Cooling Tower Global Market Insights 2025, Analysis and Forecast to 2030, by Market Participants, Regions, Technology, Application, Product Type

Cooling Tower Market Summary

Introduction
Cooling towers are heat rejection devices that dissipate waste heat from industrial processes, power generation, and HVAC systems into the atmosphere via water evaporation. They are vital in oil and chemical refining, metallurgy, nuclear power, commercial buildings, and data centers, with closed-circuit and open-loop types addressing diverse needs. The market is driven by rising power demand, particularly from data centers and nuclear power, with global data volumes expected to reach yottabyte levels by 2030 and AI computing power surging to 864 ZFLOPS. In China, the “East Data West Computing” initiative boosts data center growth, while nuclear capacity reached 113.13 GW by 2024. In the US, AI infrastructure investments like the “Stargate” project (USD 500 billion by 2030) and nuclear revival plans underscore demand. The global cooling tower market is estimated at USD 1.5-2.5 billion in 2025, with a projected CAGR of 4.0%-7.0% from 2025 to 2030, reflecting robust industrial and tech-driven growth.

Market Size and Growth Forecast
Valued at USD 1.5-2.5 billion in 2025, the cooling tower market is expected to grow at a CAGR of 4.0%-7.0% through 2030. This growth is fueled by data center expansion, nuclear power resurgence, and industrial needs, balanced by regional variations and efficiency challenges.

Regional Analysis
Asia Pacific: Growth is estimated at 5.0%-7.5%, with China leading due to data centers and nuclear projects. India follows, with trends in industrial cooling.
North America: The market grows at 4.0%-6.5%, with the US driven by AI and nuclear investments.
Europe: Growth is projected at 3.0%-5.0%, with France and the UK focusing on nuclear and commercial cooling.
Rest of the World: Growth is 4.0%-6.0%, with Brazil notable for industrial applications.
Application Analysis
Oil and Chemical Refining: Growing at 3.5%-5.5%, this segment supports process cooling, with trends in efficiency.
Metallurgy: With a growth rate of 3.0%-5.0%, it aids metal processing, driven by industrial output.
Nuclear Power & Electricity: Growing at 5.0%-7.5%, it’s fueled by nuclear revival, with trends in capacity expansion.
Public & Commercial Buildings: Growth is 3.0%-5.0%, supporting HVAC, with trends in green buildings.
Data Centers: Growing at 6.0%-8.0%, it’s driven by AI and cloud computing, with rapid expansion trends.
Others: Including agriculture, this grows at 2.5%-4.5%, with niche demand.

Type Analysis
Closed Circuit Cooling Tower: Growing at 4.5%-6.5%, it offers water savings, with trends in sustainable cooling.
Open Loop Cooling Tower: With a growth rate of 3.5%-6.0%, it’s cost-effective, trending in large-scale applications.

Key Market Players
SPX: In the US, SPX provides durable cooling towers for industrial and power use.
Baltimore Aircoil Company (BAC): In the US, BAC focuses on efficient cooling solutions.
Evapco: In the US, Evapco targets diverse applications with innovative designs.
Nihon Spindle Manufacturing Co. Ltd.: In Japan, it serves industrial cooling needs.
LiangChi: In China, it provides cost-effective towers for regional markets.
Jiangsu Seagull Cooling Tower Co. Ltd.: In China, it focuses on industrial and power applications.
Shanghai Baofeng Machinery Manufacturing Co. Ltd.: In China, it caters to local cooling demands.
Guangdong Laxun Technology: In China, it targets commercial and industrial uses.
Hunan Yuanheng Technology: In China, it offers scalable cooling solutions.

Porter’s Five Forces Analysis
Threat of New Entrants: Moderate, due to capital and technical barriers.
Threat of Substitutes: Moderate, with alternative cooling systems competing, but towers’ scalability sustains demand.
Bargaining Power of Buyers: Moderate, with large clients negotiating, but specialized needs limit leverage.
Bargaining Power of Suppliers: Moderate, with component supply concentration.
Industry Rivalry: High, driven by innovation and cost competition.

Market Opportunities and Challenges
Opportunities
Data center boom from AI and cloud computing drives demand.
Nuclear power resurgence globally boosts cooling needs.
Industrial growth in Asia Pacific offers expansion potential.

Challenges
High water usage raises environmental concerns.
Competition from dry cooling systems pressures market share.
Regulatory shifts toward sustainability increase compliance costs.