Cooling Tower Market 2024 Trend, Marketing Channels and Investment...

Cooling Tower Market 2024 Trend, Marketing Channels and Investment Feasibility

Posted 2024-10-10 07:06:10

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Cooling Tower Industry

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.

Gather more insights about the market drivers, restrains and growth of the Global Cooling Tower market

Cooling Tower Market Segments:

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.

Market Dynamics

Cooling towers are a significant component in commercial and industrial facilities. The industrial sector is vital for every economy, but at the same time, consumes an extremely high amount of energy for manufacturing products. Some of the most notable energy-intensive industries include aluminum, chemicals, metal casting, forest products, petroleum refining, mining, and steel. These industries emit large amounts of heat during various production processes, and as such, necessitate the presence of cooling towers to remove heat from the plant efficiently for environmental safety.

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.

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.

Browse through Grand View Research's Advanced Interior Materials Industry Research Reports.

The global HVAC systems market size was estimated at USD 233.55 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2030.
The global steel market size was estimated at USD 1,469.04 billion in 2023 and is projected to grow at a CAGR of 5.3% from 2024 to 2030.

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: