North America set to be a Major Market for Cooling Tower Rental in the Coming Years
Cooling tower helps reject waste heat to the atmosphere through the cooling of a water stream. Organizations mainly use cooling tower rental system, especially during hot summers to ensure maximum productivity due to the limited capacity of permanent cooling towers. The growth of the global market for cooling tower rentals has been majorly boosted by the growth in industrial activities across the globe.
Market overview
The global cooling tower rental market was estimated to be worth USD 0.77 Billion in 2017, and is expected to grow at a CAGR of 5.18% from 2017 to 2022, reaching a value of USD 0.99 Billion by 2022.
Based on type, the wet segment was the largest market in 2016, and is also expected to continue its dominance over the forecast period. This growth is mainly because of the high demand from the growing power generation, chemical, and oil & gas application segments. However, the dry segment is expected to achieve the fastest growth from 2017 to 2022, owing to the increasing implementation of energy efficiency targets worldwide and growing HVACR applications in the expanding commercial building and construction industry.
Based on design, the mechanical draft is the fastest-growing segment, owing to the increasing demand for power generation across the globe, especially in regions like Europe, North America, and Asia-Pacific. On the basis of capacity, the 1,000-1,500 ton capacity range cooling tower rental are expected to witness the highest growth during the forecast period, owing to its major use in commercial, industrial or manufacturing facilities, indoor and outdoor applications, and high-temperature applications.
Among end-users, the industrial segment held the largest share of the market in 2017, and is expected to continue showing the upward trend in the coming years as well. This growth can be majorly attributed to the growing building and construction industry and increased government investments in infrastructure projects that has resulted in the installation of HVACR systems.
How is the market progressing, geographically?
Among regions, the North American market for cooling tower rental is expected to hold the highest market share, mainly due to the strict environmental norms and rising investments in major industries such as oil & gas, power utilities, metals, and mining, thereby boosting the growth of the global market as well. Moreover, the growing need for electrical energy and considerable growth in the food & beverage industry in this region is also expected to drive the market towards growth.
What are the factors impacting the market growth?
The growth of the global market for cooling tower rental is being primarily influenced by the following factors:
- Increasing number of HVACR deployments and industrial activities
- Strict environmental regulations
- Economic benefits of rental cooling towers over purchased cooling towers
- Growing need for supplemental cooling and emergency response
Apart from these, growing nuclear power generation industry, increased adoption of rental cooling towers in refineries and chemical plants, and advancing technology are expected to further create an array of growth opportunities for the market.
On the flip side, highly fragmented and competitive nature of the industry, fluctuating oil prices, and increasing focus on renewable energy are the major factors expected to act as deterrents for the growth of this market. Moreover, need for large quantities of water and lack of technical expertise for complex temperature-control issues are the key challenges being faced by the players in this market.
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Major companies and strategies adopted
Aggreko (U.S.), Caterpillar, Inc. (U.S.), Trane, SPX Corporation (US), united rental and Sunbelt rental (U.S.), and Johnson Controls are the major players operating in the global market for cooling tower rentals. These players are adopting several strategies in order to increase their market shares and also trying to expand their global presence by trying to enter the market of developing economies.
