The global cooling tower market size was estimated at USD 3.85 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2030. Stringent government environmental regulations, coupled with concerns associated with the plumes generated by power generation and chemical industries, are anticipated to drive demand for cooling towers during the projected timeframe. HVAC systems ensure a cool and comfortable environment in large commercial buildings that include office buildings, airports, hospitals, conference centers, hotels, etc. These systems use cooling towers to provide optimal cooling in buildings. A consistent rise in commercial construction projects around the world, along with a gradual increase in HVAC installations, is anticipated to boost market prospects for cooling towers over the coming years.
Construction spending in the power sector in the United States grew from USD 110,610 in December 2022 to USD 111,598 in January 2023; for the manufacturing sector, this number rose from USD 131,894 to USD 139,770 in the same assessment period. The increasing spending on manufacturing and power facilities is expected to boost demand for cooling towers in the country. These devices play a vital role in removing excessive heat generated in such facilities, resulting in safer operations, which is expected to drive the demand for cooling towers in the coming years. Growing investments in the U.S. to boost the industrial sector, advance building firms, and improve the installation of eco-friendly products to minimize pollution are factors poised to propel market growth.
Gather more insights about the market drivers, restrains and growth of the Global Cooling Tower Market
Global Cooling Tower Market Report Segmentation
Product Insights
Based on product, the open-circuit segment dominated the market in 2023 by accounting for a revenue share of over 42.3%. The growth of this segment can be attributed to superior cooling, reduced process temperatures, and small carbon footprints offered by open-circuit cooling towers. All these factors lead to an increased adoption of open-circuit cooling towers in cement, chemicals, commercial and real estate, pharmaceuticals, and power generation industries, as well as in refineries. For instance, MITA Cooling Technologies S.r.l. provides open-circuit cooling towers, which are appropriate for facilities, such as medium and small installations, to big industrial cooling towers for industries such as oil & gas and cogeneration.
Material Insights
The fiberglass reinforced plastic (FRP) segment accounted for the largest market share of over 28.7% in 2023. The global demand for FRP is rising owing to its high resistance to corrosion, acid rain, and snow. Moreover, it is lightweight, has low maintenance costs, is suitable for dry and wet operations, and can withstand a wide range of environmental conditions. All these aforementioned factors are anticipated to propel the demand for FRP cooling towers across the world in the coming years.
Steel cooling towers are made of galvanized and stainless steel, which provides excellent structural strength. These towers are also good conductors and offer effective cooling, making them ideal for large facilities. Berg's galvanized steel cooling towers, for instance, reduce the installation, maintenance, and operation costs for both new and replacement cooling tower system projects. Moreover, GT Series thermal performance is independently validated and completely rated across a wide variety of flow and temperature requirements.
Application Insights
Based on application, the industrial segment dominated the market in 2023 by accounting for a revenue share of over 28.9%. Cooling towers are key components installed in industrial facilities to lower the heat that is generated in excess amounts by machines and processes in these facilities. An increasing number of new industrial facilities being established worldwide is fueling the global demand for cooling towers.
Cooling towers are mainly utilized for industrial and HVAC purposes, as per the U.S. Department of Health and Human Services. Cooling towers aid in the energy-efficient and economical operation of an HVAC system. More than 1,500 industrial enterprises experience a high level of water consumption to maintain the cooling of their equipment. HVAC systems are usually found in large office buildings, hospitals, and schools. Growing adoption of HVAC systems is anticipated to drive the demand for cooling towers over the forecast period.
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Regional Insights
Asia Pacific led the market and accounted for 30.9% of the global revenue share in 2023. Improving economies of China, India, Thailand, Indonesia, and Malaysia are forcing governments to frame supportive policies to promote investments in the extraction of natural resources, including crude oil and natural gas. This is expected to escalate oil extraction units in the region and correspondingly augment demand for cooling towers in the region.
In 2023, North America, led by Canada and the U.S., held a significant share of the global market, owing to the extensive regional presence of large-scale data centers, intelligent buildings, and building automation vendors. Additionally, a substantial demand for structured and unstructured data, along with the rising importance of cloud computing, is expected to drive the growth of the global data center space during the projection period, thus boosting the demand for cooling towers. Cooling towers help maintain optimum temperature in data centers, which results in lower energy consumption.
Key Companies & Market Share Insights
The manufacturers in the market continue to adopt several strategies, including acquisitions, geographical expansions, new joint ventures, product developments, and mergers to enhance market penetration and cater to the changing technological requirements from various applications such as HVAC, power generation, industrial, and oil & gas. In June 2023, Johnson Controls International Plc. teamed up with Accenture to open two new OpenBlue Innovation Centers in Bangalore and Hyderabad in India. New centers are expected to accelerate building control systems and services.
Key Cooling Tower Companies:
Babcock & Wilcox Enterprises, Inc.Baltimore Aircoil CompanyCenk Endüstri Tesisleri Imalat Ve Taahhüt A.Åž.Cooling Tower Systems, Inc.Delta Cooling Towers Inc.Engie Refrigeration GmbHEVAPCO, Inc.A. HamonJohnson Controls International Plc.Kelvion Holdings GmbHLiang Chi Industry Co. Ltd.Mesan GroupPaharpur Cooling Towers Ltd.SPX CorporationTorraval Cooling S.L.
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