Industrial Cooling System Market registered a profitable valuation of USD 20.5 billion in 2024 and is projected to reach USD 48.2 billion in 2037, expanding at a profitable CAGR of 6.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of industrial cooling system is evaluated at USD 21.9 billion.
The industrial cooling system market’s growth is attributed to an increasing focus on energy-efficient solutions and a rapid rise in industrialization. The growth of sectors such as power generation, manufacturing, food processing, and data centers, drives demand for industrial cooling systems that assist equipment performance, downtime reduction, and operational safety. Additionally, the global increase in meat exports and the dairy industry is poised to drive demands for industrial cooling systems.
In 2023, a report published in Our World in Data estimated that global meat production and consumption have increased over the past 50 years with Asia Pacific being the largest meat-producing region globally. The trends benefit the industrial cooling system market as an increase in meat consumption correlates with the expansion of meat processing facilities that require cooling systems to maintain food safety and quality. For instance, in September 2024, Wycliff Douglas Provisions (WDP) announced a major expansion at its facility in Mesquite, Texas, by adding another 25,000 square feet to the meat processing facility. The global food supply chain drives demand for efficient cold storage and transportation solutions to ensure that meat products reach the designated market in optimal conditions driving the need for industrial cooling systems. Additionally, rising demands for energy-efficient solutions are poised to increase investments in cooling systems to reduce operational costs for businesses.
The global industrial cooling system market is positioned to benefit from the rapid growth of data centers that require industrial cooling systems. The adoption of advanced cooling systems presents opportunities for manufacturers to introduce environment-friendly cooling solutions, such as hybrid cooling systems that can combine multiple cooling methods to improve efficiency. The burgeoning demand for sustainable solutions creates opportunities within the market to manufacture advanced cooling solutions that align with green initiatives. For instance, in October 2024, Hewlett Packard Enterprise introduced a 100% fan-less direct liquid cooling systems architecture to cool next-generation AI systems. The global market is poised to leverage the favorable trends as digital transformation is likely to spur further demands and continue its profitable growth curve by the end of the forecast period.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.8% |
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Base Year Market Size (2024) |
USD 20.5 billion |
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Forecast Year Market Size (2037) |
USD 48.2 billion |
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Regional Scope |
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Product (Evaporative Cooling, Air Cooling, Water Cooling, and Hybrid Cooling)
By 2037, evaporative cooling segment is anticipated to dominate over 42.9% industrial cooling system market share. The segment’s growth is attributed to rising demand for sustainable and energy-efficient cooling solutions. Evaporative cooling uses water to absorb and dissipate heat and is a cost-effective solution compared to traditional cooling methods, increasing its adoption. The growing adoption is a major driver of the segment. Businesses can leverage the growing opportunities in this segment by providing advanced cooling towers for industries. For instance, in November 2023, Metso Corporation launched an upgraded evaporative cooling tower, i.e., a furnace dry gas cleaning solution via evaporation.
The air-cooling segment of the global industrial cooling system market is projected to increase its revenue share during the forecast period. The segment’s growth is due to rising demands in the food and beverage sector for controlled cooling solutions. Additionally, the segment’s growth is driven by increasing calls to reduce water usage as air cooling solutions require no water. For instance, in September 2022, Novamax announced the launch of industrial air coolers that are shock-resistant and portable. Regions with water scarcity are positioned to drive demands for air cooling solutions boosting the robust growth curve by the end of the forecast period.
Application (Automotive, Chemicals, Food & Beverage, Utility & Power, Oil & Gas, Pharmaceuticals, Industrial Manufacturing, and Data Centers)
The automotive segment of the industrial cooling system market by application is positioned to increase its revenue share by the end of the forecast period. The segment’s growth is owed to rising demands for precision cooling solutions that can ensure optimal performance. The automative industry requires cooling systems to manage the heat generated by heavy machinery and other manufacturing processes such as welding. Additionally, the rise of the electric vehicles (EV) sector is positioned to drive demands for industrial cooling solutions boosting the market’s growth. For instance, in April 2024, BASF Plastics announced support for RML group to develop immersion cooling in high-speed hybrid car.
