Preliminary research of Fairfield Market Research indicates a promising growth outlook for global cooling towers market during the course of next few years.
Spike in Demand from Thermoelectric Power Facilities Uphold Cooling Towers Market
Throughout the forecast period, it is predicted that global cooling towers market will rise due to the rising demand for energy-efficient cooling systems in commercial, and industrial applications. In many different industries and industrial verticals, including oil and gas, chemicals, and food processing, cooling towers provide an efficient way to cool big commercial buildings and process cooling applications. To remove the extra heat, cooling towers are also widely used in thermoelectric power facilities. The majority of the US geothermal power plants are located in California. Power utilities ran 30 such plants in the state as of 2021. With 24 geothermal power stations, Nevada came next. In 2021, the total amount of geothermal electricity produced in the US peaked at 16.24 billion kilowatt hours. Furthermore, the demand for frequent cooling of commercial and industrial structures and equipment propels the cooling towers market for cooling towers throughout the anticipated time.
Expansion of the Renewables Sector Augurs Well for Cooling Towers Market
There has been an increase in the building of new power plants that are powered by many sources, including coal (thermal power plants), natural gas, oil, biofuels, waste, nuclear power, hydropower, geothermal power, solar PV, solar thermal, wind, and wave and tidal energy. Currently, there are roughly 62,500 power plants in operation worldwide. The expansion of the cooling towers market is most likely to be fueled by these changes, which are raising the number of oil rigs in the world and the capital expenditure in the oil and gas industry. Additionally, establishing supportive governmental guidelines for developing renewable energy sources and a movement in customer preference toward sustainable cooling systems would accelerate product uptake. The industry's landscape will be stimulated by rising investments in capacity expansion across the power generation sector and rising electricity consumption. By adding four more cooling towers to its current cooling tower system and optimizing the processes for producing insulin, Novo Nordisk, a multinational pharmaceutical company with headquarters in Kalundborg, Denmark, was able to reduce its annual energy use by around 5 million kWh. These elements will, therefore, likely support the expansion of the global cooling towers market throughout the forecast period.
Cooling Towers Market: COVID-19 Impact
Buildings in both HVAC systems and potable water systems, as well as these towers, were left vacant or empty for an extended period of time during the lockdown, which greatly increased the chance of legionella bacteria developing there. Therefore, it was crucial to complete preventative maintenance on the cooling towers of these buildings to ensure the secure reopening of offices and other structures. In addition, the pandemic caused a large decline in demand in the oil and gas industry. With the sharp decline in oil prices that started in the middle of 2014 and grew, the oil and gas industry has already been impacted in recent years. The industry suffered even another setback in 2020 when COVID-19 emerged. Major refiners were forced to cease operations with the lockdowns, diminishing demand, and the COVID-19 epidemic.
Advent of HVAC Technology, and Proliferating Construction Activity Favour Cooling Towers Market Expansion
The demand for these towers is rising due to the world's rapid infrastructural development. The need for heating, ventilation, cooling, and refrigeration equipment is being fueled by the construction activities in developed and developing countries, which is projected to drive the cooling towers market forward. Therefore, it is anticipated that the construction of ports, airports, and other transportation infrastructure will accelerate market growth. Huge expansion initiatives are going to be implemented at airports. For instance, two international terminal complexes are added to the John F. Kennedy International Airport. By 2025, this project is anticipated to be finished. The increased demand for HVAC systems is driving the market due to the trends outlined above in the building sector.
Increasing Adoption Across Industries to Drive Cooling Towers Market Growth
The cooling towers' integration into many industries is a key element in their expansion. As water-cooled systems, cooling towers have begun to be employed as energy-efficient systems because they consume less energy than air-cooled alternatives. Most businesses have continued to use cooling towers because they prevent heat transfer into the air. As cooling towers are made to cool the circulating water during the production process, they are also utilized in food processing plants, oil refineries, natural gas plants, and other facilities, further pushing the market. Cooling towers have the excellent advantage of preventing overheating in other equipment, lowering operating costs and ensuring that machines have the correct power to operate without interruption.
Scaling and Corrosion-related Concerns Continue to Challenge Rapid Growth of Cooling Towers Market
Despite its benefits and widespread application, scale and corrosion remain issues for it. Corrosion is an issue with cooling towers because after the process is over, unrestrained water flow through a cooling tower corrodes the metal and causes leaks. Air, sodium, and other chemical elements in the water supply combine and react to corrosion. The metal inside the cooling tower is destroyed or lost due to this chemical process. The growing number of industrial facilities is causing environmental problems such as plume, drift, and water pollution, affecting market demand.
