Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Market Overview

A cooling tower is a heat rejection device that rejects waste heat to the atmosphere through the cooling of a water stream to lower temperature. Cooling tower is used to cool the water circulating in the cooling system. It is a heat rejection device that removes unwanted heat from the cooling system in the atmosphere. The circulating water is cooled either by evaporation or by blowing air to the warm water. There are two types of cooling towers namely open cooling towers and closed-circuit cooling towers. Cooling towers are widely used in different industries such as chemical, oil and gas, food processing, power generation plants, and other air-conditioning applications.

The global Cooling Towers Market was accounted for US$ 3,015.8 Mn in terms of value in 2019 and is expected to grow at CAGR of 4.7% for the period 2020-2027.

Market Dynamics- Drivers

  1. Rising use of energy-efficient systems is expected to drive growth of the global cooling towers market during the forecast period

Cooling towers optimize the use of energy in cooling systems. However, this energy efficiency is achieved at the expense of excess water usage over conventional cooling systems. Furthermore, cooling towers are widely deployed in power generation utilities, manufacturing industries, and HVAC units, which offers a wide scope of conserving water through its maintenance and monitoring. Technological advancements in such integrated axial fan and advanced heat transfer are boosting adoption of cooling towers. For instance, Novo Nordisk, a multinational pharmaceutical company achieved an annual saving of almost 5 million kWh through installing four new cooling towers to its existing cooling tower system and optimizing operations of its insulin production in Kalundborg, Denmark. Therefore, these factors are expected to drive growth of the global cooling market during the forecast period.

  1. Average GDP growth rate is expected to propel the global cooling towers market growth over the forecast period

Increase in GDP growth rate has led to increase in infrastructural development and subsequently enhanced HVAC deployments. The global market has witnessed increasing output at the end of 2013 with developed countries such as Germany, Japan, and the U.S. being the major contributors. Instead of fears of fiscal budget cuts and government shutdown in 2013, the purchasing managers index (PMI) in the U.S. has observed steady uptake to post gross domestic product (GDP) growth of over 3 % in the second, third and fourth quarter of 2013. Furthermore, emerging economies such as India, China, and Taiwan, Singapore, and South Korea have witnessed constant increase in production, which in turn, is expected to propel the global cooling towers market growth over the forecast period.

Statistics:

Asia Pacific held dominant position in the global Cooling Towers market in 2019, accounting for 25.5% share in terms of value, followed by Europe and Asia Pacific respectively

Figure 1: Global Cooling Towers Market Share (%) in terms of Value, By Region, 2019

Cooling Towers  | Coherent Market Insights

Cooling Towers Market - Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic have majorly affected the manufacturing industries around the globe. Owing to the COVID-19, many countries such as India and Spain have imposed nationwide lockdown. Due to the Lockdown, there is a shortage of the workers at the manufacturing facilities. Due to the less manpower, the manufacturing facilities are struggling to move the products. The Cooling towers are used in the manufacturing facilities to remove the unwanted heat from the system. Owing to the above mentioned reasons, the COVID-19 pandemic is expected to restrain the Cooling tower market growth during the year 2020-2021. 

Market Dynamics- Restraints

  1. Fragmented market worldwide is expected to hinder the global cooling towers market growth over the forecast period

The global cooling towers market is highly fragmented due to the presence of both regional and international market players. Regional manufacturers offer cooling towers at low cost and hence are affordable for SMEs. On the contrary, major cooling tower manufacturers cater to various industries such as large or mid-sized manufacturing industries and power plants.  Regions such as Europe and the U.S. are promoting the use of closed-circuit cooling towers, and dry and hybrid cooling towers as compared to open circuit evaporative cooling towers. The U.S. Environmental Protection Agency (EPA) is also promoting the use of closed-circuit towers due to their enhanced performance, and water savings as compared to open circuit cooling towers. Therefore, these factors are expected to hinder the market growth in the near future.

