• In June 2023, M&M Carnot, a prominent provider of natural refrigeration solutions with ultra-low GWP, was acquired by Johnson Controls. With this acquisition, Johnson Controls aims to help customers meet their sustainability goals while meeting environmental regulations.

• In July 2023, AAON, a global leader in HVAC solutions for industrial and commercial indoor environments, announced the expansion of its facility in Longview, TX to capitalize on the emerging growth opportunities and meet end user demand.

In this report, the Evaporative Condensing Unit Market has been segmented by Unit Type, Design, Capacity, Application, and Geography.

Evaporative Condensing Unit Market, Segmentation by Unit Type

The Evaporative Condensing Unit Market has been segmented by Unit Type into Air-Cooled Evaporative Condensing Units, Water-Cooled Evaporative Condensing Units, and Hybrid Evaporative Condensing Units.

Air-Cooled Evaporative Condensing Units

Air-cooled evaporative condensing units dominate the market with a share of approximately 50%. These units are widely preferred for their energy efficiency, ease of installation, and lower water usage. They are commonly used in commercial refrigeration systems, cold storage facilities, and HVAC applications, especially in areas with limited water availability.

Water-Cooled Evaporative Condensing Units

Water-cooled units account for about 35% of the market. They offer superior heat rejection performance and are primarily used in industrial refrigeration and high-capacity HVAC systems. These systems are ideal for applications where high ambient temperatures or large cooling loads require more efficient thermal exchange capabilities.

Hybrid Evaporative Condensing Units

Hybrid evaporative condensing units hold the remaining 15% share of the market. These units combine the benefits of both air and water cooling technologies, providing high energy efficiency and operational flexibility. Their adoption is increasing in data centers, pharmaceutical storage, and food processing industries where performance reliability and sustainability are critical.

Evaporative Condensing Unit Market, Segmentation by Design

The Evaporative Condensing Unit Market has been segmented by Design into Combined Flow, Counter Flow, Induced Draft, and Forced Draft.

Combined Flow

Combined flow evaporative condensing units account for approximately 28% of the market. These systems integrate both counter flow and parallel flow mechanisms, offering enhanced thermal performance and reduced water consumption. They are increasingly used in commercial and industrial refrigeration systems that require reliable and efficient operation in varying environmental conditions.

Counter Flow

Counter flow designs represent around 26% of the market. In these systems, air and water move in opposite directions, maximizing heat exchange efficiency. They are widely used in cooling towers and refrigeration units where space constraints and energy efficiency are key considerations.

Induced Draft

Induced draft units hold the largest market share at approximately 34%. These systems use a fan mounted at the top to draw air through the unit, which enhances cooling capacity and minimizes water carryover. They are preferred in applications with large-scale cooling demands such as HVAC, power generation, and industrial refrigeration.

Forced Draft

Forced draft designs comprise about 12% of the market. These systems use a fan positioned at the base to push air through the condenser. While typically less efficient than induced draft units, they are suitable for compact installations and light-duty applications where cost-effectiveness and low maintenance are prioritized.

Evaporative Condensing Unit Market, Segmentation by Capacity

The Evaporative Condensing Unit Market has been segmented by Capacity into Small-Scale and Medium-Scale.

Small-Scale

Small-scale evaporative condensing units lead the market with an estimated share of 58%. These units are ideal for compact refrigeration systems, cold storage rooms, and localized HVAC setups, where lower cooling loads and space constraints are prevalent. Their advantages include cost-efficiency, low energy consumption, and ease of installation, making them a preferred choice for small commercial and retail environments.

Medium-Scale

Medium-scale units comprise approximately 42% of the market. These systems are widely deployed in food processing facilities, industrial refrigeration, and mid-sized HVAC operations. Known for their higher cooling capacity, operational stability, and durability, they are suitable for businesses requiring reliable and scalable thermal management solutions.

Evaporative Condensing Unit Market, Segmentation by Application

The Evaporative Condensing Unit Market has been segmented by Application into Refrigeration and Air Conditioning.

Refrigeration

Refrigeration is the dominant application segment, accounting for approximately 62% of the evaporative condensing unit market. These units are essential in cold storage warehouses, supermarkets, food processing facilities, and beverage production where consistent, energy-efficient low-temperature environments are critical. Demand is driven by the global growth in perishable goods logistics and commercial refrigeration infrastructure.

Air Conditioning

Air conditioning applications represent about 38% of the market. Evaporative condensing units are used in commercial buildings, industrial complexes, and institutional HVAC systems due to their ability to deliver high-capacity cooling with reduced energy and water consumption. Their role in supporting sustainable building operations continues to grow, particularly in hot and dry climates.

Evaporative Condensing Unit Market, Segmentation by Geography

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

Evaporative Condensing Unit Market Share (%), by Geographical Region

North America

The North American evaporative condensing unit market holds a significant position due to strong industrial and commercial refrigeration demand. The region accounts for approximately 32% of the global market share. Technological advancements and the adoption of energy-efficient HVAC systems are key growth drivers. The presence of major manufacturers further boosts regional competitiveness.

Europe

Europe represents a mature yet steadily growing market, contributing nearly 25% of the global share. Increased emphasis on sustainability and stringent environmental regulations are driving the shift toward eco-friendly and energy-saving cooling solutions. Strong infrastructure in food processing and cold chain logistics underpins demand across the region.

Asia Pacific

The Asia Pacific region dominates the global market with a share exceeding 35%, led by rapid industrialization and urban growth in countries like China, India, and Japan. The expansion of retail chains and food storage facilities is fueling adoption. Cost-effective manufacturing and rising investments in infrastructure are also supporting regional growth.

Middle East and Africa

Middle East and Africa are emerging markets with growing potential, currently holding around 5% of the global share. Rising demand for industrial refrigeration and expanding commercial infrastructure are key contributors. Climate-driven necessity for efficient cooling systems adds momentum to market penetration.

Latin America

Latin America accounts for roughly 3% of the global evaporative condensing unit market. Growth is supported by increased investments in retail refrigeration and food preservation sectors. Brazil and Mexico are the primary markets driving regional expansion, with gradual adoption of energy-efficient technologies.

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

Drivers, Restraints and Opportunity Analysis

Drivers

• Increasing demand for energy-efficient refrigeration
• Stringent environmental regulations on emissions
• Rapid growth in cold-chain logistics

• Expansion of data center cooling - The expansion of data center infrastructure is driving significant growth in the global evaporative condensing unit market. With rising demand for digital services, cloud computing, and artificial intelligence, data centers are multiplying rapidly across developed and emerging economies. These facilities require constant and highly efficient cooling systems to maintain optimal operating temperatures for servers and electronic equipment.

  Evaporative condensing units are increasingly preferred in these environments due to their ability to deliver high thermal efficiency with reduced energy consumption. Compared to traditional air-cooled systems, they offer improved heat rejection by using water evaporation, which allows data centers to reduce energy use and operating costs while maintaining environmental control.

  As hyperscale and edge data centers adopt sustainability targets, there's growing emphasis on deploying HVAC systems that contribute to energy-efficient design and lower carbon emissions. Evaporative condensing units align well with these goals, offering a greener alternative to traditional cooling systems and helping operators meet energy compliance benchmarks.

  With digital transformation accelerating globally and new facilities being built at an unprecedented pace, evaporative condensing units are poised to become a foundational technology in modern data center design, reinforcing their role as a critical driver in this growing market.

Restraints

• High upfront capital investment requirements
• Water scarcity and regulatory usage limits
• Complex maintenance demanding skilled technicians

• Volatile steel and copper prices - Fluctuating prices of key raw materials such as steel and copper remain a significant restraint for the evaporative condensing unit market. These materials are essential for constructing the condenser coils, housings, and internal piping systems that comprise these units. Any volatility in global commodity markets can cause sudden spikes in manufacturing costs, making budgeting and pricing challenging for manufacturers and end-users alike.

  Market instability—driven by trade disputes, supply disruptions, or increased demand from other industries—can lead to unpredictable material costs that impact profit margins and delay procurement decisions. For small and mid-sized manufacturers, the inability to absorb cost fluctuations may reduce competitiveness or force reliance on lower-quality substitutes.

  End-users such as supermarket chains or data center developers, operating on tight capital budgets, may delay system upgrades or opt for lower-cost alternatives if component prices escalate. This adds uncertainty to project planning and slows market adoption of more efficient evaporative condensing technologies.

  Without consistent supply chains and cost-containment strategies, the industry remains vulnerable to commodity price swings, which can limit growth and increase financial risk across the value chain.

Opportunities:

• Shift toward natural refrigerant adoption
• Supermarket retrofit programs for efficiency
• Emerging economies expanding food cold-chains

• IoT-enabled predictive maintenance solution - Advancements in IoT-enabled predictive maintenance are creating significant growth opportunities in the evaporative condensing unit market. By integrating sensors, connectivity, and data analytics into these systems, operators can now monitor performance in real-time and detect issues before they lead to costly downtime or failure.

  Predictive maintenance enables facilities to move from reactive service models to proactive performance management, optimizing energy use and extending equipment lifespan. This is particularly important in sectors such as cold storage, food retail, and data centers, where continuous operation is critical to business continuity and compliance.

  Cloud-based monitoring systems also provide centralized oversight for multi-site operations, allowing facilities teams to standardize maintenance routines and reduce manual inspections. Over time, this leads to better asset utilization, lower service costs, and fewer unplanned breakdowns—all of which enhance the total value proposition of evaporative condensing units.

  As digitization becomes central to HVAC and refrigeration operations, manufacturers offering smart-enabled condensing units will be well-positioned to capture new demand from industries seeking reliability, cost savings, and operational transparency in their cooling systems.

Key players in Evaporative Condensing Unit Market include:

• Aaon, Inc.
• Baltimore Aircoil Company, Inc.
• Daikin Industries, Ltd.
• Decsa S.R.L.
• Evapco Inc.
• Johnson Controls Inc.
• Mammoth Inc. (Nortek Air Solutions, LLC)
• SPX Corporation
• Tcnicas Evaporativas, S.L.
• Temp Tech Co., Ltd.

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