Evaporative Cooling Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Evaporative Cooling Market is Segmented By Type of Cooling (Direct Evaporative Cooling, Indirect Evaporative Cooling, Two-stage Evaporative Cooling), By Application (Residential, Commercial, Industrial, Confinement Farming, Other), By Distribution Channel (Big-box Retailers, HVAC Contractors and Distributors, Others) and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Size, Share, Outlook, and Opportunity Analysis 2024-2031

Market Overview

The Global Evaporative Cooling Market reached US$ 6.51 billion in 2023 and is expected to reach US$ 10.24 billion by 2031, growing with a CAGR of 5.83 % during the forecast period 2024-2031.

Evaporative cooling is favored as a substitute for conventional cooling methods due to its utilization of a natural phenomenon, specifically the decrease in air temperature through the evaporation of hot water. Despite its long history, this method has established itself as a feasible substitute for traditional air conditioning systems in regions where very low temperatures are unnecessary. The global favorable rules for sustainable energy, together with technological breakthroughs and their advantages over conventional cooling methods, are greatly propelling the market.

Given the increasing frequency of heat waves caused by climate change, millions of individuals are at risk of being exposed to potentially lethal temperatures. The global population has been affected by the increasing temperatures, underscoring the importance of addressing the requirement for cooling without generating a detrimental carbon footprint, which has been a major factor propelling the sector.

Due to their reduced number of components compared to air conditioning systems, such as a fan, pump, and water, evaporative coolers are able to cool some areas at a low cost and with little operational expenses. Among the primary advantages of these evaporative cooling systems is their low ownership costs.

Furthermore, numerous governments across the globe have been implementing conservation initiatives to encourage the use of energy-efficient devices. For instance, because to the established sustainability of evaporative cooling, these systems have been deemed qualified for the Energy Investment Deduction (EIA) in the Netherlands. This eligibility may lead to a net benefit of over 11% on the total investment.

Moreover, due to the reduce number of components used in these systems and their consequent higher energy efficiency, evaporative cooling has emerged as one of the most cost-effective cooling alternatives available on the market. According to Canstar Blue, the cost of operating a standard reverse cycle split system air conditioner is approximately USD 0.60 per hour. Nevertheless, after adding an extra USD 0.02 for water, the cost of an evaporative cooling system might be reduced to below USD 0.10 per hour.

Market Scope

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Market Dynamics

Economical and Energy-Efficient Cooling: The Rising Demand for Evaporative Cooling Solutions Amidst Climate-Dependent Challenges: 

Increasing demand for economical cooling solutions is a major driver of the worldwide evaporative cooling industry. The cost of the evaporative cooler is up to 50% lower than that of a similar refrigerated air conditioner and up to 75% lower to operate. Evaporative cooling is both ecologically benign and highly efficient in terms of energy use. This technology provides exceptional air quality by decreasing the release of CO2, CFC, and other greenhouse gas pollutants. 

Evaporative coolers are very efficient and cost-effective cooling systems that, over all, will function at a lower cost than an air conditioner. Evaporative coolers are suitable for installations in small rooms and workplaces, but it is necessary to ensure sufficient ventilation by either opening doors and windows or installing mechanical supply fans. Due to their reduced number of components and consequent higher energy efficiency, evaporative cooling systems have become one of the most cost-effective cooling choices available. According to Canstar Blue, the cost of operating a standard reverse cycle split system air conditioner is approximately US$ 0.60 per hour. Nevertheless, by including an extra US$ 0.02 for water, the total cost of operating an evaporative cooling system might be less than US$ 0.10 per hour. These factors are expected to contribute to robust growth in the worldwide evaporative cooling market in the future.

Nevertheless, many consumers who are considering adopting evaporative cooling systems are seriously considering the significant element of dependence on external climatic conditions. Under conditions of high temperature and humidity, an evaporative cooler is unable to offer comparable thermal comfort. Due to its influence on air humidity, it has the potential to heighten discomfort. Additionally, it is necessary to utilize this electrical device in conjunction with exhaust ducts or open windows, or in outdoor environments, in order to optimize its effectiveness.

Climate Dependency And Alternative Technologies Are Key Restraints On The Global Evaporative Cooling Market:

One of the factors anticipated to impede the growth of the global evaporative cooling market during the forecast period is the dependent nature of evaporative cooling on external climate. The evaporative cooling process relies heavily on external climatic factors, as it utilizes air from the outside environment to chill the surrounds. This consideration, however, impacts the effectiveness of the system in attaining temperature reductions in arid and drier climates and areas. Therefore, this particular aspect has a profound impact on the acceptance of evaporative cooling systems, so impeding the expansion of the industry.  

A further factor that is anticipated to limit the expansion of the worldwide evaporative cooling market during the projected period is the availability of inexpensive substitute products. The rapid advancement of technology has led to a consistent decrease in the cost of integrating technology in recent years. The proliferation of alternative cooling technologies is increasing at more affordable prices, leading to a reluctance among customers to invest in evaporative air coolers. Accordingly, this factor is anticipated to impede the expansion of the market in the foreseeable future.

Market Segment Analysis

The global evaporative cooling market is segmented based on type of cooling, application, distribution channel, and region.

Based On The Types Of Cooling, Direct Evaporative Cooling Dominated The Market:

Direct evaporative cooling lowers the temperature and increases air humidity by harnessing the latent heat of evaporation, which facilitates the conversion of liquid water into water vapor. It represents the fundamental, conventional, and extensively employed method of evaporative low-temperature cooling. It is expected that these evaporative coolants will have a restricted specialized market in the United States, mostly in the southern region, where the relative humidity at midday in July exceeds 40%.

