Global Chiller Market Overview, 2024-29

The global chillers market presents a dynamic landscape shaped by a myriad of factors influencing demand, innovation, and competition. As a vital component of cooling systems across industries, chillers play a pivotal role in maintaining optimal temperatures for various applications, including comfort cooling in buildings, process cooling in manufacturing, and refrigeration in food storage and transportation. With the increasing prevalence of extreme climate conditions worldwide, coupled with rapid urbanisation and industrialization in emerging economies, the demand for chillers continues to rise steadily.

The growth of industrial sectors such as manufacturing, food processing, pharmaceuticals, and chemicals drives the demand for chillers for process cooling applications. Chillers are essential for maintaining optimal temperatures in industrial processes to ensure product quality and efficiency. In areas with higher temperatures, the need for chillers is driven by the rising frequency of extreme climate events, such as heatwaves. Chillers are necessary to ensure that industries continue to run efficiently even in the most extreme weather conditions and to provide comfortable cooling in buildings. Continuous advancements in chiller technology, such as the development of more efficient compressors, smart controls, and refrigerants with lower global warming potential, drive market growth. Innovative features enhance the performance, reliability, and energy efficiency of chillers, making them more attractive to consumers. The growing healthcare sector, driven by aging populations and increasing healthcare expenditures, drives demand for chillers for temperature-sensitive applications in hospitals, laboratories, and pharmaceutical facilities.

According to the report “Global Chillers Market Overview, 2029”, the market is anticipated to cross USD 15 Billion by 2029, increasing from USD 11.24 Billion in 2023. The market is expected to grow with 5.80% CAGR by 2024-29. The need for chillers for process cooling applications is driven by the expansion of industrial sectors like manufacturing, food processing, chemicals, and pharmaceuticals. In order to guarantee product quality and efficiency, industrial processes must be kept at ideal temperatures, which requires the use of chillers. The increasing prevalence of extreme climate events, including heatwaves, drives the demand for chillers in regions experiencing higher temperatures.

Chillers are essential for providing comfort cooling in buildings and ensuring operational efficiency in industries even during extreme weather conditions. Continuous advancements in chiller technology, such as the development of more efficient compressors, smart controls, and refrigerants with lower global warming potential, drive market growth. Innovative features enhance the performance, reliability, and energy efficiency of chillers, making them more attractive to consumers. The proliferation of data centres and IT infrastructure worldwide increases the demand for chillers for cooling server rooms and equipment.

Chillers play a critical role in maintaining optimal temperatures to prevent overheating and ensure the reliable operation of IT systems. The growing healthcare sector, driven by aging populations and increasing healthcare expenditures, drives demand for chillers for temperature-sensitive applications in hospitals, laboratories, and pharmaceutical facilities. Rising consumer awareness of energy efficiency, environmental sustainability, and indoor air quality influences purchasing decisions. Consumers increasingly prefer energy-efficient and environmentally friendly cooling solutions, driving the demand for chillers with eco-friendly features.

Market Drivers

Expansion of Data Centres and IT Infrastructure: The expansion of data centres and IT infrastructure is a significant driver of the global chiller market. With the increasing digitization of businesses and the proliferation of cloud computing services, the demand for data centres and IT infrastructure has skyrocketed. Data centres house thousands of servers and electronic equipment that generate significant amounts of heat during operation. Chillers play a crucial role in cooling these facilities, ensuring that optimal temperatures are maintained to prevent overheating and equipment failures. As the demand for data storage, processing, and analysis continues to grow, driven by trends such as big data, IoT (Internet of Things), and artificial intelligence, the need for efficient and reliable cooling solutions in data centres becomes paramount. Chillers equipped with advanced technologies such as variable-speed compressors, intelligent controls, and heat recovery systems are increasingly sought after to maximise energy efficiency, reduce operating costs, and enhance the reliability of data centre cooling infrastructure.

Healthcare Sector Growth: The growth of the healthcare sector is another key driver of the global healthcare market. Chillers play a critical role in maintaining precise temperature and humidity levels in healthcare facilities, including hospitals, clinics, laboratories, and pharmaceutical manufacturing plants. In healthcare settings, chillers are used for a variety of applications, such as cooling MRI machines, laboratory equipment, vaccine storage, and operating room environments. Maintaining strict temperature control is essential for preserving medication efficacy, ensuring accurate diagnostic test results, and creating comfortable and sterile conditions for patients and healthcare professionals. With the ageing population, increasing healthcare expenditures, and advancements in medical technology, the demand for healthcare services and facilities is on the rise globally. This growth in the healthcare sector translates into increased demand for chillers to support temperature-sensitive operations and maintain optimal conditions for patient care and medical procedures.