  1. The requirement of a large quantity of water is expected to restrain growth of the global cooling towers market during the forecast period

Cooling tower requires a large quantity of water, which challenging to manage for small and medium-sized companies. The large quantity of water also results in excessive cost thereby compromising with the budget of a business. Therefore, these factors are expected to restrain growth of the global cooling towers market during the forecast period.

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Cooling Towers Market Report Coverage

Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 3,015.8 Mn
Historical Data for: 2016 to 2019 Forecast Period: 2020 to 2027
Forecast Period 2020 to 2027 CAGR: 4.7% 2027 Value Projection: USD 4,354.9 Mn
Geographies covered:
  • North America: U.S., Canada
  • Eastern and Western Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
  • Rest of the World: South Africa, North Africa, Central Africa, Brazil, Argentina, Mexico, Rest of World
  • Southern Arica
Segments covered:
  • By Type -(Open Cooling Tower and Closed Circuit Cooling Tower)
  • By Heat Transfer Method -(Evaporative Cooling, Dry Cooling and Plume Abatement (Hybrid))
  • By Application -(Air-Conditioning, Power Generation Utilities and Manufacturing Industry)
Companies covered:

SPIG S.p.A, Absolute Cooling Tower Services Ltd., ESINDUS S.A (Hamon Group), Paharpur Cooling Towers Limited, FANS a.s., LIANG CHI INDUSTRY (THAILAND) CO., LTD., Delta Cooling Towers, Inc., SPX Corporation, Cooling Tower Depot, Inc., and Superchill Australia Pty Ltd.

Growth Drivers:
  • Rising use of energy-efficient systems
  • Average GDP growth rate
Restraints & Challenges:
  • Fragmented market worldwide

Market Opportunities

  1. Plume abatement cooling towers can present lucrative growth opportunities

Open circuit cooling towers produce high amount of plume. Visible plume in most cases does not cause any noteworthy environmental impact on the surrounding. However, concern arises when the plume builds, causing a safety hazard. An inversion in weather conditions may result in thick, persistent fog that decreases visibility in the surroundings. For instance, when cooling towers are located near airport plume may cause interference in airport operations, leading to serious problems for the air traffic controller.

  1. Contracts and agreements can present lucrative growth opportunities

Major companies in the market are focused on contracts and agreements, in order to enhance the market presence and gain a competitive edge in the market. For instance, in September 2014, FANS A.S. entered into a contract with Sokolovska uhelna, A.S. for the supply of air-cooled condensers.

Figure 2: Global Cooling Towers Market Value (US$ Mn), 2017 - 2027

Cooling Towers  | Coherent Market Insights

The global Cooling Towers market was valued at US$ 3,015.8 Mn in 2019 and is forecast to reach a value of US$ 4,354.9 Mn by 2027 at a CAGR of 4.7% between 2020 and 2027.

Market Trends

  1. North America Trend

Among regions, North America is expected to witness significant growth in the global cooling towers market during the forecast period. This is owing to rising growth of petroleum and oil & gas sectors across the region. Furthermore, high growth of power generation industry is expected to boost the regional market growth over the forecast period.

  1. Asia Pacific Trends

Asia Pacific is expected to register a lucrative growth in the global cooling towers market over the forecast period. This is owing to the rapid growth of food and beverage sector in the region.

Value Chain Analysis

Raw Material Suppliers

The value chain of the cooling towers market is centered on original equipment manufacturers (OEMs), that is, cooling tower vendors. This market’s value chain is initiated by raw material and component suppliers. Different components integrated in cooling towers for functional operation include condenser pump & distribution system, cooling loop system, heat transfer media, cooling tower fan system, cooling tower basin, cooling tower pumps, drift eliminators, and cooling tower fills. Raw material suppliers provide reinforced cement concrete (RCC), timber, wood, stainless steel, galvanized steel and fiber-reinforced plastic, among other materials required for the building of cooling towers

Cooling Towers  | Coherent Market Insights

Competitive Section

Key players operating in the global cooling towers market are SPIG S.p.A, Absolute Cooling Tower Services Ltd., ESINDUS S.A (Hamon Group), Paharpur Cooling Towers Limited, FANS a.s., LIANG CHI INDUSTRY (THAILAND) CO., LTD., Delta Cooling Towers, Inc., SPX Corporation, Cooling Tower Depot, Inc., and Superchill Australia Pty Ltd.

