Evaporative cooling systems facilitate cooling air by utilizing the principle of evaporation. When warm air passes through pads or media that are kept wet, water evaporates and cool dry air is formed. These systems work on low power and are highly efficient in hot and dry climatic conditions. They are increasingly being installed in residential and commercial buildings for indoor cooling applications. The growing construction industry, particularly in emerging economies of Asia and Africa has augmented the demand for efficient and cost-effective cooling systems. Rapid urbanization and rising disposable income have also led to surge in residential construction activities, thereby propelling the evaporative cooling market.
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 key trends:
The evaporative cooling market is witnessing growing prominence of energy-efficient and environment-friendly systems. Manufacturers are focusing on development of systems using new-age materials and advanced technologies to reduce energy consumption and lessen environmental footprint. For instance, phase-change material (PCM) evaporative coolers that work on thermal energy storage principle. These offer similar cooling with 40-60% less water use compared to conventional systems. Furthermore, adoption of sustainable refrigerants with lower global warming potential (GWP) in products is one of the major trends in the market.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate. The evaporative cooling market requires significant investments in R&D and manufacturing facilities to produce quality products. Also, established brands have strong brand loyalty that acts as a barrier.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have many options to choose from due to the presence of numerous manufacturers. Buyers can negotiate on price easily.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Manufacturers depend on a limited number of suppliers for raw materials. However, suppliers do not have significant influence due to availability of substitutes.
Threat of new substitutes: The threat of new substitutes is high. Alternatives like air conditioners pose a threat. Technological advancements can increase substitutes.
Competitive rivalry: The competitive rivalry is high. The market is fragmented with many global and regional players. Players compete based on product variety, pricing, innovation, and marketing.
Key Takeaways
The Global Evaporative Cooling Market Size is expected to witness high growth over the forecast period. 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.
Geographically, the Asia Pacific region is projected to dominate the market owing to rapid industrialization and growing construction activities in counties such as China and India. Countries such as China, India, and Southeast Asia are majorly contributing to the regions growth. This is attributed to rapid industrialization and growth in the construction and manufacturing industries in the region.
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, Music Magpie. Apple Inc. and Samsung Electronics are the largest players with strong global presence.
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