The Water Cooling Tower market size is projected to reach US$ 3.3 billion by 2031 from US$ 2.3 billion in 2023. The market is expected to register a CAGR of 4.7% during 2023–2031. With growing concerns over sustainability and reducing the carbon footprint, the demand for eco-friendly products for water tower cooling has increased. Thus, increased sustainability is likely to remain a key trend in the market.
The demand for water cooling towers has increased in the power sector. As the demand for energy is growing, the spending on the construction of power plants and, thus, the overall number of power plants has increased in the past few years. For instance, as per the data published by the US government, the country is focusing on building 55% more power plants in 2024 compared to 2023. Such construction spending in the power sector is driving the demand for the water cooling tower market.
In 2023, North America accounted for a notable market share of the global water cooling tower market. Countries such as the US and Canada are leading the North American water cooling tower market. One of the factors that is driving the market is strong industrial growth. Data centers require a strong cooling system to maintain operational efficiency. Thus, many of the data centers are installed with cooling towers to maintain the temperature. Cooling towers in the data centers use air and water to transfer the heat of the data centers. These cooling systems have greater efficiency over the traditional air cooling methods, lower operational costs and flexibility. As per the data by Cloudscene, the US has approximately 5400 data centers in the US. Thus, owing to the presence of a vast number of data centers, the demand for water cooling towers has increased in the past few years.
Commercial and residential constructions are growing rapidly owing to significant urbanization and industrialization. Approximately more than 93% of the total buildings are residential and commercial construction; in addition, approximately 85% of the total buildings' square feet are dedicated to residential and commercial construction. With such higher penetration of residential and commercial construction, the demand for HVAC systems has increased, ultimately driving the water cooling tower market.
As the requirement for the energy is increasing, the demand of the nuclear power plants is increasing. Further, owing to increased awareness of carbon emissions, the focus on nuclear power plants has increased as they are more efficient and effective. As per the data published by the Nuclear Energy Institute, in the US, approximately 471 million metric tons of carbon is prevented by using nuclear power plants. In addition, as of now, nuclear power sources are contributing to 10% of the world’s electricity. Hence, governments across the globe are increasing the contribution of nuclear power plants by building more power plants. For instance, as per the data published by the World Nuclear Association, there are 60 nuclear power plants under construction. Thus, increased demand for nuclear power plants is projected to generate notable revenue opportunities in the coming years.
Key segments that contributed to the derivation of the Water Cooling Tower market analysis are type and application.
The geographic scope of the Water Cooling Tower market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
Asia Pacific held the dominant market share in the global water cooling tower market. Countries such as China, India, Indonesia, and the Philippines are growing notably. Such growth is leading to increased demand for energy as the industrial sector is growing rapidly. Further, owing to urbanization, the demand for residential and commercial sectors has increased. With such growth in the construction, industrial, and energy sectors, the demand for cost-effective cooling systems increased, ultimately driving the water cooling tower market.
The regional trends and factors influencing the Water Cooling Tower Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Water Cooling Tower Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 2.3 Billion |
| Market Size by 2031 | US$ 3.3 Billion |
| Global CAGR (2023 - 2031) | 4.7% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Water Cooling Tower Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Water Cooling Tower Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Water Cooling Tower market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Water Cooling Tower market are listed below:
The “Water Cooling Tower Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
Asia Pacific dominated the water cooling tower market in 2023
Continuous growth in the oil and gas sector is driving the water cooling tower market
Babcock And Wilcox Enterprises, Inc., Baltimore Aircoil Company, Bell Cooling Towers, Delta Cooling Towers, Inc., Evapco, Inc., Hamon, Mesan Group, Samco Technologies, Inc., SPX Cooling Technologies, Inc., and Vistech Cooling Systems
US$ 3.3 billion estimated value of the water cooling tower market by 2031
4.7% is the expected CAGR of the water cooling tower market