Field-Erected Cooling Tower Market Size, Share & COVID-19 Impact Analysis, By Type (Dry, Wet), By Design (Natural Draft, Forced Draft, Induced Draft), By Application (HVAC, Power Generation, Oil & Gas, Others) and Regional Forecast, 2020-2032

The global field-erected cooling towers market size was valued at USD 2.30 billion in 2019 and is projected to reach USD 4.31 billion by 2032, exhibiting a CAGR of 5.25% during the forecast period of 2020-2032. The Asia Pacific dominated the field-erected cooling towers market with a share of 31.3% in 2019.

Cooling towers are majorly used in the industrial sector for maintaining the circulation of water at required temperatures by dissipating the waste heat to the atmosphere. The heat dissipation can be carried out using air only, or evaporation of water can also be used. Oil refineries, chemical plants, thermal stations, nuclear power plants, HVAC systems are the areas for deployment of the field-erected cooling towers. Natural air circulation or forced air circulation is used to maintain the required efficiency of operation of the tower and the equipment being used in the process.

Impact of COVID-19

The Covid-19 crisis has certainly impacted the whole energy and industrial sector in different countries. The industrial sector, where a major portion of the field-erected cooling tower is deployed, has stopped its operations. The oil and gas demand also went down, which led to a slowdown in refinery operations across the globe

As per the recent study by IRENA focused on the impact of COVID-19 on the renewable energy sector, the existing renewable projects in operation have experienced higher utilization rates than ever before. In Europe during the first quarter of 2020, renewables accounted for 41% of total energy production, an increase of 16% from previous years.

The increasing green energy adoption is expected to be followed in the coming years to meet the short term and long term green energy targets for each country. However, the oil demand is expected to experience a slow recovery rate owing to the restrictions imposed on transportation and services during the pandemic. Therefore, the demand for field-erected cooling towers are expected to have a major drop due to the halt in the power generation and petrochemical sector. This will further postpone projects, thus, delaying pipeline projects.

LATEST TRENDS

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Growing Residential and Commercial Sectors to Bring in Opportunities for the Market

As the population of the world has risen at an exponential rate over the last decade, the residential and commercial buildings over the globe have increased. The migration of people from rural to urban areas has increased the demand for energy, fuel requirement, and construction of HVAC systems. These factors together initiate the use of cooling towers to rise in various end-use applications.

Improving Industrial Sector to Spur Business Opportunities

As the population around the globe has increased, the requirement for goods and services has also increased. The food processing demand, demand for manufacturing of vehicles, demand for clothes and textiles, and many other products have increased heavily. This has resulted in new industries being set up, such as manufacturing industries, iron & steel, petroleum refineries, chemical plants, paper mills, and food processing plants, which mandatorily require a cooling tower to be installed to ensure effective operations.

DRIVING FACTORS

Increasing Demand for Power to Boost Market Growth

The growing population in the past decade has directly impacted the amount of power being generated. Field erected cooling towers being an integral part of the power plant, have witnessed a healthy rise. As per EIA, global electricity consumption in 2018 reached 22,315 TWH, which is approximately 4% higher compared with 2017. This trend is expected to be followed by rising energy demand and growth in the population in the coming years.

 Cost-Effective Cooling Solution in the Industrial Sector to Facilitate Market Growth

Field erected cooling towers are the heat exchanging devices which reject the waste heat to the atmosphere by cooling the hot water stream to a lower temperature using the airflow in the cooling tower. These towers can be constructed according to the requirement and stand as the most feasible solution to carry out heat dissipation from the energy-producing plants. The industrial sector does not have a better cooling solution at present, which will act as an advantage for these towers to grow in number.

RESTRAINING FACTORS

Inclination Towards Renewable Energy to Hamper Market Growth

As the concerns over carbon emissions have increased, the conventional power plants using fossil fuels for operation are less preferred for power generation, which is one of the major applications of cooling towers. Renewable energy has witnessed a humongous growth over the past decade across the globe as they are being looked upon as the best possible replacement for conventional power sources in every sector. As per EIA, renewable sources account for around 29% of the total power consumption across the globe, which is expected to grow at a healthy rate in the coming years and boost the renewable energy market. For instance, as per IRENA in 2015, the global solar energy installed capacity stood at 217.34 GW, which has increased to 578.55 GW in 4 years.

SEGMENTATION

By Type Analysis

Better Operational Efficiency of Wet Cooling Towers Will Drive the Market

Based on type, the market is segmented into wet cooling towers and dry cooling towers. The wet cooling tower uses the water evaporation technique, which results in better operational efficiency as compared to dry operations wherein only the natural airflow is used for cooling the circulating water. IN wet towers, the hot water coming from industrial processes and equipment is sprayed from the top of the cooling tower over a fill media using nozzles. This spraying slows down the speed of the water and exposes the maximum possible water surface area to the air moving upwards in the direction of the low-pressure area created by a fan. During the process, some part of the water gets evaporated, and the cooled water collected at the bottom is used for recirculation.