Direct evaporative cooling systems are suitable for applications that need substantial heat-load compensation and are willing to use external air for this purpose. Their applications find extensive use in buildings, warehouses, commercial kitchens, and residential environments characterized by less stringent comfort requirements. Hence, the system requirements are contingent upon the end users and the predetermined operational performance objectives. Evaporative coolers in most buildings are predominantly natural systems, with some indirect systems also being used. 

Numerous enterprises focus on direct evaporative cooling (DEC), which is often the most energy-efficient approach for cooling a data center. Intending to expand its data center cooling division, which encompasses natural evaporative cooling, Munters relocated its employees from Virginia to the new facility in April 2021. The company aimed to establish a 365,000-square-foot facility for manufacturing, research and development, and sales, with an investment objective of USD 36 million.

Market Geographical Share

The Evaporative Cooling Market In Asia Pacific Is Estimated To Account For The Largest Share:

It is projected that the Southeast Asian region would see a substantial increase in demand for air conditioning (AC) sales, fueled by rising temperatures and revenues. This demand is estimated to reach 300 million units by 2040. Indonesia is expected to provide half of the global supply of air conditioning units.

Furthermore, a study conducted by the International Energy Agency reveals that China, the United States, and Japan are the prominent players in cooling equipment sales, while India and Indonesia are witnessing the most substantial growth. Despite China's sales of over 500 million units in the last decade, India and Indonesia had a more rapid relative growth in demand for air conditioning. In both countries, the average annual installations of air conditioning systems expanded at a rate exceeding 15%. India

The demand for air conditioning in South Asia is undergoing rapid and significant increase, which subsequently necessitates the development of cost-effective and straightforward cooling methods. When evaluating the carbon emission reduction goals of these countries, evaporative cooling emerges as one of the most optimal methods. Despite the region's rapid growth in the data center industry, Southeast Asia continues to face challenges in ensuring the long-term viability of these facilities.

However, in the next years, sustainability is expected to become a crucial distinguishing factor among data center providers in Asia. This is especially true as major global technology companies such as Microsoft, Google, and Apple establish criteria for carbon neutrality and zero sustainability objectives, and as advanced energy-efficient technology continues to be developed.

Russia-Ukraine War Impact Analysis

The continuing conflict between Russia and Ukraine has had a substantial effect on the worldwide evaporative cooling industry by increasing energy costs and worsening energy poverty. Owing to the battle, energy prices have risen sharply, causing people worldwide to struggle with higher costs for vital services such as heating, cooling, lighting, and mobility. The current energy crisis has significantly intensified the hardships related to the expense of life, particularly in areas that rely on imported fossil fuels. 

Inequitable distribution of the increasing expenses results in a disproportionate impact on lower-income households and those residing in colder regions. The escalating energy expenses have a direct impact on the economics and attractiveness of evaporative cooling systems, particularly since households give priority to necessary heating rather than cooling during colder seasons.

By Type of Cooling

• Direct Evaporative Cooling
• Indirect Evaporative Cooling
• Two-stage Evaporative Cooling

By Application

• Residential 
• Commercial 
• Industrial 
• Confinement Farming
• Other 

By Distribution Channel

• Big-box Retailers
• HVAC Contractors and Distributors
• Others

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• The MIJIA Smart Evaporative Cooling Fan was introduced by Xiaomi Youpin in May 2023, offering its consumers a rejuvenating and pleasant interior setting. The intelligent fan introduced by the company has been engineered to offer three simultaneous functions - airflow, climate control, and humidification. The system would be fitted with a circulating water cooling mechanism, enabling the introduction of water and ice crystals to provide customized cooling outcomes. The novel wireless water tank patent design enables the tank to be detached from the body for cleaning at any given moment, therefore guaranteeing both cleanliness and maximum convenience.

• In June 2023, Celsius Design Limited introduced EcoCool, a new series of evaporative cooling units specifically engineered to offer energy-efficient and economical cooling solutions for commercial and industrial use. Each EcoCool unit has the capability to lower the temperature by a maximum of 15°C and consume up to 80% less energy compared to traditional air conditioning systems.

• In February 2023, Condair Group AG purchased Aireven, an Australian distributor specializing in humidification and evaporative cooling equipment. Condair's recent acquisition enhances its market position and market share in the Asia Pacific area, which is experiencing a fast growth in demand for evaporative cooling systems.

• The Natural Resources Conservation Service (NRCS) of the United States Department of Agriculture (USDA) has certified a novel conservation technique called the Water Conservation System, also referred to as an Evaporative Cooling Pad. The pad is expected to decrease water and energy consumption, thereby enhancing plant productivity in nursery operations and greenhouses located in Florida. Furthermore, it is also suitable for the purpose of chilling cattle and poultry facilities.

Market Competitive Landscape

The major global players in the market include Baltimore Aircoil Company, Condair Group, Colt Group, Celtic Cooling, Celcius Design Ltd, Delta Cooling Towers Inc., Enexio Water Technologies GMBH, Eco Cooling, Evapcool, Munters, SPX Cooling Technologies, Phoenix Manufacturing Inc, Bonaire, and CFW Evapcool.

Why Purchase the Report?

• To visualize the global evaporative cooling market segmentation based on type of cooling, application, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of the evaporative cooling market with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players. 

The global evaporative cooling market report would provide approximately 86 tables, 85 figures, and 224 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies