Cooling Tower Rental Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Type (Dry, Wet), By Design (Natural Draft, Induced Draft, Forced Draft), By End-User (Institutions, Commercial, Industrial), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.54 Billion
CAGR (2026-2031)	5.88%
Fastest Growing Segment	Dry
Largest Market	North America
Market Size (2031)	USD 2.17 Billion

Market Overview

The Global Cooling Tower Rental Market is projected to grow from USD 1.54 Billion in 2025 to USD 2.17 Billion by 2031 at a 5.88% CAGR. The Global Cooling Tower Rental Market consists of the temporary deployment of modular heat rejection units to manage thermal loads for industrial processes and commercial facilities. The market is fundamentally driven by the critical necessity for operational continuity during unplanned equipment failures, seasonal production peaks, and scheduled maintenance turnarounds. This reliance on temporary utility solutions is underscored by broader sector usage patterns. According to the American Rental Association, in 2024, the rental penetration rate for construction and industrial equipment reached 57 percent, evidencing a structural preference for flexible rental strategies over capital investment to mitigate operational risks.

However, a significant challenge impeding market expansion involves navigating stringent environmental regulations concerning water discharge and chemical usage. Providers must ensure temporary installations comply with varying local mandates, which often necessitates additional water treatment infrastructure and rigorous monitoring. These compliance requirements can extend mobilization timelines and escalate operational costs, thereby complicating the logistics of rapid deployment essential to this sector.

Key Market Drivers

The expansion of data center and IT infrastructure serves as a paramount driver for the rental cooling market, necessitating rapid, scalable thermal management solutions. As hyperscale facilities and colocation providers face delays in permanent utility provisioning and supply chain bottlenecks for installed HVAC systems, rental cooling towers become essential for bridging operational gaps and testing heat loads during commissioning. This sector's explosive growth is creating an unprecedented demand for temporary heat rejection capacity. According to JLL, August 2025, in the 'North America Data Center Report – Midyear 2025', the data center construction pipeline has surged to 7.8 GW, a tenfold volume increase compared to five years prior, indicating a massive, sustained requirement for interim cooling infrastructure to support this build-out.

Simultaneously, the rising requirement for supplemental cooling during peak seasons is fundamentally reshaping market dynamics. Industrial facilities and power plants increasingly rely on rental units to augment permanent systems that are derated by high ambient temperatures or pushed beyond design capacity during summer months. This trend is intensified by the financial benefits of renting over capital expenditure for short-term thermal spikes. This seasonal urgency is reflected in the financial results of major equipment providers; according to United Rentals, October 2025, in their 'Third Quarter 2025 Financial Results', rental revenue for the specialty segment, which includes power and HVAC solutions, increased 11.4% year-over-year to a record $1.265 billion. Underscoring this broader market trajectory, according to Aggreko, November 2025, in the press release 'Aggreko invests $200 million to strengthen temperature control and oil-free compressed air offerings', the company committed a $200 million investment to expand its European fleet, directly addressing the growing exigency for reliable temporary cooling assets.

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Key Market Challenges

Strict environmental regulations regarding water discharge and chemical usage present a substantial barrier to the growth of the Global Cooling Tower Rental Market. These mandates force rental providers to implement complex treatment protocols before equipment can be deployed, which directly contradicts the market's core value proposition of rapid mobilization. When temporary units are required for emergency cooling or sudden production spikes, the need to navigate varying local wastewater permits and install auxiliary filtration systems creates unavoidable delays. This regulatory friction not only extends project lead times but also significantly increases the total cost of ownership for end-users, making rental solutions less economically attractive for short-term needs.

The financial burden of these compliance measures is further evidenced by recent industry data. According to the American Water Works Association, in its 2025 State of the Water Industry report, investments in new treatment technologies and green solutions are expected to double over the next three years to meet evolving regulatory standards. This rising capital intensity forces rental companies to pass higher operational costs onto customers, dampening demand in price-sensitive industrial sectors. Consequently, the escalating complexity of meeting discharge standards limits the addressable market for rental cooling solutions, particularly in regions with aggressive environmental enforcement.

Key Market Trends

The integration of telematics and IoT for remote fleet management is rapidly becoming a standard requirement rather than an optional value-add in the Global Cooling Tower Rental Market. As industrial operators face tighter personnel constraints, the ability to remotely monitor coolant temperatures, flow rates, and fan performance allows for predictive maintenance and rightsizing of rental fleets to actual thermal loads. This digital shift moves the market from simple equipment provisioning to data-driven thermal control services, enabling users to optimize fuel efficiency and prevent critical system failures without on-site intervention. This accelerating adoption of connected worksite solutions is quantifiable; according to United Rentals, August 2025, in the '2024 Corporate Responsibility Report', the company reported a 223 percent revenue growth for its environmental monitoring solutions, reflecting a surge in customer demand for data-enabled oversight of temporary utility assets.