Our in-depth analysis of the industrial cooling system market includes the following segments:
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Product |
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Application |
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Capacity |
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North America Market Forecast
By 2037, North America industrial cooling system market is predicted to capture over 22.3% revenue share. The market’s growth in the region is attributed to the rising adoption of cold chain logistics driving demand for industrial cooling systems. The rapid growth of data centers is poised to create a steady demand for industrial cooler systems in the region to manage heat generated by large-scale servers. For instance, in July 2024, Airedale by Modine launched the Cooling System Optimizer as a sustainable and secure cooling solution in the U.S. for data centers. The market in North America is positioned to increase its revenue share by the end of the forecast period by leveraging burgeoning demands for sustainable cooling solutions.
The U.S. leads the revenue share in the industrial cooling system market of North America. The market’s growth in the U.S. is attributed to growing demands from the manufacturing sector and data centers. Research Nester estimated U.S. to account for the largest number of data centers globally with more than 5000 data centers in the country creating a steady demand for industrial cooling solutions. Additionally, growing calls for sustainable solutions are positioned to drive demands for robust industrial cooling systems. Businesses in the U.S. can benefit from the rising number of government-backed contracts to manufacture advanced cooling systems. For instance, in October 2024, Advanced Cooling Technologies was poised to receive a USD 1.1 million grant through two subcontracts with the U.S. Department of Energy’s Advanced Research Projects Agency-Energy to manufacture energy-efficient cooling systems for data centers.
Canada is projected to increase its revenue share in the industrial cooling system market during the forecast period. The market’s growth in Canada is owed to rising demands from the energy, manufacturing, and mining sectors. Growing calls for sustainable solutions have prompted companies to invest in energy-conserving cooling systems. For instance, in October 2023, Amaresco and Schaeffler Aerospace Canada Inc. announced a collaboration for clean cooling and decarbonization project. Additionally, data centers are expanding in Canada, creating new opportunities for manufacturers to supply advanced cooling solutions.
APAC Market Analysis
The Asia Pacific industrial cooling system market is poised to register the fastest growth during the forecast period. The market’s growth in the region is attributed to the expanding manufacturing sector driving demands for industrial cooling systems. For instance, in September 2024, Hanhwa Aerospace and SK Enmove launched immersion cooling ESS for lithium-ion battery modules. The rapid urbanization in APAC has boosted industrialization across emerging economies, opening profitable opportunities in the regional market. Additionally, APAC is experiencing growth in data centers owing to increased internet usage and cloud services boosting demands for advanced cooling solutions.
China is projected to register a major revenue share in the industrial cooling system market of APAC. The growth of the market in China is owed to the country’s position as a global manufacturing leader. Significant state-led industrial policies such as Made in China 2025, boost domestic companies to compete globally and domestically, empowering the business landscape in the nation. The trends are poised to drive demands in the high-tech manufacturing sector of China for advanced cooling solutions for precise temperature control. Additionally, the rapid growth of 5G, data centers, and solar power projects is positioned to create a steady demand for industrial cooling systems. For instance, in October 2024, Jinko Solar delivered 123 MWh of liquid cooling utility-scale BESS to Yitong New Energy.
India is projected to increase its revenue share in the industrial cooling system market of APAC. The growth is attributed to rapid industrialization and increasing energy demands across various sectors. The hot and humid climate of India necessitates cooling solutions for industries to maintain equipment longevity. Domestic cooling solutions suppliers are set to benefit from the Make in India initiative that provides incentives to domestic manufacturers. Additionally, global companies are leveraging the opportunities in the domestic market by investing in industrial-scale chillers to cater to rising demands. For instance, in November 2024, Mitsubishi Electric announced the decision to invest USD 4.8 million to open an industrial chiller facility in Karnataka, India.
The global industrial cooling system market is poised to register a profitable growth curve during the forecast period. Key players in the market are investing in expanding their cooling solutions portfolio and entering emerging markets. The competitive market has domestic and international players vying to increase their revenue share in the global industrial cooling system market.
Here are some key players in the market:
Author Credits: Richa Gupta
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