Evaporative Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Global Evaporative Cooling Market is segmented by Type of Cooling (Direct Evaporative Cooling, Indirect Evaporative Cooling, and Two-stage Evaporative Cooling), Application (Residential Applications, Commercial Applications, Industrial Applications, and Confinement Farming), Distribution Channel (Big Box Retailers, HVAC Contractors, and Distributors), and Geography.

Evaporative Cooling Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Evaporative Cooling Market Size

Evaporative Cooling Market Summary
Study Period 2019 - 2030
Market Size (2025) USD 7.65 Billion
Market Size (2030) USD 10.91 Billion
CAGR (2025 - 2030) 7.35 %
Fastest Growing Market Middle East and Africa
Largest Market Asia Pacific
Market Concentration Medium

Major Players

Evaporative Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Evaporative Cooling Market Analysis

The Evaporative Cooling Market size is estimated at USD 7.65 billion in 2025, and is expected to reach USD 10.91 billion by 2030, at a CAGR of 7.35% during the forecast period (2025-2030).

The evaporative cooling industry is experiencing significant transformation driven by increasing global temperatures and the urgent need for sustainable cooling solutions. The shift towards environmentally conscious cooling technologies has become paramount as traditional air conditioning systems face scrutiny for their high energy consumption and environmental impact. According to recent industry data, traditional air conditioning systems consume approximately $0.60 per hour compared to evaporative cooling systems, which operate at just $0.10 per hour with an additional $0.02 for water usage, highlighting the substantial cost efficiency of these systems. This dramatic difference in operational costs has captured the attention of both residential and commercial sectors seeking sustainable cooling alternatives.


The datacenter cooling industry has emerged as a crucial driver of innovation in evaporative cooling technology, as facilities grapple with the dual challenges of maintaining optimal operating temperatures and reducing environmental impact. A typical modern data center requires approximately 3-5 million gallons of water daily for cooling purposes, equivalent to the water consumption of a city with 30,000-50,000 residents. This significant water usage has prompted leading technology companies to explore advanced evaporative cooling solutions that optimize water consumption while maintaining cooling efficiency. Major industry players are forming strategic partnerships to develop more efficient solutions, as exemplified by the recent collaboration between Huawei and JD.com to create advanced indirect evaporative cooling solutions for data centers.


The industrial cooling sector is witnessing a paradigm shift in cooling technologies, driven by projections from the Energy Information Administration indicating that industrial electricity consumption is expected to exceed 51 quadrillion BTU by 2050. This anticipated surge in energy demand has accelerated the adoption of energy-efficient cooling solutions across manufacturing facilities, warehouses, and industrial complexes. The industry has responded with technological advancements in indirect and two-stage evaporative cooling systems, which offer enhanced efficiency while maintaining optimal humidity levels.


The market is experiencing significant consolidation through strategic acquisitions and partnerships aimed at expanding technological capabilities and geographical reach. A notable example is Baltimore Aircoil Company's acquisition of Eurocoil SpA, which has strengthened its position in the European cooling markets and enhanced its heat exchanger capabilities for evaporative cooling hybrid and adiabatic cooling products. The implementation of new minimum energy efficiency regulations for residential evaporative cooling systems in the United States in 2023 has further accelerated innovation in the sector, pushing manufacturers to develop more efficient and sophisticated cooling solutions that meet or exceed these new standards.

Segment Analysis: By Type of Cooling

Direct Evaporative Cooling Segment in Evaporative Cooling Market

Direct evaporative cooling dominates the global evaporative cooling market, accounting for approximately 56% market share in 2024. This segment's prominence is driven by its simplicity, cost-effectiveness, and widespread adoption across various applications, including residential sectors, commercial kitchens, and warehouses where comfort requirements are more relaxed. The technology works by pulling hot air through a moistened sponge-like pad and distributing the resulting cool air to interior spaces either directly or through ducts. Direct evaporative cooling systems are particularly suitable for applications with large heat-load replacement needs and those that are open to using outside air to accomplish cooling objectives. The segment's strong performance is further bolstered by its effectiveness in data centers, where companies are increasingly adopting direct evaporative cooling solutions to reduce energy consumption and achieve sustainability goals.

