Market Trends of Field Erected Cooling Tower Industry
This section covers the major market trends shaping the Field Erected Cooling Tower Market according to our research experts:
Wet Type Segment to Dominate the Market
- Wet-type cooling towers are much preferred due to the high effectiveness of cooling in nuclear and thermal power plants and the simple accessibility of water. The benefits of a wet cooling tower are that there is no need for electrical or mechanical elements, negligible maintenance cost, and extensive water loading capability.
- The growth is primarily attributed to upgrades in utility infrastructure, growing investments in the industrial sector, and related government regulations in various countries, which are expected to continue during the forecast period.
- In terms of design, mechanical draft wet field-erected cooling towers hold the largest share in the market, owing to their use in a wide range of cooling applications such as power plants, industrial processes, refining, manufacturing, and HVAC.
- Wet cooling towers offer an outstanding performance by taking full advantage of the ambient air humidity. Wet cooling, also called evaporative cooling, is a technology that can generate outstanding fuel-saving and carbon emission reduction. Therefore, it is preferred by end users of different industries.
- Hence, based on the above-mentioned factors, wet type cooling towers are expected to dominate the global field-erected cooling tower market during the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to dominate the market due to several driving factors, including the rising population, growing industrial activities, and energy demand in the region. India and China are likely to lead the market among Asia-Pacific countries due to increased energy demand and upcoming thermal and nuclear power plant projects.
- For instance, according to the World Nuclear Association, as of January 2022, there are about 135-140 operable nuclear power reactors in Asia. Additionally, around 35 reactors are under construction, and more than 50-60 are either in the planning or proposed phase in the region. Such scenarios, in turn, are likely to increase the demand for field-erected cooling towers.
- The Asia-Pacific region has untapped energy resources and is also the largest region for exploration activities to be carried out. Therefore, in one way or another, field-erected cooling towers are mandatory for rising industrial activities, which is expected to boost market growth during the forecast period.
- Moreover, the rise in refinery capacity in the region also pushes the requirement for field-erected cooling towers in the large refinery industry. As of 2020, the refining capacity reached 36,492 thousand barrels per day in the Asia-Pacific region, with a growth rate of 2.7% compared to 2019. Furthermore, in August 2021, India's largest state-owned oil refining firm, Indian Oil Corporation (IOC), announced plans to invest around INR 1 lakh crore to expand its refining capacity by almost a third in the next 4-5 years. Such considerable investments in refining activities are expected to create a demand for field-erected cooling towers in the coming years.
- Therefore, based on the above-mentioned factors, the Asia-Pacific region is expected to dominate the global field-erected cooling tower market during the forecast period.
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