EVAPORATIVE COOLING MARKET ANALYSIS

The global evaporative cooling market size was valued at US$ 5780 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.19% from 2022 to 2030. The major drivers for the growth of the global evaporative cooling market are climate change, increasing population, rising demand for energy efficient cooling systems, and product innovations. Moreover, the increased demand for cooling systems in the commercial sector is also expected to drive the growth of the market. The increasing demand for cooling systems in the residential sector, as well as industrial and commercial sectors is also driving the market growth.

Global Evaporative Cooling Market: Regional Insights

The global evaporative cooling market is regionally divided into North America, Latin America, Europe, Asia Pacific, and Rest of the World.

North America is expected to witness strong growth in the global evaporative cooling market over the forecast period. This is due to development of commercial architecture in the U.S. The rise in initiatives taken by government for sustainable energy management in the region and rise in adoption of evaporating cooling systems due to inefficiency of conventional air conditioning is also expected to propel growth of the market in the region.

Furthermore, Asia Pacific is also projected to witness substantial growth in the global evaporative cooling market over the forecast period. This growth can be attributed to rising temperatures and increasing incomes in Southeast Asia leading to high demand for AC sales. For instance, according to the Coherent Market Insights, the overall number of air-conditioner units will likely increase in 2040 to 300 million units from 40 million units in 2017, and half of this will be from Indonesia.

Figure 1: Global Evaporative Cooling Market Share (%), By Region, 2021

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Global Evaporative Cooling Market Drivers:

Growing demand for cost-effective cooling solutions is expected to augment growth of the global evaporative cooling market over the forecast period. People around the world are affected by rise in temperatures, which has become important for addressing the role of cooling without any carbon footprint impact. With increasing urbanization and rise in population around the world, the demand for sustainable, energy efficient, clean, and cost-effective solutions for cooling is also increasing. This is further boosting the adoption of evaporative cooling systems and driving growth of the market.

Increasing initiatives from governments around the world is also expected to boost growth of the global evaporative cooling market over the forecast period. Several governments are aiming to offer saving programs for promoting energy efficient technologies. For instance, evaporative cooling is a proven sustainable cooling system, which in the Netherlands is eligible for Energy Investment Deduction (EIA). Moreover, as per the U.S. Energy Information Administration (EIA), the industrial consumption of electricity will increase to more than 51 quadrillion btu by 2050 from 36.7 quadrillion btu in 2018. Such increasing consumption of energy creates demand for usage of systems that consume less power and are energy-efficient. Thus, this factor is expected to fuel the market growth in the near future.

Global Evaporative Cooling Market Opportunities:

The growing demand for evaporative cooling solutions is creating several growth opportunities for market players in the global evaporative cooling market. Ever since the Paris accord over carbon emission, the demand for evaporative cooling solutions has been increasing steadily. This is further resulting into market players increasing their frequency of testing and designing novel innovative solutions that can aid in minimizing carbon emission as well as operational efficiency of end User industries. This is hence expected to create lucrative environment for growth opportunities in the market.

Moreover, manufacturers in the market are choosing various avenues for improving the technology, which is expected to offer growth opportunities in the global evaporative cooling market over the forecast period. As per the Evapco for instance, extended surface and internal tube enhancement fin technology has increased the efficiency of the current technology significantly in the market for evaporating cooling. Thus, due to the aforementioned factor, the market is likely to witness several growth opportunities in the forecast future.

Global Evaporative Cooling Market Trends:

Use of evaporative cooling in data centers is a growing trend in the global evaporative cooling market, which is likely to drive the market growth during the forecast period. Infrastructures of data centers are concerned for sustainability. However, use of water and its wastage in the evaporative cooling systems causes a roadblock in the adoption of these systems. To overcome this issues, increasing number of data centers are opting for alternative sources for water and enhanced technologies. For instance, Hamina data center of Google in Finland used seawater for cooling, when the center began operating. This trend is expected to continue in the market over the forecast period.

Moreover, rise in concerns regarding energy efficiency and carbon emission is gaining traction in the global evaporative cooling market. The evaporative coolers provide 100% fresh air and 90% energy efficiency as compared to traditional air conditioners, which is why, the key players in industries related to facility centers, warehousing, leisure, and data centers are increasingly adopting such solutions that are energy-efficient and sustainable. This in turn is expected to boost the demand for evaporative cooling. Thus, the market is likely to witness strong growth due to this trend, in the near future.

