The global cooling tower fans market is expected to hold a value worth USD 207.5 million in 2023, reaching USD 295.5 million in 2033. From 2023 to 2033, the industry is expected to flourish at a CAGR of 3.6%. From 2018 to 2022, the market displayed a CAGR of 2%.
The growth of the market is attributed to the increasing focus on efficient thermal management in various sectors such as food & beverage, power generation, oil & gas, and others.
| Data Points | Key Statistics |
|---|---|
| Projected Market Value (2023) | USD 207.5 million |
| Anticipated Forecast Value (2033) | USD 295.5 million |
| Projected Growth Rate (2023 to 2033) | 3.6% CAGR |
Ongoing technological development in the market, such as tube inserts in heat exchangers, is likely to support the expansion of cooling tower fans. Also, advancements made to enhance the energy efficiency, durability, and compactness of heat exchangers are projected to be another salient factor surging the demand for cooling tower fans, thus supporting market growth in the forecast period.
Favorable initiatives taken by the government of various countries is expected to augment the market size in the forthcoming period. The renewable energy target, along with the growing need to suffice HVAC demand, can impact the market growth.
For instance, the UK government has announced its target of sufficing 17% of UK heating needs through district heating networks by 2030. Owing to the aforementioned factors, the cooling tower fans market is anticipated to strengthen in the coming time.
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The global demand for cooling tower fans is projected to increase at a CAGR of 3.6% during the forecast period between 2023 and 2033, reaching a total of USD 295.5 million in 2033, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth, registering a CAGR of 2.0%.
The increasing need for energy-efficient cooling systems in commercial and industrial applications is expected to fuel market expansion over the forecast period. Cooling tower fans are a low-cost technique for cooling big commercial buildings and process cooling applications in a variety of sectors and industrial verticals, including oil and gas, chemicals, and food processing.
Cooling tower fans are also used extensively in thermoelectric power facilities to remove surplus heat. Increased energy demand is driving the development of new power plants, which will fuel market expansion.
Growing Use of Renewable Energy Sources to Boost Market Growth
Increasing adoption of renewable sources of power generation is anticipated to favor the cooling tower fans market. The growing adoption of renewable energy, such as wind and solar, is projected to act as a significant opportunity for the industry in the coming time.
Further, surging demand for electricity across the globe, owing to rapid urbanization, is anticipated to play an important role in augmenting the market size in the coming time.
Growing demand for energy-efficient and rising implementation of permanent magnet motors in sectors like automotive is anticipated to increase demand for the permanent motor market, thereby benefitting the industry during the forecast period.
Additionally, the growing initiative of players in favor of the market is likely to boost the revenue in the forecast period. For instance, in January 2021, OLA announced its partnership with Siemens to build its upcoming electric vehicle manufacturing facility.
High Maintenance Cost to Impede Market Augmentation
Expenses associated with equipment maintenance are likely to stymie market expansion throughout the forecast period. The availability of low-quality and affordable electric motors has also been identified as a problem impeding industry growth in the near future.
However, rising demand from the chemical sector, along with rapid technical advancement, is likely to offset impediments and boost market growth throughout the forecast period.
Rising Electricity Consumption Creating Opportunities for Cooling Tower Fans manufacturers
North America is expected to be the second-largest industry in the global cooling towers and market, according to the report. By 2023, the area is estimated to generate almost 23.9% of worldwide market revenue.
North America is likely to be dominated by the United States. The states' dominance can be ascribed to rising electricity consumption, rapid industrialization, and increased investment in the renewable energy generating industry.
Rising investment by oil and gas companies in exploration and production operations is also expected to be a significant driver shaping the regional market over the forecast period.
Existence of Established Companies in the Region favoring market growth
According to the estimate, the European market will have the biggest market share. The European market is estimated to account for 30% of worldwide market revenue by 2023.
The existence of established companies in the region might be credited to the market's growth. Furthermore, the European Commission's tough rules focusing on boosting energy efficiency and decreasing greenhouse emissions by 20% are expected to assist regional market development throughout the projection period.
High Rate of Industrialization Fuelling Rapid Adoption
In terms of revenue, Asia Pacific held a substantial market share of the cooling tower fans market in 2021. Because of the high rate of industrialization in Asia Pacific, the cooling tower fans market is predicted to rise rapidly, resulting in an ever-increasing demand for cooling tower fans for a variety of applications in nations like China, India, Korea, and Singapore.
Furthermore, the ongoing construction of new data centers in the Asia Pacific has enormous prospects for the cooling tower fans industry to expand. The cooling tower fans market in China is predicted to grow rapidly due to the country's expanding manufacturing facilities and infrastructure investment.