Market Challenges

Environmental Regulations and Compliance: Compliance with environmental regulations and laws poses serious obstacles for the global chiller market. All around the world, governments are putting strict laws into place with the intention of lowering greenhouse gas emissions, encouraging energy efficiency, and gradually phaseing out the use of ozone-depleting substances (ODS) in refrigerants. In order to comply with these regulations, chiller manufacturers must spend money on research and development to create environmentally friendly chillers that adhere to energy efficiency standards like ENERGY STAR and the European Union Ecodesign Directive and that use low-GWP (Global Warming Potential) refrigerants. For manufacturers, however, the switch to eco-friendly refrigerants and regulatory compliance can be difficult and expensive. Furthermore, global manufacturers must navigate a patchwork of regulations and standards due to varying regulations across different regions.

Market Competition and Pricing Pressures: One of the biggest obstacles facing companies in the global chiller market is pricing pressure and competition in the market. Customers are looking for affordable solutions, and there are many manufacturers fighting for market share in this fiercely competitive market. Pricing pressure can result from intense competition, particularly in segments where prices are critical, like residential and commercial applications. It could be difficult for chiller manufacturers to keep their profit margins high while still providing customers with competitive prices. Pricing pressure is further increased by the commoditization of chillers and the emergence of low-cost substitutes from emerging markets. Manufacturers need to innovate and set themselves apart from the competition with their product features, energy efficiency, dependability, and service quality.

Based on the report, there are two types of chillers covered: air-cooled chillers and water-cooled chillers. In terms of the report, screw chillers, scroll chillers, centrifugal chillers, and others

Water-cooled chillers are a growing market. Water-cooled chillers typically offer higher energy efficiency compared to air-cooled chillers, especially in large-scale applications. The water-cooled design allows for more efficient heat transfer, resulting in lower energy consumption and operating costs over the long term. As energy efficiency becomes a top priority for businesses and organisations worldwide, the superior efficiency of water-cooled chillers makes them an attractive choice. Space-constrained applications can benefit from the compact design of water-cooled chillers, which sets them apart from air-cooled chillers of equivalent capacity.

This space efficiency is especially helpful for retrofit projects or densely populated urban areas where optimising usable space is crucial. Furthermore the Scroll Chillers is contributes the market, scroll chiller scroll compressors are renowned for their exceptional energy efficiency. When compared to conventional reciprocating compressors, they use less energy because of their ability to adjust capacity in response to cooling demands.

The high efficiency of scroll chillers makes them a desirable option for companies and organisations looking to lower operating costs and environmental impact as energy efficiency gains traction in the global market. Because scroll chillers operate quietly, they are perfect for places where noise is an issue, like offices, hotels, and apartment buildings. Compared to other compressor types, the scroll compressor design produces less noise and vibration during operation, improving occupant comfort and reducing disturbances in indoor environments.

The end users are segmented into commercial and industrial.

Rapid urbanisation worldwide is leading to the construction of new commercial buildings, including office complexes, shopping malls, hotels, restaurants, and entertainment venues. These commercial establishments require efficient cooling systems to maintain comfortable indoor environments for occupants and customers. The growing number of commercial buildings, coupled with the expansion of existing ones, drives the demand for chillers in the commercial sector. Globally, the retail industry is expanding significantly due to rising e-commerce, urbanisation, and consumer spending.

Chillers are needed for refrigeration in retail spaces like supermarkets, shopping malls, and department stores in order to maintain the freshness of perishable items like food and drinks. In order to provide customers with a comfortable shopping environment, chillers are also used in retail settings for comfort cooling. The hospitality industry, encompassing hotels, resorts, restaurants, and leisure facilities, is witnessing robust growth worldwide. Chillers play a crucial role in providing comfort, cooling, and air conditioning in hotels and resorts to ensure a pleasant stay for guests.

Additionally, chillers are used in food service establishments to maintain proper temperatures for food storage and preparation, contributing to the growth of the commercial chiller market. The demand for office space is increasing globally, driven by factors such as economic growth, urbanisation, and the expansion of multinational corporations. Chillers are essential for providing comfort cooling in office buildings to create a conducive work environment for employees. As businesses invest in modern office spaces with advanced HVAC systems, the demand for chillers in commercial office buildings continues to grow.

