Cooling Tower Introduction:
A cooling tower is a device that rejects waste heat to the environment by cooling a stream of coolant, essentially a stream of water, to a lower temperature. These towers can either utilize the evaporation of water to expel process heat and cool the working fluid to approach the wet-bulb air temperature, or within the case of drying towers, depend exclusively on air to cool the working liquid to approach the dry-bulb and later adjust temperature with radiators.
The cooling towers industry accounted for USD 3,557 million by 2021.This industry is expected to register steady revenue at a compound annual growth rate of 5.3% between 2022-2032.
The growing demand for energy-efficient cooling systems in commercial and industrial applications is anticipated to drive the growth of the Industry over the forecast period 2022-2032. Increasing demand from emerging industries, stringent environmental regulations, rise in HVACR deployments, and technological advancements are boosting the demand for cooling towers. Cooling towers offer a cost-effective method for cooling large commercial spaces and process cooling applications in various industries and industry verticals, such as oil and gas, chemicals, and food processing.
The demand for electricity is steadily escalating around the world, owing to inflating disposable incomes, increasing electrification in various sectors and rising sales of consumer electronics. This represents one of the major factors impelling the global cooling tower Industry growth. Moreover, as governments of numerous countries are implementing stringent environmental regulations, there is an increase in the adoption of nuclear power plants, which, in turn, is further driving the Industry growth.
Cooling Tower Industry Drivers:
Tremendous rise in construction activities coupled with rapid industrialization
The rapid infrastructure development worldwide is resulting in the increased demand for these towers. The aggregate construction activities in advanced and developing economies are creating an ensuing demand for heating, ventilation, cooling, and refrigeration equipment which, in turn, is expected to drive the Industry. Thus, the increasing transport infrastructures such as airports, bridges,and port development are expected to escalate the growth of the industry.
The rising number of construction activities across the commercial and residential sectors in this region is anticipated to drive product demand. In 2018, construction spending in the United States amounted to $1.3 trillion. Moreover, construction is one of the major verticals contributing to the U.S. economy. Rise in construction activities has led to deployment of industrial equipment which require frequent cooling and hence the demand for cooling towers is anticipated to increase in the coming years.
Surge in adoption by various end user verticals
According to Industry.us, various industries are an important growth factor for the cooling towers. Cooling towers are further used in food processing plants, petroleum refineries, natural gas plants and others. A great benefit of cooling towers is that it prevents the other machines from being overheated so that company expenses get minimized and machines get proper power supply to provide break-free output.
Cooling Tower Industry Restraint:
The cooling tower Industry in Europe and North America has reached the stage of maturity and hence is experiencing sluggish growth. Demand in these regions is expected to be majorly driven by an amplified focus on improving energy efficiency and meeting environmental regulations. The global cooling towers Industry is highly fragmented due to the presence of both regional and international Industry players.
Regions such as Europe and the U.S. are promoting the use of closed-circuit cooling towers, and dry and hybrid cooling towers as compared to open circuit evaporative cooling towers. The U.S. Environmental Protection Agency (EPA) is also promoting the use of closed-circuit towers due to their enhanced performance, and water savings as compared to open circuit cooling towers. Therefore, these factors are expected to hinder Industry growth in the near future.
Cooling towers requires a large quantity of water, which is challenging to manage for small and medium-sized companies. The large quantity of water also results in excessive cost thereby compromising with the budget of a business. Therefore, these factors are expected to restrain growth of the global cooling towers Industry during the forecast period 2022-2032.
Cooling Tower Industry Trends:
The cumulative change toward eco-friendly products owing to the growing concerns regarding the environment is evolving as one of the trends in the Industry. Furthermore, the evolving government initiatives are resulting in the development of sustainable products. The manufacturers are focusing on the development of eco-friendly products. For instance, Marley NC Everest Cooling Tower was designed by SPX Cooling Technology Inc. The product offers enhanced energy savings,i.e.,-35%,and also has less piping and electric connection along with the lowest drift rate of circulating water flow.
Key Developments in Cooling Tower Industry
In February 2022, Babcock & Wilcox Enterprises, Inc. acquired Fossil Power Systems, Inc. According to the company, the acquisition is expected to be another step forward for the strategic growth of B&W’s efficient and environmentally sustainable technologies and solutions.
In July 2021, Baltimore Aircoil Company acquired Italy-based Eurocoil SPA, a manufacturer of heat exchangers serving European commercial and refrigeration industries. With this acquisition, the company has enhanced its heat exchanger capabilities used for BAC’s existing evaporative hybrid and adiabatic cooling products.
November 2020, Linde GmbH picked HAMON&CIE(INTERNATIONAL)S.A. to install & design an 18-cell cooling tower for Amur CGG i.e.,Amur Gas Chemical Complex located in Russia.The crucial tower is made of Fiberglass Reinforced Plastic(GRP)and has an automatic louver system for the nonstop process at very low temperatures.
