In 2024, the world cooling tower rental market grew strongly due to increased demand from the energy, chemical, and food & beverage sectors. Increased maintenance shutdowns in power plants, combined with unplanned equipment failures in industrial plants, sharply raised the demand for temporary cooling.
The industry also saw an abrupt increase in emergency rental applications as a result of extreme climate volatility, specifically in areas such as North America and Europe, where extended heat waves stretched available cooling capacities.
The convergence of IoT and AI-driven monitoring systems in rental cooling towers has accelerated, allowing businesses to enhance efficiency and reduce operational expenses. Moreover, strict environmental regulations prompted businesses to look for environmentally friendly cooling tower solutions, compelling rental businesses to implement water-saving and low-noise models.
The phthalate and non-phthalate plasticizers industry is projected to be worth USD 1.16 billion in 2025. It is expected to advance at a CAGR of 7.7% over the forecast period and be worth USD 2.43 billion in 2035. The growth of data centers across the globe is likely to be a major driver, as they have high cooling demands. Further, the shift to renewable power sources, especially among emerging nations, will add more to the need for rental cooling towers as firms go through the process of upgrading infrastructure.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 1.16 Billion |
| Industry Value (2035F) | USD 2.43 Billion |
| CAGR (2025 to 2035) | 7.7% |
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Regional Variance
ROI Perspectives: Converging and diverging
75% of USA stakeholders viewed automation as a high-value investment; however, 37% of Japanese stakeholders were hesitant due to perceived initial high costs.
Consensus
Corrosion-resistant components: 68% of global stakeholders selected reinforced fiberglass or stainless steel due to durability and cost savings over time.
Regional Differences
Shared Challenges
87% cited rising material and energy costs as a factor impacting rental prices.
Regional Differences
Manufacturers
Distributors
End Users (Industrial Operators)
Alignment Across Regions
70% of global manufacturers plan to invest in IoT-based cooling towers for efficiency improvement.
Divergence in Priorities
High Consensus
Efficiency, cost containment, and regulatory compliance are global problems.
Key Variances
While the data focuses on market-wide performance, companies must develop region-specific adaptation strategies to penetrate highly differentiated markets. The USA has a penchant for high-tech automation; Europe is toward green cooling, and in Asia, low-cost, space-saving designs are the focus.
| Countries | Government Regulations and Mandatory Certifications |
|---|---|
| The United States | The USA Environmental Protection Agency (EPA) provides guidelines for cooling tower operations to minimize environmental impact and public health risks, particularly concerning Legionella bacteria proliferation. These guidelines recommend best practices for water treatment, system design, and maintenance. Additionally, state regulations vary; for example, California emphasizes water conservation and mandates regular maintenance and water quality testing. In New York City, cooling tower registration is mandatory prior to operation, with annual certifications required to confirm compliance with maintenance and testing protocols. |
| United Kingdom | The Health and Safety Executive (HSE) issues safety notices emphasizing the proper management of risks associated with Legionella in cooling towers. Compliance with these notices is crucial for legal operation, focusing on regular maintenance, risk assessments, and implementation of control measures to prevent bacterial growth. |
| Germany | Germany imposes stringent regulations on short-term rentals to protect residential housing, requiring permits for such activities. However, specific regulations for cooling tower rentals are not detailed in the provided sources. |
| India | The Cooling Technology Institute (CTI) certification is a significant credential in India, ensuring cooling towers meet stringent standards in thermal performance, sound levels, airflow efficiency, water distribution, and drift eliminator efficiency. Achieving CTI certification demonstrates compliance with international quality and performance benchmarks. |
On the strength of active industry and stringent environmental regulations, the USA cooling tower rent market will advance at an 8.1% CAGR, outpacing the world average. The heat-producing industries, such as power generation, oil & gas, and data centers, which require effective cooling, anchor the demand.
Stringent EPA Clean Water Act (CWA) regulations are also motivating businesses to pursue green alternatives for cooling. The adoption of IoT-enabled cooling towers is thus on the rise, helping in real-time monitoring and predictive maintenance. Additionally, official substations for energy-conserving assets and expanding large-scale enterprises will likewise drive the United States rental cooling market.
The UK market will witness growth at a 7.5% CAGR owing to stringent environmental regulations coupled with the increasing adoption of energy-efficient cooling systems. Legionella cannot infiltrate a workplace, making maintenance and rental facilities essential for the industry.
Portable air conditioners have seen a rise in prevalence in manufacturing, construction, food processing, and other industries. In addition, building regulations Part L and BREEAM certification are promoting low-emission, water-saving cooling towers. However, another significant factor driving the demand for rental cooling systems is the growth of the data center industry.
The rental cooling tower market is expected to grow at a 7.3% CAGR in France, primarily due to industrial sustainability drives and stringent ICPE environmental laws. As the government places increasing emphasis on HQE (Haute Qualité Environnementale) certification, industries are integrating water-conserving and low-emission cooling towers.
Rental cooling solutions are the major consumers of food and beverages, chemicals, and pharmaceuticals. In addition, Legionella prevention regulations require the cooling system to be serviced regularly and temporarily replaced. The EU directives that aim for carbon neutrality by 2050 and energy-saving goals will also provide impetus to market growth.
The market for cooling tower rentals in Germany is anticipated to grow at the rate of 7.8% during the forecast period, owing to the high industrial demand and high emission control regulations. Demand for energy-efficient rental cooling equipment is propelled by stringent cooling tower emissions regulations under the TA Luft (Technical Instructions on Air Quality Control) and the Federal Emission Control Act (BImSchG).
Large chemical, automotive, and data center industries drive market growth. Moreover, Blue Angel Certification encourages businesses to go green with their cooling systems. With Germany leading the way in the transition to renewable energy in Europe, rental cooling towers are increasingly being used in temporary industrial cooling processes.
While the Italy rental cooling tower market will grow at a 7.0% CAGR, the growth will be mainly attributable to the introduction of Legionella Control Laws (D.Lgs 81/2008 & UNI 8884) and Integrated Environmental Authorisation (AIA) legislation. Rental cooling towers play a crucial role in temporary and emergency cooling for the pharmaceutical, textile, and food processing industries.
In Italy, low-energy cooling is being driven by a compliance focus with the EU Energy Efficiency Directive. However, growth is limited by the slow take-up of intelligent cooling technology, a trend that will be reversed as industrial automation accelerates.
A source of South Korean cooling towers is projected to develop at a 7.2% CAGR on the back of government regulations for commercial emissions reduction and energy-efficiency improvement. Acts of rationalization under the Clean Air system drive the high costs of high-cost, low-emission, and high-efficiency cooling systems in various industries.
As precision cooling occupies an important position in manufacturing, the electronics and semiconductor industry is a crucial demand driver for cooling towers. In addition, increasing urban data centers and smart factory automation are boosting the need for IoT-integrated cooling tower rental markets.
Japan's heating and cooling tower rental market is anticipated to expand at a CAGR of 6.8%, slightly below the global average, attributed to strong reliance on traditional systems and sluggish adoption of novel cooling systems. Compliance with laws such as the Water Pollution Control Act and JIS B 8623 Certification ensures environmental and safety standards.
The expense and need for long-term investment in stationary cooling systems, however, limit growth in the rental segment. Nonetheless, growth in compact cooling systems for space-limited industrial facilities and data center construction in urban areas is expected to create opportunities in the coming years.
The rental cooling tower market in China will be growing with a CAGR of 8.5%, the highest growth rate for any of the largest economies across the globe, because of strong industrialization and growth in data centers, as well as stringent emission control regulations. Increased stringent industrial emissions regulations under the Air Pollution Prevention and Control Action Plan will boost the green rental cooling tower market share.
The chemical, power generation, and manufacturing sectors predominantly use rental cooling solutions. In China, The Green Building Evaluation Standards (GBES) and China Compulsory Certification (CCC) encourage low-emission and energy-efficiency cooling systems, which further increases the market.
India's demand for cooling towers will see a CAGR of 8.0% in the rental market as there is rapid industrial growth, urbanization, and a rise in environmental standards. A combination of CPCB norms driving more stringent industrial emission norms and companies choosing short-term compliant cooling solutions is awakening the market. Manufacturing, power generation, and pharmaceutical industries are experiencing an increase in demand.
