DALLAS — The global cooling towers market is forecast to reach a value of $3.25 billion by 2020, representing an annualized growth rate of 4.9 percent from 2015 to 2020, according to a new report published by MarketsandMarkets.
Europe is the biggest market for cooling towers. Globally the European market has been a leader for cooling towers with respect to demand as well as production capacity. The region has the presence of most of the global leaders in cooling tower manufacturing. Cooling towers consumption in the region is estimated to grow at a compound annual growth rate (CAGR) of around 3 percent from 2015 to 2020. This region has a relatively slow growth rate as a result of its dominant market size and slow economic activity as compared to the other regions. The demand in this region is boosted mainly due to increasing focus on improving energy efficiency and reducing environmental pollution by restricting CO2 emissions in the end-user industries.
Asia-Pacific, which is the fastest growing cooling towers market globally, is estimated to grow at a CAGR of around 5 percent for the next five years. Asia-Pacific is witnessing a high industrial growth rate, which hints at an ever-increasing demand for cooling towers in diverse applications. China and India are expected to witness strong growth in the cooling towers market due to increasing demand from the chemical, food and beverage, and oil and gas industries. The chemical and power generation segments are growing at a rapid pace.
China dominates the cooling towers market in the Asia-Pacific region, being a major consumer and a fast growing country in terms of cooling towers demand. After China, India, Japan, and other Asian countries are showing increasing growth in demand. Moreover, an increasing number of cooling tower manufacturers from Asian countries are putting vigorous efforts into developing a strong base in the cooling towers market, with a target of reducing cooling tower imports.
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Publication date: 7/6/2015