Industrial Cooling System Market Size - By Product (Air Cooling, Evaporative Cooling, Hybrid Cooling, Water Cooling), Capacity, Application (Automotive, Chemical, Food & Beverage, Utility & Power, Oil & Gas, Pharmaceutical) & Forecast, 2024 - 2032

Industrial Cooling System Market Size

Industrial Cooling System Market was reached USD 19.21 billion in 2023 and is set to grow at a CAGR of over 6% from 2024 to 2032, attributed to the fast-growing data center industry in North America. During data center operations, there is a lot of heat being produced by servers, networking appliances, and storage systems. To avoid expensive equipment failures and maintain the right operating temperatures, effective cooling is necessary. The more the data center grows in number and size, the higher will be the need for cooling systems that oversee the management of heat load and keep the infrastructure of data centers working reliably and efficiently.
 

The adoption of industrial cooling system in the food and beverage industry is growing exponentially due to high focus of industry on food safety and cold chain logistics. Consumer demands for fresh food have increased which has resulted in F&B manufacturers highly prioritizing the deployment of advanced cooling technologies. The regulations imposed by food safety agencies such as the Food and Drug Administration (FDA) in the United States and the Canadian Food Inspection Agency (CFIA) in Canada also mandates highly precise temperature control throughout the food processing, storage, and transportation stages to mitigate the risk of contamination and ensure product integrity.
 

The initial investment required for deployment of industrial cooling systems is significantly high. The cost includes cooling systems such as chillers, cooling towers, pumps, and associated components as well as the expenses associated with installation including modifications to the existing infrastructure, piping, electrical connections, and automation systems. Additionally, cost associated with the complexity and scale of the cooling system along with specific process requirements also adds to the overall cost of the system. Due to such complex cost components associated with the industrial cooling system, many business finds it difficult to allocate resources to such capital-intensive projects, thus limiting industrial cooling system market growth.
 

Water scarcity is a serious concern worldwide. High water consumption in industrial cooling systems puts additional stress on the already stressed water resources. Water regulatory bodies are imposing strict restrictions on water consumption and discharge, making it challenging for industries to expand or install new cooling systems that consume significant amounts of water, in turn, restraining market growth.
 

Moreover, industries which rely on water-based cooling systems are going to face higher operational costs as water is becoming more limited and valuable resource, which is likely to increase its costs. These increased costs can impact the profitability of businesses and act as a deterrent to investing in industrial process cooling systems.
 

Industrial cooling System Market Trends

Digital transformation in industrial cooling is changing the monitoring, control, and management of industrial cooling systems. Cloud platforms and remote monitoring have enabled real-time monitoring, predictive maintenance, and centralized control. Connected sensors and data analytics provides deep dive insights into the system performance, energy consumption, and potential issues. This data-driven approach enables proactive maintenance, optimization of cooling operations, and energy management, leading to improved efficiency, reduced downtime, and cost savings.
 

The increasing concerns regarding reduction of greenhouse gas emissions have put high emphasis on the adoption of environmental-friendly refrigerants. Industrial cooling system manufacturers are increasingly adopting low-GWP alternatives such as Hydrofluorocarbons (HFCs). Additionally, natural refrigerants such as ammonia (NH3) and carbon dioxide (CO2) are gaining traction due to their zero or very low GWPs. These refrigerants offer improved energy efficiency and have minimal impact on the environment.
 

Industrial cooling System Market Analysis

Based on product, the evaporative cooling segment is expected to reach USD 14.9 billion by 2032.
 

• The evaporative process cooling segment dominated the market in 2023. Factors attributed to the large market share of this segments are energy efficiency, environmental friendliness, and low-cost adoption will increase the evaporative industrial cooling process adoption, in turn, aiding market growth.
   
• Continuous improvements in evaporative cooling technology have increased the overall system efficiency. Through innovative designs, manufacturers are enhancing cooling processes control, optimizing water consumption, and augmenting heat exchange. The technological advancements ultimately lead to increased reliability, better system integration and more efficient cooling arrangements.
   

Based on application, the food & beverage segment is anticipated to register about 9% CAGR between 2024 and 2032.
 

• The food and beverages segment is expected to grow with fastest CAGR during the forecast period. The high growth of this segment is attributed to factors such as strict food safety regulations, changing consumer preferences, and the adoption of cold chain logistics. The increasing demand of fresh and organic products, ready-to-eat meals, and online grocery shopping is further propelling the need for efficient cooling solutions.
   
