Recently, the International Energy Agency (IEA) released a report showing that global demand for naphtha has fallen sharply. Two factors account for this, the IEA said. On the one hand, profits are being squeezed by rising crude oil prices and shrinking demand in Asia. Petrochemical producers, on the other hand, are replacing naphtha with lower-cost liquefied petroleum gas (LPG). The IEA's latest oil market report for July showed that global naphtha demand fell sharply in March, falling by 480,000 mt/d compared to February and by 370,000 mt/d compared to March 2021. The IEA forecasts that global naphtha demand will fall by an average of 220,000 tonnes/day in 2022 compared with 2021.
Demand for naphtha will grow until 2022, the IEA said. At the time, the "seemingly unstoppable expansion" of the global petrochemical industry had driven years of demand growth for naphtha. In fact, naphtha, a major feedstock for the petrochemical industry in Europe and Asia, was the only major petroleum product to expand in usage in 2020 and 2021. Naphtha demand grew 8% at the end of 2021 compared to 2019 levels. However, during the January-May period of 2022, global naphtha demand fell by 1.1 MMBPD, exceeding the typical seasonal decline. The unusual combination of high crude oil prices and weak demand during this period led to historically low naphtha cracking profits. Asian alkene producers' margins have been hit by higher feedstock prices due to higher crude oil and weaker downstream demand. The IEA said the COVID-19 pandemic in East Asia hit the region's petrochemical producers hard in the second quarter. Demand for naphtha in Europe also fell sharply in the second quarter. The IEA estimated that European naphtha demand in April was 100, 000 b/d lower than a year earlier, or 9.3% lower. Meanwhile, European LPG demand fell by only 40,000 b/d year-on-year in April.
As demand in Asia and Europe has fallen sharply, naphtha cracking margins have begun to shrink to near LPG cracking margins, prompting petrochemical producers to specialize in LPG. Russia is the world's largest exporter of naphtha. As a result, naphtha prices have largely risen in tandem with crude prices since the Russia-Ukraine conflict, while LPG has risen at a slower pace. This has increased the relative cracking margin of LPG and facilitated the widespread use of feedstock substitution in flexible naphtha cracking units.
Regarding the future of naphtha, the IEA said Russian naphtha exports had recovered in recent months, while Asian economies were gradually improving. As a result, the IEA expects naphtha demand to "gradually recover in some regions" in the second half of 2022 and 2023. After an expected reduction in 2022, naphtha demand is expected to rebound by 270,000 b/d in 2023, reaching 7.1 million b/d globally.
The global cooling tower market is estimated at 2.1 billion in 2021 and is expected to reach us $2.6 billion by 2026, with a COMPOUND annual growth rate of 4.5%. Growing demand in emerging markets, stringent environmental regulations, increased DEPLOYMENT of HVACR and technological advances are driving demand for cooling tower systems cooling towers.
Global cooling tower market introduction
Cooling towers are heat exchange devices in which water and air are in direct contact to lower the temperature of water. When water and air meet, a small amount of water evaporates, creating a cooling effect. There are various types of cooling towers and not all of them are suitable for use in the end-use industry. Each project is different and requires a specific cooling tower. A recent trend is to use hePA filters in cooling towers instead of traditional sand filters. Growth in the end-use industry is a key factor expected to drive demand for cooling towers during the forecast period. The same goes for cooling tower systems . The market for cooling tower systems is also expected to grow due to developments in the HVAC, power generation and oil and gas industries.
Europe is already the industrialized continent with the most power plants. Cooling towers have been installed in Europe for years. In addition to the shrinkage of new cooling towers, Europe is also seeing a need to replace them. All these factors make Europe the largest cooling tower market in the world. Like Europe, North America is highly industrialized, and demand for new cooling towers and replacement towers will rise. North America is the world's second largest cooling tower market. The Asia-pacific region is the fastest growing market for cooling towers.
