Success in the Cooling Tower Market Boils Down to Innovation

The environmental impact of HVAC systems has been hard-hitting the cooling tower market. To add to that, high energy consumption costs are also challenging the growth of the landscape. However, according to a study published by Transparency Market Research (TMR) on the cooling tower market, opportunities will arrive from the increasing construction of new power plants to cater to growing energy requisites.

The popularity of oil & gas as the gold standard of fuel will lead to the construction of field-erected and factory-assembled cooling towers. Since the cooling tower market operates amidst stringent policies, market players rely on research & development activities to improve the quality of their products and maximize the yield through product differentiation.

In the future, experiments with the size, shape, and weight of filtration media will be instrumental in enhancing the efficiency of cooling towers, which will further prevent the use of excess water for cooling purposes. Overall, players in the cooling tower market can anticipate a pedestrian growth of ~3% during 2019-2027.

cooling tower market infographic

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Factory-assembled Cooling Towers to Emerge as Practical Choice for Institutional Applications

The study shows statistical data that infers that, end users prefer the field-erected construction of cooling towers over the factory-assembled ones, as these have no imposed limitations on the cooling capacity. Since power plants and oil & gas industries require high heat rejection systems, field-erected products are witnessing a better infiltration rate as compared to the factory-assembled ones.

However, factory-assembled cooling towers with a cooling capacity of 1400 or less are emerging as a practical choice for institutional and commercial applications. For instance, the HVAC industry, which is an exponentially growing end-use industry in the market, is likely to witness excessive adoption of factory-assembled cooling towers. Given the traditional influence, field-erected cooling towers are projected to account for ~62% of the market share in 2019, while factory-assembled cooling towers are likely to spectate a marginal rise in their sales.

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Why Should Cooling Tower Market Players Magnify their Focus on Europe?

Europe has a zero-tolerance policy when it comes to the excessive use of fossil fuels and the high emission of greenhouse gases. The plan to electrify the automotive sector by 2030 is a testament to the fact. Such actions are found to have a profound impact on the use of fossil fuels, and the number of coal-operated power plants is on a sharp decline. The energy requisite from commercial, industrial, and residential sectors has, however, led to the construction of power plants operated with biofuel, water, waste, solar power, and wind, which is generating high demand for cooling towers. Besides power plants, the innovation-driven food and beverage sector of the region is likely to create opportunities for market players.

While Europe is in the vanguard, market players can take note of Asia Pacific’s strengthening foothold in the cooling tower market. Also, manufacturing powerhouse China is home to some of the largest and fastest-expanding industries of the world, which creates high demand for energy and leads to the construction of power plants. In addition, fast-paced industrialization observed in India and Japan also accounts for the growth of cooling tower market in the region.

cooling tower market segmentation

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Analysts’ Take on Market Growth

Analyzing a cohort of dynamics of the cooling tower market, authors of the report remain optimistic regarding the future scope of the market. However, they recommend market players to work on bringing the efficiency of cooling tower to the fore to lessen downtime wasted during quality checks by central authorities. It will be crucial for market players to understand end users diligently to target the right mass for their products. For instance, operators of power plants will look at field-erected cooling towers, while small players with lesser heat load will manage their operations with cost-efficient factory-assembled units.

Though evaporative technology remains a highly-preferred method of heat transfer in cooling towers, market players can increase their portfolios with hybrid technology of heat transfer to stay abreast with the demand from end-use industries.

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Cooling Tower Market: Overview

  • The global cooling tower market is projected to expand at a moderate rate of ~3% during the forecast period of 2010-2027.
  • In terms of revenue, the global cooling tower market is expected to increase from ~US$ 3.6 Bn in 2028 to ~US$ 5 Bn by 2027.
  • The construction of new power plants is driving the global cooling tower market.
  • Moreover, investments in the power industries of Asia Pacific and the Middle East & Africa (MEA) are driving the demand for cooling towers.
  • As per the global cooling tower designing and installation company - Babcock & Wilcox Enterprises Inc., the construction of new coal- and natural gas-based power plants is fueling the demand for cooling towers.

Cooling Tower Market: Drivers

  • As per the IEA (International Energy Agency), in China, the amount of electricity generated through coal was 3,711,059.0 GWh in 2011, which increased at a CAGR of 2.7% to reach 4,241,786.0 GWh in 2016. The amount of electricity generated from natural gas was 95,935.0 GWh in 2011, which increased at a CAGR of 12.2% to reach 170, 488.0 GWh in 2016.
  • As per IEA, in India, the amount of electricity generated through coal was 717,360.0 GWh in 2011, which increased at a CAGR of 9% to reach 1,104,828.0 GWh in 2016. The amount of electricity generated from natural gas was 59,982.0 GWh in 2014, which increased at a CAGR of 9.0% to reach 71,239.0 GWh in 2016.
  • Thus, rise in the demand for power is leading to the construction of coal and natural gas power plants, thus propelling the demand for cooling towers.  
  • Rise in oil & gas capital expenditure is fueling the demand for cooling towers across the globe. As per IEA, oil & gas upstream capital spending was US$ 434 Bn in 2016, which increased at a CAGR of 4.6% to reach US$ 475 Bn in 2018. It is expected to increase to US$ 497.0 Bn by 2019. This will drive the demand for cooling towers.   