• Blast chillers, refrigerated conveyors, and immersion coolers are increasingly deployed in the food processing industry to reduce and maintain temperature of processed food items, meat, poultry, and bakery products. These systems helps in maintaining the freshness of the food products and prevent bacterial growth. Industrial cooling is a critical in dairy processing operations such as pasteurization, homogenization, and cheese aging. Cooling systems are used to regulate temperatures during these processes, ensuring quality, safety, and consistent product characteristics.
   

The increasing demand for power generation to cater to the growing energy-demand from the U.S. industrial sector will drive the industrial cooing system market growth in the U.S. In 2022, the power generation sector in the U.S. generated 4.24 trillion kWh of electricity.
 

The growth of industrial cooling system market in the U.S. is driven by factors such as strict efficiency regulations prompting organizations in the U.S. to upgrade their cooling infrastructure, expanding data center industry coupled by cloud computing and AI requires state-of-the art cooling solutions. The F&B manufacturers in the U.S. are putting high emphasis on the quality and safety coupled with high adoption of cold chain logistics is boosting the demand for industrial cooling in the market. As industries strive for increased productivity and reduced operational costs, efficient cooling systems have become a critical investment, further propelling market growth.
 

The industrial cooling system market growth in Europe is driven by factors such as modernization of ageing industrial infrastructure prompting upgrade of cooling systems. Increase in specialized manufacturing such as pharmaceuticals and biotechnology require precision temperature control which further boosts the need for advanced cooling solutions. The push for circular economy in Europe is also influencing the market growth with a growing emphasis on heat recovery systems that repurpose waste heat. The expansion of district cooling networks in urban areas is creating new opportunities for industrial-scale cooling solutions.
 

Industrial cooling System Market Share

Emerson Electric Co., Vertic Group Corporation, and STULZ GmbH hold a significant share of over 30% in the industrial cooling system industry. Emerson Electric Co. is a technology and engineering company that offers modern solutions for various industries including the industrial process cooling market. It provides a broad range of compressors and condensing units for industrial process cooling. These components are important for refrigeration and air conditioning systems, enabling efficient heat transfer and temperature control. The company also offers automated air-cooled exchanger monitoring solutions that track warning signs, alert personnel regarding reduced cooling, and smoothly integrate with the existing control & asset management diagnostics for improved exchanger operation. Emerson majorly focuses on launching new products for various commercial & industrial applications.
 

Vertiv Group Corporation is a provider of critical digital infrastructure and continuity solutions for the industrial cooling system market. The company is specialized in offering reliable & efficient cooling solutions that support the efficient operation of critical industrial processes. It provides a broad portfolio of cooling systems and equipment built for industrial applications. The products include precision air conditioners, chiller units, heat exchangers, and cooling towers. Vertiv offers chilled water-cooling solutions that provide a versatile cooling option for customers. These solutions offer benefits including air cooling & heating applications as well as minimal water consumption during operations. The company is also focused on improving the customer experience.
 

Industrial cooling System Market Companies

Major key players operating in the industrial cooling system industry are:

• Emerson Electric Co.
• Vertiv Group Corporation
• STULZ GmbH.
• Rittal GmbH & Co. KG
• Baltimore Aircoil Company Inc.
• Black Box Corporation
• Hamon Group
   

Industrial cooling System Industry News

In February 2023, Vertiv launched Vertiv XR app, the first tool in the data center space that allows data center operators to visualize Vertiv products in locations they would use in a facility. The application is promoting Vertiv’s widespread & ongoing digitalization initiative to improve the customer experience.
 

In May 2021, Emerson launched the Copeland family of commercial HVACR Variable Frequency Drives (VFDs). The company launched VFDs for various commercial & industrial applications, which are built with contractor ease of installation and have many features including quick-start menus. They also integrate efficiently with Emerson’s legacy E2 supervisory control and Dixell refrigeration controllers.
 

This industrial cooling system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Product

• Air cooling
• Evaporative cooling
• Hybrid cooling
• Water cooling
• Other cooling

Market, By Capacity

• Small (< 20 tons)
• Medium (20-100 tons)
• Large (>100 tons)

Market, By Application

• Automotive
• Chemicals
• Food & Beverages
• Utility & Power
• Oil & Gas
• Pharmaceuticals
• Industrial Manufacturing
• Data Centers
• Other End use

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA