Cooling Tower Market Size - Global Industry, Share, Analysis, Trends and Forecast 2024 - 2032

Cooling Tower Market Highlights

• Global cooling tower market revenue is poised to garner USD 5.5 billion by 2032 with a CAGR of 4.9% from 2024 to 2032
• Asia-Pacific cooling tower market value occupied around USD 1.3 billion in 2023
• Asia-Pacific cooling tower market growth will record a CAGR of more than 5.6% from 2024 to 2032
• Among product, the evaporative/wet sub-segment generated 81% of cooling tower share in 2023
• According to technology segment, open circuit sub segment accomplished 42% of share in 2023
• By construction material, FRP creates 28% share in cooling tower industry
• Rising investments in renewable energy projects that require cooling towers is a popular cooling tower market trend that fuels the industry demand

Cooling tower is the device used for the temperature maintenance in the chillers for various industrial applications. This device is generally used in the power generation and manufacturing industries in order to keep the environment cool and fresh. With the use of cooling tower, the heat regulation can be controlled in air conditioning systems which boosting the demand for cooling towers across the globe. The cooling tower is used for a large number of applications such as HVACR, power generation, food and beverage, manufacturing industry and others. The global market is anticipated to grow at substantial CAGR throughout the cooling tower industry forecast period. Furthermore, market players are primarily focusing on developing new innovative technologies that will supplement growth of the cooling tower market.

Global Cooling Tower Market Dynamics

Market Drivers

• Increasing demand for energy-efficient cooling systems in industrial applications
• Growth in the building and infrastructure development industries
• HVACR systems are increasingly being used in commercial buildings
• Stringent environmental restrictions promote energy efficiency

Market Restraints

• High initial costs and maintenance expenses of cooling towers
• Limited adoption of advanced cooling technologies in emerging economies
• The availability of alternate cooling methods, such as air-cooled systems

Market Opportunities

• Technological improvements in cooling tower design and materials
• Expansion into emerging markets as modernization accelerates
• A growing emphasis on sustainable and environmentally friendly cooling technologies

Cooling Tower Market Report Coverage

Cooling Tower Market Insights

Rising demand in the air conditioning, construction, power generation and manufacturing industries, advantages offered by cooling tower, growing technological advancements in the cooling towers and increasing deployment of HVACR systems are some of the fundamental factors that are driving the global cooling tower market growth globally. Growing investments toward technological developments in order to improve the communication efficiency capacity and flexibility in design are expected to amplify the demand for cooling towers. Rising consumption of HVACR systems across the commercial organizations with the high funding in industrial development is expected to propel the industry growth over the cooling tower market forecast period.

Additionally, the rapid growth in the construction industry has increased the demand for cooling towers, resulting the rapid growth of the global cooling tower market. However, the primitive nature of numerous industrial units, especially in the emerging economies, is anticipated to hamper the growth of the global cooling towers market.

Cooling Tower Market Segmentation

The worldwide market for cooling tower is split based on product, technology, design, build, construction material, flow, application, and geography.

Cooling Tower Market By Product

• Evaporative/Wet
• Dry
• Hybrid

In terms of cooling tower industry analysis, the evaporative/wet cooling tower sector is predicted to account for a significant portion of the market. This sector is popular due to its high heat dissipation efficiency, making it perfect for industries with significant cooling requirements, such as power generation, petrochemicals, and HVAC systems. Evaporative cooling towers operate by evaporating a tiny amount of water to cool the remaining water, providing an effective and cost-effective cooling solution. Their capacity to handle huge heat loads and adapt to a variety of industrial applications makes them the preferred choice, resulting in significant market demand.

Cooling Tower Market By Technology

• Open Circuit
• Closed Circuit
• Hybrid

The cooling tower market is expected to be dominated by the open circuit segment. Open circuit cooling towers are widely utilized in a variety of sectors due to their ease of use, low cost, and high heat dissipation efficiency. These towers operate by directly exposing water to air, allowing evaporation to chill the remaining water. Their direct heat transmission approach makes them excellent for large-scale industrial applications like power plants and manufacturing facilities. When compared to closed circuit systems, they have a lower starting cost, are easier to install, and require less maintenance.