Global Evaporative Cooling Market Restraints:

Dependency of evaporative cooling on external climate is one of the factors expected to hamper growth of the global evaporative cooling market over the forecast period. The evaporative cooling depends significantly on external environmental conditions as it uses air from the environment outside in order to cool the surroundings. This factor however affects system’s efficiency of achieving temperature drops in climates and regions that are arid and drier. Thus, this factor further affects the adoption of evaporative cooling systems, which in turn hampers growth of the market.  

Moreover, availability of low cost alternative products is also expected to restrain growth of the global evaporative cooling market over the forecast period. The increasing technological development has resulted into declined cost of implementing technology in recent years. The number of alternative cooling technologies is rising at lower rates of cost, which is further resulting into aversion of adopting evaporative air coolers among consumers. This factor is thus expected to hinder the market growth in the near future.

Figure 2. Global Evaporative Cooling Market Share (%), by Type of Cooling, 2021

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Global Evaporative Cooling Market Segmentation:

The global evaporative cooling market report is segmented into Type of Cooling, Application, and Distribution Channel, and Region.

Based on Type of Cooling, the market is segmented into Direct Evaporative Cooling, Indirect Evaporative Cooling, and Two-stage Evaporative Cooling. Out of which, Direct Evaporative Cooling is expected to dominate the global market over the forecast period and this is attributed to the increasing focus of several companies on direct evaporative cooling (DEC). DEC is usually the most energy-efficient way of cooling a data center. For instance, Munters, in April 2021 relocated its employees in Virginia to the new facility for expansion of data center cooling segment including direct evaporative cooling.

Indirect Evaporative Cooling segment is also expected to witness significant growth in the near future and this is owing to the increasing focus of market players on partnerships to develop novel indirect evaporative cooling solutions offering various benefits to end users. For instance, in August 2021, Huawei partnered with JD.Com for joint generation of the novel indirect evaporating cooling solutions in China.

Based on Applications, the market is segmented into Residential Applications, Commercial Applications, Industrial Applications, Confinement Farming, and Other Applications. Out of which, Residential Applications is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of evaporative cooling in houses. The evaporative coolers for residential application use direct evaporation. They are described as a plastic box or an enclosed metal with vented sides. Thus, the residential evaporative cooling systems are increasingly being adopted, which in turn is driving growth of the segment.

Commercial Applications segment is also expected to witness significant growth in the near future and this is owing to the increasing commercial construction and retrofitting of older building is creating demand for evaporative cooling. Commercial buildings such as those in education and healthcare sectors are overhauling several older buildings. This is further creating demand for evaporative cooling systems in this sector, which in turn is driving growth of the segment.

Based on Distribution Channel, the market is segmented into Big Box Retailers, HVAC Contractors and Distributors, and Other Distribution Channels. Out of which, Big Box Retailers is expected to dominate the global market over the forecast period and this is attributed to the rising number of stores considering big-box retailers. The stores that are achieving economies of scale by focusing on larger volumes of sales are increasingly considering big-box retailers. This is further driving growth of this segment in the market.

HVAC Contractors and Distributors segment is also expected to witness significant growth in the near future and this is owing to the growing number of vendors focused on partnership with distributors to expand their market presence. For instance, in October 2021, Nortek Global HVAC entered into partnership with Winston Water Cooler, Winsupply, and Lubbock as its wholesale distributor of HVAC and the company expanded its presence in the Texas market.

Global Evaporative Cooling Market: Key Companies Insights

The global evaporative cooling market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global evaporative cooling market are Celsius Design Limited, Delta Cooling Towers Inc., CFW Evapcool, Condair Group AG, ENEXIO Water Technologies GmbH, SPX Cooling Technologies, Bonaire, Baltimore Aircoil Company Inc., Phoenix Manufacturing Inc., Munters Group AB, and Colt Group Ltd.

*Definition:

An evaporative cooling system is designed to draw hot air from the outside and cool it by evaporating water into the air. This process requires an extensive supply of water. This water must then be re-dampened so that it continues to cool the air.