Market snapshot.
The cooling towers market size and share is estimated to be worth approximately USD 4 billion in 2022 and is projected to grow at a CAGR of approximately 5% during the forecast period. Furthermore, according to the research analysis, the global cooling tower market is expected to reach approximately USD 12 billion by 2035.
Market overview.
Cooling towers are devices that maintain low temperatures by releasing excess or waste heat to the atmosphere. Cooling towers are mainly used to maintain refrigeration temperatures in many industrial applications. According to our research, the growth of the cooling tower market is attributed to the increasing industrial and commercial activities across the globe. In addition, the emergence of data centres and increasing construction of hyperscale data centres is expected to increase the demand for cooling towers. However, the IT equipment in data centres requires optimum temperatures in order to function efficiently. Cooling towers can therefore be installed in data centre facilities to remove the heat generated by the equipment, and according to Data Centre Knowledge, the use of evaporative cooling, including cooling towers, is increasing in data centres. In the US, nearly 30% of new data centres will use evaporative cooling by 2020, up from 17% in 2018.
Key trends in the cooling tower market
On 19 April 2021, SPX Corporation (‘SPX’) announced that it had completed the acquisition of Sealite Pty Ltd (‘Sealite’) and its affiliates (including Avlite Systems and Star2M Pty Ltd). Sealite is a leader in the design and manufacture of naval and air navigation support (AtoN) products. The company is headquartered in Somerville, Australia, with offices in the USA, Singapore, Colombia and the UK.
On 1 February 2019, SPX Corporation announced that it had completed the acquisition of Carmanah Technologies Corporation’s Sabik marine and obstacle lighting business. The results of the acquired business will be reported together with the SPX Communication Technologies business within the Detection and Measurement segment. The acquisition is expected to have a slightly accretive effect on SPX’s 2019 adjusted earnings per share.
Regional overview of the cooling tower market
According to our cooling tower market research, the Asia Pacific market is expected to account for the largest market share during the forecast period. The Asia Pacific cooling tower market is driven by high industrialisation rates, with several countries including China, India, South Korea and Singapore seeing demand for cooling towers in various applications. In addition, new data centres continue to be rolled out in Asia Pacific, creating significant growth opportunities for the cooling tower market. According to one case study, demand for cooling towers in Asia-Pacific is driven by the need to reduce water usage in power plants. The study found that the installation of cooling towers reduced water use in Malaysian power plants by 88%. This highlights the importance of cooling towers in the region, especially in water scarce areas.
Competitive landscape
Major companies in the cooling tower market include SPX Corporation, Baltimore Aircoil Company, Evapco Inc, Bell Cooling Tower, Brentwood Industries Inc, Enexio, Star Cooling Towers Private Ltd, SPIG SpA and Paharpur Cooling Towers. The study includes detailed competitive analysis, company profiles, recent trends and key market strategies of these key players in the global cooling towers market.
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