Tower air coolers, those sleek, space-saving cooling solutions, are gaining traction globally as consumers and industries seek efficient, eco-friendly alternatives to traditional air conditioning. With rising temperatures and rapid urbanization, the Tower Air Cooler Market is poised for significant growth in 2024–2025. It is predicted to reach USD 1251.0 million by 2030 with a CAGR of 8.5%.

But what’s driving this surge? Let’s dive into the key factors, backed by credible data, to understand why these devices are cooling more than just homes.

Rising Demand for Energy-Efficient Cooling Solutions

Energy efficiency is at the heart of the tower air cooler market’s growth. As electricity costs climb and environmental concerns mount, consumers and businesses are turning to air coolers, which use significantly less power than conventional air conditioners. According to a report by the International Energy Agency (IEA), electricity demand rose by 4.3% in 2024 and is forecast to continue to grow at close to 4% out to 2027, fuelled by growing industrial production, rising use of air conditioning, accelerating electrification, and the expansion of data centres worldwide.

• Lower Energy Consumption: Tower air coolers consume less energy than an air conditioner. A cooler releases cool air into the environment. The unit reduces heat around the building. An air conditioner expels warm air, contributing to the heat island effect (heating the building environment). A cooler uses water to cool a room. An air conditioner uses a chemical refrigerant to promote global warming.
• Government Incentives: Countries like India and China are offering subsidies for energy-efficient appliances, boosting adoption:
  • The Chinese central government encourages regional governments to implement specific subsidies for energy-saving household appliances tailored to local conditions. Furthermore, China’s consumer goods trade-in policy, which is aimed at stimulating household spending, has encouraged consumers to replace their outdated appliances with more efficient models, as consumers receive a subsidy covering 15 percent of the retail price for grade 2 energy efficiency models and 20 percent for top-tier grade 1 models. This has in turn supported the country’s broader energy and climate goals.
  • In June 2024, the Government of India approved a funding of US$ 5.6 million (Rs. 50 crore) for each of the four upcoming green hydrogen valley projects in the country. This financial support aims to promote the development and adoption of clean energy technologies in India. Also, the central authority, the Central Electricity Authority (CEA) has announced the National Electricity Plan (NEP) for 2022-32. This plan presents an idea of the prevalent electricity demand, installed capacity, and set targets for renewable energy development.
• Corporate Sustainability Goals: Companies are integrating energy-efficient cooling into their ESG (Environmental, Social, Governance) strategies. The technology sector has become a hotbed for ESG transformations, with a particular focus on areas such as energy-efficient manufacturing, responsible sourcing of materials, and creating green data centers. These are no longer just regulatory imperatives but increasingly represent consumer demands for environmentally friendly and ethically designed products. Today, consumers expect not only sustainable solutions from businesses but also the inculcation of ESG principles into their business strategies in ways that help improve brand reputation and long-term investment potential.

The push for energy efficiency, supported by government policies and corporate sustainability initiatives, is a major driver for tower air cooler adoption. This trend aligns with global efforts to reduce carbon footprints and manage rising energy costs.

Rapid Urbanization and Infrastructure Development

Urbanization is reshaping cooling needs, particularly in emerging markets. As cities expand, residential and commercial spaces are increasingly adopting compact, cost-effective cooling solutions like tower air coolers. The World Bank reports that 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050, combined with the overall growth of the world’s population could add another 2.5 billion people to urban areas by 2050, with close to 90% of this increase taking place in Asia and Africa.

• Space Constraints: Tower air coolers, with their slim designs, are ideal for small apartments and offices in densely populated cities. To illustrate the benefits of tower coolers for small apartments and studios, let’s take a look at some statistics comparing tower coolers to traditional air conditioners:

• Construction Boom: Major infrastructure projects, such as India’s Smart Cities Mission, are driving demand for affordable cooling.
  • There is a growing need for an integrated, long-term vision to address cooling requirements across various sectors. This includes reducing overall cooling demand, transitioning to alternative refrigerants, enhancing energy efficiency, advancing innovative cooling technologies, and ensuring equitable access to cooling solutions. In this context, the objectives of the India Cooling Action Plan (ICAP) include assessing the cooling needs across sectors over the next 20 years along with the associated refrigerant demand and energy usage. 
  • The plan also aims to map available technologies to meet these needs, such as passive cooling methods, refrigerant-based systems, and alternative or not-in-kind technologies. Furthermore, ICAP seeks to recommend sector-specific interventions for sustainable cooling and thermal comfort for all, with a strong emphasis on skilling Refrigeration and Air Conditioning (RAC) service technicians and fostering an innovation-driven R&D ecosystem for the indigenous development of alternative technologies.
• Affordability: Tower air coolers are priced lower than air conditioners, making them accessible. Their lower operational and maintenance costs also make them an ideal choice for budget-conscious users like middle-income households. Also, Air coolers use considerably less electricity than air conditioners, resulting in lower energy consumption and reduced utility bills. This makes them both eco-friendly and economical in the long run.

Rapid urbanization, coupled with space constraints and affordability, is fueling demand for tower air coolers in growing cities. This trend is particularly strong in Asia and Africa, where urban populations are expanding rapidly.

