Cooling Tower Market Report 2026

The cooling tower market size has grown strongly in recent years. It will grow from $3.52 billion in 2025 to $3.71 billion in 2026 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to expansion of thermal power plants, growth of industrial manufacturing facilities, rising HVAC demand in commercial buildings, increasing petrochemical production, availability of large-scale cooling solutions.

The cooling tower market size is expected to see strong growth in the next few years. It will grow to $4.61 billion in 2030 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to increasing focus on water conservation, rising investments in renewable power plants, expansion of smart industrial infrastructure, growing adoption of predictive maintenance, increasing regulatory pressure on water usage. Major trends in the forecast period include adoption of water-efficient cooling technologies, rising deployment of hybrid cooling towers, increasing use of smart monitoring systems, expansion of industrial cooling infrastructure, enhanced focus on energy optimization.

The increasing demand for electricity is expected to drive the growth of the cooling tower market. Electricity is a form of energy generated by the presence of charged particles, such as electrons or protons, either accumulated as static charge or flowing as a current. Cooling towers support electricity generation by dissipating excess heat through evaporation or convection. For example, the Global Energy Review 2025 by the International Energy Agency, a France-based intergovernmental organization, reported that global electricity demand grew by 4.3% in 2024, a significant increase from the 2.5% growth recorded in 2023. Therefore, the rising demand for electricity is expected to propel the growth of the cooling tower market.

Key players within the cooling tower market are actively pursuing strategic alliances to fortify their market positions. Strategic partnerships in the business realm involve collaborative endeavors between two or more entities, typically businesses, pooling resources to achieve mutual success. For instance, in November 2023, Hydroleap, a Singapore-based water treatment startup specializing in water technology, forged a significant partnership with IX Technology (IXT), also based in Singapore and renowned for providing top-notch mechanical and electrical (M&E) infrastructure solutions for data centers. This alliance holds the promise of revolutionizing water management practices within cooling towers, offering the data center industry opportunities to reduce water and chemical usage, lower their carbon footprint, and bolster compliance with regulatory standards.

In January 2023, Atlas-SSI Inc., a US-based manufacturing company, acquired Cooling Tower Valves and Screens LLC for an undisclosed amount. This acquisition is intended to strengthen Atlas-SSI's portfolio by incorporating stainless-steel screens and valves, thereby enhancing the reliability of cooling towers and reducing operational costs. Cooling Tower Valves and Screens LLC is a US-based industrial manufacturing company that specializes in providing high-quality valves and screens designed specifically for the industrial cooling tower sector.

Major companies operating in the cooling tower market are Johnson Controls, SPX Corporation, Thermax, Babcock & Wilcox Enterprises, Hamon, EVAPCO, Bell Cooling Tower, Baltimore Aircoil Company, Brentwood Industries, Paharpur Cooling Towers, ENEXIO, Delta Cooling Towers, Cooling Tower Systems, Tower Thermal, Perfect Cooling Towers, Artech Cooling Towers, Star Cooling Towers, Zhejiang Aoshuai Refrigeration, Cenk Endüstri Tesisleri İmalat ve Taahhüt, Mesan Cooling Towers Manufacturing and Trade, Liang Chi Industry, King Sun Industry.

North America was the largest region in the cooling tower market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cooling tower market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cooling tower market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cooling tower market consists of sales of fill media, drift reducers, nozzles, fans, driveshafts. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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