The global cooling tower market size was estimated at USD 4,272.4 million in 2024 and is projected to reach USD 7,459.1 million by 2033, growing at a CAGR of 6.6% from 2025 to 2033. One of the primary factors supporting this growth is the rising demand for energy-efficient HVAC systems across both commercial and industrial sectors, as organizations increasingly prioritize cost savings, operational efficiency, and sustainability.
The market is also being strengthened by accelerating urbanization and rapid infrastructure development, particularly in emerging economies. These trends have resulted in a significant rise in the number of commercial complexes, data centers, industrial facilities, and manufacturing plants, all of which require dependable cooling solutions to maintain optimal operations. Additionally, the expansion of power generation capacity, especially through thermal and nuclear power plants, continues to be a major driver. Such facilities depend extensively on cooling towers for effective heat dissipation and to support the smooth and efficient functioning of turbines.
Furthermore, government regulations focused on water conservation and energy efficiency are encouraging the adoption of more advanced cooling methods. This is leading to technological innovation in areas such as hybrid cooling towers and dry cooling systems, which use less water while delivering strong performance. The growing integration of IoT, digital monitoring, and automation technologies in cooling tower systems is also gaining traction. These smart features enable real-time performance optimization, predictive maintenance, and reduced downtime, thereby boosting global demand for modern, intelligent cooling tower solutions.
Key Market Trends & Insights:
• Asia Pacific dominated the cooling tower market with the largest revenue share of 31.3% in 2024.
This leadership is primarily driven by the region’s rapid industrial expansion, large-scale infrastructure projects, and growing adoption of advanced HVAC and cooling technologies in sectors such as manufacturing, power generation, and petrochemicals. Strong economic growth and increasing investments in industrial facilities across countries like China, India, and Southeast Asia continue to support the region’s high market share.
• China’s cooling tower market is witnessing strong growth due to rapid industrialization and large-scale power generation activities.
The country’s expanding manufacturing base, rising construction of industrial units, and ongoing development in thermal and nuclear power plants are boosting demand for efficient cooling systems. Additionally, government-led initiatives focused on modernizing industrial infrastructure further accelerate market expansion in China.
• By material, Fiber Reinforced Plastic (FRP) dominates the cooling tower material segment and accounted for a 28.9% market revenue share in 2024.
FRP is widely preferred due to its high durability, corrosion resistance, and low maintenance requirements, making it suitable for harsh industrial environments. Its lightweight structure and long service life have increased its adoption across various industries, contributing to its leading market position.
• By type, the open circuit segment dominated the cooling tower market, with the largest share of 42.4% in 2024.
Open circuit cooling towers are extensively used because of their cost-effectiveness, simple operation, and high heat rejection efficiency. They remain a popular choice across industrial and commercial applications, particularly in power plants, chemical processing units, and large HVAC installations.
• By application, the industrial segment accounted for a share of 29.0% in 2024.
This dominance is attributed to the widespread use of cooling towers in industries such as power generation, oil & gas, chemicals, food processing, and manufacturing. These sectors rely heavily on continuous cooling operations for process stability and equipment efficiency, resulting in strong demand within the industrial application segment.
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Market Size & Forecast:
• 2024 Market Size: USD 4,272.4 Million
• 2033 Projected Market Size: USD 7,459.1 Million
• CAGR (2025-2033): 6.6%
• Asia Pacific: Largest market in 2024
Key Companies & Market Share Insights:
Some of the key players operating in the market include Babcock & Wilcox Enterprises, Inc., Baltimore Aircoil Company, and Cenk Endüstri Tesisleri İmalat ve Taahhüt A.Ş.
These companies play a significant role in shaping industry developments through their technological capabilities, product innovations, and strong global presence across various end-use sectors.
Babcock & Wilcox specializes in energy and environmental technologies, maintaining a strong foothold in industrial cooling and thermal management systems. The company offers modular cooling tower solutions specifically designed to meet the performance requirements of power plants and process industries. Its strategic focus on decarbonization initiatives and waste-to-energy technologies aligns with increasing sustainability mandates worldwide. In addition, B&W incorporates advanced emissions control solutions and thermal efficiency improvements into its cooling tower systems, helping customers reduce operational costs while meeting regulatory standards.
Baltimore Aircoil Company (BAC) is widely recognized for its advanced evaporative cooling and heat rejection solutions used across HVAC, industrial, and refrigeration applications. The company provides a comprehensive portfolio of hybrid, closed-circuit, and modular cooling towers, all engineered to deliver high energy efficiency and reduced water consumption. BAC places strong emphasis on smart technology integration, offering intelligent control systems that support real-time performance monitoring and operational optimization. Furthermore, the company focuses on using corrosion-resistant materials and developing low-noise cooling solutions, addressing the needs of both densely populated urban environments and demanding industrial operations.
Key Players
• Babcock & Wilcox Enterprises, Inc.
• Baltimore Aircoil Company
• Cenk Endüstri Tesisleri Imalat Ve Taahhüt A.Åž.
• Cooling Tower Systems, Inc.
• Delta Cooling Towers Inc.
• Engie Refrigeration GmbH
• EVAPCO, Inc.
• S.A. Hamon
• Johnson Controls International Plc.
• Kelvion Holdings GmbH
• Liang Chi Industry Co. Ltd.
• Mesan Group
• Paharpur Cooling Towers Ltd.
• SPX Corporation
• Torraval Cooling S.L.
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Conclusion:
The global cooling tower market is expected to grow significantly over the coming years, largely driven by rising demand for energy-efficient cooling across commercial, industrial, and power-generation sectors. Growth is supported by continued urbanization, expanding infrastructure, and increasing power-plant capacity worldwide. Innovations — including the adoption of advanced materials, modular designs, hybrid and dry cooling technologies, and IoT-enabled smart systems — are shaping the market, helping meet stricter energy, water-use, and environmental requirements.
