Evaporative cooling involves the cooling of air through the evaporation of water. It works on the principle that the transformation of water from liquid to gas state requires energy in the form of heat. Evaporative coolers or cooling pads are installed on the edge of buildings or as standalone units which help decrease indoor air temperature up to 15°C compared to the outdoor conditions through water evaporation. They are cost effective and energy efficient alternatives to air conditioners, especially in hot and dry climates. The global evaporative cooling market is growing steadily owing to rising demand from various industries such as food and beverage, commercial, industrial and residential sectors where temperature and humidity control is essential. The ability of these systems to maintain ideal temperature conditions at lower costs compared to refrigerant-based ACs is a major driver for their increasing adoption.
The global Evaporative Cooling Market is estimated to be valued at US$ 6517.71 Mn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the key trends in the evaporative cooling market is the integration of evaporative coolers with advanced IoT and wireless connectivity technologies. This allows remote monitoring and control of systems through mobile apps and dashboard interfaces for optimized operations. Sensors enable automatic adjustments of fan speed, water flow and other functions based on preset cooling requirements. The addition of smart capabilities is making evaporative cooling an attractive option for commercial buildings and industrial facilities where efficiency and minimal oversight is important. This convergence of evaporative cooling with digital technologies will drive further market growth over the coming years.
Threat of new entrants: The threat of new entrants in the evaporative cooling market is moderate. Established players have strong brand recognition and control a major market share. However, barriers to entry are low as the technology used is widely available.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have numerous product options available from different brands. Buyers can negotiate on price and demand better quality and after-sales support.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major suppliers have established supply networks and differentiation in technologies provided. However, suppliers are numerous and have low switching costs.
Threat of new substitutes: The threat of substitutes is low. Alternatives like air conditioning have higher installation and operational costs. Evaporative cooling is an economical option for industrial and commercial applications.
Competitive rivalry: The competitive rivalry is high. Players compete based on product innovation, pricing, quality, energy efficiency, and service. Established brands spend on R&D and expand their product portfolios.
The global Evaporative Cooling Market Growth is expected to witness high over the forecast period. Asia Pacific region currently dominates the market with a majority share. China, India, Australia, and Southeast Asian countries experience hot weather conditions throughout the year, driving demand for economical cooling systems.
North America is the second largest market for evaporative cooling. Rapid industrialization and increasing construction of commercial buildings require efficient cooling without high energy costs. Major players are focused on developing energy-efficient and durable systems for this region.
Key players operating in the evaporative cooling market are Celsius Design Limited, Delta Cooling Towers Inc., CFW Evapcool, Condair Group AG, ENEXIO Water Technologies GmbH, SPX Cooling Technologies, Bonaire, Baltimore Aircoil Company Inc., Phoenix Manufacturing Inc., Munters Group AB, and Colt Group Ltd. Players compete on the basis of product features, pricing, reliability, and service. They invest in enhancing technology, performance, and sustainability of their product offerings.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it