Market Analysis of Evaporative Cooling Market: Chart for By Type of Cooling

Two-stage Evaporative Cooling Segment in Evaporative Cooling Market

The two-stage evaporative cooling segment is projected to experience the highest growth rate of approximately 8% during the forecast period 2024-2029. This advanced cooling system represents the most sophisticated technology utilizing evaporative cooling principles, delivering cool indoor air with relative humidity in the 50%-65% range. The segment's robust growth is driven by its superior energy efficiency compared to conventional refrigerant-based systems, with the ability to reduce electricity consumption by up to 75%. The technology is particularly gaining traction in regions where daytime temperatures exceed 100°F, and in applications such as food processing, industrial kitchens, and areas where positive pressure is a concern and requires large volumes of cool, fresh air. The segment's growth is further supported by ongoing technological advancements and increasing adoption in data centers and industrial applications where traditional cooling methods prove less efficient or cost-effective.

Remaining Segments in Evaporative Cooling Market by Type

The indirect evaporative cooling segment plays a crucial role in the market by offering solutions that operate effectively in hot and dry climates with high dry bulb temperatures. This technology uses outside air to cool an internal environment without allowing external and internal airstreams to mix directly, making it particularly valuable for applications requiring precise temperature control. The segment has gained significant traction in buildings with cooling towers and data centers, where it can be utilized to evaporatively pre-cool ventilation air for one or more air handling units. The technology's ability to provide highly efficient cooling without increasing humidity has made it increasingly popular in Zero Net Energy (ZNE) building designs and energy-conscious applications.

Segment Analysis: By Application

Industrial Applications Segment in Evaporative Cooling Market

The industrial cooling applications segment continues to dominate the global evaporative cooling market, accounting for approximately 42% of the total market share in 2024. This significant market position is driven by the increasing adoption of evaporative cooling systems in warehouses, factories, manufacturing units, power generation facilities, and oil and gas installations. The industrial sector's preference for these systems stems from their ability to efficiently cool large spaces with high ceilings, which are typically challenging and expensive to cool using conventional air conditioning systems. The implementation of energy efficiency standards like ISO 50001 has further accelerated the adoption of evaporative cooling in industrial settings, as organizations seek to reduce their carbon footprint and operational costs. Additionally, these systems have gained particular traction in the food and beverage industries, where they help maintain specific temperature and humidity levels crucial for product quality.

Residential Applications Segment in Evaporative Cooling Market

The residential cooling applications segment is projected to exhibit the highest growth rate of approximately 7% during the forecast period 2024-2029. This accelerated growth is primarily attributed to the increasing awareness of energy-efficient cooling solutions among homeowners and the rising demand for sustainable HVAC alternatives. The segment's growth is further supported by the development of advanced evaporative cooling technologies that offer improved performance and better control over humidity levels. The residential sector has particularly benefited from the introduction of smart controls and IoT integration in modern evaporative cooling systems, allowing homeowners to optimize their cooling efficiency and reduce energy consumption. The segment is also seeing increased adoption in regions with hot and dry climates, where these systems provide an ideal combination of comfort and energy efficiency.

Remaining Segments in Evaporative Cooling Market by Application

The commercial cooling applications segment represents a significant portion of the market, driven by the adoption of evaporative cooling systems in facilities such as shopping malls, hospitals, educational institutions, and data centers. The confinement farming segment has emerged as a crucial application area, particularly in livestock and poultry farming, where temperature control is essential for animal welfare and productivity. The other applications segment encompasses various specialized uses, including military installations, sports facilities, and temporary cooling solutions for events. These segments collectively contribute to the market's diversity and demonstrate the versatility of evaporative cooling technology across different sectors.

Segment Analysis: By Distribution Channel

Big Box Retailers Segment in Evaporative Cooling Market

Big box retailers dominate the evaporative cooling market distribution channels, accounting for approximately 59% of the market share in 2024. These retailers achieve economies of scale by targeting larger sales volumes through major chains like Walmart, Target, Carrefour, TESCO PLC, and Aldi. The retail chains have been expanding their presence globally while enhancing their in-store contactless shopping capabilities through online applications and upgrading distributions. Many prominent vendors in the market, including Mastercool, Costway, NewAir, Whirlpool, Honeywell, and Sunpentown, have established strategic partnerships with these retailers to display their products and boost sales. The partnerships between vendors and big-box retailers have also facilitated product line expansion through new licensing agreements, enabling broader market reach and improved customer access to evaporative cooling solutions.