The cooling tower systems market development changes
The construction of new power plants fueled by coal (thermal power plant) and natural gas is increasing all over the world, oil, biofuels, waste, nuclear, hydro, geothermal, solar photovoltaic, solar thermal, wind, tidal and so on. This development, together with increased capital expenditure in the oil and gas sector, is driving the number of oil RIGS worldwide and are the two main factors likely to drive growth in the cooling tower systems market during the forecast period. cooling tower systems are said to be the most prominent type by far. Evaporative cooling towers are expected to occupy the largest market share during the forecast period, followed by dry and hybrid cooling towers. Dry cooling tower is mainly used in places lacking water. As they do not use water and are cost-effective, dry cooling towers are expected to provide profitable opportunities for cooling tower suppliers and manufacturers during the forecast period. Hybrid cooling towers are also growing in popularity because they help reduce heat plumes and reduce the amount of fresh water consumed by factories. As a result, the market is expected to grow significantly during the forecast period.
Regional outlook of global cooling tower market
Germany is the largest market for cooling towers in Europe, followed by Italy. In Europe, five countries - Germany, Italy, France, the United Kingdom and Poland - account for two-thirds of the cooling tower market. Germany is one of The largest manufacturing powers in Europe, leading to increased demand for cooling towers in the country. In Europe, new demand for cooling towers and replacement of existing cooling towers is driving the market as it matures. Among the rest of Europe, Poland's cooling tower systems market recorded double-digit growth of around 25.0%.
The Asia-Pacific region is expected to show high growth rates for global cooling tower systems . China has the largest number of coal-fired, gas-fired and nuclear power plants among asia-pacific countries. It also has the largest hVAC market in the region. All these factors make China a major cooling tower market in the region. In addition, growing industrial growth is driving demand for cooling towers in India. In Japan, in addition to the need for new cooling towers, there is also a large need to replace cooling towers. The rest of Asia Pacific consists of a variety of smaller cooling tower markets.
Impact of COVID-19 on the global cooling tower market
Power generation is one of the important consumers of cooling towers, as it requires energy saving, increased efficiency and strengthening of pipes, machinery, tanks and boilers. Most electricity consumption is in the industrial sector, followed by the residential, commercial and service sectors.
Demand in the sector declined by about 2.5% in the first quarter of 2020 compared to the same period in 2019. The decline was attributable to lower consumption in the industrial and commercial sectors. Businesses have been forced to close because of government-sponsored lockdowns, social distancing measures and restricted supply chains. However, demand is normalising again, helped by a recovery in economic activity across countries.
As a result of the pandemic, demand in the oil and gas industry has dropped significantly. The oil and gas industry has been weak for the past few years as oil prices fell sharply and accelerated from mid-2014.
The industry experienced additional shocks in 2019-2021 due to the COVID-19 outbreak. The outbreak of the COVID-19 pandemic and the drop in demand caused by the global lockdown have forced major refiners to shut down their operations.
Market drivers for cooling tower systems
Drivers: Increased DEPLOYMENT of HVACR and increased industrial activity
The modest growth of the global commercial construction industry, along with accelerated modernization and urbanization in emerging economies, is driving demand for cooling towers. The increased deployment of HVACR is further driving market growth due to increased government investment in cooling tower systems industries. Cooling towers are widely used as part of building HVACR systems through which excess heat from the cooler is treated. As a result, the surge in demand for this HVACR equipment in construction and industrial applications is expected to drive the global cooling tower market. Factors such as climate change and technological innovation have driven the adoption of cooling tower systems . Changeable and unpredictable weather conditions caused by global warming have also increased the need for cooling towers.
Processional Cooling Machinery Manufacturer cooling tower systems supplier
Wuxi Master Cooling Machinery Manufacturing Co., Ltd. is a professional manufacturer of water cooling towers and related equipments including cooling tower, chiller, evaporative condenser, water treatment and other accessory parts.
Master Cooling products are widely used in electric power, chemical industrial, metallurgy, cooling, light industrial, civil facilities and other fields. We have an excellent scientific research and development team whom onstantly design new products always more efficient and more innovative in order to meet the different needs from different customers. We also have excellent after-sales service team. If you have any questions about the cooling tower systems, please feel free to contact us. Send an email to: email@example.com
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