The Global Cooling Towers Market, By Type (Open Cooling Tower and Closed Circuit Cooling Tower), By Heat Transfer Method (Evaporative Cooling, Dry Cooling and Plume Abatement (Hybrid)) and By Application (Air-Conditioning, Power Generation Utilities and Manufacturing Industry) and by Region (Western Europe, Eastern Europe, Asia Pacific (Excluding Far East), Southern Africa, North America and RoW) - Global Forecast to 2027”, is expected to be valued at US$ 4,354.9 Million by 2027, exhibiting a CAGR of 4.7% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Cooling tower is used to cool water circulating in the cooling system. Primarily, it is a heat rejection device, which removes the 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. Cooling towers are widely used in different industries such as chemical, oil and gas, food processing, power generation plants, and other air-conditioning applications. There are basically two types of cooling towers: Open cooling towers and closed-circuit cooling towers. On the basis of their heat transfer method cooling towers are classified as evaporative/wet, dry cooling towers, and hybrid.
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.
High growth of infrastructural and industrial activity is expected to propel the global cooling towers market growth over the forecast period
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.
Cooling Towers Market - Impact of Coronavirus (Covid-19) Pandemic
The Cooling towers are widely used in the HVAC Systems. This systems offers air-conditioning to corporate offices and households. Owing to the nationwide lockdown imposed by countries such as India and Spain, the corporate offices have been shut down. For instance, In July 2020, Department of Communications of India ordered Indian IT companies to extend work from home policy for their employees till 31st December 2020. As the IT offices are shut down, the demand for the Cooling towers is also expected to reduce in the year 2020-2021.
Proactive initiatives by the government can present lucrative growth opportunities
Governments of countries in Western Europe are imposing regulations to control the released plume, which is expected to bolster the demand for plume abatement towers over the forecast period. Technological advancements have led to introduction of hybrid cooling towers to reduce the overall impact of plume. However, the cost of these towers is typically two to three times higher than of conventional towers. Therefore, the market has not yet witnessed booming demand for hybrid cooling towers. The U.S.-based Electric Power Research Institute (EPRI) initiated the long-term Technology Innovation Program in November 2012 to conserve water.
Low pace of economic development due to economic recession is expected to hamper the cooling towers market growth over the forecast period
The economic recession of 2009 impacted the world, resulting in tremendous setbacks to the global economy. As a result, the purchasing power of the consumers came down which in turn, affected industrial growth. Consequently, production slowed down and the prices went up. This also had a negative impact on the cooling towers market. The manufacturing industries were shut down, which in turn led to a dip in the replacement orders of legacy cooling towers with new ones. Industries which were expected to progress, are still facing funding issues in certain regions such as Europe. Hence, these factors are expected to hamper the global cooling towers market growth over the forecast period.
Among regions, Europe is expected to witness robust growth in the global cooling market during the forecast period. This is owing to high growth of cooling chemical sector across the region. Furthermore, the presence of key manufacturers is expected to boost the regional market growth over the forecast period.
Latin America is expected to register a robust growth rate in the global cooing market over the forecast period. This is owing to technological advancements in cooling tower and rise in HVACR deployments across the region. Furthermore, the presence of strict regulatory norms are expected to accelerate the regional market growth in the near future.
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.