Evaporative Cooling Market Report 2026

The evaporative cooling market size has grown strongly in recent years. It will grow from $6.8 billion in 2025 to $7.27 billion in 2026 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to expansion of cooling needs in hot climates, rising industrialization in emerging economies, increasing adoption of low-energy cooling systems, availability of cost-effective cooling technologies, growth in agricultural applications.

The evaporative cooling market size is expected to see strong growth in the next few years. It will grow to $9.51 billion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to increasing data center capacity expansion, rising focus on sustainable building solutions, growing adoption of cooling systems in arid regions, expansion of smart building infrastructure, increasing emphasis on energy cost reduction. Major trends in the forecast period include growing adoption of energy-efficient cooling solutions, rising use of evaporative cooling in industrial facilities, expansion of hybrid cooling technologies, increasing demand in data centers, enhanced focus on water efficiency.

The rising impact of climate change is expected to drive the growth of the evaporative cooling market in the coming years. Climate change refers to long-term alterations in Earth's climate, primarily caused by human activities that increase greenhouse gas emissions. The increase is largely due to higher concentrations of gases such as carbon dioxide and methane from activities like burning fossil fuels, which trap heat in the atmosphere and warm the planet. Evaporative cooling helps address climate change by reducing energy consumption for air conditioning, relying on water evaporation instead of electricity-intensive refrigerants, thereby lowering greenhouse gas emissions. For instance, in October 2023, the World Health Organization (WHO), a Switzerland-based intergovernmental organization, reported that approximately 3.6 billion people lived in regions highly vulnerable to climate change impacts. Between 2030 and 2050, climate change is projected to contribute to an estimated annual increase of around 250,000 deaths from causes such as undernutrition, malaria, diarrhea, and heat stress. Therefore, the increasing impact of climate change is propelling the growth of the evaporative cooling market.

Leading companies in the evaporative cooling market are developing advanced cooling solutions, including next-generation evaporative cooling systems, to meet the growing demand for energy-efficient and environmentally friendly cooling technologies. These advanced cooling solutions incorporate next-generation evaporative cooling technologies, utilizing innovative methods such as indirect and direct evaporative cooling processes to effectively reduce air temperatures while minimizing energy consumption and environmental impact. For example, in January 2024, SPX Cooling Tech, LLC, a US-based manufacturer of evaporative cooling solutions, launched the OlympusV Adiabatic Systems. This series provides versatile cooling solutions for commercial refrigeration, industrial refrigeration, and HVAC systems, featuring the Recold OlympusV CO2 Cooler, Recold OlympusV Condenser, and Marley OlympusV Fluid Cooler, all of which can be customized in size and coil type to meet specific operational requirements. Designed with a focus on water conservation and energy efficiency, these systems primarily operate in dry mode, minimizing water usage during peak periods and incorporating advanced smart controls that adapt to real-time conditions, making them ideal for environments such as grocery stores, food processing plants, and data centers.

In July 2024, Munters Group, a Sweden-based company specializing in energy-efficient air treatment and climate solutions, acquired Geoclima Group for an undisclosed amount. This acquisition enables Munters to expand its product portfolio and leverage Geoclima’s expertise to better address the growing demand for energy-efficient cooling solutions in the data center sector. Geoclima Group, based in Italy, manufactures high-efficiency chillers with evaporative systems and climate control solutions for a range of applications.

Major companies operating in the evaporative cooling market are Munters Group AB, SPX Corporation, Baltimore Aircoil Company, Evapco Inc., Seeley International Pty Ltd., Condair Group AG, Colt International GmbH, Hessaire Products Inc., Enexio Management GmbH, Mastercool Inc., Phoenix Manufacturing Inc., Mee Industries Inc., Vankool Technology Co. Ltd., Bonaire, Eco Cooling, Premiair Comfort Limited, Reymsa Cooling Towers Inc., Portacool LLC, Climate Technologies, Newair Evaporative Cooling.

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

The evaporative cooling market consists of revenues earned by entities providing services such as installation, maintenance, diagnosis, and resolution. The market value includes the value of related goods sold by the service provider or included within the service offering. The evaporative cooling market includes sales of evaporative coolers (swamp coolers), cooling pads and media, and fans and blowers. 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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