"Catapult Your Business to Fore, Gain Competitive Advantage "
The global cooling towers market size was USD 3.72 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with cooling towers witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 2.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 3.82 billion in 2021 to USD 5.03 billion in 2028 at a CAGR of 4.0% during the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The cooling tower is a heat elimination device that extracts heat to the atmosphere via cooling the water stream to a lower temperature. These devices are designed and manufactured with advantages and limitations across industrial applications, including oil & gas, power generation, HVAC, pharmaceuticals, and others.
The rising construction industry, installation of environmentally friendly products owing to the stringent government regulations, and massive flow of investments to expand the industrial sector are set to propel the global market. Technological advancements in these towers, heat exchangers, and their components are creating a potential impact on the demand. For instance, Delta Cooling Towers, Inc. introduced anti-microbial towers to substantially reduce the risk of harmful tower-borne pathogens, such as legionnaires’ 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.
COVID-19 Outbreak Dramatically Slashed the Industrial Sector
The impact of the COVID-19 outbreak 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 has possibly shrunk 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.
Request a Free sample to learn more about this report.
Evolvement of Environment Friendly Products is a Prominent Trend
The increasing shift towards eco-friendly products, owing to the growing environmental concerns, is evolving as one of the major trends in the global market. The changing governmental 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 in order to prevent the transmission and growth of the Legionella bacteria. Therefore, manufacturers are focusing on the development of eco-friendly products.
In accordance, the new design 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 these towers.
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 (HVAC) equipment that is driving the cooling towers market growth. Additionally, the emergence of new technology in cooling, such as crossflow designs allow an adjustable flow of operation, which has reduced the water flow rate & energy consumption during cool months. It ensures that the energy is only consumed for cooling when the facility needs it, thereby maximizing productivity. Moreover, 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.
Frequent Corrosion Resulting in Reduced Efficiency May Hinder Growth
The increased corrosion of these towers remains a real concern among customers that are impacting the growth of the market. Thick chemicals found in the water supply results in corrosion thus, threatening the efficiency and safety of the equipment. Additionally, the high cost associated with installation, repairs, and timely maintenance is a major factor that hinders market growth.
To know how our report can help streamline your business, Speak to Analyst
Upgradation of Existing Technologies to Boost Wet Towers Segment
Based on the type, the market is segmented into wet towers, dry cooling towers, and hybrid towers.
The wet towers segment is forecast to grow at a higher rate, owing to its ability to perform reliable operations in hot ambient conditions. Additionally, 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 demand for these towers.
The dry and hybrid tower segments are anticipated to show moderate growth in the upcoming years. This is mainly attributed to their low operating and maintenance costs. In addition, their flexibility to work in any climatic conditions is likely to drive growth.
HVAC Segment to Hold the Highest Cooling Towers Market Share Fueled by Rising Industrialization across Countries
Based on the application, the market is segmented into chemicals & petrochemicals, pharmaceutical, power generation, HVAC, food & beverage, and others.
The HVAC segment holds the major share attributed 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.
North America Cooling Towers Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The market is segmented across regions, namely, North America, Europe, Asia Pacific, the Middle East, and Africa, and Latin America. They are further categorized into countries.
North America is in the best position to lead the 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 the rapid adoption of advanced technologies across this geography is a crucial factor driving the key market growth.
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. Additionally, the penetration of these towers in countries such as China, Japan, and India is upscaling, backed by the rising industrialization and infrastructure development. Moreover, the construction of nuclear and power generation plants, stringent emissions, and water consumption norms are together creating a potential impact on the market.
India to Experience Highest CAGR as Governmental Bodies are Heavily Investing in Smart City Mission
India is emerging as one of the leading countries across the Asia Pacific. Governmental bodies are offering foreign direct investment (FDI) schemes that benefit manufacturers. The smart cities mission launched by the Government of India in June 2015 has significantly contributed to the rise in the demand for HVAC systems, which, in turn, will result in high product penetration. Owing to this, manufacturers, such as Babcock & Wilcox Enterprises, Inc., Paharpur Cooling Towers Ltd., Johnson Controls, and others, are emphasizing manufacturing and product availability across heating, ventilation, and cooling (HVAC) systems.
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.
To know how our report can help streamline your business, Speak to Analyst
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 Players to Focus on Introducing Advanced Technologies to Intensify Competition
Key players are focusing on introducing modular designs to increase customer efficiency in an increasingly decentralized and digitized 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. Additionally, market participants are participating in exhibitions and placing advertisements in various magazines, websites, newspapers, and others, in order to enhance the demand for the product.
SPX Corporation Emphasizing on Various Marketing Strategies to Strengthen its Product Portfolio
SPX Corporation is emphasizing providing innovative towers across the refrigeration, process cooling, industrial, and HVAC markets. For instance, in February 2020, SPX Cooling Technologies, Inc. introduced ‘Marley BasinGard Filter’ for the existing and new factory-assembled crossflow cooling towers. It maintains the hot water basin flow by capturing pipe rust, mineral scale, debris, and fibers. Additionally, the company is heavily focusing on reconstructing the older towers by replacing the heat transfer media that eventually increases the structural integrity and cooling capacity.
An Infographic Representation of Cooling Towers Market
To get information on various segments, share your queries with us
The global cooling towers market report provides detailed insights into the market. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market, current trends, and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2021 to 2028 to provide the financial competency of the market. The information gathered in this report has been taken from several primary and secondary sources.
2017 – 2028
2021 – 2028
2017 – 2019
Value (USD Billion)
Type, Application and Region
Fortune Business Insights says that the market value stood at USD 3.72 billion in 2020.
In 2028, the market is expected to reach USD 5.03 billion.
The market is estimated to grow at a CAGR of 4.0% during the forecast period (2021-2028).
The wet cooling towers segment is expected to lead the market.
Technological advancements to adjust the operation flow is driving the global market.
SPX Corporation, Babcock & Wilcox Enterprises, Inc., and Krones AG are the top companies in the market
Asia-Pacific is expected to hold the highest CAGR in this market
The installation of eco-friendly products is a key trend in the market.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry