Evaporative Condensing Unit Market Size, Share, Competitive Landscape and Trend Analysis Report, by Application, by End Use : Global Opportunity Analysis and Industry Forecast, 2024-2033

Market Dynamics

The market for evaporative condensing units (ECUs) is driven by several factors, including the increasing demand for energy-efficient cooling solutions in commercial and industrial sectors. The push for sustainability and the need to reduce carbon footprints have led to the adoption of ECUs, which consume less energy compared to traditional air-cooled systems. In addition, the growth in urbanization and infrastructure development has spurred the demand for advanced HVAC systems, further propelling the evaporative condensing unit market growth.

ECUs are increasingly used in heat pumps to enhance their efficiency and performance. In heat pump systems, ECUs play a critical role by using evaporative cooling to condense the refrigerant, significantly reducing energy consumption compared to traditional air-cooled systems. This process involves spraying water over the condenser coils, which facilitates effective heat exchange and lowers the refrigerant temperature. Using ECUs in heat pumps improves energy efficiency and ensures reliable performance in varying ambient temperatures. This makes ECUs a preferred choice for residential, commercial, and industrial applications where efficient and sustainable heating and cooling solutions are required. Their ability to operate effectively in high temperatures and their compact design further enhance their suitability for integration into modern heat pump systems.

As per International Energy Agency, global sales of heat pumps increased by 11% in 2022, marking the second consecutive year of double-digit growth for this essential technology in the transition to secure and sustainable heating. The rise in sales was primarily driven by enhanced policy support and incentives due to high natural gas prices and the ongoing efforts to reduce greenhouse gas emissions. In Europe, heat pump sales surged by nearly 40%, with air-to-water models—compatible with standard radiators and underfloor heating—seeing a nearly 50% increase. In the U.S., heat pump purchases surpassed those of gas furnaces. Conversely, in China, the largest heat pump market, sales remained stable amid a broader economic slowdown. Currently, heat pumps serve about 10% of the heating needs in buildings worldwide, which translates to over 100 million households. This means that one in ten homes requiring significant heating is equipped with a heat pump. In addition, many households use heat pumps seasonally or as supplementary heating sources in regions where they are primarily used for cooling.

Further, in 2022, China sold more heat pump units than any other country, despite a slowdown in sales growth. In Northern China, district heating is the predominant solution in cities, but many households also have heat pumps installed for cooling and occasional additional heating. In Southern China, where winters are milder, air-to-air reversible units are commonly used for space heating, although sales have remained largely stagnant in recent years. While air-to-water heat pumps, primarily used for space heating, represent a small segment of the market, they experienced over 20% growth in 2022. Sales of air-sourced heat pump water heaters remained stable, exceeding 1 million units sold. Approximately 40% of heat pumps produced globally are manufactured in China, making it the largest producer and exporter of this technology, with most exports directed to Europe.

However, the evaporative condensing unit industry faces restraints such as high initial installation costs and the need for regular maintenance to prevent issues like water quality degradation and scaling. Despite these challenges, significant opportunities exist due to technological advancements in ECU design and the growing emphasis on green building initiatives. Innovations aimed at enhancing water conservation and overall system efficiency are expected to drive future growth. The expansion of cold chain logistics and the increasing need for temperature control in emerging markets also present substantial opportunities for the ECU industry.

Market Segmentation

The evaporative condensing unit market is segmented on the basis of application, end use, and region. By application, the market is classified into refrigeration, air conditioning, and others. By end use, the market is divided into residential, commercial, and industrial. Region-wise the evaporative condensing unit market share is studied across areas such as North America, Europe, Asia-Pacific, and LAMEA.

Regional/Country Market Outlook

The demand for evaporative condensing units (ECUs) in the Asia-Pacific region is rapidly increasing due to several key factors. Rapid industrialization and the expansion of infrastructure in countries such as China, India, and Southeast Asian nations are driving the need for efficient cooling solutions in manufacturing, commercial, and residential sectors. The region's hot and humid climate further amplifies the demand for effective and energy-efficient cooling systems, making ECUs an ideal choice. Moreover, government initiatives focused on energy efficiency and sustainability are promoting the adoption of ECUs, which consume less energy compared to traditional cooling systems.

Competitive Landscape

Key players in the Evaporative Condensing Unit market include AAON, Inc, Johnson Controls International PLC, Baltimore Aircoil Company, Decsa Srl, Daikin Industries Ltd., Nortek Air Solutions, LLC., SPX Corporation, Evapco, Inc., TEVA - Tecnicas Evaporativas, S.L, and Temp Tech Co., Ltd.

Key Developments

• In 2024, Baltimore Aircoil Company upgraded its Vertex evaporative condenser models with direct-drive EC fan systems, introducing a new user interface and integral pump control to enhance uptime and reliability for industrial refrigeration and other industrial process applications. These EC fan system models now feature remote connectivity and control, providing increased reliability through Modbus and BACnet connectivity.

• In 2021, Baltimore Aircoil Company launched the Vertex, a new evaporative condenser designed for industrial applications. The Vertex boasts a 30% smaller water volume, promising "peak" reliability and ease of maintenance. It features a direct-drive EC fan system, combining EC motors and axial fans, to maximize reliability and uptime while minimizing operating costs and eliminating the need for regular maintenance. The design of the Vertex units incorporates redundancy in fans, motors, and pumps, enhancing its reliability.

Heat Pumps Facts in Buildings Industry

Public Policies

Key regulations affecting Evaporative Condensing Units (ECUs) focus on energy efficiency, environmental protection, and safety. Agencies such as the U.S. Department of Energy (DOE) and India’s Bureau of Energy Efficiency (BEE) establish energy performance standards to ensure ECUs operate efficiently. In addition, international agreements such as the Montreal Protocol and its Kigali Amendment regulate the use of hydrofluorocarbons (HFCs) , promoting the adoption of low-global warming potential refrigerants. Environmental regulations from the U.S. Environmental Protection Agency (EPA) aim to minimize the ecological impact of cooling systems, while safety standards from the Occupational Safety and Health Administration (OSHA) ensure safe operating conditions. Local building codes, including the Energy Conservation Building Code (ECBC) in India, further dictate the installation and performance of HVAC systems, including ECUs. Lastly, water use regulations address concerns about water consumption and quality, influencing ECU design and operation in water-scarce regions.

Key Sources Referred

• U.S. Environmental Protection Agency (EPA)

• U.S. Department of Energy (DOE)

• Occupational Safety and Health Administration (OSHA)

• California Air Resources Board (CARB)

• Energy Information Administration (EIA)

• American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)

• National Institute of Standards and Technology (NIST)

• Federal Energy Regulatory Commission (FERC)

• Environmental Protection Agency (EPA)

Key Benefits For Stakeholders

• This evaporative condensing unit market report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the evaporative condensing unit market analysis to identify the prevailing market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the evaporative condensing unit market forecast assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global evaporative condensing unit market trends, key players, market segments, evaporative condensing unit market statistics, application areas, and market growth strategies.