Technological Advancements in Tower Air Coolers

Innovation is transforming the tower air cooler market, making these devices smarter and more efficient. Companies are integrating advanced features to meet consumer demands for convenience and performance. Daikin offers IoT-enabled smart air conditioners, including models with tower cooler functionality, that allow for remote operation via mobile app and voice control through platforms like Google Home and Alexa.

• Smart Features: Wi-Fi-enabled coolers allow users to control settings via smartphones, appealing to tech-savvy consumers. For instance, a smart air cooler, like the 36-litre Bajaj air cooler, comes equipped with advanced features that allow remote control, automation, and enhanced performance. These coolers use Wi-Fi and IoT (Internet of Things) technology to offer convenience and energy efficiency. With Wi-Fi connectivity, users can control the cooler remotely using mobile apps, while voice control compatibility enables hands-free operation through assistants like Alexa and Google Assistant. Smart scheduling allows automated on/off timing, and temperature and humidity sensors adjust cooling based on real-time room conditions. Additionally, energy monitoring helps track power usage to improve efficiency, and mobile notifications alert users to low water levels or maintenance needs.
• Eco-Friendly Materials: Manufacturers like Voltas are using recyclable plastics, aligning with global sustainability trends.

Technological advancements, from smart controls to eco-friendly designs, are enhancing the appeal of tower air coolers. These innovations cater to modern consumer preferences and environmental priorities.

Growing Awareness of Environmental Sustainability

Consumers are increasingly prioritizing eco-friendly products, and tower air coolers fit the bill. Unlike air conditioners, which rely on refrigerants with high global warming potential, air coolers use water-based evaporative cooling, making them a greener choice. The PwC 2024 Voice of the Consumer Survey notes a rise in consumer demand for sustainable appliances in 2024. Even as consumers look to cheaper, generic options for essentials, they nevertheless cite a willingness to pay 9.7% more for sustainability. More than four-fifths (80%) of consumers say they are willing to pay more for sustainable produced or sourced goods.

• Low Carbon Footprint: ACs are responsible for more than 20% of the total greenhouse gas emissions. Air coolers are green products unlike air conditioners. They do not emit hazardous greenhouse gases that cause global warming and other environment-related problems. Centralized air-cooling systems have a lower maintenance cost than central air conditioning systems. They simply run on water as cooling agent and need replacement of cooling pads on regular basis.
• Water-Based Cooling: Evaporative cooling systems avoid the use of harmful refrigerants like hydrofluorocarbons (HFCs) that are regulated under the EU’s F-Gas Regulation. This alignment with the F-Gas Regulation, which phases down the use of HFCs, is a key benefit of evaporative cooling technology. The European Union is committed to reducing fluorinated greenhouse gases (F-gases), as part of its broader climate action efforts.
• Consumer Awareness Campaigns: Brands like Symphony are promoting eco-friendly cooling solutions. They are doing this by focusing on energy-efficient air coolers, particularly those with BLDC (Brushless Direct Current) motor technology, which significantly reduces energy consumption. Compared to traditional motors, BLDC motors consume up to 60% less electricity, making them a cost-effective and environmentally friendly choice for consumers. This is particularly important in regions like India where air coolers are used continuously during long summer months, and electricity costs are a concern.

Growing environmental awareness is driving demand for tower air coolers as a sustainable alternative to air conditioners. This shift is supported by stricter regulations and consumer education efforts.

Final Thoughts: 

The tower air cooler market is riding a wave of energy efficiency, urbanization, technological innovation, and environmental awareness. By leveraging these drivers, manufacturers, retailers, and policymakers can unlock significant opportunities in 2024–2025. 

Stay cool, stay sustainable, and seize the moment!

About the author

Sneha Chakraborty is a seasoned SEO Executive and Content Writer with over 4 years of experience in the digital marketing space, bringing a strong command of online visibility strategies and a keen insight into the evolving digital landscape. She specializes in enhancing online visibility and user engagement through data-driven strategies and creative content solutions. She has been closely observing trends across various industry domains, bringing insightful perspectives into her writing. Sneha is passionate about translating complex digital concepts into accessible content for a wide audience. Outside of work, she enjoys reading, sketching, and exploring the outdoors through nature photography. The author can be reached at [email protected].

About the author

Sneha Chakraborty is a seasoned SEO Executive and Content Writer with over 4 years of experience in the digital marketing space, bringing a strong command of online visibility strategies and a keen insight into the evolving digital landscape. She specializes in enhancing online visibility and user engagement through data-driven strategies and creative content solutions. She has been closely observing trends across various industry domains, bringing insightful perspectives into her writing. Sneha is passionate about translating complex digital concepts into accessible content for a wide audience. Outside of work, she enjoys reading, sketching, and exploring the outdoors through nature photography. The author can be reached at [email protected].

About the Author

Sneha Chakraborty is a seasoned SEO Executive and Content Writer with over 4 years of experience in the digital marketing space, bringing a strong command of online visibility strategies and a keen insight into the evolving digital landscape. She specializes in enhancing online visibility and user engagement through data-driven strategies and creative content solutions. She has been closely observing trends across various industry domains, bringing insightful perspectives into her writing. Sneha is passionate about translating complex digital concepts into accessible content for a wide audience. Outside of work, she enjoys reading, sketching, and exploring the outdoors through nature photography. The author can be reached at [email protected].