Key Developments

Major companies in the market are focused on contracts and agreements, in order to enhance the market presence. For instance, in September 2019, SPIG S.p.A, a subsidiary of Babcock & Wilcox Enterprises, Inc., entered into a contract with Kingdom of Bahrain to supply a sea water cooling tower to SEPCOIII for the Al Dur Phase II Independent Water and Power Project.

A cooling tower is a heat rejection device that rejects waste heat to the atmosphere through the cooling of a water stream to lower temperature. Cooling tower is used to cool the water circulating in the cooling system. It is a heat rejection device that removes unwanted heat from the cooling system in the atmosphere. The circulating water is cooled either by evaporation or by blowing air to the warm water. There are two types of cooling towers namely open cooling towers and closed-circuit cooling towers. Cooling towers are widely used in different industries such as chemical, oil and gas, food processing, power generation plants, and other air-conditioning applications.

Market Dynamics

Cooling towers are widely used in HVAC systems. The uptake in commercial/infrastructure construction projects worldwide has led to increase in HVAC systems and in-turn has boosted the growth of cooling towers market. With the focus on energy efficiency, developed markets such as the U.S. and Western Europe are anticipated to offer wide opportunities for replacement of legacy cooling towers with the new ones, thus further bolstering the growth of the market. The growth in cooling towers market is majorly fueled by steady economic development, and the rapid pace of industrialization in nations such as India, China, Korea, Taiwan, and Singapore. Therefore, these factors are expected to propel the global cooling towers market growth over the forecast period. Increase in GDP growth rate has led to increase in infrastructural development and subsequently enhanced HVAC deployments. The global market has witnessed increasing output at the end of 2013 with developed countries such as Germany, Japan, and the U.S. being the major contributors. Instead of fears of fiscal budget cuts and government shutdown in 2013, the purchasing managers index (PMI) in the U.S. has observed steady uptake to post gross domestic product (GDP) growth of over 3 % in the second, third and fourth quarter of 2013. Furthermore, emerging economies such as India, China, and Taiwan, Singapore, and South Korea have witnessed constant increase in production, which in turn, is expected to propel the global cooling towers market growth over the forecast period.

Market Taxonomy

This report segments the Global Cooling Towers Market on the basis of Type, Heat Transfer Method, Application and Region. On the basis of Type, Global Cooling Towers Market is segmented into Open Cooling Tower and Closed Circuit Cooling Tower. On the basis of Heat Transfer Method, the Global Cooling Towers Market is segmented into Evaporative Cooling, Dry Cooling and Plume Abatement (Hybrid). On the basis of Application, the Global Cooling Towers Market is segmented into Air-Conditioning, Power Generation Utilities and Manufacturing Industry. On the basis of region, Global Cooling Towers Market is segmented into Western Europe, Eastern Europe, Asia Pacific (Excluding Far East), Southern Africa, North America and RoW

Key features of the study:

  • This report provides an in-depth analysis of the Global Cooling Towers Market and provides market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2020-2027), considering 2019 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global Cooling Towers Market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the Global Cooling Towers Market includes SPIG S.p.A, Absolute Cooling Tower Services Ltd., ESINDUS S.A (Hamon Group), Paharpur Cooling Towers Limited, FANS a.s., LIANG CHI INDUSTRY (THAILAND) CO., LTD., Delta Cooling Towers, Inc., SPX Corporation, Cooling Tower Depot, Inc., and Superchill Australia Pty Ltd.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics
  • The global Cooling Towers market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the Global Cooling Towers Market

