Why to Invest in Cooling Tower Industries?
We live in an industrial world. There are industries which provide us with the goods we need. Industries, also, drive the economy of our countries. Manufacturing is so central to our lives that we, sometimes, tend to overlook it. But in manufacturing industries too, there is one thing that helps them function. That is the Cooling tower.
Cooling Towers or Heat Exchangers, as they are commonly called, help in maintaining the temperatures in the chillers. These chillers help in avoiding overheating of our common appliances. They have wide use. From the power generation sector to the manufacturing sector, cooling towers help in regulating the temperature of the machines.
According to a research by Data Bridge Market Research, the Cooling tower market is expected to reach a value of $3.85 billion by 2027. According to the study, the industry will register a growth rate of 4.3% between 2020 and 2027.
Some of the factors that may lead to such high and consistent growth in the industry are:
- Low cost;
- High efficiency;
- Increasing demand for air conditioners;
- Demand in cooling tower maintenance;
- Growth in the power generation sector;
- Growth in construction and manufacturing sectors.
5 Reasons to invest in the Cooling Tower Industry
1. High Growth Prospects
If the study is true, which it most probably is, the industry will see consistent growth in the years to come. This is precisely what the investors look for. It is, by all means, the right time to invest in Cooling towers.
2. Growing Population
Asia-Pacific region is growing very fast in terms of population. The area has the world’s two largest countries, China and India. In these markets, an increase in population will drive the manufacturing sector. Along with it, the demand for air-conditioners is also consistently rising. Cooling towers are indispensable in such an environment.
3. Lowering of Tariffs
With the pandemic hitting every country in the world, most of the countries will look for value chain optimization. This will encourage them to reduce the tariffs and make international trade easy and flowing. This will, in turn, lead to a growth in the market demand for cooling towers.
4. Less domestic players in Asia-Pacific
There is a crunch of domestic market players in the area with the maximum population in the world. Most of the producers of the Cooling towers are located in the USA and Europe. This provides the investors with an excellent opportunity to invest in the sector and reap benefits. The profits will be high because the lack of domestic players will not allow these countries to pay less for this important component.
5. Growth in the construction sector
Due to expanding nature of the market, there will always be new commercial buildings coming up. This demand will provide a double benefit to the investors. One, the use of Cooling towers in the construction machinery will rise, leading to more profits for Cooling tower manufacturers. Second, new buildings will increase the demand for air conditioners. Cooling towers are an integral part of the ACs. This way, the rise in demand will be double-fold.
So, keeping all these points in view, investing in Cooling towers is one of the safest ways to earn long-term profits. The investors cannot ignore the growth and the volume of trade this sector is ready to offer. What are you waiting for then?
Photo credits: Pixabay
About the Author
Ivan Widjaya A mobile entrepreneur who loves to work anytime, anywhere he wants. He runs several popular business blogs, make money online and live a geoarbitrage lifestyle. He typically works at home and travel with his family when he wants to, often without his business.