Hybrid Cooling to Dominate Cooling Towers Market Market due to Lower Water Consumption
The highest CAGR in the projection period is to be acquired by hybrid cooling. These cooling towers exceed stringent environmental requirements and offer an excellent balance of wet and dry cooling with a positive environmental impact. They enable the reduction of steam drift, or the "steam plume," which is particularly noticeable in cold, rainy weather and during the winter when it might cause icing. Eliminating the steam plume in cities, industrial locations, and adjacent to potentially freezing roadways is very advantageous. The hybrid cooling towers also use less water and deliver a total heat rate according to customer needs. Utilizing the ambient air, this module will lower the cooling water's temperature before entering the wet area. The steam plume is eliminated when hot air from dry cooling is combined with saturated air from the wet section. Energy, petrochemical, chemical, metallurgy, plastic and rubber, paper, and manufacturing industries use hybrid cooling technology. These industries are examined to determine the growth drivers associated with the cooling towers market throughout the forecast period.
With Ease of Maintenance, Cross Flow to Dominate Cooling Towers Market
The forecast period is to be dominated by cross flow tower in cooling tower. In cross-flow towers, the air moves horizontally across the flow of the falling water as the water falls vertically through the fill. Hot water is distributed by this kind of cooling tower perpendicular to the airflow. While the cooling tower fan draws air horizontally across the fill, water flows from the cooling tower's top into the hot water gravity distribution basin and the fill. To service the drive system and check the complete fill assembly, cross-flow towers include an internal access plenum that can be equipped with an internal platform. These towers can also be equipped with an exterior service platform or a ladder with handrails for safe maintenance access to the hot water basin. The cross-flow single-cell cooling tower has a capacity ranging from 70 M3/Hour to 255 M3/Hour. The cross-flow multi-cell cooling tower's capacity can be customized to meet the client's needs.
Asia Pacific to Acquire a Major Revenue Share in Cooling Towers Market Owing to Increased Refinery Activities
In terms of sales, Asia Pacific held the biggest share in cooling towers market during the forecast period. With the region's rapid development, which is driving demand for cooling towers across several nations like China, India, Korea, and Singapore, the cooling towers market is predicted to rise significantly in the Asia Pacific region. Additionally, the ongoing construction of new data centers in the Asia Pacific region is creating enormous prospects for expanding the cooling tower industry. The need for cooling towers in the major refinery business is also pushed by the increase in refinery capacity in the area. As of 2020, the Asia Pacific region's refining capacity had increased by 2.7% from 2019 to 36,492 thousand barrels per day. Moreover, the Indian Oil Corporation (IOC), the largest state-owned oil refiner in India, announced plans to invest roughly INR 1 lakh crore to increase its refining capacity by approximately a third over the following 4-5 years in August 2021. There should be a demand surge in cooling towers in the upcoming years due to such substantial investments in refining operations.
The North American cooling towers market is anticipated to expand during the projection period. The rigorous government regulations in the area are anticipated to drive market expansion. The region's market benefits from government laws limiting water consumption for cooling equipment and power-producing plants. The substantial presence of well-known businesses in North America, including SPX Corporation, Babcock & Wilcox Enterprises, Inc., and EVAPCO, Inc., also assists the market's expansion. The Kentucky Association of Manufacturers and a newly formed Midwest industrial alliance have partnered as of April 2020. Amid the coronavirus pandemic, this partnership will work together to reopen their respective state economies. Illinois, Ohio, Michigan, Indiana, Wisconsin, Minnesota, and Kentucky are parties to the most recent agreement. This will open up new possibilities in the region's cooling towers market.
Global Cooling Towers Market: Competitive Landscape
In November 2020, Linde GmbH chose Hamon to design, manufacture, and supply an 18-cell cooling tower for the Amur Gas Chemical Complex (Amur CGG), one of the world's largest polymer facilities to be built by Russia's largest integrated petrochemical business Sibur in collaboration with Chinese Sinopec. In February 2020, SPX Cooling Technologies, Inc., a full-service industry leader in the design and manufacture of evaporative cooling towers and air-cooled heat exchangers, introduced the Marley MH Element Fluid Cooler, an induced-draft, crossflow closed-circuit cooling tower suitable for HVAC, industrial, and process cooling applications. The Marley MH Element Fluid Cooler provides increased thermal capacity with a smaller footprint and reduced fan power thanks to its hybrid operation and high-efficiency components.
Few of the players in the cooling towers market include S.A. HAMON, SPX Cooling Technologies, ENEXIO Management, Baltimore Aircoil Company (BAC), Johnson Controls, Paharpur Cooling Tower, SPIG S.p.A, EVAPCO, Delta Cooling Towers, Thermax, International Cooling Tower, Brentwood Industries, ENGIE Refrigeration, Perfect Cooling Towers, Star Cooling Towers, Mesan Group, Bell Cooling Tower, BERG Chilling Systems, REYMSA Cooling Towers, and Thermal Care.
Global Cooling Towers Market is Segmented as Below:
By Construction Material
Key Elements Included In The Study: Global Cooling Towers Market
Post Sale Support, Research Updates & Offerings
We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.
Under uncertainty, traditional approaches to strategic planning can be downright dangerous. True ambiguity is no basis to forecast the future – degree of risk, the magnitude of circumstances, conditions and consequences are not known or unpredictable. To avoid dangerous binary views of uncertainty; strategic posture, moves and actions through market research is the best bet.Read more