Cooling Tower Market: Key Insights

  • There is the opportunity for growth for cooling tower market players in China’s and India’s nuclear power segment. Cooling towers are extensively used in nuclear power plants to remove excess heat from the plant.
  • Global nuclear power growth is moderate, but is expected to grow in China and India.
  • As per IEA, approximately US$ 1.1 trillion is anticipated to be invested in nuclear power by 2040, leading to an increase in nuclear power production by 46%. In China and India, it is expected to increase by over 90%.
  • Moreover, in China and India, IEA expects nuclear power production to grow to 889 TWh and 239 TWh, respectively, between 2016 and 2040.
  • In the rest of the world, IEA expects that nuclear power production would grow to 105 TWh from 2016 to 2040.
  • China is the third-largest nuclear power in the world, with 41 operating nuclear reactors. India is the seventh-largest nuclear power in the world, with 22 nuclear reactors. Thus, the nuclear power market in China and India presents growth opportunities for global cooling tower market players.

Cooling Tower Market: Vital Segments

  • In terms of construction, the global cooling tower market has been categorized into field-erected products (FEP) and factory-assembled products (FAP). The field-erected products segment is projected to hold a higher share of the global cooling tower market throughout the forecast period.
  • On the basis of draft, the global cooling tower market has been segmented into induced draft, natural draft, and forced draft. The induced draft segment is projected to hold a higher share of the global cooling tower market throughout the forecast period.
  • Based on method of heat transfer, the global cooling tower market has been divided into evaporative, dry, and hybrid. The evaporative segment is projected to hold a higher share of the global cooling tower market throughout the forecast period.
  • In terms of end-use industry, the global cooling tower market has been classifies into power, oil & gas, HVAC, and others.
  • In terms of region, the report classifies the global cooling tower market into North America, Europe, Asia Pacific, Middle East & Africa (MEA), and South America. The regions have been analyzed in terms of revenue in the cooling tower market. Moreover, countries covered in the report include the U.S., Canada, Germany, Italy, France, China, India, Japan, GCC, Turkey, and Brazil. The cooling tower market in Europe has the largest share in the global market.

Cooling Tower Market: Prominent Players

Some of the major players in the global cooling tower market include

  • Baltimore Aircoil Company (BAC)
  • ENEXIO Management GmbH
  • Hamon & Cie (International) SA
  • Babcock & Wilcox Enterprises, Inc.
  • SPX Corporation
  • Bell Cooling Towers Pvt. Ltd
  • Brentwood Industries, Inc.
  • Paharpur Cooling Towers Ltd
  • Star Cooling Towers
  • Delta Cooling Towers, Inc.

Cooling Tower Market: Scope of the Report

Transparency Market Research (TMR) published a new study on the cooling tower market. This cooling tower market report presents a plethora of information on key market dynamics, including the drivers, opportunities, market trends, and challenges, as well as the market structure of the global cooling tower market. The study conducted by TMR offers valuable information about the cooling tower market, to illustrate how the market is anticipated to expand during the forecast period of 2019–2027

Market growth, which includes Porter’s Five Forces analysis, value chain, key market indicators, including macro-economic factors, etc., is presented in the TMR’s study in a comprehensive manner. The quantitative information presented in this report can help readers interpret the growth aspects of the cooling tower market for the forecast period.

An analysis on prominent market players’ business strategies is also featured in TMR’s study on the cooling tower market. This can help readers understand significant factors to foresee growth of the cooling tower market. In this study, readers can also find valuable data on the quantitative and qualitative growth avenues for the cooling tower market, which will guide market players in making appropriate decisions in the future.

Key Questions Answered in TMR’s Cooling Tower Market Study

  • What is the scope of growth of cooling tower companies in the global market?
  • What will be the Y-o-Y growth of the cooling tower market during 2019 and 2027?
  • What is the influence of the changing trends in technologies on the cooling tower market?
  • Will Europe continue to remain one of the most prominent regional markets for cooling tower providers?
  • Which factors will impede the growth of the cooling tower market during the forecast period?
  • Which are the leading companies in the global cooling tower market?

Research Methodology

A distinctive research procedure and method has been utilized by TMR for developing a comprehensive research methodology on the global cooling tower market, and has reached a conclusion on the expected future market growth potential. This research methodology is a combination of secondary and primary researches, which help analysts vindicate the accuracy and reliability of the drawn conclusions.

Secondary sources referred to by analysts during the production of the cooling tower market report include company websites, industry white papers, statistics from annual reports published by companies, investor presentations, SEC filings, World Bank database, regulatory databases, publications by government, etc.. Primary sources include senior managers, VPs, CEOs, product portfolio managers, market intelligence managers, etc., who contributed to the production of TMR’s study on the cooling tower market.

These primary and secondary sources provided exclusive information during interviews, which serves as a validation from leading layers operating in the global cooling tower market. Access to external proprietary databases and internal TMR’s database allows this report to address specific details and questions about the cooling tower market with accuracy. The study also uses the bottom-up and top-down methods to assess the numbers reached for each segment. The bottom-up approach counter-validates the top-down approach. Through this, TMR estimates the future prospects of the cooling tower market reliably and accurately.

Segmentation of the Cooling Tower Market

TMR’s study on the cooling tower market includes information bifurcated into five sections ? construction, draft, heat transfer, end-use industry, and region. Prominent industry trends and other significant market dynamics that are associated with these sections of the cooling tower market have been discussed in detail. 

Construction

  • Field-erected Products (FEP)
  • Factory-assembled Products (FAP)

Draft

  • Induced Draft
  • Natural Draft
  • Forced Draft

Method of Heat Transfer

  • Evaporative
  • Dry
  • Hybrid

End-use Industry

  • Power
  • Oil & Gas
  • HVAC
  • Others

Region

  • North America
  • Europe
  • Asia Pacific
  • MEA
  • South America