Detailed Taxonomy:

  • Global Cooling Towers Market, By Type:
    • Open Cooling Tower
    • Closed Circuit Cooling Tower
  • Global Cooling Towers Market, By Heat Transfer Methods:
    • Evaporative Cooling
    • Dry Cooling
    • Plume Abatement (Hybrid)
  • Global Cooling Towers Market, By Application:
    • Air-Conditioning
    • Power Generation Utilities
    • Manufacturing Industry
  • Global Cooling Towers Market, By Region:
    • Western Europe
    • Eastern Europe
    • Asia Pacific (Excluding Far East)
    • Southern Africa
    • North America
    • RoW
  • Company Profiles
    • Absolute Cooling Tower Services Ltd.
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Cooling Tower Depot Inc.
    • Delta Cooling Towers, Inc.
    • ESINDUS S.A (Hamon Group)
    • FANS a.s.
    • LIANG CHI INDUSTRY (THAILAND) CO., LTD.
    • Paharpur Cooling Towers Limited
    • SPIG S.p.A
    • SPX Corporation
    • Superchill Australia Pty Ltd.

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Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Type
      • Market Snippet, By Heat Transfer Method
      • Market Snippet, BY Application
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Heat Transfer Method Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Analyst View on Impact of COVID-19 on Market
    • Short Term
    • Long term
  5. Global Cooling Towers Market, BY Type, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment trends
    • Open Cooling Tower
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Closed Circuit Cooling Tower
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  6. Global Cooling Towers Market, By Heat Transfer Method, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment trends
    • Evaporative Cooling
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Dry Cooling
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Plume Abatement (Hybrid)
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  7. Global Cooling Towers Market, By Application, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment trends
    • Air-Conditioning
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Power Generation Utilities
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Manufacturing Industry
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  8. Global Cooling Towers Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Type, 2020–2027(US$ Million)
      • Market Size and Forecast, By Heat Transfer Method, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Eastern and Western Europe
      • Regional Trends
      • Market Size and Forecast, By Type, 2020–2027(US$ Million)
      • Market Size and Forecast, By Heat Transfer Method, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Type, 2020–2027(US$ Million)
      • Market Size and Forecast, By Heat Transfer Method, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2020–2027(US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Rest of the World
      • Regional Trends
      • Market Size and Forecast, By Type, 2020–2027(US$ Million)
      • Market Size and Forecast, By Heat Transfer Method, 2020–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2020–2027(US$ Million)
      • Market Size and Forecast, By End-use Industry, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • GCC Countries
        • South Africa
  9. Competitive Landscape
    • Company Profiles
      • Absolute Cooling Tower Services Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Cooling Tower Depot Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Delta Cooling Towers, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • ESINDUS S.A (Hamon Group)
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • FANS a.s.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • LIANG CHI INDUSTRY (THAILAND) CO., LTD.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Paharpur Cooling Towers Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • SPIG S.p.A
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • SPX Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Superchill Australia Pty Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  10. Section
    • References
    • Research Methodology
    • About us and Sales Contact

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Frequently Asked Questions

The global market for Cooling Towers is expected to reach USD 3,461.3 Million by 2022.
Rising use of energy-efficient systems is expected to drive growth of the global cooling towers market during the forecast period
Open Cooling Tower sub-segment holds the largest market share among Type Segment contributing 74.6% market share in terms of value in 2019.
Asia Pacific region hold the largest share in the global Cooling Towers market in 2019, accounting for 25.5% share in terms of value.
Key players operating in the global Cooling Towers market are SPIG S.p.A, Absolute Cooling Tower Services Ltd., ESINDUS S.A (Hamon Group), Paharpur Cooling Towers Limited, FANS a.s., LIANG CHI INDUSTRY (THAILAND) CO., LTD., Delta Cooling Towers, Inc., SPX Corporation, Cooling Tower Depot, Inc., and Superchill Australia Pty Ltd.
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