Furthermore, the expanding number of data centers across the country is one of the major reasons driving the market's optimism during the projection period.
Furthermore, China is the world's greatest user of power. The large quantity of power generation necessary to meet rising energy consumption is predicted to drive up demand for cooling tower fans. Thus, Asia Pacific is expected to procure a 23% market share for the cooling tower fans market in 2023.
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Centrifugal Cooling Tower Fans to be the Highest Selling Product Type
On the basis of product type, the cooling tower fan is segmented into two segments; these are axial cooling tower fans and centrifugal cooling tower fans. The centrifugal cooling tower fans segment is more eco-friendly, more resistant to severe situations, and has a longer lifespan. Because of the non-overloading horsepower curves, it is less prone to overload.
Moreover, high-pressure airflow is produced, moves less air, and requires more power to operate. It works better with ducting, and self-cleaning capabilities are available. Hence, owing to all these benefits, the centrifugal cooling tower fans segment is anticipated to grow at a 3% CAGR over the assessment period from 2023 to 2033.
Power Generation Segment to be the Most Prominent End User Cooling Tower Fans Market
In 2020, the power generation category held the greatest market share in the cooling tower fans market. New power plants are being built all over the world to meet the increased demand for electricity as a result of rapid industrialization.
Cooling tower fans play an important role in removing excess heat from power plants; therefore, demand for cooling towers is likely to rise in tandem with the continuous construction of new power plants. Because of the increased building of residential and commercial premises, the power generation segment is expected to be the fastest-growing category throughout the projection period.
Cooling tower fans are especially important for delivering appropriate cooling for industrial installations. As a result, heavy industry incumbents such as chemicals, pulp and paper, cement, and oil and gas are aggressively embracing cooling tower fans.
Key startup players in the cooling tower fans market are
Waon Development Corporation
Waon Development Limited began operations in 1990. The wholesale distribution of electrical goods, televisions, and radio sets is part of the Company's operation.
Key players in the global cooling tower fans market include Baltimore Aircoil, Cooling Tower Depot, Inc., Amertech Tower Services, LLC, Paharpur Cooling Towers, Multi-Wing India Pvt Ltd., Tower Tech, Inc., Evapco, Inc., STAR COOLING TOWERS, Delta Cooling Towers, Inc., Brentwood Industries, Inc., Cooling Tower Systems, Inc., Berg Chilling Systems Inc., SPX Cooling Technologies, Inc., Paltech - Cooling Towers & Equipment Ltd., WASSER, Cycro, Inc., Watco Group, Niba Co., Midwest Cooling Towers, and Hudson Products Holdings Inc., among others.
| Report Attributes | Details |
|---|---|
| Market Value in 2023 | USD 207.5 million |
| Market Value in 2033 | USD 295.5 million |
| Growth Rate | CAGR of 3.6% from 2023 to 2033 |
| Base Year for Estimation | 2023 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Technology, Product Type, End Use, Air Induction, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, France, United Kingdom, Spain, Italy, China, Japan, South Korea, Malaysia, Singapore, Australia, New Zealand, GCC, South Africa, Turkey |
| Key Companies Profiled | Baltimore Aircoil; Cooling Tower Depot, Inc.; Amertech Tower Services, LLC; Paharpur Cooling Towers; Multi-Wing India Pvt Ltd.; Tower Tech, Inc.; Evapco, Inc.; STAR COOLING TOWERS; Delta Cooling Towers, Inc.; Brentwood Industries, Inc.; Cooling Tower Systems, Inc.; Berg Chilling Systems Inc.; SPX Cooling Technologies, Inc.; Paltech – Cooling Towers & Equipment Ltd.; WASSER; Cycro, inc.; Watco Group; Niba Co.; Midwest Cooling Towers; Hudson Products Holdings Inc. |
| Customization | Available Upon Request |
Total business of the overall market might create a revenue of USD 207.5 million in 2023.
The global demand for cooling tower fans is forecasted to surge at 3.6% CAGR through 2033.
Ongoing technological advancements is boosting the adoption of cooling tower fans.
Europe leads the global market and could account for 30% of market share in 2023.
The popularity of centrifugal cooling tower fans could increase at 3% per year till 2033.
| Market Size (2022) | USD 3.64 Billion |
|---|---|
| Market Size (2032) | USD 14.87 Billion |
| Market CAGR (2022 to 2032) | 15.1% |
| Expected Market Value (2022) | USD 1,673.1 Million |
|---|---|
| Anticipated Forecast Value (2032) | USD 2,648 Million |
| Projected CAGR (2022 to 2032) | 4.7% |
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