Industrial Segment to Dominate APAC Water Cooling Tower Market During 2021-2028
According to The Insight Partners market research study on “APAC Water Cooling Tower Market to 2028 – COVID-19 Impact and Regional Analysis and Forecast by Type and Application” is expected to reach US$ 493.86 million by 2028 from US$ 361.57 million in 2021. The market is estimated to grow at a CAGR of 4.6% from 2021 to 2028. The report provides trends prevailing in the APAC water cooling tower market along with the drivers and restraints pertaining to the market growth. Burgeoning popularity of hybrid cooling towers and rigid government rules and regulations are the major factor driving the growth of the APAC water cooling tower market. However, expensive maintenance and upgradations hinders the growth of APAC water cooling tower market.
In case of COVID-19, APAC is highly affected specially India. Due to the massive number of cases in India, the APAC region is greatly affected by COVID-19. In APAC region, China homes the largest population across the world, which is imposing greater risk to a large number of individuals. China is also a world leader of many global brands. According to the Organization for Economic Co-operation and Development (OECD), the pandemic has affected major economies of the region, including China, India, Australia, and Vietnam, and the market has experienced a downward industrial growth during the first two quarters of 2020. The sudden shutdown of all economic activities and industrial factories across all countries in the region has significantly reduced the application of air cooling towers and has negatively impacted the growth of the market. However, the HVAC-based companies have witnessed significant growth during the pandemic. The growth of the HVAC systems can be attributed to increased applications of data centers, owing to the rising need for extended server space among IT companies and educational institutions. Thus, the rising demand of data centers globally has increased the demand for water cooling towers to cool the data center premises. Hence, the COVID-19 pandemic has had an overall negative impact on water cooling tower manufactures in the region. However, the growth in the HVAC sector has stabilized the market growth to some extent, and with the resuming economy in various countries of the region, the market is expected to grow in the upcoming years.
The APAC water cooling tower market is segmented based on type, application, and country. Based on type, the market is segmented into crossflow, counterflow, forced draft, induced draft, and others. The crossflow segment dominated the APAC water cooling tower market in 2020 and counterflow segment is expected to be fastest growing during forecast period. In terms of application, the market is segmented into industrial, power plant, and HVAC. The industrial segment dominated the APAC water cooling tower market in 2020 and same segment is expected to be fastest growing during forecast period. In terms of country, the market is segmented into China, India, Japan, South Korea, Australia, and rest of APAC.
Babcock & Wilcox Enterprises, Inc.; Baltimore Aircoil Company; BELL COOLING TOWERS; EVAPCO, Inc.; Hamon; MESAN Group; and SPX Cooling Technologies, Inc. are among the leading companies in the APAC water cooling tower market. The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic market. For instance, in 2019, Babcock & Wilcox Enterprises, Inc. (SPIG S.p.A.) had been awarded a contract to supply a sea water cooling tower to SEPCOIII for the Al Dur Phase II Independent Water and Power Project in the Kingdom of Bahrain. SPIG had supplied 40 induced draft counter flow cells constructed from fiberglass reinforced plastic (FRP) in a back-to-back configuration capable of handling a total water flow of more than 118,000 cubic meters per hour.