Cooling Tower Market

Market Overview

A cooling tower is a heat exchanger that cools down hot water by mixing it with cooler air. As the water temperature drops, a small amount of it evaporates which then creates a cooling effect. The cooled water is then pumped back to the equipment to absorb more heat which becomes hot again before returning to the cooling tower. This cycle repeats continuously. Cooling towers are used in power plants and provide cooling for large commercial buildings such as schools, hospitals, hotels and airports. Cooling towers provides efficient and cost-effective cooling. They are commonly used in thermoelectric power plants to remove excess heat. As electricity demand increases with that more power plants are being built, which is expected to boost the growth of the cooling tower market. In industrial settings, cooling towers are crucial for cooling water used in manufacturing, power generation like nuclear, thermal and natural gas plants, oil refineries, chemical plants and food processing facilities. They help in keep machinery and equipment at the right temperatures which ensures they run efficiently and last longer. As the HVAC systems keep large commercial buildings cool and comfortable, using cooling towers to provide optimal cooling. With the commercial construction projects increasing worldwide and HVAC installations grow, the market for cooling towers is expected to expand. More investments in HVAC systems and the demand for energy-efficient solutions are driving the need for cooling towers in these applications. The main benefits of using cooling towers in HVAC systems are their low installation costs, easy operation, energy efficiency and low maintenance costs. The cooling tower market is growing rapidly due to its wide range of use among different industries. The use of advanced materials and new technologies is helping the market expand, as it meets environmental regulations and promotes sustainable practices.

Cooling Tower Market Size

Report	Details
Market Size Value	USD 3.0 Billion in 2023
Market Size Value	USD 3.9 Billion by 2030
CAGR	5.3%
Forecast Period	2023-2030
Base Year	2023
Historic Data	2020

Major vendors in the global cooling tower market are Krones AG, Paharpur Cooling Tower Limited, Babcock & Wilcox Enterprises Inc., Seagull Cooling Tower Co., Ltd, Enexio,  Baltimore Aircoil Company Inc., John Cockerill, SPX Technologies , Ebara Corporation, Evapco, Inc., Torraval Cooling S.L, Mesan Group, Liang Chi Industry Co. Ltd., Kelvion Holding GmbH, Johnson Control International Plc., S.A Hamon, Engie Refrigeration GmbH,  Delta Cooling Tower Inc., Cenk Endüstri Tesisleri Imalat Ve Taahhüt A.Åž. and Others.

Growing demand for energy-efficient systems

The growing demand for energy-efficient systems is a major driver in the cooling tower market. As industries and commercial sectors strive to reduce their energy consumption and operational costs, the need for more efficient cooling solutions has become increasingly important. Energy-efficient cooling towers play a crucial role in minimizing energy use while effectively managing heat generated by industrial processes, power generation and large commercial buildings. In many sectors such as manufacturing, data centers and large-scale commercial facilities where cooling systems are critical for maintaining optimal operational conditions. Traditional cooling towers, which often consume significant amounts of energy these are being replaced or upgraded with more energy-efficient models that provides improved performance with lower energy usage. These modern cooling towers incorporate advanced technologies and design features to enhance heat exchange processes and reduce power consumption. The emphasis on energy efficiency is driven by both economic and environmental factors. Reducing energy use lowers operational costs and helps companies meet regulatory requirements and sustainability goals. Energy-efficient cooling towers also contribute to a decrease in greenhouse gas emissions which is aligning with global efforts to combat climate change. As the focus on energy conservation grows, the cooling tower market is seeing increased demand for innovative solutions that provide effective cooling while minimizing energy consumption. This trend is prompting manufacturers to develop and promote cooling towers that provide superior energy efficiency which is further driving market growth and supporting broader environmental objectives. For instance, on March 2023, Babcock & Wilcox (B&W) announced that its B&W Environmental division secured a contract worth over $9 million. The contract involves designing and supplying two cooling systems for a clean hydrogen production facility in the Middle East. B&W Environmental will provide two SPIG® fiberglass-reinforced polymer (FRP) cooling towers to ensure efficient, low-emission cooling for a plant that will produce hydrogen using renewable energy sources.

Market Dynamics

Drivers:

• Growing demand for energy-efficient systems
• Increased demand resulting from climate change
• Rising demand for cooling tower systems in the industrial sector

Opportunities:

• Rising demand from the nuclear power industry
• Noise cancellation cooling tower systems
• Growing emphasis on environmental sustainability

Rising demand from the nuclear power industry

The rising demand from the nuclear power industry presents substantial growth opportunities for the cooling tower market. As nations work to diversify their energy sources and reduce carbon emissions for that the nuclear power is increasingly recognized for its reliability and low carbon footprint. Expanding nuclear power plants require efficient cooling solutions to manage the significant heat generated during power production. Cooling towers play a crucial role in nuclear power plants by maintaining optimal operating temperatures for reactors. They help dissipate the substantial heat produced which ensures the reactors operate safely and efficiently. As more nuclear facilities are constructed to meet growing energy needs and support clean energy goals, the demand for advanced cooling technologies tailored to the stringent requirements of nuclear power is expected to rise. This growing need for effective cooling solutions drives innovation in cooling tower designs which emphasizes on enhancing performance and energy efficiency. Cooling towers must be robust and capable of handling high heat loads while meeting stringent safety and environmental standards. Consequently, there is an increasing investment in developing new cooling technologies and upgrading existing systems to support the expanding nuclear power sector. The global focus on clean energy and the construction of new nuclear plants are set to propel the cooling tower market which is leading to advancements in cooling technology and increased investment in solutions that address the specific needs of nuclear power generation. This trend illustrates the vital role cooling towers play in the sustainable growth of the nuclear power industry.

