A cooling tower is a heat exchanger device that allows water and air to come into direct contact with each other in order to reduce the water temperature. It is mainly used in the manufacturing and power generation industries for keeping the environment cool. Cooling towers are relatively inexpensive and helps in removing low-grade heat from cooling water. Increased number of power generation plants across the globe is expected to have a positive influence on cooling towers industry.
Rapid urbanization along with rising technological advancement in cooling towers are some of the major factors expected to drive the cooling towers market growth during the forecast period [2020-2026]. Also, increasing demand for cooling towers in construction, air conditioning, manufacturing, and power generation industries is propelling the market.
The global cooling towers market is valued at USD 2 billion in 2019 and is anticipated to grow at a CAGR of 4% during the forecast period. According to the new market research report published by Global Market Estimates, the global cooling towers market, is segmented into type, construction material, and application. On the basis of type, the market is segmented into the evaporative cooling tower, dry cooling tower, and hybrid cooling tower. Evaporative cooling tower segment is estimated to grow at the highest CAGR% during the forecast period. Lower maintenance cost, reduced noise pollution, high performance, and energy-efficient are some of the prominent factors driving the demand for evaporative cooling towers. Hybrid cooling tower market is expected to hold the largest market share during the forecast period. Dry cooling tower segment is also estimated to grow in the near future because of low investment requirements and high life span capacity.
Based on construction material, the global cooling towers market is segmented into concrete, steel, and FRP (Fiber-Reinforced Plastic) among others. FPR becomes the most common structural material for small cooling towers and its segment is expected to grow at the highest CAGR% during the forecast period. Other factors such as high loading capacity, high structural performance, and architectural flexibility simulate the growth of the concrete cooling tower segment followed by the steel segment in the upcoming years.
Further, based on application, the global cooling towers market is segmented into power generation, food & beverages, HVACR, chemical, petrochemical, and oil & gas, among others. The power generation segment is expected to hold the largest market share as well as the highest CAGR in terms of revenue over the forecast period. Increasing demand for electricity and the rapid expansion of thermal power generating plants are some of the factors driving the growth of the market. Also increasing investments for the development of commercial and industrial buildings including shopping malls and large offices will fuel the HVACR market growth. However, high maintenance cost, stringent environmental norms, and corrosion are likely to hamper the market demand.
Among different regions across the globe, Asia Pacific region is expected to dominate the cooling towers market in the future period. The market in this region is pumping mainly due to the rise in a number of power generation plants, rapid industrialization, and increase in construction of nuclear power plants. Rise in population and growing usage of electricity are driving the Indian market. China is also one of the leading markets for the sale of cooling tower systems. Furthermore, rising investment in coal-based power plants, mainly in China, India, and Indonesia among others, is expected to drive the market growth in the region. North America is also expected to grow in the upcoming years because of the increasing need to maintain the temperature in manufacturing units, especially in food and beverages industry and manufacturing industries. The presence of oil & gas industries in Europe is expected to propel the cooling towers market growth.
Since the above segments of the global cooling towers market is expected to grow in the coming years and favorable regulatory policies along with the development of cross border production networks have provided immense opportunities for low-income nations to prosper, it creates various opportunities for vendors and others to expand their horizons. The key market players operating in the global cooling towers market are Baltimore Aircoil Company Inc., Bell Cooling Tower, Johnson Controls Inc., and Hamon & CIE International SA among others.
So, it can be concluded that the global cooling towers market has a large potential to grow in the upcoming years, which provides more business opportunities.
Browse through the report description @: Global Cooling Towers Market – Forecasts to 2026