Based on the report, the major five regions covered in the report include North America, Europe, Asia Pacific, South America, the Middle East, and Africa.

North America is contributing a significant market share. North America's economy is robust and diverse, with continuous infrastructure development projects taking place, especially in the United States. Infrastructural projects like hospitals, data centres, and new commercial and residential buildings are driving demand for chillers for refrigeration, process cooling, and comfort cooling applications. North America is a hub for technological advancements and innovation in the HVAC industry, including chillers. Manufacturers in the region continuously invest in research and development to improve chiller efficiency, reliability, and performance.

The integration of smart technologies, such as IoT sensors and predictive maintenance capabilities, enhances the appeal of chillers in the North American market. The industrial and manufacturing sectors in North America are significant consumers of chillers for process cooling applications. Industries such as automotive, aerospace, food processing, pharmaceuticals, and electronics rely on chillers to maintain precise temperatures for production processes, quality control, and equipment cooling.

The expansion of these industries contributes to the growth of the chiller market in the region. North America has stringent energy efficiency regulations and sustainability initiatives aimed at reducing energy consumption and environmental impact. As a result, there is a growing demand for energy-efficient chillers that comply with regulatory standards such as Energy Star and LEED certification. Manufacturers in North America innovate to develop chillers with advanced energy-saving features and environmentally friendly refrigerants to meet these requirements.

The global market is highly competitive on account of the presence of global and local manufacturers. Companies are engaged in expansion through mergers & acquisitions and joint ventures. These companies offer a wide range of systems that are sold through multiple channels, including distributors, company-owned websites, retailers & their websites, and e-commerce websites. For instance, in May 2023, Trane acquired MTA, an Italian manufacturer and distributor specializing in industrial refrigeration and air conditioning equipment. This strategic acquisition is expected to enhance Trane's commercial HVAC capabilities, particularly in key markets, by incorporating MTA's process chillers and expanding the rental and services business.

With manufacturing sites located in Tribano and Conselve and a workforce of approximately 500 employees, MTA has an annual production capacity of 13,500 systems. Market growth stage is medium, and pace of the market growth is accelerating. The chillers market is characterized by highly consolidated owing to presence of several established players, which makes it difficult for small-scale manufactures to compete with global players. The market is also characterized by a high degree of product innovation, for instance, many manufacturers are developing chillers that use low GWP refrigerants, such as HFOs or natural refrigerants like CO2. Chiller systems are becoming more intelligent and energy-efficient with advancements in technology.

Recent Developments

• On February 23, 2023, Daikin launched the second generation cooling only chiller range with R32 scroll blowers. Daikin's second generation of R32 cooling-just chillers conveys high full- and part-load efficiencies with an expanded limit range up to 1,010 kW (contrasted with the current 704 kW) inside a new, minimized impression offering a decreased size of 275 mm.
• On February 10, 2023, the YORK YLAA Air-Cooled Scroll Chiller, manufactured by Johnson Controls, became the first air-cooled scroll chiller in the U.S. to utilize the refrigerant R-454B. Additionally, the YORK YVFA Free-Cooling, Variable-Speed Screw Chiller, manufactured by Johnson Controls, became the first free-cooling screw chiller in the U.S. to utilize the refrigerant R-1234ze. Both of these products aim to improve performance.
• On October 12, 2022, Mitsubishi Electric launched the latest air-source chillers and heat pumps, which were developed at the company's Italy-based facility. The MECH-iS-G07 air-cooled chiller and the MEHP-iS-G07 air source reversible heat pump have been included in the new range. Seven sizes of the new range of scroll compressors with variable speeds are available. Additionally, each system is available in three modules with a cooling capacity of 50 to 220 KW.
• In December 2022, Trane unveiled its latest offerings, the water-cooled XStream eXcellent GVWF and air-cooled Sintesis eXcellent GVAF chillers. These innovative chillers incorporate magnetic-bearing compressors and utilize the low global warming potential (GWP) refrigerant R1234ze. Equipped with high-speed centrifugal compressor technology, these chillers deliver larger capacities, wider operating maps to meet challenging European climate conditions, and enhanced seasonal efficiencies, all while maintaining a compact size.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Chillers market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type

• Air Cooled Chiller
• Water Cooled Chiller

By Type

• Screw Chiller
• Scroll Chiller
• Centrifugal Chiller
• Others

By End User

• Commercial
• Industrial

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Chillers industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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