HVAC Contractors and Distributors Segment in Evaporative Cooling Market

The HVAC contractors and distributors segment is projected to experience the fastest growth in the evaporative cooling market between 2024 and 2029, with an expected growth rate of approximately 7%. These contractors and distributors are typically licensed wholesale distributors representing residential, industrial, institutional, and commercial sectors. The segment's growth is driven by their ability to provide comprehensive services, including installation, maintenance, and technical support. The changing product market has led HVAC contractors to evolve from merely selling cooling products to providing ecosystem services that meet specific customer requirements. This transformation requires the industry to broaden its strategy in marketing HVAC equipment and services to commercial and residential customers. The partnership of vendors with contractors in the MEP industry has proven particularly beneficial as most commercial and industrial applications require these products to meet regulatory standards and safety needs applicable to specific industries.

Remaining Segments in Distribution Channel

Other distribution channels in the evaporative cooling market primarily consist of service providers and installers who specialize in EC installation, particularly for upper-end units, including rigid media and roof-mounted systems. These channels play a crucial role in providing specialized services such as preventive maintenance, especially in remote and difficult-to-access locations. Service providers and installers are typically equipped with professional technicians who are trained, certified, and experienced in handling various types of heating and cooling systems. Their expertise allows them to service different brands of evaporative coolers and influence end-users' brand choices through their recommendations and service quality. These channels also pack coolers with auxiliary pieces and offer comprehensive installation and maintenance services for both residential and commercial applications.

Evaporative Cooling Market Geography Segment Analysis

Evaporative Cooling Market in North America

North America represents a significant portion of the global evaporative cooling market, holding approximately 25% of the market share in 2024. The region's market is primarily driven by the robust development of commercial architecture in the United States, coupled with increasing initiatives for sustainable energy management. The Southwest region has emerged as a particularly strong market due to its climate being ideally suited for desert cooling, characterized by low humidity and large diurnal temperature swings. The region's emphasis on energy efficiency and environmental sustainability has made evaporative cooling an attractive alternative to traditional air conditioning systems, especially for large commercial spaces and data centers. Lower front-end costs and substantially reduced energy demands continue to characterize evaporative cooling systems in the region, supported by advanced sensors and controls, alongside longer-life, more efficient, and easier-to-maintain equipment for both residential and commercial sectors.

Market Analysis of Evaporative Cooling Market: Forecasted Growth Rate by Region

Evaporative Cooling Market in Europe

The European evaporative cooling market has demonstrated steady growth, recording approximately 3% growth from 2019 to 2024. The region's market dynamics are significantly influenced by the European Union's ambitious transition towards a clean and carbon-neutral economy by 2050, particularly as heating and cooling in buildings and industry account for half of the EU's energy consumption. The market has witnessed increasing adoption in industrial and commercial applications, especially in regions with higher temperatures during summer months. While traditionally less prominent in Europe, evaporative cooling has gained traction as businesses recognize its potential in extreme working conditions where standard air conditioning is either cost-prohibitive or impractical. The technology has proven particularly valuable in industrial production settings, offering both practical and economic benefits. The region's focus on reducing greenhouse gas emissions and improving energy efficiency in buildings continues to drive the adoption of passive cooling systems like evaporative cooling.

Evaporative Cooling Market in Asia-Pacific

The Asia-Pacific evaporative cooling market is projected to maintain robust growth with an expected growth rate of approximately 6% during 2024-2029. The region represents the largest market globally, driven by rapid industrialization, urbanization, and increasing awareness about energy-efficient cooling solutions. China and India are emerging as key growth drivers, with their massive industrial sectors and growing emphasis on sustainable cooling solutions. The market is particularly buoyant in regions with hot and dry climates, where evaporative cooling offers an energy-efficient alternative to conventional air conditioning systems. The commercial and industrial sectors, particularly data centers and manufacturing facilities, are increasingly adopting evaporative cooling solutions to address their cooling needs while maintaining energy efficiency. The region's focus on implementing Building Energy Codes (BECs) and the growing adoption of passive cooling systems further supports market expansion.

Evaporative Cooling Market in Rest of the World

The Rest of the World region, encompassing the Middle East, Africa, and Latin America, presents unique opportunities for the evaporative cooling market. The Middle East's hot and dry climate makes it particularly suitable for desert air conditioning applications, although water scarcity poses certain challenges. In Latin America, the market is driven by the digital transformation trend, particularly in data centers where energy efficiency is crucial for operational sustainability. The region's diverse climate conditions, from arid deserts to tropical environments, necessitate specialized cooling solutions, making evaporative cooling an attractive option for various applications. Industrial and commercial sectors across these regions are increasingly adopting evaporative cooling systems as part of their sustainability initiatives and cost-reduction strategies. The market continues to evolve with technological advancements and growing awareness about energy-efficient cooling solutions.