Concurrently, the rise of hybrid and adiabatic cooling technologies is fundamentally altering fleet compositions to address global water scarcity and sustainability mandates. Unlike traditional evaporative towers that consume vast quantities of water, adiabatic systems utilize a closed-loop design with spray assistance only during peak heat, significantly reducing water makeup requirements and mitigating plume formation. This trend is driven by end-users in water-stressed regions seeking to minimize their hydrological footprint while maintaining thermal rejection capacity. The scale of capital being directed toward these greener fleet alternatives is substantial; according to Aggreko, June 2025, in the '2024 Sustainability Report', the company invested $371 million in products that support the energy transition, underscoring a major strategic pivot toward manufacturing and deploying more resource-efficient, low-emission cooling technologies.

Segmental Insights

The Dry segment is recognized as the fastest growing category within the global cooling tower rental market, largely due to rising water scarcity issues and stricter environmental regulations. Industries are increasingly selecting dry cooling solutions to minimize water usage and avoid the treatment costs associated with liquid discharge. This demand is reinforced by rigorous conservation mandates from regulatory bodies such as the U.S. Environmental Protection Agency, which restrict industrial water consumption. Consequently, companies prioritize dry rental units to maintain compliance with sustainability goals while ensuring consistent operational performance.

Regional Insights

North America holds the leading position in the global cooling tower rental market, driven by a mature industrial sector and robust infrastructure development. The region sees consistent demand from power generation and petrochemical industries that require temporary cooling during maintenance or emergency repairs. Additionally, strict environmental regulations regarding wastewater and emissions, monitored by the U.S. Environmental Protection Agency, necessitate frequent system upgrades and compliance checks. This regulatory environment encourages companies to utilize rental equipment to maintain operations while adhering to safety and environmental standards.

Recent Developments

• In November 2025, Sunbelt Rentals UK & Ireland announced an expansion of its partnership with Trackunit, a specialist in fleet management software. This collaboration aims to significantly increase the connectivity of Sunbelt’s rental fleet, which encompasses a wide range of equipment including power and temperature control units. By leveraging advanced telematics and data analytics, the initiative allows the company to provide customers with actionable insights into equipment usage and performance. The expanded partnership is expected to improve operational efficiency and decision-making for clients relying on temporary equipment solutions for their projects.
• In February 2025, SPX Cooling Tech, LLC announced the launch of a new mobile training and product showcase unit dedicated to its Marley brand of cooling tower components. The mobile trailer is designed to travel to various locations across the United States, providing hands-on educational experiences and technical training to customers and maintenance personnel. This initiative allows the company to demonstrate the proper maintenance and upgrade options for factory-assembled cooling towers directly at client sites. The launch underscores the company's effort to enhance customer support and operational reliability within the cooling tower market ecosystem.
• In January 2025, United Rentals, Inc. reported its full-year financial results for 2024 and provided its outlook for the year 2025. The company highlighted the continued strong performance of its Specialty rental segment, which includes its power and HVAC solutions, as a key driver of its revenue growth. The Chief Executive Officer noted that the company plans to continue investing in its fleet and expanding its network of specialty branches to meet the rising demand for temporary industrial solutions. This strategic focus aligns with the broader market need for reliable rental equipment, including cooling towers, to support large-scale infrastructure and manufacturing projects.
• In February 2024, Aggreko announced that it had been awarded a United States patent for its new rental cooling tower system designed within a standard shipping container frame. The patented design incorporates a telescoping substructure and modular features that allow the equipment to be transported globally via land, sea, or air without the logistical challenges and costs associated with oversized loads. This innovation aims to reduce installation time and footprint on customer sites while improving safety and energy efficiency. The company stated that this development reinforces its commitment to providing flexible, temporary cooling solutions for industrial applications.

Key Market Players

• Aggreko plc
• Caterpillar Inc.
• United Rentals, Inc.
• SPX Cooling Technologies, Inc.
• Johnson Controls International plc
• GOHL-KTK GmbH
• Carrier Rental Systems
• Finning International Inc

By Type	By Design	By End-User	By Region
Dry Wet	Natural Draft Induced Draft Forced Draft	Institutions Commercial Industrial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Cooling Tower Rental Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Cooling Tower Rental Market, By Type:

• Dry
• Wet

• Cooling Tower Rental Market, By Design:

• Natural Draft
• Induced Draft
• Forced Draft

• Cooling Tower Rental Market, By End-User:

• Institutions
• Commercial
• Industrial

• Cooling Tower Rental Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE