Albany, NY -- (SBWIRE) -- 10/17/2016 -- According to TMR's estimations, the global market for cooling towers held an opportunity worth US$2.6 bn in 2015. Rising at a CAGR of 4.70% between 2014 and 2020, the market is likely to increase to US$3.1 bn by the end of the forecast period. Open towers have reported a higher demand than other types of cooling towers in the last few years and are expected to continue to do so in the coming years. Sales of open cooling towers are projected to cross US$2.3 bn by 2020.
Substantial GDP Growth in China to Influence Cooling Towers Market in Rest of World
The research report also studies the worldwide market for cooling towers on the basis of its geographical spread across North America, Asia Pacific (excluding the Far East), Southern Africa, Europe, and the Rest of the World (South America, North Africa, the Middle East, and the Far East). Although the market for cooling tower is witnessing a steady surge in Asia Pacific, North America, Southern Africa, and Europe, the Rest of the World is emerging as the most valued among all the geographical segments.
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The rising demand for cooling towers in China, on account of its substantial GDP growth, will have the most prominent impact on the cooling towers markets in the Rest of the World, which is poised to expand at a CAGR of 5.50% during the forecast period, reports the research study.
Increasing Usage of HVAC Systems to Boost Demand for Cooling Towers
"Cooling towers have emerged as an essential component of commercial, residential, and industrial infrastructure, worldwide," says an analyst at TMR. These towers find widespread usage in heating, ventilation, and air conditioning (HVAC) systems. The growing application of HVAC systems, thanks to the remarkable rise in commercial/residential/industrial construction projects, globally, has been boosting the demand for cooling towers across the world, leading to an upswing in the overall market.
Going forward, the rising focus on energy efficiency, particularly in developed regions, such as Western Europe and the U.S., is likely to trigger the need for the replacement of legacy cooling towers with newer versions. This, in turn, is expected to reflect positively on the sales of cooling towers in the near future.
Low Pace of Economic Development to Hamper Global Cooling Towers Market
Despite the forward-looking trends, the worldwide market for cooling towers may face hindrances in the coming years due to the low pace of economic development. The recent economic recession has led to a massive setback to the global economy. The whole scenario has affected the industrial growth across the world, resulting in the closure of a number of manufacturing units. With decreasing number of production units, the demand for cooling towers is also expected to reduce to an extent, impacting the global market adversely over the next few years.
A new report by Transparency Market Research (TMR) states that the competitive landscape of the global cooling towers market demonstrates a highly fragmented structure, thanks to a large number of local as well as international participants. The market is facing an intense price war among participants due to the introduction of low-cost cooling towers by regional players, who are trying to gain a foothold in this market. As international manufacturers are aggressively focusing on developing cost-effective yet highly competent towers, the competition between players is likely to increase substantially in the coming years. Baltimore Aircoil Co, GEA Heat Exchangers Group, SPX Corp., Hamon Group, Evapco Inc., Paharpur Cooling Towers Ltd., and SPIG are some of the leading manufacturers of cooling towers.