Evaporative Cooling Industry Overview

Top Companies in Evaporative Cooling Market

The evaporative cooling market is characterized by continuous product innovation focused on energy efficiency and environmental sustainability. Companies are investing heavily in research and development to create advanced cooling solutions, particularly for data centers, industrial facilities, and commercial buildings. Strategic partnerships and acquisitions have become increasingly common as companies seek to expand their technological capabilities and geographic reach. Many players are vertically integrating their operations to maintain quality control and reduce production costs, while simultaneously developing specialized solutions for specific industries. The market has seen a notable trend toward the development of hybrid cooling systems, combining traditional evaporative cooling with modern technologies to optimize performance and reduce water consumption.

Dynamic Market with Strong Regional Players

The evaporative cooling market exhibits a mix of global conglomerates and specialized regional players, with companies like Baltimore Aircoil Company, SPX Cooling Technologies, and Munters Group maintaining significant market presence. The market structure is moderately fragmented, with regional players holding strong positions in their respective territories due to their understanding of local climate conditions and regulatory requirements. Companies with manufacturing capabilities in multiple regions tend to have competitive advantages in terms of supply chain efficiency and customer service.


The industry has witnessed increased merger and acquisition activity, particularly focused on expanding technological capabilities and geographic footprint. Large HVAC companies are acquiring specialized evaporative cooling manufacturers to complement their existing product portfolios and enhance their market position. This consolidation trend is driven by the need to achieve economies of scale, access new markets, and acquire innovative technologies, particularly in emerging areas like data center cooling and industrial applications.

Innovation and Sustainability Drive Future Growth

Success in the evaporative cooling market increasingly depends on companies' ability to develop energy-efficient and environmentally sustainable solutions. Incumbent players are focusing on expanding their product portfolios with smart, connected cooling systems that offer improved monitoring and control capabilities. Companies are also investing in developing solutions that address water conservation concerns while maintaining cooling efficiency. The ability to provide comprehensive after-sales service and maintenance support has become crucial for maintaining market share.


For new entrants and smaller players, specialization in specific applications or regional markets offers a path to growth. The increasing focus on green building standards and environmental regulations presents opportunities for companies offering innovative, eco-friendly cooling solutions. Success factors include developing strong distribution networks, building relationships with contractors and installers, and offering customized solutions for specific industries. Companies must also consider the growing importance of energy efficiency certifications and compliance with regional environmental regulations while developing their market strategies. The cooling tower industry and air cooler industry are also seeing similar trends, with a focus on sustainable and efficient solutions.

Evaporative Cooling Market Leaders

  1. Delta Cooling Towers Inc.

  2. Condair Group AG

  3. Munters Group AB

  4. SPX Cooling Technologies

  5. ENEXIO Water Technologies GmbH

  6. *Disclaimer: Major Players sorted in no particular order
Evaporative Cooling Market Concentration
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Evaporative Cooling Market News

  • Aug 2022: The United States Department of Agriculture's (USDA) Natural Resources Conservation Service (NRCS) approved a new conservation practice, a Water Conservation System commonly known as an Evaporative Cooling Pad. The pad will help reduce water and energy use while improving plant productivity in Florida nursery operations and existing greenhouses. Moreover, it can also be used for cooling livestock and poultry facilities.

Evaporative Cooling Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Value Chain Analysis
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Bargaining Power of Suppliers
    • 4.3.2 Bargaining Power of Consumers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Intensity of Competitive Rivalry
    • 4.3.5 Threat of Substitutes Products
  • 4.4 An Assessment of the Impact of COVID-19 on the industry
  • 4.5 Analysis of the Evaporative Cooling Hotspot
  • 4.6 Comparative Analysis of Alternative/Substitute Cooling Technologies Deployed in the Residential and Commercial Sectors

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Demand for Cost-effective Cooling Solution
  • 5.2 Market Restraints
    • 5.2.1 Dependency on External Climate

