Cooling Towers Market Analysis By Type (Open-Circuit, Closed-Circuit, Hybrid), By Material (FRP, Concrete, Steel, Wood, HDPE), By Application, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global cooling towers market size was valued at USD 3,280.9 million in 2016 which is anticipated to witness a substantial growth owing to its increasing adoption in various heavy industrial applications. Factors such as high electricity consumption along with a growing need for energy efficiency in several application areas are expected to fuel the demand for this market over the forecast period. Furthermore, the rising number of construction activities across the globe is a key driver expected to favorably impact market growth.

India cooling towers market by application, 2014 - 2025 (USD Million)

On the other hand, environmental concerns associated with cooling towers, including plume and drift, are anticipated to moderately hinder their adoption. However, the emergence of plume abated towers and drift eliminators are likely to help overcome these concerns and drive the demand for hybrid towers in future. Technological advancements to help increase energy efficiency and reduce environmental concerns associated with conventional cooling systems are expected to open new avenues for the industry growth over the forecast period.

Type Insights

Closed-circuit type segment accounted for the largest market share in 2016. However, hybrid towers are expected to capture a substantial share over the projected period. This is ascribed to various benefits offered by hybrid towers such as plume abatement, water conservation, and optimal cooling.

On the other hand, open-circuit type also accounted for a considerable share in 2016 owing to ideal cooling provided by them. The segment is expected to grow at a moderate rate over the forecast period due to environmental concerns associated with them, such as drift, plume, and water contamination.

Material Insights

Cooling towers are made of various materials such as Fiber-Reinforced Plastic (FRP), steel, concrete, wood, and High-Density Polyethylene (HDPE). FRP material segment accounted for the largest share in 2016, owing to various benefits they offer, such as high corrosion resistance, cost effectiveness, and ease of installation. However, High-Density Polyethylene (HDPE) material segment is estimated to grow at a higher CAGR due to advantages such as longer service life and reduced maintenance requirements offered by them.

Global cooling towers market share by material, 2016 (%)

Furthermore, steel towers, which are made up galvanized and stainless steel, also captured a substantial share in 2016, which is attributed to their high resistance to corrosion and high structural strength. This segment is followed by concrete material segment which is expected to grow moderately owing to its long operating life.

Application Insights

The power generation segment, particularly thermoelectric power plants, captured the largest share in 2016. This is accredited to the proliferating consumption of electricity owing to rapid industrialization, rise in disposable income, and globalization. With the rise in the demand for electricity, the demand for these towers across power plants has also increased in order to remove excess heat generated during electricity production. However, HVAC is anticipated to be the fastest-growing application segment owing to increase in the level of construction activities in the residential and commercial construction sectors.

The growing number of heavy industries including oil & gas, chemical, cement, food & beverage, and pulp & paper, are expected to spur the demand for cooling towers. Thus, cooling towers play an important role in the functioning of these industries by providing optimal cooling. They are widely used in heavy industries as they deliver high heat rejection and lessen the downtime by simplifying maintenance procedures.

Regional Insights

Asia Pacific held the largest market share and accounted for more than 20% of the revenue share in 2016, closely followed by Europe. Furthermore, the region is estimated to be the fastest growing market for cooling towers, registering a CAGR of over 5.0% from 2017 to 2025. The increasing number of manufacturing facilities along with the expansion of the industrial sector in Asia Pacific is expected to drive the demand for these towers in this region. Furthermore, the growing focus of the Asia Pacific region on nuclear power plant construction is also expected to contribute positively to the market demand over the forecast period.

On the other hand, the European market growth can be attributed to stringent government regulations regarding the usage of these towers and increasing number of heavy industries in the region. The growing presence of oil & gas industries in the Middle East & Africa is anticipated to favorably impact the market growth in the same region.

Competitive Insights

The cooling towers market is characterized by strong competition with the presence of a few major global players and other small vendors offering a range of products. Moreover, the market is moderately fragmented in nature with the presence of key players such as SPX Corporation, Evapco, Inc., Hamon & CIE International SA, Paharpur Cooling Towers, Babcock & Wilcox SPIG, Enexio, and Baltimore Aircoil Company Inc.

Companies in this market adopt various inorganic strategies such as mergers & acquisitions and joint ventures to sustain competition. For instance, Paharpur Cooling Towers acquired SPX dry cooling business in 2016. This acquisition strengthened the existing cooling solutions offerings of the company.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segment from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the cooling towers market on the basis of types, materials, applications, and region:

• Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Open-circuit

  • Closed-circuit

  • Hybrid

• Material Outlook (Revenue, USD Million; 2014 - 2025)

  • Fiber-Reinforced Plastic (FRP)

  • Steel

  • Concrete

  • Wood

  • High-Density Polyethylene (HDPE)

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • HVAC

  • Power Generation

  • Oil & Gas

  • Industrial

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    •  Mexico

  • Middle East & Africa (MEA)