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The evaporative cooling market is estimated to grow by USD 2.01 billion at a CAGR of 7.86% between 2022 and 2027. The market is thriving due to rising residential construction, driving demand for cost-effective cooling solutions. Product innovation enhances portfolios and premiumizes offerings, integrating smart technology and sustainable materials. Growing environmental awareness fuels the demand for eco-friendly, energy-efficient systems, align with stringent regulations. These factors collectively propel market growth, promising a sustainable future for evaporative cooling technologies.
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This report provides a detailed analysis of the market by Type (Indirect evaporative cooling, Direct evaporative cooling, and Two-stage evaporative cooling), Application (Industrial, Confinement farming, Residential, and Others), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
The market share growth of the indirect evaporative cooling segment will be significant during the forecast period. This method prevents the direct mixing of outdoor and indoor airflows by cooling indoors with outdoor air. Indoor air is drawn from the room and circulated through the heat recovery before being returned to the room. Cold outside air is drawn through the heat recovery and immediately removed. Thus, without directly mixing the two streams, the heat recovery device transfers cold thermal energy from the outdoor air to the indoor air. This approach offers suitability in critical conditions and hence will be a key driver during the forecast period.
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The indirect evaporative cooling segment was valued at USD 1.65 billion in 2017 and continued to grow until 2021. The approach is suitable for critical conditions because the possibility of indoor air being damaged by ambient air pollutants is low because indoor air never mixes with outdoor air. In addition, it allows the outside air to flow through the heat recovery at a much higher rate than the air circulating inside, removing even more cooling from the system. Growing demand for indirect evaporative cooling will drive segment growth during the forecast period. Thus, such factors affect the growth of the market during the forecast period.
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APAC is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The North American market accounted for the largest share of the market. The main factors driving the North American market are increased demand for indoor air cooling equipment and increased consumer awareness of using eco-friendly and related products. Additionally, the need for home air conditioners coupled with rising electricity prices will increase the demand for evaporative air coolers in the region during the forecast period. Thus, the regional market is expected to grow during the forecast period.
The Evaporative Cooling Market is witnessing remarkable growth as a sustainable alternative to traditional air conditioning systems. Aligned with stringent government standards, particularly in the United States and supported by initiatives by Natural Resources Canada, evaporative cooling solutions adhere to minimum energy performance standards (MEPS), ensuring eco-friendly operation.
Evaporative coolers are renowned for their cost-effectiveness and significant energy savings, making them an attractive option for various sectors including the Commercial Sector encompassing hospitals, movie theaters, airports, hotels, and malls. With their low maintenance requirements and ability to meet diverse operational requirements, including those of data centers, digital content, and e-commerce, these systems provide reliable cooling while minimizing operational costs and carbon emissions. As preferred choices among small to medium enterprises and HVAC companies, evaporative coolers offer multifunctional capabilities and contribute to the overall sustainability efforts of the industry.
The growing residential construction activity is notably driving the market growth, although factors such as stringent government standards and regulations may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The residential construction activity surge significantly propels market expansion, particularly evident in developed nations like the US. Over the past three years, there has been substantial market growth, attributed chiefly to the advent of contemporary housing, improved economic circumstances, and heightened consumer purchasing power. Although progress remains gradual, new home constructions and acquisitions in the US are steadily rising.
This upswing in the construction sector anticipates a surge in demand for evaporative air coolers both in the US and globally in the forecast period. Economic expansion and heightened housing demand across various US states are anticipated to drive substantial growth in the construction industry during this timeframe. With a surge in residential sector demand, market growth is poised to gain momentum in the forecast period.
Increased adoption of omnichannel distribution and multi-channel marketing is one of the major market trends. The market has been strengthened by the growth of the e-commerce sales channel and the adoption of multi-channel business models. The online channel expands the visibility of the products. Although the online segment accounts for a smaller share of the market, the segment is expected to be promising, with faster growth compared to the offline segment. Increased access to the Internet, the proliferation of mobile Internet devices, and consumer awareness are driving online sales of home appliances (including portable evaporative coolers).
Online shopping is also convenient thanks to faster home delivery and secure 24/7 electronic transactions. This reduces the waiting time at the store and the queue in physical retail stores. It also reduces the transport of cash to home. Hectic lifestyle also limits the purchase of home appliances through offline distribution channels due to lack of time. This increases the use of e-commerce portals to buy evaporative coolers.
Stringent government standards and regulations are the major challenges impeding market growth. Evaporative cooler manufacturers must comply with certain government regulations in different regions. sellers must comply with various federal, state, and other government rules and regulations. These regulations relate to energy, product descriptions, packaging or labeling, user-related hazards or safety issues, and product life cycle. For example, in Europe, the European Commission has established product labeling regulations for household appliances (including evaporative air coolers). These products must have energy efficiency ratings and product information. Implementation of these regulations will make it difficult for manufacturers to penetrate the potential market, which will limit the growth of the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ATE Private Ltd. - The company offers evaporating cooling systems namely IDU Series as its key offerings. The company's product portfolio includes textile engineering, teraspin precision spinning machinery components, value-enhancing systems, and flow technology.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market is witnessing substantial growth due to its efficiency in air conditioning, particularly in large open spaces, aligning with government standards for energy utilization. In the United States, initiatives by Natural Resources Canada enforce minimum energy performance standards (MEPS), promoting the adoption of evaporative coolers over traditional cooling technologies. With cost-effectiveness and significant energy savings, evaporative cooling systems require low maintenance and meet multifunctional operational requirements. They cater to diverse sectors such as data centers, digital content, e-commerce, ensuring reliability while minimizing operational costs and carbon emissions.
In the Commercial Sector, including hospitals, movie theaters, airports, hotels, and malls, evaporative coolers are preferred by small to medium enterprises and HVAC companies, complying with ASHRAE guidelines and eliminating the use of harmful refrigerants like CFCs. Direct evaporative air cooling, employing a fan and dampened sponge-like pad, efficiently delivers cool air into interior spaces via ducts, replacing warm, dry air with cool, moist air, particularly beneficial for commercial construction, warehouses, and private offices, as indicated by the US Census Bureau.
The market research report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Evaporative Cooling Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.86% |
Market growth 2023-2027 |
USD 2.01 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.41 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 30% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amsted Industries Inc., CAREL INDUSTRIES Spa, Celsius Design Ltd., Colt Group Ltd., Condair Group AG, Delta Cooling Towers Inc., EcoCooling Ltd., Energy Wise Solutions, ENEXIO Management GmbH, EVAPCO Inc., Hessaire Products Inc., Honeywell International Inc., Longhua Technology Group, Munters Group AB, NewAir, Premiair Appliances Ltd., SPX Corp., Symphony Ltd., United Metal Products Inc., and ATE Private Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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