Cooling Towers Market

Market Definition

Cooling towers are heat rejection systems used to remove excess heat from industrial processes, power plants, or HVAC systems by transferring it to the atmosphere. They work by cooling water through evaporation or heat exchange, allowing hot water from a system to be cooled and reused efficiently. 

Cooling towers are commonly used in industries such as power generation, petrochemicals, and manufacturing to maintain optimal operating temperatures. The report offers a thorough assessment of the main factors driving the market, along with detailed regional analysis and the competitive landscape influencing the market dynamics.

Cooling Towers Market Overview

The global cooling towers market size was valued at USD 4.63 billion in 2024 and is projected to grow from USD 4.85 billion in 2025 to USD 6.89 billion by 2032, exhibiting a CAGR of 5.05% during the forecast period. 

This growth is attributed to the rapid industrial growth across the power generation, petrochemicals, and manufacturing sectors. Cooling towers manage the excess heat generated during various industrial processes. The need for reliable and scalable cooling infrastructure continues to rise with industrial expansion. 

The market is further progressing by rising global energy consumption in the construction of new thermal power plants and industrial facilities that rely on cooling towers to efficiently manage heat and maintain optimal operating temperatures.

Major companies operating in the cooling towers industry are Krones AG, SPX Cooling Tech, LLC, EWK EU, Kelvion Holding GmbH, HAMON INDIA, MITA Cooling Technologies S.r.l., JACIR - GOHL, ILMED IMPIANTI SRL, EVAPCO, Inc, Baltimore Aircoil Company, Inc, Enexio, Babcock & Wilcox Enterprises, Inc, Delta Cooling Towers, Inc, Liangchi Industry Co., Ltd. and Paharpur Cooling Towers Ltd.

The rapid growth of data centers driven by AI, cloud computing, and digital transformation increases the need for advanced cooling solutions such as cooling towers. 

Data centers generate substantial heat, due to high-density servers and continuous operation that require efficient cooling solutions to maintain optimal performance and prevent overheating. Amid the increasing adoption of cloud computing and big data, the demand for advanced cooling towers in data centers is growing rapidly to ensure operational efficiency and sustainability.

• In 2023, the National Renewable Energy Laboratory joined a USD 40 million U.S. Department of Energy program to advance data center cooling efficiency. This initiative is driving the demand for next-generation cooling towers that offer higher energy efficiency, lower water consumption, and better integration with advanced thermal management systems in data centers.

Key Highlights:

1. The cooling towers market size was valued at USD 4.63 billion in 2024.
2. The market is projected to grow at a CAGR of 5.05% from 2025 to 2032.
3. Asia Pacific held a market share of 35.03% in 2024, with a valuation of USD 1.62 billion.
4. The evaporative segment garnered USD 1.78 billion in revenue in 2024.
5. The open circuit segment is expected to reach USD 4.24 billion by 2032.
6. The steel segment is anticipated to grow at a CAGR of 5.57% over the forecast period.
7. The HVAC segment held a market share of 26.23% in 2024.
8. The market in North America is anticipated to grow at a CAGR of 5.53% through the forecast period.

Market Driver

Expansion of HVAC Systems in Commercial Buildings

The expansion of HVAC systems in commercial buildings is significantly driving the market by increasing the demand for efficient heat rejection solutions across large-scale infrastructures. Urbanization and infrastructure development accelerate the demand for efficient climate control solutions to ensure comfortable indoor environments. 

Cooling towers support large-scale HVAC systems by effectively dissipating heat, improving energy efficiency, and reducing operational costs. Growing awareness of indoor air quality and stricter energy regulations further encourage the adoption of advanced cooling technologies integrated with HVAC systems in commercial spaces.

• In 2024, the International Trade Administration (ITA) reported that the Indian HVAC market is projected to reach a market size of USD 30 billion by 2030, growing at a CAGR of 15.8%.

Market Challenge

Maintenance and Operational Costs

Maintenance and operational costs pose a significant challenge for the cooling towers market. Cooling towers require frequent cleaning to prevent scaling, corrosion, and biological growth such as algae, which can reduce efficiency and cause equipment damage. Additionally, managing water treatment chemicals and ensuring compliance with environmental standards further increase costs for the operation and maintenance of cooling towers.

Companies are investing in advanced materials such as corrosion-resistant coatings and durable components to extend the lifespan of cooling towers. They are adopting automated monitoring systems with IoT sensors that enable real-time performance tracking and predictive maintenance, reducing unexpected breakdowns. 

Additionally, they are optimizing water treatment processes to minimize scaling and biological growth, lowering the chemical usage and reducing both environmental impact and overall maintenance expenses.

Market Trend

Adoption of Hybrid Cooling Towers

The adoption of hybrid cooling towers is increasing rapidly as industries seek solutions that combine the benefits of evaporative & dry cooling technologies. These systems optimize thermal performance by using water evaporation only when required, significantly reducing water consumption compared to traditional evaporative towers. 

At the same time, they maintain energy efficiency and minimize environmental impact, addressing growing concerns around water scarcity and sustainability. Hybrid cooling towers offer greater flexibility, lower operating costs, and improved reliability, making them increasingly popular in power generation, HVAC, and manufacturing sectors. This trend reflects a broader shift toward sustainable and resource-efficient cooling solutions.

• In July 2024, Kelvion introduced a state-of-the-art hybrid cooling system designed to enhance thermal efficiency while minimizing environmental impact. The new system balances water and energy consumption, setting a new industry standard for sustainable and energy-efficient heat rejection solutions.

Cooling Towers Market Report Snapshot

Segmentation	Details
By Type	Evaporative, Dry, Hybrid
By Technology	Open circuit, Closed circuit
By Material	FRP, Steel, Concrete, Wood, HDPE
By Application	HVAC, Power Generation, Food & Beverages, Oil & Gas, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Type (Evaporative, Dry, and Hybrid): The evaporative segment earned USD 1.78 billion in 2024, due to its high cooling efficiency and widespread adoption in industrial and HVAC applications.
• By Technology (Open circuit, and Closed circuit): The open circuit segment held 62.15% share of the market in 2024, due to its cost-effectiveness and simplicity in design and maintenance.
• By Material (FRP, Steel, Concrete, and Wood): The FRP segment is projected to reach USD 1.94 billion by 2032, owing to its corrosion resistance, lightweight properties, and durability.
• By Application (HVAC, Power Generation, Food & Beverages, and Oil & Gas): The power generation segment is anticipated to grow at a CAGR of 5.57% over the forecast period, due to the increasing demand for electricity and expansion of thermal power plants.

Cooling Towers Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific accounted for 35.03% share of the cooling towers market in 2024, with a valuation of USD 1.62 billion. This market dominance is attributed to the strategic expansion of regional players enhancing their capabilities in engineering, construction, and industrial equipment manufacturing. 

With a strong presence across energy, mining, and process industries, the players are increasingly meeting the growing demand for high-capacity and efficient cooling systems in the region. Additionally, players in the market are investing in technologies and infrastructure to support large-scale cooling applications. 

This helps them gain a competitive edge in domestic and international markets, thereby fueling the market in the region.

• In May 2024, Paharpur Cooling Towers Limited and Protos Engineering Co. Private Limited acquired a majority stake in thyssenkrupp Industries India Private Limited. The acquisition aims to strengthen its engineering and construction capabilities and expand its presence in the mining and energy sector.

The cooling towers industry in North America is set to grow at a robust CAGR of 5.53% over the forecast period. This growth is attributed to the increasing demand for energy-efficient cooling systems across commercial, institutional, and industrial sectors in North America. 

The market is registering rising investments in advanced HVAC technologies and integrated thermal management solutions for supporting high-efficiency cooling in large commercial buildings. Expansion of hydronic heating and cooling equipment portfolios by key players and focus on delivering customized, high-performance equipment are boosting the market in North America.

• In April 2025, SPX Technologies completed the acquisition of Sigma and Omega, a Toronto-based manufacturer of highly engineered hydronic heating and cooling equipment for approximately USD 144 million.,The acquisition strengthen SPX’s product portfolio in cooling tower market.

Regulatory Frameworks

• In the U.S., the Occupational Safety and Health Administration (OSHA) sets workplace safety standards for the operation and maintenance of cooling towers to prevent accidents and exposure to harmful substances.
• In India, the Central Pollution Control Board (CPCB) monitors water usage, effluent discharge, and air emissions related to cooling tower operations under the Water (Prevention and Control of Pollution) Act and the Air (Prevention and Control of Pollution) Act.
• In Europe, the European Environment Agency (EEA) enforces EU-wide environmental regulations including water and air quality standards affecting cooling tower emissions and wastewater discharge.

Competitive Landscape

Major players in the cooling towers market are forming strategic partnerships and licensing agreements to expand their regional presence and enhance technology offerings. They focus on delivering energy-efficient and high-quality cooling solutions that meet stringent industry standards. Additionally, the players are leveraging complementary strengths, sharing expertise, and accelerating innovation in the market.

• In February 2025, B.Grimm Technologies Company Limited partnered with John Cockerill Hamon to enter the industrial cooling tower market in Thailand. This collaboration targets key industries, including power plants, oil and gas, chemical processing, and oil refineries, expanding the customer base and strengthening the presence of advanced cooling tower technologies in the Thai market.

List of Key Companies in Cooling Towers Market:

• Krones AG
• SPX Cooling Tech, LLC
• EWK EU
• Kelvion Holding GmbH
• HAMON INDIA
• MITA Cooling Technologies S.r.l.
• JACIR - GOHL
• ILMED IMPIANTI SRL
• EVAPCO, Inc
• Baltimore Aircoil Company, Inc
• Enexio
• Babcock & Wilcox Enterprises, Inc
• Delta Cooling Towers, Inc
• Liangchi Industry Co., Ltd.
• Paharpur Cooling Towers Ltd.

Recent Developments

• In October 2024, MITA Cooling Technologies expanded its cooling tower portfolio with the PME XL, an open-loop tower delivering up to 5 MW of installed capacity in a single cell. Designed for high-capacity cooling projects, the PME XL builds on the PME-E range by offering a powerful, efficient, and compact solution. Featuring evaporative cooling technology, fiberglass sandwich panels, and an inclined tank, the tower ensures corrosion resistance, lightweight construction, and easy installation with factory pre-assembly.
• In June 2024, Copley Equity Partners made a strategic investment in OBR Cooling Towers, Inc. OBR is a U.S.-based provider of mission-critical cooling tower services, including repair, rebuild, maintenance, inspection, and installation. The acquisition aims to support the future growth initiatives of the company.