The global cooling towers market is estimated to be valued at USD 3.64 Bn in 2025 and is expected to reach USD 5.26 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 5.4% from 2025 to 2032.
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The rising demand for energy efficient cooling systems from industries like oil & gas, metal manufacturing, pharmaceuticals, etc. is driving the cooling towers market demand. Additionally, rapid industrialization and urbanization in developing countries have significantly increased the requirement for efficient cooling systems. Also, advancements in designs to develop more eco-friendly and sustainable cooling towers will provide new opportunities for manufacturers.
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Between October 2023 and September 2024 (TTM), India exported 2,649 shipments of cooling towers. These exports involved 508 Indian exporters and reached 975 international buyers, reflecting an 8% increase compared to the previous 12-month period.
In September 2024 alone, India recorded 253 cooling tower export shipments. This represents a 4% year-on-year increase from September 2023 and a 19% rise compared to August 2024.
The open cooling tower segment is expected to contribute 58.8% of the market share in 2025. Open cooling towers offer robust construction able to withstand varied climatic conditions without impairment to performance. Their open design allows for higher heat dissipation compared to enclosed towers. This ability to handle heavy duty applications like power generation and petrochemical plants boosts their popularity. Open towers are also preferred where space is not a constraint as they have a smaller footprint. Being more straightforward in design, open towers tend to have lower maintenance needs. Their long operational lifespan and resistance to corrosion keeps operating costs low over extended usage. In March 2025, Tower Tech Inc., a member of the Creative Composites Group, announced the expansion of its modular cooling tower product line by introducing closed-circuit models alongside its existing open-circuit options.
Evaporative Cooling contributes the highest share of the market owing to its industrial and power sector demand
The evaporative cooling segment is expected to contribute 41.6% of the market share in 2025. Evaporative cooling towers excel at dissipating large volumes of heat by leveraging the natural cooling effect of water evaporation. They make use of ambient air passing through a water spray system, where a portion of the water vaporizes and takes the rejected heat with it. This leads to very high cooling rates even in warm climates. Evaporative towers are about 90% efficient in heat rejection, far surpassing dry cooling systems. They offer cost-effective thermal management for applications requiring removal of process heat loads and provision of chilled water. Their small footprint and compact design further enhance their appeal. These thermal performance and economic benefits have cemented evaporative cooling as the preferred approach where water availability is not a constraint.
For instance, in May 2025, The Polar Cooling Portable AC launched as a compact, energy-efficient solution for targeted cooling without the high energy costs or installation challenges of traditional units. This explores the science behind evaporative cooling, the rising demand for compact air coolers, and how Polar Cooling effectively meets these evolving demands.
The manufacturing industry segment is expected to contribute 52.2% share of the market in 2025 owing to cooling towers' crucial role in various production processes. Thermal management is indispensable across manufacturing sectors like petrochemicals, power generation, oil & gas, automotive, and industrial machinery. Cooling towers allow continuous operation of heat-intensive industrial facilities by reliably rejecting waste heat to the atmosphere. They prevent overheating of steam condensers, chillers, and other equipment used in manufacturing. The consistent thermal control delivered by cooling towers safeguards product and process quality. Their ability to handle high heat loads smoothly around the clock boosts output levels. The segmentation also thrives from ongoing capacity expansions and plant construction globally. Such dependence of manufacturing activity on temperature control makes cooling towers an integral part of industrial infrastructure.
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Growing demand from the data center, petrochemical, and power generation industries is significantly boosting the cooling tower market in North America. A strong focus on energy efficiency and environmental compliance is encouraging the adoption of closed-circuit and hybrid cooling towers. Manufacturers are increasingly incorporating smart controls, water-saving technologies, and corrosion-resistant materials to enhance performance. Moreover, the expansion of HVAC systems in commercial buildings and ongoing infrastructure development are propelling market growth, with companies prioritizing cost-effective and sustainable cooling solutions. For instance, in March 2025, At the AHR Expo in Florida, Delta Cooling Towers unveiled its High-Density Polyethylene (HDPE) cooling tower, expanding its HDPE lineup. The new TMX series features a seamless, single-piece, 20-foot sump molded from engineered plastic, eliminating the joints and seams of traditional metal-clad towers and significantly reducing maintenance issues. This is further proliferating the cooling towers market demand.