Cooling Tower Market By Design

• Mechanical
• Natural

The mechanical draft sector is likely to have a sizable share of the cooling tower market. Mechanical draft cooling towers are equipped with fans that actively circulate air through the tower, resulting in more controlled and effective cooling than natural draft systems. Because of their capacity to withstand high heat loads and function in a variety of environments, these towers are adaptable and can be utilized in a wide range of industrial applications, from power plants to chemical processing facilities. Mechanical draft towers are the favored alternative for sectors that require continuous and dependable cooling performance due to their adjustability and heat exchange efficiency.

Cooling Tower Market By Build

• Field Erection
• Package

The field erected gain a significant proportion. These cooling towers are built on-site and are intended to handle large-scale industrial processes such as electricity generating and petrochemical processing, which require significant cooling capacities. Field constructed towers have the advantage of being adaptable to fulfill unique project needs, such as size and performance. Their capacity to handle massive amounts of water flow and adapt to complex industrial requirements makes them an ideal choice for large operations. The expanding global demand for industrial cooling solutions strengthens their market position.

Cooling Tower Market By Construction Material

• Concrete
• Steel
• HDPE
• FRP
• Wood
• Others

In terms of cooling tower market analysis, the fiber reinforced plastic (FRP) segment is predicted to create a significant income. FRP cooling towers are popular because of its excellent strength-to-weight ratio, corrosion resistance, and durability, making them suitable for a variety of industrial applications. Compared to concrete or wood, FRP is lighter and easier to install, lowering overall project costs. Furthermore, its resistance to extreme climatic conditions and chemicals adds to its popularity, especially in industries like as chemical processing and power generation, where long-term reliability and low maintenance are required. This mix of benefits establishes FRP as the market's top choice.

Cooling Tower Market By Flow

• Counterflow
• Crossflow

The cooling tower market is divided into two segments based on airflow direction: counterflow and crossflow. In counterflow towers, air moves upward in the opposite direction as water flows downward. Crossflow towers, on the other hand, move air horizontally across falling water. The crossflow category is expected to dominate the market. This is due to its higher heat transfer efficiency, flexibility in handling water impurities, compact construction, and ease of maintenance as compared to counterflow towers. These benefits make crossflow cooling towers the favored choice for a variety of industrial applications, resulting in market development in this category.

Cooling Tower Market By Application

• Chemical & Fertilizers
• Oil & Gas
• Power Generation
• HVACR
• Others

The cooling tower market is divided into applications, which include chemical and fertilizer, oil and gas, power generation, HVACR, and others. The power generation segment is expected to become the largest. The massive energy demand driving the construction of power plants, along with the significant heat created during electricity generation, needs effective cooling systems. Cooling towers are critical in ensuring that power producing equipment operates at the correct temperature. The continuous global focus on increasing power generation capacity is likely to drive up demand for cooling towers in this industry, cementing its position as the major application category.

Cooling Tower Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of LATAM

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Cooling Tower Market Regional Analysis

Geographically, the global cooling tower market has been divided into North America, Europe, Asia Pacific, Latin America and Middle East and Africa. Asia-Pacific is anticipated to grow at fastest growth rate during the cooling tower industry forecast period owing to the increasing growth of construction industry, growing demand for cooling towers and large number of chemicals and pharmaceuticals industries. Rapid growth in the power industry is the primary factor influencing the growth of the regional cooling tower market. Emission regulations in the region are also expected to increase the growth of the regional market. Rising initiatives taken by governments and escalating demand for technologically advanced power devices are supplementing the overall market growth. Rapid expansion of industrial sector, growing number of manufacturing facilities and growing technological advancements in the region are some of the factors responsible for the growth of the regional market.

In terms of cooling tower market analysis, North America is also projected to witness a substantial growth over the forecast period owing to the growing adoption of increasing number of heavy industries and continuous technological advancements. With growing focus toward energy conservation and ongoing technological advancements and healthy growth in the manufacturing sector North America is likely to grow at substantial pace during the cooling tower market forecast period.

Cooling Tower Market Players

Some of the top cooling tower companies offered in our report include Cooling Tower Systems, Inc., EVAPCO, Inc., S.A. Hamon, Delta Cooling Towers Inc., Babcock & Wilcox Enterprises, Inc., Engie Refrigeration GmbH, Johnson Controls International Plc., Baltimore Aircoil Company, Cenk Endüstri Tesisleri Imalat Ve Taahhüt A.?., and Kelvion Holdings GmbH.