The industrial cooling system market is experiencing rapid growth, driven by the increasing demand for energy-efficient cooling technologies across various industries, including power generation, manufacturing, and data centers.
As businesses prioritize sustainability and regulatory compliance, the adoption of innovative cooling systems that reduce carbon emissions and optimize energy consumption has surged.
Technological advancements, such as liquid cooling and waste heat recovery, are further propelling market expansion, making industrial cooling systems a crucial component of modern industrial operations.
The evaporative cooling segment
The evaporative cooling segment dominated the market with a share of over 32% in 2023. Its market dominance is free of cost due to energy-efficient cooling by producing lower air temperatures through water evaporation and hence an energy-efficient and cost-efficient cooling alternative to conventional cooling systems.
Moreover, the growing need for sustainable cooling solutions in the industrial and commercial sectors has also helped increase the uptake of evaporative cooling systems. Moreover, their capacity for functioning well in arid regions has led to their increasing prevalence in several industrial sectors.
Cooling of the transport segment
The transport cooling segment led the market with a share of over 68% in 2023. Rapid growth and adoption of temperature-controlled transportation, particularly in the pharmaceutical, food and beverage, and logistics industry, are some of the key factors fueling this growth.
A growing adoption of advanced transport cooling systems worldwide is being driven by the need to preserve optimal storage conditions of perishable goods before they have been delivered to where they need to be eaten.
Moreover, the global trade has also been booming; the expansion of e-commerce has been increasing the need for reliable and efficient shipping and freight cooling solutions.
Effect of the growing utility and power segment
The utility and power segment held a dominant share of over 34% in 2023. Such high share is mainly driven by prevalence of cooling systems in power plants and utility settings for temperature regulation and improved operating efficiency.
With the growth of the energy sector from more electricity generation and renewable energy projects, the need for effective cooling solutions has also increased. Moreover, the push for energy efficiency and reliability have been the great motivators for the advancement of new cooling technologies for power generation and utility applications.
Global leading region for the market
In 2023, North America led the industrial cooling system market, capturing over 48% of the market share. The primary reason behind this dominance is the presence of a mature industrial sector that requires effective cooling solutions for manufacturing facilities, power plants, and data centers.
The rise in digitalization and move towards cloud computing had already pushed the need for high-end cooling technologies, data centres started to expand rapidly. Moreover, elevated awareness about energy usage and carbon footprint has caused massive investments into green cooling technology.
The North America industrial cooling systems market has retained its top place globally owing to the presence of major industry players, continuous research and development of energy-efficient cooling systems, and the government initiatives promoting eco-friendly industrial operations.
Europe is experiencing rapid growth in the industrial cooling system market due to the rising demand for energy-efficient cooling solutions and stringent environmental regulations. All governments in the region are encouraging sustainable technologies with incentives and policies to reduce carbon footprint.
As regulations become stringent, demand for advanced cooling systems is expected to rise from industries such as manufacturing, power generation, and data centers. Moreover, increasing need for renewable energy integration and waste heat recovery solutions is expected to accelerate investment in advanced cooling technologies.
Europe’s market is projected to maintain its strong growth trajectory over the next years as awareness of climate change and the need for sustainable industrial operations continue to increase.
Key players in today’s global market
The list of companies, which are prominently present in today’s global market, include: Berg Chilling Systems Inc. (Cooling Towers, Chillers, Pumping Systems); SPIG S.p.A. (Italy) (Cooling Towers, Air-Cooled Condensers); Brentwood Industries Inc. (U.S.) (Cooling Tower Components, Fill Media, Drift Eliminators); Thermal Care Inc. (Industrial Chillers, Process Cooling Systems); Johnson Controls International PLC (HVAC Systems, Industrial Chillers); Trane Technologies (Industrial Cooling Solutions, Chillers, HVAC Systems); Hamon Group (Belgium) (Cooling Towers, Air-Cooled Condensers, Heat Exchangers); Black Box Corporation (Data Center Cooling, Precision Cooling Solutions); Airedale International Air Conditioning Ltd. (Precision Air Conditioning, Chillers); SPX Corporation (U.S.) (Cooling Towers, Air-Cooled Heat Exchangers); Paharpur Cooling Towers (India) (Cooling Towers, Air-Cooled Condensers); Bell Cooling Tower (India) (FRP Cooling Towers, Wooden Cooling Towers); Baltimore Aircoil Company Inc. (Cooling Towers, Fluid Coolers, Evaporative Condensers); Baltimore Aircoil Company (U.S.) (Evaporative Cooling Systems, Hybrid Cooling Towers); STULZ GmbH (Data Center Cooling, Precision Cooling Solutions); Star Cooling Towers Pvt. Ltd. (Cooling Towers, Heat Exchangers); Delta Cooling Towers, Inc. (HDPE Cooling Towers, Evaporative Cooling Solutions); EVAPCO Inc. (Cooling Towers, Closed Circuit Coolers, Ice Thermal Storage Systems); Daikin Applied (Industrial Cooling Systems, HVAC Chillers); and Munters Group (Adiabatic Cooling Systems, Humidification & Dehumidification Systems).
A few developments in the recent past
October 2024: Hewlett Packard Enterprise (HPE) announced the industry’s first 100% fanless direct liquid cooling systems architecture, designed to enhance the energy and cost efficiency of large-scale AI deployments. The cooling system offers up to a 90% reduction in cooling power consumption compared to traditional air-cooled systems while supporting high-density AI workloads.
February 2023: Vertiv launched the Vertiv XR app, the first tool in the data center space that allows data center operators to visualize Vertiv products in locations they would use in a facility. The application is promoting Vertiv’s widespread and ongoing digitalization initiative to improve the customer experience.
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