SAN JOSE, Calif. — The rise in commercial HVAC installations and growth in industrial activity is expected to drive the global cooling towers market, according to a new report by Global Industry Analysts Inc.
Europe and the United States represent the largest regional markets worldwide, while Asia-Pacific ranks as the fastest growing market with a compound annual growth rate (CAGR) of 4.8 percent over the analysis period of 2013 through 2020. Growth in the region is driven by steady economic development, and the rapid pace of industrialization in countries such as China, India, Korea, Singapore, and Taiwan.
Cooling towers are used extensively as a part of building HVAC systems. The steady rise in commercial/infrastructure construction projects across the globe and subsequent rise in HVAC installations is expected to boost market prospects for cooling towers in the coming years. The market will also benefit from the fast growing replacement demand in developing markets, particularly in the United States and Europe where the huge installed base of legacy cooling towers provides opportunities for upgrades.
Growth in industrial/processing activity also bodes well for market growth. Industrial output worldwide expanded and ended on an encouraging year-end performance in 2013 largely due to the recovery in demand and trade in countries such as United States, Japan, and Germany. In the United States, the purchasing managers index (PMI) made steady gains with the U.S. economy shrugging off fears of fiscal budget cuts and government shutdown to post gross domestic product (GDP) growth of over 3 percent in the last three quarters of 2013. European Union (EU) production activity also continues to emerge from the slowdown, which hit a trough in 2012, and is now making an encouraging recovery. Federal support and stimulus grants are also bolstering industrial output in these markets. Continued strengthening of production/processing activity in emerging markets, such as China and India, and other developing countries in Asia-Pacific such as Taiwan, Singapore, Korea, and Indonesia is also benefiting market growth. All of these factors suggest even faster growth in the industrial sector in 2014, which is expected to shore up demand for cooling towers in the sector. Increased investments in plant capacity expansions and upgrades will create strong demand for the deployment of cooling towers.
For more information on the cooling towers report, visit www.strategyr.com/Cooling_Towers_Market_Report.asp.
Publication date: 8/4/2014