• In October 2024, Schneider Electric completed the acquisition of a 75% stake in Motivair Corp for 850 million, significantly enhancing its liquid cooling solutions tailored for high-performance data centers.

• In May 2025, Samsung Electronics secured a 1.5 billion acquisition of Germany’s FlaktGroup, reinforcing its position in advanced data center cooling and HVAC systems.

In this report, the Cooling Tower Market has been segmented by Type, Application,Design, Construction material, and Geography.

Cooling Tower Market, Segmentation by Type

The Cooling Tower Market has been segmented by Type into Evaporative Cooling Tower, Dry Cooling Tower, and Hybrid Cooling Tower.

Evaporative Cooling Tower

Evaporative cooling towers dominate the market with a share of approximately 70%, due to their high thermal efficiency and cost-effectiveness in large-scale industrial applications. These systems are widely used in power plants, chemical processing units, and HVAC systems for effectively removing heat through water evaporation.

Dry Cooling Tower

Dry cooling towers account for nearly 18% of the market and are favored in regions with water scarcity. They operate without water consumption, using air-cooled heat exchangers to dissipate heat. These systems are commonly adopted in thermal power plants and process industries aiming for sustainable cooling solutions.

Hybrid Cooling Tower

Hybrid cooling towers hold around 12% of the market, offering a blend of evaporative and dry technologies to optimize energy use and water conservation. These towers are increasingly used in urban environments and eco-sensitive zones where both efficiency and regulatory compliance are critical.

Cooling Tower Market, Segmentation by Design

The Cooling Tower Market has been segmented by Design into Mechanical Draft and Natural Draft.

Mechanical Draft

Mechanical draft cooling towers account for nearly 84% of the global market, driven by their high efficiency, compact design, and ability to handle variable cooling loads. These towers use fans or blowers to force air circulation and are widely used in industrial plants, power stations, and HVAC systems.

Natural Draft

Natural draft cooling towers contribute about 16% of the market and are primarily installed in large thermal power plants and heavy industries. These towers rely on natural airflow generated by the chimney effect, making them suitable for applications with continuous high-volume heat rejection and limited need for mechanical components.

Cooling Tower Market, Segmentation by Construction material

The Cooling Tower Market has been segmented by Construction material into Concrete, Fiber-Reinforced Plastic, Wood, Steel.

Concrete

Concrete cooling towers account for approximately 36% of the market, widely preferred for permanent installations requiring high structural strength and long service life. These towers are typically used in nuclear and thermal power plants where durability under extreme conditions is essential.

Fiber-Reinforced Plastic

Fiber-reinforced plastic (FRP) towers hold around 34% of the market, owing to their lightweight, corrosion resistance, and low maintenance properties. FRP is ideal for chemical plants, refineries, and marine environments where exposure to harsh elements is frequent.

Wood

Wooden cooling towers represent roughly 18% of the market and are typically used in older installations or temporary setups. While cost-effective, they require regular maintenance and are gradually being replaced by modern composite materials due to moisture sensitivity.

Steel

Steel cooling towers account for about 12% of the market and are known for their high load capacity and quick installation. These towers are commonly used in industrial process cooling and HVAC systems but require protective coatings to prevent corrosion.

Cooling Tower Market, Segmentation by Application

The Cooling Tower Market has been segmented by Application into Power Generation, HVACR, Food & Beverage, Chemical, Petrochemical and Oil & Gas, and Others.

Power Generation

Power generation is the largest application segment, accounting for nearly 42% of the cooling tower market. These towers are critical for thermal regulation in coal-fired, nuclear, and combined-cycle plants, ensuring optimal turbine performance and energy efficiency.

HVACR

The HVACR sector holds about 25% of the market, driven by growing demand in commercial buildings, data centers, and urban infrastructure. Cooling towers are used to support chilled water systems and enhance energy savings in large-scale air conditioning operations.

Food & Beverage

The food and beverage industry contributes around 11%, using cooling towers in process cooling, fermentation, and packaging lines. These towers help maintain sanitary conditions and temperature-sensitive production across facilities.

Chemical

The chemical sector accounts for roughly 9% of the market, where cooling towers are essential in reactor temperature control and waste heat dissipation. They support continuous operations under high thermal loads in chemical processing plants.

Petrochemical and Oil & Gas

This segment represents nearly 8%, where cooling towers are employed in refining units, gas processing, and offshore platforms. These towers enable high-efficiency cooling under corrosive conditions and flammable environments.

Others

The others category contributes around 5%, spanning applications such as pharmaceuticals, textiles, and plastics. Cooling towers in this segment offer customized solutions for niche manufacturing processes requiring precise temperature control.