All of these initiatives are driving green rental cooling adoption through energy efficiency incentives and BEE Star Rating for Cooling Towers. The challenges posed by the water shortage for industry are significant and increasing, which provides a strong business case for hybrid and water-conserving cooling solutions.
Wet cooling towers are leading the global market, owing to their superiority with regard to cooling, in addition to high usage in various industries. Wet cooling systems, which are based on the property of water evaporation to produce cold, are widely used in power plants, petrochemicals, and manufacturing due to their ability to support very high cooling loads.
However, the growing scarcity of water and increasing environmental regulations pose challenges to their growth. Hybrid cooling towers, designed for both wet and dry cooling to manage water and energy consumption, are the fastest-growing segment. In places with stringent water-use restrictions, such as Europe, the USA, and Australia, hybrid systems are gaining popularity because industries are migrating towards eco-friendly alternatives for cooling.
Dry cooling towers, which work using air instead of water, are being adopted in arid regions and industries such as data centers, but their ecological footprints are less favorable, and their large-scale use is limited due to higher energy demand. Given the emphasis of various industries implementing energy-efficient and environmentally friendly alternative sources, hybrid towers will account for the highest CAGR from 2025 to 2035.
It is because of the better performance and efficiency of mechanical draft towers and their versatility in many different industries that they dominate the market. Fan-assisted cooling, whereby fans are used to increase air volume passing through the towers, offers maximum heat exchange and dependable cooling performance, making them the preferred cooler in power plants, refineries, and chemical industries.
Large-scale thermal power plants predominantly use natural draft cooling towers, which capitalize on temperature differentials for airflow; their adoption is increasing gradually because of high capital costs and land requirements. However, the demand remains stable in markets such as China and India, where coal power generation continues without pause.
The fastest-growing segment is IoT-enabled higher-mechanical-draft cooling towers, with an emphasis on remote monitoring, predictive maintenance, and energy-efficient cooling systems. Increasing investments in intelligent industrial automation, coupled with a regulatory push on energy efficiency, are driving the demand for next-generation cooling tower designs, particularly in North America and Europe, which are subject to strict carbon emissions reduction regulations.
The industrial vertical segment is the heavyweight end-user of rental cooling towers, and it possesses the largest market share. Cooling tower rentals are an integral part of infrastructure in dustries where power generation, oil & gas, petrochemicals, pharmaceuticals, and manufacturing without continuous operations are not possible. Cooling towers are essential to thermal management in power plants, while the petrochemicals industry requires uninterrupted cooling to support refining and chemical processing.
As global industrialization continues to expand, this segment will continue to make a significant contribution to market growth. However, the fastest-growing segment is the commercial market, which data centers, shopping malls, and commercial office buildings drive. The surge in global cloud computing and digital transformation has sparked investment in data center infrastructure, where proper cooling is critical.
Urban commercial centers in North America, Europe, and Asia-Pacific are witnessing a surge of rental cooling towers for peak load management within enterprises and temporary cooling technologies to cater to emergency cooling demand.
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| The market experienced extended growth due to rising industrialization, particularly in the power generation, oil and gas, and manufacturing industries. | Industry growth would become faster as industries would adopt energy-conscious, water-conscious, and IoT-based cooling systems driven by lower environmental regulations. |
| Due to the disruption caused by COVID-19, industrial activities saw a short-term depletion in 2020, which impacted cooling tower rental demand. Still, the market recovered in 2021 to 2022 owing to increased investment in infrastructure and manufacturing. | Industrialization 3.0: Demand will continue to be driven by post-pandemic industrial growth and economic recovery, with the big growth markets emerging as developing economies, such as India, China, and Southeast Asia. |
| The market was dominated by the USA, China, and Europe, with an emphasis on meeting environmental regulations and increasing energy efficiency. | Although North America and Europe will still lead the overall market, the highest growth rate will be in the Asia-Pacific region due to advanced industrialization and increasing rule enforcement. |
| Hybrid cooling towers and dry cooling technologies began to be adopted, particularly in water-scarce regions. | As sustainability measures and water conservation regulations tighten in the commercial and industrial sectors, hybrid cooling towers will see the largest growth. |
| Automatic mechanical draught cooling towers remained the most popular choice as the most efficient and lowest cost -of-ownership solution-especially in industrial settings. | The adoption of IoT-based smart cooling towers will rise, enabling predictive maintenance, real-time monitoring, and automation, which will help reduce operational expenses. |
The global cooling tower rental market's growth is attributed to industrial development, infrastructure growth, climate policy, and technology. Demand is rising as economies recover from the pandemic, manufacturing activity increases, data centers multiply, and environmental regulations tighten. Governments worldwide are mandating carbon reduction targets, water conservation policies, and energy efficiency standards, which lead fields to invest in short-term, high-efficiency chillers.