By Design Analysis

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Low Energy Consumption and Better Cooling Mechanism Drive the Growth of Induced Segment

The induced draft cooling towers are equipped with a fan placed at the top of the cooling tower, which creates a low-pressure area and therefore forces the atmospheric air entering from the bottom to flow of the cooling tower in an upward direction. This ensures better cooling as maximum exposure to circulating air is maintained, which results in water evaporation. Another important advantage of the induced draft towers is the high exiting velocities of air from the cooling tower that ensures no recirculation of air, as in the case of the natural draft and the forced draft cooling towers.

By Application Analysis

Increasing Demand for Power Will Fuel the Growth of Power Generation Segment

In terms of application, the market is segmented into HVAC, power generation, oil and gas, and others. The electricity demand has risen at an exponential rate in recent years owing to the rise in population and urbanization witnessed across countries. This has resulted in a major portion of the cooling tower being deployed in the power generation sector. The conventional sources such as oil, coal, and petroleum products still form a major share in the overall power mix of each country, and this trend is set to be continued will slow growth of renewables in the overall power mix.

REGIONAL INSIGHTS

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Asia Pacific dominated the global market over the years owing to the increased energy demand and industrial activities in the region. China and India have been the major countries over the last decade, which have invested heavily in their power, oil and gas, and industrial sectors. Hiked energy demand and population growth have acted as the catalyst for the market rise. The chemical industry in which acetylene is produced also has a major market in China. Following the Asia Pacific region, North America and Europe are having a major stake in the market with a cooling tower being constructed for refineries and power generation. The HVAC segment has contributed to the growth of both regions in recent years as demand for heating and ventilation has gone up. Latin America and the Middle East hold a small portion of the market, but with the rising energy demand and industrial sector, these hold immense growth opportunities in forthcoming years.

KEY INDUSTRY PLAYERS

Paharpur Cooling Towers and SPX Cooling Technologies are the Leading Players in the Market

The competitive landscape of this market depicts a market dominated by cooling tower manufacturers such as Paharpur Cooling Towers, Evapco, Inc, and SPX Cooling Technologies. Paharpur cooling tower holds the maximum market share, and the company has a strong product portfolio of dry cooling towers. In May 2019, SPX Cooling Technologies announced the field-erected cooling towers components on its mobile display trailer in the upcoming Fuel Ethanol Workshop at the Indiana Convention Center in Indianapolis.

A well-established supply chain, maintenance strategy along with customer satisfaction, and an established brand name have been the factors for the success of the company. The market also includes other key players such as Baltimore Aircoil Company, HAMON, Brentwood Cooling Towers, Marley Flow Controls, and others who are increasing their customer reach and establishing a strong footprint in the market. This is expected to dominate and to lead towards a competitive market for field-erected cooling system towers sales in the coming years.

LIST OF KEY COMPANIES PROFILED:

• Paharpur Cooling Towers (India)


• Evapco, Inc (United States)


• HAMON (France)


• SPX Cooling Technologies, Inc. (United States)


• Marley Flow Control Pty Ltd (Australia)


• Watco Group PTE LTD (Singapore)


• Kelvion (United States)


• Chesapeake Systems, LLC (United States)


• Composite Cooling Solutions, L.P. (United States)


• Baltimore Aircoil Company (United States)


• Brentwood Cooling Tower (United States)

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, Baltimore Aircoil Company (BAC) has acquired the Italian-based Eurocoil. This acquisition strengthens the position of Baltimore Aircoil Company in the global cooling market.


• In May 2021, Hamon-Esindus was selected to provide two cooling towers and contribute decisively to the Dos Bocas refinery, in Mexico. This enables Hamon-Esindus to take part in the industrial development of the Mexican oil and gas market and consolidating its leadership position in the Mexican cooling tower market.


• In April 2020, SPIG, a subsidiary of Babcock and Wilcox Enterprise has aware red a contract for more than USD 3 million by BASF Antwerp NV, one of the largest producers and exporters of chemicals, plastic, and performance products. The contract includes the design and supply of two cooling towers for the company’s plant in Antwerp, Belgium.


• In February 2020, Babcock and Wilcox Enterprise has bagged a contract of USD 18 million to provide cooling technologies and associated services for the oil, gas, and petrochemical industrial facilities. This enables to increase and improve the plant cooling capacity.

REPORT COVERAGE

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The field-erected cooling towers market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation