CAGR: 4.6%Current Market Size: USD 2.19 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global cooling tower market is expected to grow from USD 2.19 billion in 2022 to USD 3.14 billion by 2030, at a CAGR of 4.6% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising demand from various end-user industries for proper management of the emitted heat.
Cooling towers are used to cool the water circulating in the cooling system, removing unwanted heat from the cooling system into the atmosphere. By cooling a water stream to a lower temperature, a cooling tower is a heat rejection device, which rejects waste heat into the atmosphere. Using cooling towers means conserving water, as it is possible to reuse the water for cooling in the future, and it also prevents water loss through evaporation systems that minimize water loss. Nuclear power plants rely heavily on cooling towers to generate electricity and maintain efficiency. The performance of cooling towers greatly influences the overall output and efficiency of nuclear plants. Nuclear power plants use mostly wet or hybrid technology cooling towers. For high pressure and high temperature applications as well as for numerous industrial processes that require in-process cooling, cooling towers are used in nuclear power plants. Moreover, globalization, rapid industrialization, and rising disposable incomes are all contributing factors to an increase in electricity demand, particularly in developing nations. There is an expectation that the cooling tower market will grow as electric power plants are constructed. Furthermore, Data centers require optimal temperatures to operate the equipment, so cooling towers can be installed to remove the heat generated by the equipment from the data centers.
Sample Request: - Global Cooling Tower Market
Market Dynamics:
Drivers:
Increasing urbanization and modernization in emerging countries, along with reasonable growth in the global commercial construction industry, have increased cooling tower demand. Moreover, increasing government investments in the Heating, Ventilating, and Air Conditioning industry enhance market growth. During the Projection period, the demand for cooling towers is anticipated to remain the same, driving the demand for cooling towers globally.
Restraints:
A water supply containing thick chemicals causes corrosion, which threatens the cooling tower's utility and efficiency. Corrosion has two effects on cooling tower systems: corrosion and decreased efficiency of the plant as a result of heat transfer losses, as a result of which the growth of the market is hampered.
Opportunities:
It is anticipated that technological advances will lead to improvements in cooling capacity, better installation and energy savings, low maintenance costs, etc., which will further propel market growth. Cooling towers enhance the use of energy in cooling systems; however, this efficiency is achieved at the expense of excess water usage over conventional cooling systems, which will continue to drive the cooling tower market's growth.
Challenges:
There is a great deal of water required to maintain cooling towers, which is difficult for small and medium-sized businesses to manage. Moreover, the enormous amount of water results in an excessive amount of expenses, which can impact the budget of a business. Throughout the Projection period, the global cooling towers market's growth is expected to be hindered by a fragmented market. As a result, these factors are expected to limit its growth.
Segmentation Analysis:
The global cooling tower market has been segmented based on type, construction material, end-user, and region.
By Type
The type segment includes hybrid cooling towers, open-circuit cooling towers and closed-circuit cooling towers. The open-circuit cooling towers bearing segment led the largest share of the cooling tower market with a market share of around 45% in 2022. As a result of their large surface area exposed to the atmosphere, open-circuit cooling towers can achieve a more significant cooling effect by facilitating rapid evaporation. With their high heat rejection capability, these cooling towers are ideal for cooling large facilities, but they also have high installation and maintenance costs and energy consumption associated with them.
By Construction Material
The construction material segment includes high-density polyethylene, wood, steel, concrete and others. The high-density polyethylene segment led the largest share of the cooling tower market with a market share of around 29% in 2022. This type of cooling tower is more cost-effective and resistant to corrosion than UHMWPE, because the towers are light in weight and therefore easy to transport and install. As well as being resistant to chloride attacks, HDPE cooling towers are also better at protecting against corrosion and leaks.
By End-User
The end-user segment includes power generation, food & beverages, HVAC, chemical, petrochemicals and oil & gas, and others. The power generation segment led the largest share of the cooling tower market with a market share of around 27% in 2022. This segment holds a high share in the market due to the increased automotive production globally. Additionally, the demand for vehicles that feature technologically advanced solutions is growing, resulting in the increase in vehicle manufacturing that requires instrumented products. With the rise in demand for highly advanced vehicles, and subsequent improvements in the vehicles' capabilities, the automotive industry has experienced an increase in the demand for bearings. Properties of polymer bearing such as high wear & tear resistant, lightweight, corrosion resistant etc. are responsible for the increased demand for polymer bearings in the automotive sector.
Global Cooling Tower Market- Sales Analysis.
The sale of cooling tower expanded at a CAGR of 4.2% from 2016 to 2022.
As a result of the growing global population, there is an increasing need for electricity, which positively influences the market. Additionally, growing infrastructure development activities are increasing the use of heating, ventilation, and air conditioning systems. A combination of this, increased electrification across different industry verticals, and increasing consumer electronics sales is catalyzing cooling tower demand throughout the world.
The market is also being supported by increasing investments by both public and private agencies in the construction of thermal and nuclear power plants in numerous countries. In addition, leading market players are continuously investing in research and development to introduce highly efficient cooling towers.
The demand for this product is expected to increase significantly as the number of construction activities increases in rising countries, both in the commercial and residential sectors. The rapid industrialization of the global market is also expected to negatively impact the growth of the cooling towers market during the Projection period.
Thus, owing to the aforementioned factors, the global cooling tower market is expected to grow at a CAGR of 4.6% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the cooling tower market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the cooling tower market and held a 38% share of the market revenue in 2022.
Global Cooling Tower Market - Country Analysis:
Germany's cooling tower market size was valued at USD 0.16 billion in 2022 and is expected to reach USD 0.23 billion by 2030, at a CAGR of 4.7% from 2023 to 2030.
In terms of turnover, the chemical industry accounts for around 7.5% of the country's manufacturing sector, so its presence will help the market grow since chemical companies are among the primary users of water-cooling towers.
China’s cooling tower market size was valued at USD 0.21 billion in 2022 and is expected to reach USD 0.30 billion by 2030, at a CAGR of 4.9% from 2023 to 2030.
Increasing manufacturing facilities and infrastructure spending in China are expected to boost the cooling tower market in the country in the coming years. Additionally, the growing number of data centers across the country is a primary reason why the market will remain optimistic over the Projection period. The increasing energy demands will also increase the demand for cooling towers.
India's cooling tower market size was valued at USD 0.16 billion in 2022 and is expected to reach USD 0.23 billion by 2030, at a CAGR of 4.8% from 2023 to 2030.
There is strong potential for cooling tower market growth in India because of strict government policies, and also because of government initiatives to reduce water depletion for power plants and cooling machinery.
Key Industry Players Analysis:
To increase their market position in the global cooling tower market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
4.6% |
Market Size |
2.19 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Type, By Construction Material, By End-User, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Perfect, SPX Corporation, Johnson Controls Inc., Paharpur Cooling Tower Ltd., BELL COOLING TOWERS, NALCO India, MESAN Group, Delta Cooling Towers, Cannon Water Technology, International Cooling Towers, Star Cooling Towers, and EVAPCO. |
By Type |
|
By Construction Material |
|
By End-User |
|
Regional scope |
|
Scope of the Report
Global Cooling Tower Market by Type:
Global Cooling Tower Market by Construction Material:
Global Cooling Tower Market by End-User:
Global Cooling Tower Market by Region:
Global cooling tower market is expected to reach USD 3.14 billion by 2030, at a CAGR of 4.6% from 2023 to 2030.
Leading players in the cooling tower market are Perfect, SPX Corporation, Johnson Controls Inc., Paharpur Cooling Tower Ltd., BELL COOLING TOWERS, NALCO India, MESAN Group, Delta Cooling Towers, Cannon Water Technology, International Cooling Towers, Star Cooling Towers, EVAPCO among others.
Rapid industrialization and urbanization and technological advancements.
Asia Pacific region will witness more growth in the cooling tower market.
Political Factors- Both bureaucracy and corruption have a negative impact on the business environment. When operating in countries with high levels of corruption and lax law enforcement, the business environment for the cooling tower market is more unstable because the public's trust in corporate institutions and the larger political and economic system is eroded. Contracts, fraud agreements, licensure, and various legal proceedings are just a few of the corporate procedures that corruption may have an effect on. By damaging society, the legal system, and the rule of law, joining nations with corrupt economic and political systems would jeopardise the long-term growth of the cooling tower market industry.
Economic Factors- The labour market's supply and demand have an impact on the availability of skilled workers and wages. The cooling tower market needs to conduct research and project the situation of the labour market in order to comprehend how to draw excellent candidates and make use of their skills to improve business performance. Higher labour productivity favours the cooling tower industry when labour markets are open. However, working in competitive labour markets may result in wage issues as well as other challenges raised by tenacious labour unions. The availability of human resources should also be carefully considered by the cooling tower market because it can affect business productivity and make it more difficult to attract new customers.
Social factors- Customers' purchasing power affects how much they spend. It is necessary to assess and project consumer purchasing power based on relevant economic data in order to analyse consumer interests and spending habits. Some cultures view eating the supplied food as a status signal, while others use it for practical reasons. The consumer motivations and social trends that influence customer behaviour must be understood by the cooling tower market. In order to understand how local customers in the area view imported goods, the cooling tower market should make an effort to grasp the degree of consumer ethnocentrism and take into account the country of origin effect.
Technological Factors-With the development of information and communication technologies, it has become easier to apply cutting-edge marketing tactics to boost consumer collaboration. The use of social media in the current business environment has substantially expanded. The market for cooling tower benefits from the potential of social media marketing to improve operational performance. Technology may be used to launch fresh social media campaigns and create online communities for businesses.
Environmental Factors- Some countries offer financial assistance to promote the use of renewable energy sources. The cooling tower market can benefit from it and invest in environmentally friendly technology to ensure its long-term viability. This investment will boost stakeholder satisfaction and expand the customer base due to the improved brand impression. The effectiveness of how businesses operate can be impacted by weather and climatic changes. For instance, inclement weather may increase operational costs and force a value chain change in the perovskite solar cell industry. These adjustments may necessitate changes to a company's product and marketing plan, which could also have an impact on consumer purchasing behaviour.
Legal Factors- Data protection has become a critical problem as a result of consumer worries about their security and privacy. The perovskite solar cell market must consider data protection laws in order to safeguard consumer data. Laws are also in place to control expenses, ensure a certain level of quality, and protect consumers from misleading advertising claims. To ensure compliance with consumer protection laws, these factors must be considered in the cooling tower market. Intellectual property laws protect the valuable patents and ideas owned by enterprises. Because it can result in a loss of competitive advantage, a lack of IP protection could harm the position of the perovskite solar cell industry in comparison to other market competitors.
Introduction
List of Table
List of Figures