Cooling Tower Market to Exceed USD 5 Billion by 2031 Fueled by Power Generation and Data Center Expansion, Says Mordor Intelligence

Mordor Intelligence Private Limited India

is expected to grow from USD 4.59 billion in 2026 to nearly USD 5.89 billion by 2031, registering a CAGR of 5.09%. Market growth is being driven by fresh investments in power generation and the rapid expansion of large-scale data centers that require high-capacity cooling solutions. At the same time, stricter regulations on water usage and energy efficiency are accelerating demand for hybrid wet–dry systems, counterflow designs, and larger installations above 20 MW. The transition toward PFAS-free materials, along with the adoption of digital technologies such as predictive maintenance and smart monitoring, is further strengthening the competitive advantage of suppliers focused on sustainability and operational efficiency.

Trends Influencing Cooling Tower Market Growth

Expansion of Power Generation Across Asia and the Middle East

Power producers across Asia and the Middle East are adding new generation assets that demand robust cooling infrastructure. Counterflow towers are widely selected to handle fluctuating thermal loads from nuclear, gas, and hybrid renewable plants. Coastal facilities are leaning toward seawater-based cooling to reduce pressure on freshwater resources, while integrated heat-recovery concepts are improving overall plant economics. These trends are reinforcing the role of advanced cooling towers in modern utility-scale projects.

Tightening Rules on Water and Energy Management

Stricter environmental and health regulations are accelerating upgrades to existing cooling tower systems. Facility owners are investing in improved fill designs, automation, and chemical control to meet higher efficiency and safety expectations. Concerns around plume control and water quality are also steering adoption toward closed-loop and hybrid configurations. In response, manufacturers are focusing on independent performance validation and new material innovations to stay ahead of regulatory demands.

For a full breakdown of market size, segmentation data, and competitive intelligence, access the details of the Mordor Intelligence report: https://www.mordorintelligence.com/industry-reports/cooling-tower-market?utm_source=prnewswire 

Cooling Tower Market Segment Outlook

By Flow Type

Cross-FlowCounter-Flow

By Tower Type

EvaporativeDryHybrid (Wet–Dry)

By Capacity Range

Below 5 MW5 to 20 MWAbove 20 MW

By Application

Oil and GasChemical and PetrochemicalPower GenerationHVACR (Commercial Buildings)Data CentersPulp and PaperFood and BeverageOthers

By Geography

North AmericaEuropeAsia PacificSouth AmericaMiddle East and Africa

Cooling Tower Market Regional Overview

In North America, growth is tied to expanding data-center hubs and modernization projects in the refining sector, with buyers prioritizing low-drift and environmentally compliant systems. Europe is seeing steady adoption through district energy projects that rely on hybrid configurations to manage seasonal demand while conserving water.

Across the Middle East and Africa, water scarcity is accelerating the shift toward dry and seawater-based towers linked to solar and desalination facilities. South America's activity remains centered on heavy industrial zones, where large counter-flow systems are preferred for their ability to perform under harsh operating conditions.

Cooling Tower Companies:

SPX Technologies, Inc.Baltimore Aircoil Company, Inc.EVAPCO, Inc.Johnson Controls International plcHamon and CIE (John Cockerill SA)Brentwood Industries, Inc.Babcock & Wilcox Enterprises, Inc.ENEXIO Management GmbHThermax Ltd.Artech Cooling Towers Pvt. Ltd.Kelvion Holding GmbHPaharpur Cooling Towers Ltd.Liang Chi Industry Co., Ltd.Star Cooling Towers Pvt. Ltd.Delta Cooling Towers, Inc.Reymsa Cooling Towers, Inc.SPIG S.p.A. (Babcock & Wilcox)Kimre, Inc.Mesan Group

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