Cooling Tower Market Size to reach US$ 1.5 Bn by 2031, TMR Study
Transparency Market Research inc.
5 min read
WILMINGTON, DE / ACCESSWIRE / February 15, 2023 / Transparency Market Research Inc. - According to TMR research, the global cooling tower market was valued at US$ 53.7 Bn in 2021 and is estimated to grow at a CAGR of 3.4% during the forecast period from 2022 and 2031.
Transparency Market Research inc., Wednesday, February 15, 2023, Press release picture
Growing significance of cooling in data centers is propelling cooling tower market expansion. Data centers require adequate cooling because the IT infrastructure they host creates too much heat. Data centers could benefit from cooling towers' ability to maintain ideal temperature while using less energy. Construction of data centers is increasing, and several future hyper-scale projects are expected to augment cooling tower industry growth.
However, environmental issues are likely to hamper the cooling tower business. The smoke and drift that cooling towers cause are a matter of concern. Nevertheless, introduction of drift eliminators and plume abatement towers could assist in water conservation, which is likely to bolster market growth.
Increase in industrial and commercial activity across the world is attributed to rise in cooling tower market demand. Surge in data centers and increase in construction of hyper-scale data centers are expected to drive demand for cooling towers. IT equipment in data centers requires optimal temperatures to operate effectively. As a result, cooling towers could be installed at data center facilities to absorb the heat generated by the equipment.
Rapid industrialization, rise in disposable income, and globalization are driving demand for energy across the world, especially in developing countries. Surge in number of power plants is likely to fuel expansion in the cooling tower industry. Power production plants create significant amount of heat, necessitating the installation of cooling towers. Cooling towers eliminate extra heat produced in power plants, and hence enable safer power plant operations, which is likely to increase cooling tower demand during the forecast period.
Key Findings of Cooling Tower Market
Field-erected cooling towers are huge concrete structures that possess the capacity to withstand the weather according to the regional weather conditions. They are efficient in enabling quicker evaporation and a greater cooling effect. Because of strong heat rejection capacity, these cooling towers are ideal for cooling large facilities. They are installed in heavy industrial sectors and use heavy amounts of water to enhance the cooling process. Hence, the field- erected tower segment is expected to expand at a steady pace during the forecast period.
Globally, new power plants are being constructed to meet the increased demand for electricity caused by rapid industrialization. Cooling towers play a crucial role in removing excess heat from power plants. Hence, demand for cooling towers is anticipated to increase. Furthermore, rise in the development of residential and commercial buildings is estimated to promote the HVAC segment during the forecast period.
As per cooling tower market report by TMR, Europe is projected to dominate the global market due to rise in demand for cooling towers in countries such as Germany and Poland. The pressing need to replace old towers has created multiple growth opportunities in the market.
Asia Pacific is anticipated to account for the largest market share in terms of sales in the coming years. This is ascribed to rapid rate of industrialization in the region. The cooling tower market in the region is anticipated to witness robust growth due to continuing construction of new data centers.
Cooling Tower Market: Competitive Landscape
Various inorganic strategies, such as mergers & acquisitions and joint ventures, are being employed by market players in order to withstand the intense competition. In order to have a competitive advantage in the market, companies are developing and releasing new products such as Marley BasinGard Filter. The filter is intended to collect pipe rust, debris, and mineral scale, and assist in maintaining the hot water basin flow of the cooling tower.
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