The market for cooling tower market is dominated by Asia-Pacific.

By analysing the Cooling tower market globally across various country like North America, Europe, Asia-Pacific, and LAMEA in which Asia-Pacific holds the largest market share during the forecast period, driven by increased infrastructure development, more power generation from fossil fuels, higher usage of HVAC products and the rise of data centers. These growing industries are creating a strong demand for cooling towers in the region. Rapid infrastructure development is boosting the need for these structures. Construction activities in developing economies are also driving the demand for heating, ventilation, cooling and refrigeration equipment, which is expected to further grow the market. Additionally, expanding transportation infrastructures like airports, bridges and ports are also contributing to market growth and expansion. For example, according to the India Climate and Energy Dashboard (ICED), India's total installed power capacity reached 442.77 GW by April 30, 2024.

North America, particularly Canada and the U.S. has a large share of the market due to many major companies are based there. The growth in the power generation sector is driving the development of cooling towers in the region. The growth is driven by high number of large data centres, smart buildings, and building automation companies in the region. The growing need for both structured and unstructured data in addition to the increasing focus on cloud computing that is expected to further drive the expansion of data centres globally. Consequently, will boost the demand for cooling towers. Cooling towers help keep data centres at the right temperature, which reduces energy consumption.

The open-circuit segment is anticipated to hold the largest market share during the forecast period

The global market is categorized by technology into open circuit, close circuit and hybrid circuit in which open circuit segment held the largest market share. This growth is driven by its effective cooling capabilities, lower process temperatures and smaller carbon footprint. These benefits have led to increased use of open-circuit cooling towers among various industries which includes cement, chemicals, commercial real estate, pharmaceuticals, power generation and refineries. For example, MITA Cooling Technologies S.r.l. provides open-circuit cooling towers suitable for a range of applications that is from medium and small installations to large industrial cooling towers for industries such as oil & gas and cogeneration.

The close circuit segment is anticipated with the highest growth rate during the forecast period. This growth is primarily fueled by as the closed-circuit cooling towers gives several benefits such as less contamination of the primary circuit, lower risk of freezing, better plant design and improved thermal efficiency. For example, many civic and industrial processes such as food production which require the process fluid to be kept clean and free from external contamination.

Segmentations analysis of cooling tower market: -

• By Tower Type:
  • Dry Cooling Tower
  • Evaporative Cooling Tower
  • Hybrid Cooling Tower
• By Design:
  • Natural Draft Cooling Tower
  • Mechanical Draft Cooling Tower
• By Construction Material:
  • Concrete
  • Steel
  • Fiber-Reinforced Plastic (FRP)
  • Wood
  • High-Density Polyethylene (HDPE)
  • Others
• By Flow Type:
  • Counter Flow
  • Cross Flow
•        By Technology:
  • Open Circuit
  • Close Circuit
  • Hybrid Circuit
• By Application:
  • Power Generation
  • HVACR
  • Food & Beverage
  • Chemical
  • Petrochemicals
  • Oil & Gas
  • Others
• By Region
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Colombia
    • Chile
    • Peru
    • Rest of Latin America
  • Europe
    • Germany
    • France
    • Italy
    • Spain
    • U.K.
    • BENELUX
    • CIS & Russia
    • Nordics
    • Austria
    • Poland
    • Rest of Europe
  • Asia Pacific

• • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Indonesia
  • Malaysia
  • Vietnam
  • Australia & New Zealand
  • Rest of Asia Pacific

• • Middle East & Africa

• • Saudi Arabia
  • UAE
  • South Africa
  • Nigeria
  • Egypt
  • Israel
  • Turkey
  • Rest of MEA

 Recent Developments

• February 2023, Baltimore Aircoil Company (BAC) introduced a new TrilliumSeries Adiabatic Cooler. This cooling tower is perfect for energy-efficient applications with limited water use. Its design optimizes both water and energy efficiency and helps in cost reduction. Additionally, the TrilliumSeries Cooler is easy to install and maintain.
• November 2023, Metso introduced an improved Evaporative Cooling Tower, a highly efficient dry gas cleaning solution. This tower cools hot furnace gases through evaporation. After passing through the evaporative cooling tower, the hot gases which is initially at about 600-700°C is then further cooled to around 200-350°C by a hot electrostatic precipitator or a bag filter. The tower works in a dry mode, so all the water used gets completely evaporated
• October 2023, SPX Cooling Tech, a company that designs cooling towers and air-cooled heat exchangers had opened a new manufacturing facility in Springfield. This is to increase production capacity for their products made in the U.S. and has created over 60 new jobs.

  Answers to Following Key Questions:

• What will be the cooling tower market ’s trends & growth rate? What analysis has been done of the prices, sales, and volume of the top producers in the cooling tower market?
• What are the main forces behind worldwide cooling tower market? Which companies dominate cooling tower market?
• Which companies dominate cooling tower market? Which business possibilities, dangers, and tactics did they embrace in the market?
• What are the global insight engines industry's suppliers' opportunities and dangers in cooling tower market?
• What is the insight engines industry's regional sales, income, and pricing analysis? In the cooling tower market, who are the distributors, traders, and resellers?
• What are the main geographic areas for various trades that are anticipated to have astounding expansion over the cooling tower market?
• What are the main geographical areas for various industries that are anticipated to observe astounding expansion for cooling tower market?
• What are the dominant revenue-generating regions for cooling tower market, as well as regional growth trends?
• By the end of the forecast period, what will the market size and growth rate be?
• What are the main cooling tower market trends that are influencing the market's expansion?
• Which key product categories dominate cooling tower market? What is cooling tower market ’s main applications?
• In the coming years, which cooling tower market technology will dominate the market?