Industrial Cooling System Market Size, Share & Trends Analysis Report By Product Type (Air Cooling, Evaporative Cooling, Hybrid Cooling, Water Cooling), By Application (Automotive, Chemical, Food & Beverage, Metalworking, Oil & Gas, Pharmaceutical, Pulp & Paper, Utility & Power) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2018-2026

Market Overview

The global industrial cooling system market is expected to attain a value of USD 24.73 million by 2026, leaping from USD 14.50 million in 2018, with a CAGR of 6.9% during the forecast period, 2019–2026.

Cooling systems are necessary in various industries to prevent the over-heating of appliances. An industrial cooling system is a system that regulates operational temperature. Different kinds of cooling systems are used to maintain the temperature of production processes, such as exothermic reaction, and over-heating of components and machines. The growing demand for energy generation and distribution capacity is aiding the demand for industrial colling systems. Regardless of the growth, the industrial cooling system market is poised to face the challenge of maintaining salubrity, which includes the availability of fresh water. But freshwater is confronting a severe shortfall due to various factors such as population growth, intensive agriculture, and climate change, resulting in a shortage of water. According to the International Energy Agency, the global electricity demand for cooling in buildings is expected to increase up to 60% by 2030. Natural and forced draft are the environment-friendly cooling towers used to provide cooling water at manufacturing plants.

Market Dynamics

Regional Analysis

Asia-Pacific is expected to gain traction in the industrial cooling system market during the forecast period, owing to the increasing demand for cooling systems from manufacturing facilities such as pharmaceutical, food and beverage, chemical. The major key.

North America is expected to witness considerable growth in the market during the forecast period. Cooling systems play a crucial role in coal-fired power plants. These systems, known as recirculating systems, condense water and reuse it for the cooling process in plants to produce electricity. With the establishment of manufacturing units in developed countries, the demand for industrial cooling systems is on an upward trajectory. Moreover, primary players are setting up research centers to gain a competitive edge. For instance, Johnson Controls, a leading manufacturer of electronics and HVAC equipment, announced plans to set up a 9,00,000 square-foot Center of Excellence for the design, manufacture, and testing of HVAC rooftop units in Oklahoma, the South Central region of the United States.

The automotive sector in Europe is exponentially growing. The growing demand for automotive engine cooling systems in the market due to an increase in vehicle production is impacting the cooling systems market. According to the European Automobile Manufacturers Association, Europe accounted for 20% of global motor vehicle production in 2018 with 19.2 million units.

Brazil is suffering from a severe recession and political aspersion in Latin America. Regardless of the predicament, the country is the largest exporter of the food and beverage sector. Different types of cooling systems are used considering the climate control factor for cheese making, air or water cooling for meat products, process cooling for distilleries, and flash freezing of certain foods. These cooling system types are gaining popularity, benefiting the industrial cooling system market. The ever- increasing temperature and the proven efficacy of cooling plants to reduce energy consumption are expected to propel the Middle-Eastern market growth.  

Segmental Analysis

The global industrial cooling system market is bifurcated by product and application.

Evaporative cooling systems are widely used in manufacturing facilities as a sustainable method for cooling due to their high efficiency. The increasing level of temperature is one of the crucial problems faced by countries such as Egypt, Africa, and those in the Middle East region. In a greenhouse, evaporative cooling utilizes the heat in the air to help evaporate water from the plants, thereby dropping the temperature level. Evaporative cooling systems are cheaper than central air conditioning systems, which require less maintenance. Hybrid cooling systems are widely used in airports; they are specifically designed to avoid visibility of plume in cold because of the aberrant temperature condition. These systems reduce water consumption by 80% through the utilization of wet cooling. Hybrid cooling systems can also be found in data centers, petrochemical manufacturing plants, and chiller plants.

By application, the utility and power segment is expected to spearhead growth in the industrial cooling system market due to the growing demand from power plants. The appropriate amount of cooling necessary for a power plant is determined by its thermal efficiency. Industries are using advanced systems for the efficient cooling of plants. In the United States, 90% of electricity is generated from thermoelectric power plants, which require cooling systems. 

Impact of covid-19

As part of steps to control the transmission of the COVID-19 pandemic, governments in several nations have limited the movement of commodities and people and suspended the functioning of manufacturing facilities. It has impacted power usage throughout the world. As per the short-term forecast of the United States Energy Information Administration (EIA), electricity consumption in the United States is expected to fall by a record 4.5% by the end of 2020, as businesses have temporarily shut down due to the government lockdowns to stop the prevalence of the coronavirus. As a result, global demand for and manufacturing instrument transformers is expected to fall.

Recent Developments