Cooling Tower Market Forecasts to 2028 – Global Analysis By Type (Dry Cooling Tower, Evaporative Cooling Tower and Hybrid Cooling Tower), Material (Wood, Concrete and Other Materials), Design (Natural Draft and Mechanical Draft), Flow Type (Counterflow an

Cooling Tower Market Forecasts to 2028 – Global Analysis By Type (Dry Cooling Tower, Evaporative Cooling Tower and Hybrid Cooling Tower), Material (Wood, Concrete and Other Materials), Design (Natural Draft and Mechanical Draft), Flow Type (Counterflow and Crossflow), Technology (Close Circuit, Open Circuit and Hybrid Circuit), Application, End User and By Geography

According to Stratistics MRC, the Global Cooling Tower Market is accounted for $2.23 billion in 2022 and is expected to reach $3.26 billion by 2028 growing at a CAGR of 6.5% during the forecast period. A cooling tower is a mechanism that rejects waste heat to the environment by lowering the temperature of a stream of coolant, which is effectively a stream of water. These towers can either rely solely on air in the case of drying towers to cool the working liquid to the temperature of the dry bulb and then adjust temperature with radiators, or they can use the evaporation of water to remove process heat and cool the working fluid to approach the wet-bulb air temperature. The most common uses are for refrigerating the circulating water in petrochemical and other chemical industries, oil refineries, control rooms, atomic power plants, and HVAC systems for cooling buildings.

According to the Ministry of Energy India, the country is preparing to add as much as 56 GW of coal-fired generation capacity by 2030 to meet the growing electricity demand. The increase in coal-fired capacity would represent about a 25% jump above the country’s current 204 GW of coal-fueled generation from 285 coal thermal power plants.

Market Dynamics

Driver

Rising HVACR deployments and growth in industrial activities

The demand for cooling towers has increased as a result of rising modernity and urbanisation in emerging nations and moderate growth of the commercial construction industry globally. Increased government investments in this sector are encouraging an increase in HVACR deployments, which is further fueling market expansion. In building HVACR systems, cooling towers are frequently utilised to remove extra heat from chillers. Global demand for HVACR equipment is thus anticipated to grow, particularly in industrial and commercial environments. The usage of HVACR equipment has been promoted by elements like climate change and technical advancements. Thus, these factors are propelling the market growth, over the forecast period.

Restraint

Sluggish market growth in Europe and North America

The cooling tower market in Europe and North America has matured and is currently seeing slow expansion. Although these regions hold a sizable portion of the market, growth over the projected period is anticipated to be less rapid than in the growing regions. An intensified focus on increasing energy efficiency and adhering to environmental standards is anticipated to be a major driver of demand in these regions. In these areas, the demand for cooling tower replacements is anticipated to increase relative to new installations. As a result, the markets in Europe and North America do not have room for new installations, leading to a slower growth rate overall.

Opportunity

Rising demand from nuclear power generation sector

A nuclear reactor's cooling tower is a critical part. The efficiency and power output of a nuclear power plant are significantly impacted by the performance characteristics of a cooling tower. Nuclear power stations typically use cooling towers that use wet or hybrid technology. They are used in a variety of manufacturing processes where process cooling is necessary, including high pressure, high temperature applications. These are used in a variety of nuclear operations, including reheating of moisture separators, closed loop system cooling, and central cooling. Since nuclear energy is one of the most promising future energy sources, it offers a wide range of potential for the cooling towers market.

Threat

Frequent corrosion in system results in reduced efficiency

Corrosion is caused by heavy chemicals moving through the water supply, endangering the usefulness and effectiveness of this cooling tower. Corrosion has two effects on the cooling tower system. Firstly, it causes equipment failure, which increases the cost of installation, repairs, and regular maintenance. The loss of heat transmission also results in a drop in the plant's efficiency. These elements make the expansion of this market difficult.

