Field-Erected Cooling Tower Market size continues to expand in size with the increasing demand for energy required to power the Earth. Power consumption is growing exponentially driven by rapid urbanization, commercial expansion, and industrial development. According to the U.S. Energy Information Administration (EIA), the overall primary energy consumption in the U.S. hit 93 quadrillion British thermal units (Btu) during 2020. In addition to the rising energy need, the growing adoption of industrial HVAC systems is driving the market expansion.
A field-erected cooling tower is designed to remove heat from an industrial fluid to the atmosphere through the process of evaporative cooling. Thermal stations, nuclear power plants, chemical plants, oil refineries, and HVAC systems are the major areas of deployment for these systems. They also find application in iron, steel, metallurgy, and paper mills.
The petrochemical and oil & gas sector is slated to accounted for a notable revenue share of field-erected cooling tower market by the end of 2027. Developments in the oil & gas sector have been steadily gaining momentum. New exploration and production projects, both onshore and offshore, will create new opportunities for the deployment of field-erected cooling towers in the future.
From a geographical point of view, Europe is expected to emerge as a profitable market for field-erected cooling towers in the forthcoming years. The regional growth trends will be influenced by increasing number of cooling towers for power generation, oil refineries, chemical plants, and steel processing units. The European region has also witnessed an uptick in HVAC adoption in recent years which will open up promising opportunities for the regional suppliers.
SPX Cooling Technologies, Thermax (RDA Holdings Private Limited), Thermal Care, Johnson Controls, Bell Cooling Tower, ENEXIO, and Paharpur Cooling Tower are a few prominent players in the field-erected cooling tower market.
In anticipation of rapid developments across different end-use industries, manufacturers are designing innovative products that meet industry specific requirements and comply with the latest market standards. Citing an instance, in October 2020, SPX Cooling Technologies had unveiled the new Marley MH Element Fluid Cooler. It is an induced-draft, closed-circuit crossflow cooling tower designed for industrial, HVAC, and process cooling applications.
The development of new power generation projects is constantly creating new opportunities for manufacturers. For instance, energy solutions provider Thermax received a USD 42.95 million order in November 2020 for setting up a combined heat and power (CHP) plant for India’s Assam Bio Refinery Pvt Ltd (ABRPL).
Oil & gas, petrochemical, chemical, energy, and industrial sectors have taken a significant hit during the COVID-19 pandemic, impacting field-erected cooling tower industry trends slightly. The shutdown of several units, where cooling towers are predominantly deployed, has also impacted the industry. Cooling tower deployment projects in many regions were postponed, causing a delay in pipeline projects.
However, post the COVID-19 crisis, growth in industrial activities requiring field-erected cooling towers such as oil and petroleum refineries, power plants, chemical facilities, and other manufacturing industries will bolster the industry outlook.