Evaporative cooling is a technology for cooling indoor spaces through the evaporation of water. Evaporative cooling systems, commonly known as “swamp coolers”, work by causing the air flowing through relatively dry filters or pads to be cooled through the evaporation of water. As indoor air is blown through the wetted cooling pads, its temperature drops and humidity increases. The cooled air is then circulated indoors providing a natural, chemical-free method to cool homes, offices and other occupied spaces. The global evaporative cooling market has witnessed significant growth over recent years owing to increased need for energy efficient and eco-friendly cooling solutions amid rising energy costs and concerns of global warming.
The global Evaporative Cooling Market is estimated to be valued at US$ 6517.71 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Evaporative coolers use up to 90% less energy compared to regular air conditioners thereby significantly reducing energy bills. With growing environmental awareness about greenhouse gas emissions, evaporative cooling systems are gaining traction as an eco-friendly alternative to traditional air conditioners which heavily rely on hydrofluorocarbons (HFCs) with high global warming potential. Their lower energy consumption translates to significantly lower carbon footprint making evaporative coolers a sustainable solution for industrial and commercial application as well as for residential usage. The ability to provide effective indoor cooling with minimal energy usage will continue to boost the adoption of evaporative cooling worldwide and support the market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: Low-moderate. Evaporative cooling systems require large capital investments into R&D, manufacturing facilities, and distribution networks to gain brand recognition. However, the market is growing which may attract new players.
Bargaining power of buyers: Moderate. Large buyers like industrial facilities and commercial buildings have higher bargaining power due to bulk purchases. Small individual buyers have limited power.
Bargaining power of suppliers: Moderate. Major components include fans, pumps, casings which have few specialized suppliers globally. Supplier concentration is moderate.
Threat of new substitutes: Low-moderate. Air conditioners are the major substitute but are generally more expensive to operate. Other substitutes include fans, ventilation, which have limited capabilities.
Competitive rivalry: High. The market has prominent global players competing on technology, brand, and pricing.
SWOT Analysis
Strengths: Evaporative cooling provides efficient and cost-effective cooling. Demand is driven by rising temperatures, growing construction, and increasing disposable incomes in developing nations.
Weaknesses: Requires proper ventilation and regular maintenance. Effectiveness reduces in high humidity areas. Installation costs can be high for large facilities.
Opportunities: Rapid urbanization and rising affluence in the Asia Pacific and Middle East & Africa offer new customer segments. Technological advances can further enhance performance and control.
Threats: Fluctuating raw material prices increases product costs. Climate change may impact the technology in some regions. Strict environmental regulations can affect product development.
Key Takeaways
The Global Evaporative Cooling Market Size is expected to witness high growth driven by rising temperatures worldwide. The market size for 2023 is estimated at US$ 6517.71 Mn and is forecast to reach US$ 17079.77 Mn by 2030 at a CAGR of 10%.
Regional analysis – Asia Pacific dominates currently with a market share of over 35% led by China, India, and other developing nations. Rapid urbanization, rising incomes, and hot weather conditions are driving widespread adoption. The region is estimated to maintain its dominance throughout the forecast period with a projected CAGR of 11%.
Key players – Key players operating in the evaporative cooling market are Apple Inc., Amazon Renewed, Samsung Electronics, Best Buy Co., Inc., Gazelle (a subsidiary of ecoATM Gazelle LLC), Newegg Inc., Decluttr, Back Market, HP Inc., GameStop Corp., Swappa, BuyBackWorld, eBay Inc., Renewgoo, and Music Magpie. Major players are focused on capacity expansion, new product development featuring advanced technology and controls, and mergers and acquisitions for sustained leadership.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it