Covid-19 Impact

Manufacturing businesses have been severely impacted by the COVID-19 outbreak worldwide. Numerous nations have implemented nationwide lockdown as a result of the COVID-19. Due to the lockdown, employees at the production facility are not accessible. Due to a staffing shortage, manufacturing companies are unable to supply goods. In manufacturing facilities, cooling towers are utilised to remove extra heat from the system.

The mechanical draft segment is expected to be the largest during the forecast period

The mechanical draft segment is estimated to have a lucrative growth. Mechanical draft cooling towers, which pull or push air through the tower using powered fans, are the most widely used type of cooling tower for buildings. The two types of mechanical draft towers that are most frequently utilised in the HVAC sector are forced draft and induced draft. The mechanical draft is small in size and inexpensive to produce. Because of this, they are frequently utilised in the HVAC and power generation industries.

The open circuit segment is expected to have the highest CAGR during the forecast period

The open circuit segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the improved cooling, lower process temperatures, and low carbon footprint provided by open-circuit cooling towers. All of these elements contribute to the rising use of open-circuit cooling towers in the refineries, cement, chemicals, commercial and residential real estate, pharmaceutical, and power generation industries. Experimental trials have shown superior cooling, lower process temperatures, and a lesser carbon footprint as the main benefits of open-circuit cooling towers.

Region with highest share

North America is projected to hold the largest market share during the forecast period owing to the rigorous government regulations. The market in the region is benefited by government laws that limit the water consumption for cooling equipment and power producing plants. The substantial presence of well-known businesses in North America, including SPX Corporation, Babcock & Wilcox Enterprises, Inc., and EVAPCO, Inc., is also assisting the market's expansion.

Region with highest CAGR

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to The expanding infrastructure problems in China and India, as well as urbanisation, industrialization, and population increase in these nations, will all have an impact on the worldwide market in this sector. The market expansion for food and beverage items as well as energy-efficient businesses in the APAC region was driven by the region's increasing demand. New power plants were built due to the rising demand for electricity and the growing population, which fuelled the market's expansion.

Key players in the market

Some of the key players profiled in the Cooling Tower Market include ENEXIO, Thermax Limited, Baltimore Aircoil Company Inc., Nihon Spindle Manufacturing CO. LTD., Hamon & CIE, Mita Cooling Technologies SRL., Artech Cooling Towers PVT. LTD., SPX Corporation, United Metal Products, Amcot Cooling Tower Corporation, Johnson Controls, Boldrocchi T.E. SRL, Paharpur Cooling Tower Limited, Evapco, INC., Star Cooling Towers Pvt. Ltd, Tower Thermal PTY. LTD., Babcock & Wilcox Enterprises INC., Bell Cooling Tower, Brentwood Industries, INC. and Thermal Care, Inc.

Key Developments

In July 2021, Baltimore Aircoil Company Inc. acquired Eurocoil Spa (Italy), a prominent European commercial and refrigeration manufacturer. This acquisition has further strengthened its position in the global cooling market.

In December 2020, Hamon acquired ESINDUS (Spain) engaged in the cooling business in the Iberian Peninsula, Mexico, and South America. Hamon & CIE aims to strengthen its geographic presence in Asia, EMEA, and North America through this acquisition.

Types Covered
• Dry Cooling Tower
• Evaporative Cooling Tower
• Hybrid Cooling Tower

Materials Covered
• Wood
• Concrete
• Steel
• Fibre Reinforced Polymers (FRP)
• High-Density Polyethylene (HDPE)
• Other Materials

Designs Covered
• Natural Draft
• Mechanical Draft

Flow Types Covered
• Counterflow
• Crossflow

Technologies Covered
• Close Circuit
• Open Circuit
• Hybrid Circuit

Applications Covered
• Heating, Ventilation, Air Conditioning and Refrigeration (HVACR)
• Induction Melting Steel Furances
• Refrigeration & Chilling plant
• Diesel Engine & Gas Engine
• Renewable Energy Power plant
• Cold Storage
• Oxygen Plants
• Other Applications

End Users Covered
• Food & Beverage
• Petrochemical and Oil & Gas
• Power Generation
• Chemical
• Pharmaceutical
• Paper & Pulp
• Plastics
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements