Rising use of energy-efficient systems is expected to drive growth of the global cooling towers market during the forecast period
Cooling towers optimize the use of energy in cooling systems. However, this energy efficiency is achieved at the expense of excess water usage over conventional cooling systems. Furthermore, cooling towers are widely deployed in power generation utilities, manufacturing industries, and HVAC units, which offers a wide scope of conserving water through its maintenance and monitoring. Technological advancements in such integrated axial fan and advanced heat transfer are boosting adoption of cooling towers. For instance, Novo Nordisk, a multinational pharmaceutical company achieved an annual saving of almost 5 million kWh through installing four new cooling towers to its existing cooling tower system and optimizing operations of its insulin production in Kalundborg, Denmark. Therefore, these factors are expected to drive growth of the global cooling market during the forecast period.
Average GDP growth rate is expected to propel the global cooling towers market growth over the forecast period
Increase in GDP growth rate has led to increase in infrastructural development and subsequently enhanced HVAC deployments. The global market has witnessed increasing output at the end of 2013 with developed countries such as Germany, Japan, and the U.S. being the major contributors. Instead of fears of fiscal budget cuts and government shutdown in 2013, the purchasing managers index (PMI) in the U.S. has observed steady uptake to post gross domestic product (GDP) growth of over 3 % in the second, third and fourth quarter of 2013. Furthermore, emerging economies such as India, China, and Taiwan, Singapore, and South Korea have witnessed constant increase in production, which in turn, is expected to propel the global cooling towers market growth over the forecast period.
Fragmented market worldwide is expected to hinder the global cooling towers market growth over the forecast period
The global cooling towers market is highly fragmented due to the presence of both regional and international market players. Regional manufacturers offer cooling towers at low cost and hence are affordable for SMEs. On the contrary, major cooling tower manufacturers cater to various industries such as large or mid-sized manufacturing industries and power plants. Regions such as Europe and the U.S. are promoting the use of closed-circuit cooling towers, and dry and hybrid cooling towers as compared to open circuit evaporative cooling towers. The U.S. Environmental Protection Agency (EPA) is also promoting the use of closed-circuit towers due to their enhanced performance, and water savings as compared to open circuit cooling towers. Therefore, these factors are expected to hinder the market growth in the near future.
The requirement of a large quantity of water is expected to restrain growth of the global cooling towers market during the forecast period
Cooling tower requires a large quantity of water, which challenging to manage for small and medium-sized companies. The large quantity of water also results in excessive cost thereby compromising with the budget of a business. Therefore, these factors are expected to restrain growth of the global cooling towers market during the forecast period.
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Plume abatement cooling towers can present lucrative growth opportunities
Open circuit cooling towers produce high amount of plume. Visible plume in most cases does not cause any noteworthy environmental impact on the surrounding. However, concern arises when the plume builds, causing a safety hazard. An inversion in weather conditions may result in thick, persistent fog that decreases visibility in the surroundings. For instance, when cooling towers are located near airport plume may cause interference in airport operations, leading to serious problems for the air traffic controller.
Contracts and agreements can present lucrative growth opportunities
Major companies in the market are focused on contracts and agreements, in order to enhance the market presence and gain a competitive edge in the market. For instance, in September 2014, FANS A.S. entered into a contract with Sokolovska uhelna, A.S. for the supply of air-cooled condensers.
2014, FANS A.S.
The COVID-19 pandemic have majorly affected the manufacturing industries around the globe. Owing to the COVID-19, many countries such as India and Spain have imposed nationwide lockdown. Due to the Lockdown, there is a shortage of the workers at the manufacturing facilities. Due to the less manpower, the manufacturing facilities are struggling to move the products. The Cooling towers are used in the manufacturing facilities to remove the unwanted heat from the system. Owing to the above mentioned reasons, the COVID-19 pandemic is expected to restrain the Cooling tower market growth during the year 2020-2021.
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