The global evaporation cooling market was valued at USD 6.45 billion in 2020 and expected to reach USD 8.65 billion by 2026 and grow at a CAGR of 5.1% over the forecast period (2021 - 2026). Evaporative cooling was used in residential areas that required comfortable cooling. However, it has expanded its reach to industries and commercial entities, where the scale of operation is much larger than that of residential areas.
- The favorable regulations for sustainable energy across the world, and advancements in technologies and their benefits, as compared to traditional cooling techniques, are significantly driving the market studied.
- The other major driver for the market is the adoption of evaporative coolers in data centers. The demand for data centers is increasing at a high pace in the country, with the rapid adoption of Big Data, digital content, and e-commerce.
- In addition, the industry is now seeking energy-efficient solutions that have the potential to lower the operational costs and reduce carbon emissions from data center operations. According to the Natural Resource Defense Council, the US data centers consumed 42.12% more energy in 2015, than necessary. It is estimated that the consumption may cross 148.12 million KWh by 2022, costing the firms USD 13 million in electricity bills and more than 100 million metric ton of carbon emissions, annually.
Key Market Trends
Industrial Applications to Hold Major Share
Industrial applications for evaporative coolers comprise of warehouses, factories, manufacturing units, power generation, oil and gas, construction sector, and many more. The industrial sector accounts for the largest market share among all the end-user applications, driven by the large-scale deployment of both direct and evaporative coolers.
Due to the recent changes in the structure of warehouses and manufacturing units toward insulated structures, maintaining desired temperatures during summer has become a major consideration.
The strong economy, with notable port traffic, increased e-commerce activity, and key manufacturing indices resulting in manufacturing growth, are poised to drive the demand for warehouses in the United States.
Asia-Pacific to Hold Major Share
The Asia-Pacific evaporative cooling market is driven by three major countries - Japan, Australia, and India. They have been deploying these cooling systems since the 1990s. The growing data center market, owing to the increased digitization, adoption of cloud services, and penetration of e-commerce in Japan, has been a key indicator of the increasing demand for evaporative cooling in the region. Equinix is a global data center company that opened an International Business Exchange (IBX) data center in Tokyo known as TY5 in 2018. This facility accounted for an investment of USD 70 million, aimed at serving the demand from global and local enterprises, which includes cloud and content providers, as well as financial service firms, who are increasingly banking on data center services in Tokyo. All these factors have been augmenting the data center market in the region, and are expected to be instrumental in driving the adoption of the evaporative cooling in Asia-Pacific over the forecast period.
The Asian evaporative cooling market is gaining a competitive edge over recent times and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability. In January 2018, Baltimore Aircoil Company introduced the Nexus Modular Hybrid Cooler, one of the first intelligent, plug-and-play, modular, hybrid fluid cooling systems, engineered to simplify system design and optimize water and energy savings. In February 2018, SPX Cooling Technologies Inc. announced the new Marley MD Everest counterflow cooling tower. The Marley MD Everest cooling tower is designed to meet HVAC demands and is suitable for a wide range of applications.
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TABLE OF CONTENTS
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Demand for Cost-effective Cooling Solution
- 4.4 Market Restraints
- 4.4.1 Dependency on External Climate
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness- Porter's Five Forces Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Industry Policies
5 MARKET SEGMENTATION
- 5.1 By Type of Cooling
- 5.1.1 Direct Evaporative Cooling
- 5.1.2 Indirect Evaporative Cooling
- 5.1.3 Two-stage Evaporative Cooling
- 5.2 By Application
- 5.2.1 Residential Applications
- 5.2.2 Commercial Applications
- 5.2.3 Industrial Applications
- 5.2.4 Confinement Farming
- 5.2.5 Other Applications
- 5.3 By Distribution Channel
- 5.3.1 Big Box Retailers
- 5.3.2 HVAC Contractors and Distributors
- 5.3.3 Other Distribution Channels
- 5.4 Geography
- 5.4.1 North America
- 5.4.2 Europe
- 5.4.3 Asia-Pacific
- 5.4.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Delta Cooling Towers Inc.
- 6.1.2 Condair Group AG
- 6.1.3 SPX Cooling Technologies
- 6.1.4 Baltimore Aircoil Company Inc.
- 6.1.5 Munters Group AB
- 6.1.6 Colt Group Limited
- 6.1.7 Phoenix Manufacturing Inc.
- 6.1.8 Bonaire Group (Celi Group)
- 6.1.9 ENEXIO Water Technologies GmbH
- 6.1.10 CFW Evapcool
- 6.1.11 Celsius Design Limited
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS