According to our latest market study on “Water Cooling Tower Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type and Organization Size,” the market is expected to grow from US$ 1,635.22 million in 2021 to reach US$ 2,105.05 million by 2028; it is estimated to register a CAGR of 3.7% from 2021 to 2028.
The growing urbanization in developing economies such as China, India, Brazil, Vietnam, and Mexico is resulting in the increased number of construction activities. This factor is fueling the demand for water cooling towers. The rising construction of industrial and commercial properties is increasing the demand for heat, ventilation, and air conditioning (HVAC) systems as these systems are more suitable for commercial and industrial cooling and ventilation requirements. Cooling towers are a mandatory component of an HVAC system, which is used to remove excess heat from the building premises. HVAC systems have extensive applications in commercial properties such as shopping malls, corporate offices, hotels, retail stores, and warehouses.
The rising industrialization in developing economies is causing an increase in the construction of plants and factories of various industries such as chemical, pharmaceutical, rubber and plastic, automotive, petrochemical, oil & gas, food processing, and sugar refineries. The industrial segment is considered one of the prime users of water cooling towers as these industries generate extensive heat during their operations. The growth of the various industries in developing economies can be attributed to the increasing demand for consumer goods and the rising disposable income of consumers in developing economies. Thus, the rapid urbanization and industrialization in developing economies are fueling the construction activities and subsequently proliferating the demand for water cooling towers.
The COVID-19 pandemic has disrupted and negatively impacted the operations of several industries, including industrial; heating, ventilation, and air conditioning (HVAC); and power plants. A sharp decline in the growth of mentioned industries due to the pandemic is limiting the water cooling tower market growth. Factory shutdowns, travel and trade bans, and border lockdowns to combat and contain the infection have impacted manufacturing, supply, and sales of water cooling tower products.
Amid the COVID-19 pandemic, the demand for the power from commercial and residential sectors has increased significantly, owing to the rising trend of work from home among corporates across the globe. This development has stabilized the demand for water cooling towers to some extent. However, the limited production activities and disrupted supply chain has hampered the market growth. Lowered production rate and declined sale of industrial products in first half of 2020 have negatively impacted the market growth. However, the demand for water cooling towers is expected to increase at considerable rate with the resumption of economic activities in many countries. Thus, the global water cooling tower market is projected to recover in upcoming years as many industries are dependent on it.
Key Findings of Study:
Based on type, the water cooling tower market is segmented into crossflow, counterflow, forced draft, induced draft, and others. In 2020, the crossflow segment led the water cooling tower market, accounting for the largest share in the market. On the basis of application, the water cooling tower market can be segmented into industrial, power plant, and HVAC. In 2020, the industrial segment accounted for the largest market share. Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America accounted for the significant share in the global market.
North America dominated the water cooling tower market, followed by Europe and the Asia-Pacific. The dominance of North America is majorly attributed to the continuous emphasis on the growing installation of power plants, and chemical and petrochemical industries by the governments. Owing to this factor, the demand for water cooling tower is much higher in these countries. Additionally, the presence of a higher number of well-known market players across the region facilitates North America to lead to the water cooling tower market.
Europe and APAC compete closely to gain market share; however, Asia-Pacific is expected to grow at a prime rate during the forecast period. As Europe and APAC are witnessing a significant rise in population, the regions are witnessing huge growth owing to the presence of power plants, oil refineries, chemical and petrochemical, and manufacturing industries. Owing to this factor, regions the industries are pressurized to focus on the deployment of water cooling tower in large numbers, which on the other hand is catalyzing the growth of the market in Europe and APAC.
The MEA and SAM regions are also contributing a significant amount of revenue and volume in the water cooling tower market. As the regions are experiencing urbanization and growth in foreign direct investments (FDI), the regional governments are spending substantial percentages of budgets towards the adoption of advanced technologies. With increasing urbanization, the trend of advanced water cooling tower is also rising, which is showcasing an increased number of water cooling tower procurement year-on-years.
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