6. MARKET SEGMENTATION

  • 6.1 By Type of Cooling
    • 6.1.1 Direct Evaporative Cooling
    • 6.1.2 Indirect Evaporative Cooling
    • 6.1.3 Two-stage Evaporative Cooling
  • 6.2 By Application
    • 6.2.1 Residential Applications
    • 6.2.2 Commercial Applications
    • 6.2.3 Industrial Applications
    • 6.2.4 Confinement Farming
    • 6.2.5 Other Applications
  • 6.3 By Distribution Channel
    • 6.3.1 Big-box Retailers
    • 6.3.2 HVAC Contractors and Distributors
    • 6.3.3 Other Distribution Channels
  • 6.4 By Geography
    • 6.4.1 North America
    • 6.4.2 Europe
    • 6.4.3 Asia-Pacific
    • 6.4.4 Rest of the World

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 Delta Cooling Towers Inc.
    • 7.1.2 Condair Group AG
    • 7.1.3 SPX Cooling Technologies
    • 7.1.4 Baltimore Aircoil Company Inc.
    • 7.1.5 Munters Group AB
    • 7.1.6 Colt Group Limited
    • 7.1.7 Phoenix Manufacturing Inc.
    • 7.1.8 Bonaire
    • 7.1.9 ENEXIO Water Technologies GmbH
    • 7.1.10 CFW Evapcool
    • 7.1.11 Celsius Design Limited
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. FUTURE TRENDS

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Evaporative Cooling Industry Segmentation

Evaporative cooling is preferred as an alternative to traditional cooling technologies, as it uses a natural process, namely the reduction of air temperature by evaporating water. Although it is an age-old process, it has emerged as a viable alternative to conventional air conditioning systems in areas where shallow temperatures are not required.

The Evaporative Cooling Market is segmented by Type of Cooling (Direct Evaporative Cooling, Indirect Evaporative Cooling, and Two-stage Evaporative Cooling), Application (Residential Applications, Commercial Applications, Industrial Applications, and Confinement Farming), Distribution Channel (Big Box Retailers, HVAC Contractors, and Distributors), and Geography.

By Type of Cooling Direct Evaporative Cooling
Indirect Evaporative Cooling
Two-stage Evaporative Cooling
By Application Residential Applications
Commercial Applications
Industrial Applications
Confinement Farming
Other Applications
By Distribution Channel Big-box Retailers
HVAC Contractors and Distributors
Other Distribution Channels
By Geography North America
Europe
Asia-Pacific
Rest of the World
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Evaporative Cooling Market Research FAQs

How big is the Global Evaporative Cooling Market?

The Global Evaporative Cooling Market size is expected to reach USD 7.65 billion in 2025 and grow at a CAGR of 7.35% to reach USD 10.91 billion by 2030.

What is the current Global Evaporative Cooling Market size?

In 2025, the Global Evaporative Cooling Market size is expected to reach USD 7.65 billion.

Who are the key players in Global Evaporative Cooling Market?

Delta Cooling Towers Inc., Condair Group AG, Munters Group AB, SPX Cooling Technologies and ENEXIO Water Technologies GmbH are the major companies operating in the Global Evaporative Cooling Market.

Which is the fastest growing region in Global Evaporative Cooling Market?

Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Global Evaporative Cooling Market?

In 2025, the Asia Pacific accounts for the largest market share in Global Evaporative Cooling Market.

What years does this Global Evaporative Cooling Market cover, and what was the market size in 2024?

In 2024, the Global Evaporative Cooling Market size was estimated at USD 7.09 billion. The report covers the Global Evaporative Cooling Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Global Evaporative Cooling Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Evaporative Cooling Market Research

Mordor Intelligence provides a comprehensive analysis of the evaporative cooling market. We leverage our extensive expertise in the industrial cooling and commercial cooling sectors. Our research thoroughly examines various cooling technologies. These include desert cooling, adiabatic cooling, and swamp cooling systems, as well as emerging trends in sustainable cooling solutions. The report offers detailed insights into cooling tower applications and air cooler technologies. It covers both direct evaporative cooling and indirect evaporative cooling methodologies. This information is available as an easy-to-download report PDF.

Our analysis benefits stakeholders across the cooling tower industry and air cooler industry. It offers valuable insights into datacenter cooling solutions, ventilation cooling systems, and natural cooling technologies. The report examines developments in passive cooling, hybrid cooling, and wet cooling systems. It also addresses specific applications in residential cooling and desert air conditioning. Stakeholders gain a comprehensive understanding of market dynamics across various segments. This includes industrial cooling applications and emerging trends in sustainable cooling technologies. The report is supported by detailed market size analysis and growth projections.