Evaporative Cooling Market Size (2024 - 2029)

The evaporative cooling market is experiencing growth driven by the increasing need for energy-efficient cooling solutions in the face of rising global temperatures and climate change. This market's expansion is supported by the low operational costs and minimal components of evaporative cooling systems, making them an affordable alternative to traditional air conditioning. Government incentives for energy-efficient technologies further bolster the market. However, the market's potential is challenged by the systems' dependence on air quality and humidity levels, which can limit their effectiveness in certain regions. Despite these challenges, the demand for improved indoor air quality and energy-efficient cooling solutions continues to propel the market forward.

Market Size of Evaporative Cooling Industry

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Evaporative Cooling Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 7.13 Billion
Market Size (2029) USD 10.16 Billion
CAGR (2024 - 2029) 7.35 %
Fastest Growing Market Middle East and Africa
Largest Market Asia Pacific

Major Players

Evaporative Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Evaporative Cooling Market Analysis

The Evaporative Cooling Market size is estimated at USD 7.13 billion in 2024, and is expected to reach USD 10.16 billion by 2029, growing at a CAGR of 7.35% during the forecast period (2024-2029).

  • As heat waves happen more frequently owing to climate change, millions of people are in danger of exposure to temperatures that could be fatal. People worldwide have been impacted by rising temperatures, making it imperative to address the need for cooling without having a negative carbon footprint, which has been a significant element driving the industry.
  • Because evaporative coolers employ fewer parts than air conditioning systems, such as a fan, pump, and water, to chill the room, they can cool various spaces for a meager cost and with minimal operational costs. These evaporative cooling systems' low ownership costs are one of their main benefits.
  • Additionally, various governments worldwide have been offering saving programs to promote energy-efficient technologies. For example, as evaporative cooling has been a proven sustainable cooling technology, these systems have been made eligible for the Energy Investment Deduction (EIA) in the Netherlands, which could result in more than 11% net benefit on the entire investment.
  • Furthermore, because these systems use fewer components and are, therefore, more energy efficient, evaporative cooling has been one of the most affordable cooling options on the market. For instance, Canstar Blue estimates that the typical reverse cycle split system air conditioner may run at about USD 0.60 per hour. However, with an additional USD 0.02 for water, an evaporative cooling system may cost less than USD 0.10 per hour.
  • These evaporative cooling systems' high reliance on the surrounding air quality has been one of their main disadvantages. Since the evaporative cooling process is driven by the temperature difference between the ambient air's dry and wet bulb temperatures, this difference is negligible for moderate and highly humid regions, which results in a constrained cooling capacity.
  • On the other hand, the Indian Society of Heating, Refrigerating and Air Conditioning Engineers (ISHRAE), among other regulating authorities globally, has urged more fresh air intake and ventilation in the current pandemic scenario. Due to this, end users are now compelled to consider integrating evaporative cooling systems, which might significantly improve indoor air quality and offer secure workspaces with less energy use.

Evaporative Cooling Industry Segmentation

Evaporative cooling is preferred as an alternative to traditional cooling technologies, as it uses a natural process, namely the reduction of air temperature by evaporating water. Although it is an age-old process, it has emerged as a viable alternative to conventional air conditioning systems in areas where shallow temperatures are not required.

The Evaporative Cooling Market is segmented by Type of Cooling (Direct Evaporative Cooling, Indirect Evaporative Cooling, and Two-stage Evaporative Cooling), Application (Residential Applications, Commercial Applications, Industrial Applications, and Confinement Farming), Distribution Channel (Big Box Retailers, HVAC Contractors, and Distributors), and Geography.

By Type of Cooling
Direct Evaporative Cooling
Indirect Evaporative Cooling
Two-stage Evaporative Cooling
By Application
Residential Applications
Commercial Applications
Industrial Applications
Confinement Farming
Other Applications
By Distribution Channel
Big-box Retailers
HVAC Contractors and Distributors
Other Distribution Channels
By Geography
North America
Europe
Asia-Pacific
Rest of the World
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Evaporative Cooling Market Size Summary

The evaporative cooling market is poised for significant growth over the forecast period, driven by the increasing need for energy-efficient cooling solutions in the face of rising global temperatures. As climate change leads to more frequent heat waves, the demand for sustainable cooling technologies that minimize carbon footprints has become critical. Evaporative cooling systems, which utilize the natural process of evaporation to cool air, are gaining traction due to their low operational costs and minimal environmental impact. These systems are particularly advantageous in regions with dry climates, where they can operate efficiently by leveraging the temperature difference between dry and wet bulb temperatures. However, their effectiveness is limited in highly humid areas, which poses a challenge for widespread adoption in such regions. The industrial sector, in particular, is a major end-user of these systems, employing them in various applications such as warehouses, factories, and data centers, where they contribute to significant energy savings and improved air quality.

The market landscape is moderately competitive, with several key players dominating the industry. Companies like Delta Cooling Towers Inc., Condair Group AG, and SPX Cooling Technologies are focusing on expanding their global presence and enhancing their product offerings to meet the growing demand for evaporative cooling solutions. Innovations such as smart evaporative cooling fans and advanced IoT-integrated systems are being introduced to improve efficiency and user experience. Additionally, government initiatives and incentives, such as the Energy Investment Deduction in the Netherlands, are promoting the adoption of energy-efficient technologies, further boosting market growth. As the demand for cooling solutions continues to rise, particularly in regions like Southeast Asia and South Asia, evaporative cooling is expected to play a crucial role in meeting both economic and environmental goals, especially in the context of data center sustainability and carbon emission reduction targets.

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Evaporative Cooling Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Intensity of Competitive Rivalry

      5. 1.3.5 Threat of Substitutes Products

    4. 1.4 An Assessment of the Impact of COVID-19 on the industry

    5. 1.5 Analysis of the Evaporative Cooling Hotspot

    6. 1.6 Comparative Analysis of Alternative/Substitute Cooling Technologies Deployed in the Residential and Commercial Sectors

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Cooling

      1. 2.1.1 Direct Evaporative Cooling

      2. 2.1.2 Indirect Evaporative Cooling

      3. 2.1.3 Two-stage Evaporative Cooling

    2. 2.2 By Application

      1. 2.2.1 Residential Applications

      2. 2.2.2 Commercial Applications

      3. 2.2.3 Industrial Applications

      4. 2.2.4 Confinement Farming

      5. 2.2.5 Other Applications

    3. 2.3 By Distribution Channel

      1. 2.3.1 Big-box Retailers

      2. 2.3.2 HVAC Contractors and Distributors

      3. 2.3.3 Other Distribution Channels

    4. 2.4 By Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia-Pacific

      4. 2.4.4 Rest of the World

Evaporative Cooling Market Size FAQs

The Global Evaporative Cooling Market size is expected to reach USD 7.13 billion in 2024 and grow at a CAGR of 7.35% to reach USD 10.16 billion by 2029.

In 2024, the Global Evaporative Cooling Market size is expected to reach USD 7.13 billion.

Evaporative Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)