Hyperscale data center expansion and accelerating industrialization in China, India, Japan, and Southeast Asia have positioned Asia Pacific as the global leader in cooling tower installations. This growth fuels demand across manufacturing, commercial HVAC, petrochemical, and power sectors. Strict environmental regulations and rising water scarcity concerns are driving industries to adopt hybrid (wet-dry) cooling towers, which offer high efficiency with reduced water usage. These systems are increasingly gaining popularity alongside open-circuit towers, particularly in water-stressed regions. For instance, in August 2024, Trane, a global climate solutions provider, unveiled its new GEN Elite C Series Cooling-Only VRF system in India. This innovative system delivers high efficiency, precise temperature control, and flexible design—making it an ideal choice for offices, hospitals, retail stores, and other commercial buildings.
Driven by automation and smart controls, U.S. companies are increasingly adopting hybrid (wet-dry) cooling towers to cut water consumption and eliminate visible plume. These systems use high-performance materials and integrated sensors to optimize energy and water use. Smart IoT-enabled technologies and advanced composites like FRP and concrete enhance energy efficiency, extend tower lifespan, and reduce maintenance costs, aligning with strict environmental regulations and corporate sustainability goals.
For instance, in June 2025, U.S.-based Ecolab Inc., a global sustainability leader and provider of water, hygiene, and infection prevention solutions, has unveiled a groundbreaking technology designed to drive high-performance cooling in data centers.
Chinese industries are increasingly adopting hybrid (wet-dry) cooling towers and IoT-enabled smart systems in response to strict environmental regulations and rising water conservation demands. These technologies boost operational efficiency, minimize water usage, and support predictive maintenance. Manufacturers are actively choosing corrosion-resistant materials like FRP and HDPE to extend tower lifespan, reduce maintenance needs, and achieve sustainability objectives, despite higher initial investments. Hunan Yuanheng, located in China, is a specialized company engaged in the research, development, production, sales, and service of cooling towers and central air-conditioning systems.
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| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 3.64 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 5.4% | 2032 Value Projection: | USD 5.26 Bn |
| Geographies covered: |
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| Companies covered: |
Baltimore Aircoil Company Inc., Bell Cooling Tower, Brentwood Industries, Inc., ENEXIO Management GmbH, Evapco, Inc., Hamon & Cie International SA, ILMED IMPIANTI SRL, JACIR – GOHL, JAEGGI Hybridtechnologie AG, Johnson Controls, Inc., Kelvion Holding GmbH, Krones AG, MITA Cooling Technologies Srl, Paharpur Cooling Tower Limited, and SPX CORPORATION |
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Manufacturers in the cooling tower market are actively shifting toward energy-efficient and environmentally friendly technologies. They are incorporating variable frequency drives (VFDs), high-efficiency fans, and heat recovery systems to reduce energy consumption. Hybrid cooling towers are also gaining traction for their ability to save water without compromising performance. Regulatory mandates, rising environmental consciousness, and the growing need to lower operating expenses—particularly in power, petrochemical, and commercial sectors—are driving these technological advancements and sustainable practices.
The cooling tower industry is undergoing a digital transformation as manufacturers and operators adopt IoT-enabled systems. These smart technologies provide real-time performance monitoring, automated fault detection, and predictive maintenance, which enhance reliability and minimize downtime. Data centers and process-heavy industries especially benefit from these systems, as they help prevent costly failures. Although initial costs remain a concern, end-users are increasingly investing in smart cooling towers to gain long-term advantages such as better energy management, lower maintenance expenses, and improved operational oversight.
Developments in hybrid cooling towers present a significant opportunity in the global cooling towers market. Hybrid towers integrate traditional cooling tower technologies with new methods to provide more efficient and environmentally friendly operation. For example, many new hybrid designs combine evaporative cooling with dry cooling technologies. This allows plants to conserve water in dry or arid regions where water availability is limited, while still achieving the high heat rejection performance of wet cooling towers.
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About Author
Ankur Rai is a Research Consultant with over 5 years of experience in handling consulting and syndicated reports across diverse sectors. He manages consulting and market research projects centered on go-to-market strategy, opportunity analysis, competitive landscape, and market size estimation and forecasting. He also advises clients on identifying and targeting absolute opportunities to penetrate untapped markets.
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