This is also influencing the development of the market due to the trend towards IoT-enabled smart cooling solutions and green cooling technologies. Emerging markets like India, China, and Southeast Asia are also growing due to urbanization and industrialization. At the same time, supply chain constraints and inflationary pressures may play into pricing trends. Shortages of water and energy, in addition to strict rules on energy efficiency, will drive growth in the long term, in addition to a rising demand for climate-friendly cooling solutions.
They compete in the market for rating strategies, technological advancement, strategic alliances, and geographical expansion. Cost-effective rental rates, energy-efficient cooling systems, and integrated IoT monitoring are some of the solutions that industry leaders are implementing as differentiation tools. Many companies are also investing in hybrid cooling towers to meet sustainability goals and environmental regulations.
Partnerships with industrial customers, infrastructural companies, and data centers help gain additional market share. Initiatives for growth include acquisitions of smaller players, expansion of rental fleets, and vertical expansion into high-growth markets like Asia-Pacific and the Middle East. Companies are also focusing on rapid deployment services and flexible rental offers to capture industrial customers.
Aggreko (UK)
Market Share: ~25-30%
Aggreko Temp Power As the worldwide leader in power and temperature control solutions, Aggreko provides cooling tower rental through the industry's largest fleet and innovative energy-saving solutions. Aggreko is a widely established brand in developed and emerging economies.
Unitedentals (USA)
Market Share: ~20-25%
In 2024, United Rentals expanded its cooling tower rental business significantly, tapping into its vast equipment network and partnerships. The company focuses on providing personalized solutions for commercial and industrial clients.
Trane Technologies (Ireland)
Market Share: ~15-20%
Trane Technologies has blundered its way into the cooling rental business with a focus on energy-efficient and environmentally friendly cooling. [Remove this span] The company's advanced technologies cater to industries with high cooling loads.
United States SPX cooling technologies
Market Share: ~10-15%
SPX Cooling Technologies continues to lead the market with its extensive range of cooling tower rentals. The company specializes in innovation and reliability, which is important for large industrial applications.
Johnson Controls (Ireland)
Market Share: ~5-10%
Johnson Controls is positioned as a market leader in the cooling tower rental market in 2024, supported by a focus on smart cooling systems and IoT-supported systems. The company focuses on industries where precise temperature control and energy efficiency are needed.
Rentals reduce costs, increase flexibility, and allow for immediate deployment for short-term or seasonal cooling applications.
There is a high demand for cooling energy efficiency standards for data centers, power generators, petrochemicals, and manufacturing.
Sustainable brands are leaving hybrid and green solutions due to stricter water-use policies and energy efficiency mandates.
The combination of IoT-based remote monitoring, AI-enabled predictive maintenance, and modular Design is revolutionizing efficiency and reliability.
Industrialization and cooling climate needs are driving growth in the Asia-Pacific, Middle East, and Latin America.
The industry is fragmented into wet cooling towers, dry cooling towers, and hybrid cooling towers.
It is segmented into mechanical draft, natural draft, and other Designs.
Is fragmented into industrial and commercial uses.
The industry is segmented into the North American Market, Latin America Market, Europe Market, East Asia Market, South Asia and Pacific Market, and the Middle East and Africa (MEA) Market.
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Cooling Tower Rental Market
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