The demand for cooling tower rental services, in terms of value, is estimated to be worth around $996 million this year. According to the Future Market Insights market analysis report, this market is anticipated to increase at a compound annual growth rate (CAGR) of 7.7% from 2023 to 2033. The FMI report further predicts the overall market valuation would be reaching $2.1 million by the end of this forecast period.
Renting cooling towers to industrial, manufacturing, and commercial sectors for a temporary period has emerged as a lucrative business in the last few years. There is now an increasing need for cooling systems to maintain ideal operating temperatures and avoid overheating equipment and machinery.
The adoption of the cooling tower rental market is expanding as a result of the constantly expanding industrial and manufacturing sector, particularly in emerging economies. As businesses grow and new industrial facilities are built, the demand for cooling tower rental services market is expected to get competitive in the future.
Important market developments can be further demonstrated by the contract signed between Babcock & Wilcox SPIG Inc. and BASF Dow HPPO. The agreement was signed in June 2019 for improving services on the cooling tower at a propylene oxide production facility in Belgium. This partnership demonstrates how crucial specialist knowledge is when providing or upgrading cooling tower rental services for vital industrial infrastructure.
According to earlier market survey reports, the net worth of the total cooling tower rentals subscribed in the year 2018 was $610 million. In the following years, it progressed moderately before witnessing a steep rise during the years 2021 and 2022 during the post-COVID-19 pandemic period.
Trends, like the inclusion of light-emitting diode (LED) retrofits, water source heat pumps, and the supply of upgrading services can drive the market further. The advent of "smart cooling tower" technology is also another notable breakthrough, promising several other emerging trends in the cooling tower rental market.
Smart cooling tower technology provides real-time monitoring and analysis of the cooling towers' activities through the use of sensors, data analytics, and automation. Further, it may maximize the knowledge of the product's performance by gathering and evaluating data on numerous factors, like water flow, and energy usage. This new technology's automated detection function enables rapid detection of any problems or irregularities in the operation of cooling towers.
As per the FMI analysis, the demand for cooling tower services in the U.S. remains higher by virtue of a greater industrial base. Expansion of petroleum refineries and the pharmaceutical sector are expected to propel the cooling tower leasing business in the U.S. to attractive potential.
Prominent global cooling tower rental service providers are emphasizing the value of the ongoing process of optimization and development of sustainable business models. Moreover, upgrading the cooling tower shows the dedication of market players to raise production, operational effectiveness, and lowering the carbon footprint for environmental sustainability.
The development and adoption of digital solutions for streamlining cooling tower rental services might allow companies to maintain competitiveness and seize new opportunities. Adapting to shifting environmental legislation, technical improvements, and the rising need for effective cooling solutions across several sectors can also scale up the business.
*These insights are based on a report on Cooling Tower Rental Market by Future Market Insights
