.


REPORT COVERAGE


An Infographic Representation of Cooling Towers Market

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The market research report provides an in-depth analysis of the market dynamics and competitive landscape. It also offers various key insights, including recent industry developments in the cooling towers market, such as mergers & acquisitions, macro, and microeconomic factors, SWOT analysis, and company profiles.


Reports Scope & Segmentation














































  ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD billion)



Segmentation



  Type, Application, Geography



By Type




  • Wet Towers

  • Dry Towers

  • Hybrid Towers



By Application




  • Chemicals & Petrochemicals

  • Pharmaceutical

  • Power Generation

  • HVAC

  • Food & Beverages

  • Others (Pulp & Paper, Plastic, etc.)



By Geography




  • North America

  • Europe   

  • Asia Pacific

  • The Middle East and Africa

  • Latin America



Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 3.50 billion in 2019 and is projected to reach USD 4.63 billion by 2027.

In 2019, the North America market value stood at USD 1.51 billion.

The market is projected to grow at a CAGR of 3.7% during the forecast period (2020-2027).

Within the type, the wet towers segment is expected to lead the market during the forecast period.

Rising construction activities and the emergence of advanced technologies in the HVAC system are key factors driving the market.

Krones AG, SPX Corporation, and EWK are the top companies operating in the global market.

Following North America, Asia Pacific is expected to hold a substantial CAGR in the market.

The evolution of environment-friendly products is one of the key trends in the market.

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Cooling Towers Market Size, Share and Global Industry Trend Forecast till 2026
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