Energy sector boom drives growth in cooling towers market

According to IMARC Group, the market is forecast to grow steadily, reaching $0.40 billion by 2033, at a compound annual growth rate (CAGR) of 5.10% from 2025 to 2033.

- 

The push towards rapid industrialisation, infrastructure modernisation, and sustainable energy solutions in India is reshaping several associated markets, such as the cooling tower sector. As of 2024, the India cooling towers market is valued at $0.27 billion. It is forecast to grow steadily, reaching $0.40 billion by 2033 at a compound annual growth rate (CAGR) of 5.10 percent during 2025-2033, according to IMARC Group. This promising trajectory is underpinned by increasing investments in infrastructure, renewable energy deployment and industrial expansion, all of which demand efficient, scalable and environment-friendly cooling systems.

Market Overview

Cooling towers, crucial for managing heat dissipation in power generation, HVAC, and industrial processes, are becoming integral to India's energy transition and urban development strategy. The market's growth reflects a strategic shift towards energy-efficient systems that reduce operational costs and meet environmental compliance. From the construction of smart cities to the deployment of concentrated solar power (CSP) plants, cooling towers are increasingly in demand for both traditional and emerging applications. Their heat exchange and energy conservation role is vital in the oil and gas and power generation sectors.

Renewable Energy Expansion

Renewable energy ambitions are fast-tracking the integration of cooling technologies in clean energy infrastructure. The Solar Energy Corporation of India (SECI) announced a significant milestone in 2024—a 500 MW CSP storage project intended to supply round-the-clock green energy. Unlike photovoltaic solar panels, CSP plants generate thermal energy using mirrored arrays and require cooling towers for heat rejection, even during non-sunlight hours.