Cooling Tower Market, Segmentation by Geography

In this report, the Cooling Tower Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Cooling Tower Market Share (%), by Geographical Region

North America

North America holds approximately 27% of the cooling tower market, driven by its strong base in HVACR, power generation, and industrial sectors. The U.S. leads regional growth, emphasizing energy-efficient systems and green building codes in infrastructure upgrades.

Europe

Europe accounts for about 23% of the market, supported by stringent environmental regulations and a growing demand for sustainable cooling technologies. Countries such as Germany, France, and the UK are investing in hybrid cooling towers and closed-loop systems to reduce water and energy usage.

Asia Pacific

Asia Pacific dominates the market with a share of nearly 36%, fueled by industrial expansion, urbanization, and thermal power development in countries like China and India. The region’s demand is also bolstered by increasing installations in the chemical and petrochemical industries.

Middle East and Africa

The Middle East and Africa contribute around 8%, with demand rising in oil & gas refineries, power stations, and commercial buildings. The extreme climate across the region increases the need for high-capacity cooling towers that can handle elevated ambient temperatures.

Latin America

Latin America holds close to 6% of the market, driven by emerging industrial activity in Brazil and Mexico. The region is witnessing a gradual shift toward energy-efficient HVAC systems and industrial water cooling solutions in line with sustainability goals.

This report provides an in depth analysis of various factors that impact the dynamics of Cooling Tower Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Increased industrialization demand
• Rising power generation needs
• Efficient heat management solutions

• Technological advancements in cooling - Significantly enhancing the efficiency and sustainability of temperature control across industries. Modern solutions integrate intelligent thermostats, variable refrigerant flow systems, and advanced heat exchangers to optimize energy consumption. These technologies provide automated temperature regulation and allow for real-time performance monitoring.

  The development of smart cooling systems with IoT capabilities enables predictive maintenance and improves system longevity. Innovations such as magnetic refrigeration, liquid cooling, and phase change materials are emerging as eco-friendly alternatives to traditional systems. These advancements reduce carbon emissions and support global efforts toward sustainable infrastructure.

  Industries such as data centers, healthcare, and manufacturing benefit from high-precision cooling solutions that prevent equipment overheating and maintain optimal operating conditions. These solutions often feature energy recovery systems and smart airflow management, which further enhance their value proposition.

  Companies investing in cutting-edge cooling innovations gain a competitive edge by improving energy efficiency, lowering operational costs, and aligning with environmental compliance standards. The market is expected to grow as more organizations adopt next-gen cooling technologies to meet modern demands.

Restraints

• High installation costs
• Environmental impact regulations
• Water usage concerns

• Maintenance and operational complexities- To challenge the adoption of advanced cooling systems. As cooling technologies become more sophisticated, they require specialized technicians for installation, maintenance, and repairs. This creates a reliance on highly trained personnel and leads to higher service costs.

  Complex systems often involve multiple integrated components, such as sensors, software platforms, and coolant networks, which increase the risk of component failure. Downtime due to technical malfunctions or system errors can significantly impact business continuity, especially in sectors dependent on continuous temperature control.

  Operational challenges also include high energy consumption during peak load times and frequent calibration requirements for sensitive equipment. Without regular maintenance, performance can degrade quickly, leading to inefficiency and reduced system lifespan. This makes the total cost of ownership a critical concern for buyers.

  To address these limitations, companies must invest in training programs, remote diagnostics tools, and predictive analytics to reduce manual intervention. Simplifying system design and offering modular components can also help reduce complexity while improving operational outcomes.

Opportunities

• Renewable energy integration
• Emerging markets growth
• Energy-efficient technologies

• Retrofit and upgrade potential - A major growth opportunity in the cooling market. Many existing facilities operate on outdated cooling systems that are energy-inefficient and non-compliant with modern standards. Retrofitting these setups with high-performance components allows for improved efficiency without the need for full system replacement.

  Upgrades can include smart controllers, energy-efficient compressors, and modern refrigerants, which enhance performance while reducing environmental impact. This is particularly relevant for sectors like commercial real estate, hospitality, and industrial manufacturing, where system reliability and cost savings are key priorities.

  Government incentives and green certification programs encourage building owners to invest in retrofitting as part of broader sustainability initiatives. The ability to extend the useful life of existing infrastructure while achieving energy compliance is a compelling value proposition. Retrofitting also allows phased implementation, making it more financially manageable.

  Companies offering custom retrofit packages, data-driven energy audits, and scalable upgrade solutions are well-positioned to capitalize on this trend. The demand for modernized cooling systems is expected to surge as organizations prioritize energy conservation and climate control efficiency in both new and existing facilities.

Key players in Cooling Tower Market include:

• SPX Corporation
• Baltimore Air Coil Company
• Evapco Inc
• GEA Group
• Cooling Tower Systems Inc
• CTI (Cooling Tower Institute)
• Johnson Controls International plc
• The Marley Engineered Products
• Freund Corporation
• Enexio

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis