Chiller Market Research Report

Chiller Market Size:

The global chiller market size reached US$ 10.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 14.8 Billion by 2032, exhibiting a growth rate (CAGR) of 3.68% during 2024-2032. The market is experiencing steady growth driven by the escalating demand for energy-efficient cooling solutions in response to growing environmental concerns, the rapid expansion of the construction industry, and continuous technological advancements, such as the integration of the Internet of Things (IoT) and artificial intelligence (AI) in these systems.

Chiller Market Analysis:

• Major Market Drivers: Rapid industrialization in emerging markets, a growing requirement for energy-efficient cooling systems in the industrial and commercial sectors, a rising application of chillers in the healthcare industry, and an increasing awareness and regulatory push to reduce greenhouse emissions are all key drivers that are fueling the expansion of the market.
• Key Market Trends: Advances in chiller technology, such as the use of the Internet of Things (IoT) for live monitoring and energy management, are driving growth as they improve efficiency, operational flexibility, and system dependability. Furthermore, the invention of chillers with variable speed motors and magnetic bearing compressors improves energy efficiency, making them more desirable to environmentally aware customers.
• Geographical Trends: Asia-Pacific presently leads the chiller market thanks to rising urbanization and industrialization, as well as spending on infrastructure development. Other regions are also expanding, driven by the replacement of aging systems with new and energy-efficient versions that comply with severe environmental laws.
• Competitive Landscape: Some of the major market players in the chiller industry include Carrier Global Corporation, Daikin Industries Ltd., Friulair S.r.l., General Air Products, HYDAC International GmbH, Johnson Controls International PLC, KKT Chillers Inc., LG Electronics Inc., Mitsubishi Electric Corporation, PolyScience Inc., and Trane Technologies plc, among many others.
• Challenges and Opportunities: The industry faces many challenges, like the high cost of sophisticated chiller systems and the technical complexity of installation and maintenance, which may dissuade potential customers. However, there are several prospects for upgrading current systems with new technology and expanding into emerging regions where industrial and commercial development activity is growing.
   

Chiller Market Trends:

Expansion of the Construction Industry

The expansion of the construction industry in emerging economies is a main factor that is boosting the market for chillers. For example, China's investment in fixed assets grew by 4.9% in 2021 from 2.9% growth in 2020. Also, its industrial investment reached 11.4%, which is a drastic acceleration from 0.1% growth in 2020. Aside from that, in the budget of 2023 and 2024, India's capital investment outlay for infrastructure increased by 33% to Rs.10 lakh crore, which sums up to 3.3% of GDP and almost three times the outlay in 2019-20. The growth in the construction sector, which includes commercial and residential projects, is leading to an escalated demand for heating, ventilation, and air conditioning (HVAC) systems, where chillers play a crucial role. Also, the increasing investments in infrastructure development worldwide is further driving the demand for chillers.

Rising Growth of the Healthcare Sector

Several countries across the globe are witnessing increased adoption of chillers for hospitals and medical facilities to maintain precise temperatures for medical equipment, laboratories, and patient care areas. This is due to the growing geriatric population, rising health awareness, and increased expenditure on healthcare infrastructure. For instance, India's public expenditure on healthcare touched 2.1% of GDP in FY23 and 2.2% in FY22. Similarly, in Europe, the general government spending on health amounted to €1221 billion or 7.7% of GDP in 2022. The U.S. healthcare spending also saw a hike of 4.1%, reaching $4.5 trillion or $13493/person. This expansion is increasing the geographical footprint of the chillers industry as the sensitivity of medical procedures and storage requirements for pharmaceuticals necessitates the adoption of reliable and precise cooling solutions.

Increasing Demand for Comfort Cooling

The increase in living standards and the growing middle class have led to a hike in demand for comfortable cooling in residential and commercial buildings. Also, the rising temperatures due to global warming are emphasizing the need for air conditioning systems, including chillers, for maintaining a comfortable indoor environment. As per the National Oceanic and Atmospheric Administration (NOAA) and other research groups, Earth was about 2.45 degrees Fahrenheit or about 1.36 degrees Celsius warmer in 2023 than in the late 19th century. The ten most recent years are the warmest on record. This trend has necessitated the need for cooling systems in regions that face extreme humidity and hot temperatures.

Chiller Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, product type, power range, and end use industry.

Breakup by Type:

• Screw
• Scroll
• Centrifugal
• Others
   

Screw accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes screw, scroll, centrifugal, and others. According to the report, screw represented the largest segment.

As per the chiller market trends and analysis, screw represented the largest market share as it is highly valued for its reliability, efficiency, and suitability for various applications. Moreover, it is characterized by its screw compressors, which are preferred in commercial and industrial settings owing to their ability to provide stable and continuous cooling, even under variable load conditions. Additionally, screw is advantageous in medium to large installations where their energy efficiency and low maintenance requirements become significant. Its robustness, coupled with the ability to operate efficiently in varied temperatures and conditions, makes it a preferred choice in sectors such as manufacturing, food and beverage (F&B), and large commercial buildings.

Breakup by Product Type:

• Air Cooled
• Water Cooled
   

Water cooled holds the largest share of the industry

A detailed breakup and analysis of the market based on the product type have also been provided in the report. This includes air cooled and water cooled. According to the report, water cooled accounted for the largest market share.

Based on the chiller market forecast and outlook, water-cooled chillers are preferred for their high efficiency and effectiveness. They use water as a cooling medium and are generally installed in conjunction with cooling towers. Water-cooled chillers are highly efficient as water is a better heat conductor than air, allowing these systems to provide more consistent and effective cooling. Moreover, they are used in settings like large industrial complexes, hospitals, and universities, where space is not a constraint. Besides this, their widespread popularity, owing to their long-term energy savings and superior performance in large-scale cooling operations, is bolstering the chiller market growth.

Breakup by Power Range:

• Less than 50 kW
• 50-200 kW
• More than 200 kW
   

More than 200 kW represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the power range. This includes less than 50 kW, 50-200 kW, and more than 200 kW. According to the report, more than 200 kW represented the largest segment.

According to the chiller market report and overview, chillers with more than 200 kW power range accounted for the largest segment, as they serve large-scale industrial and commercial applications. They are essential in environments such as large industrial plants, huge commercial complexes, data centers, and large healthcare facilities. Moreover, they are known for their robust performance, high efficiency at large scale, and the ability to maintain optimal temperatures in extensive and demanding environments. Besides this, the growing demand for chillers with more than 200 kW range, driven by rapid industrial growth, urbanization, and the increasing need for large-scale and efficient cooling solutions, is positively impacting the chiller market revenue.

Breakup by End Use Industry:

• Food and Beverage
• Plastic and Rubber
• Chemicals and Petrochemicals
• Pharmaceuticals
• Others
   

Chemicals and petrochemicals exhibit a clear dominance in the market 

A detailed breakup and analysis of the market based on the end use industry have also been provided in the report. This includes food and beverage, plastic and rubber, chemicals and petrochemicals, pharmaceuticals, and others. According to the report, chemicals and petrochemicals accounted for the largest market share.

The chemicals and petrochemicals industry constituted the largest segment, as they rely on chillers for various critical cooling processes. Chillers are used for maintaining precise temperature control in chemical reactions, cooling equipment, and storing temperature-sensitive chemicals. Moreover, the rising complexity and scale of operations in this industry, boosting demand for components that can deliver high cooling capacities and withstand harsh industrial environments, is enhancing the chiller market share. Along with this, the expanding chemicals industry, which requires consistent and efficient temperature regulation to ensure safety, product quality, and process efficiency, is fueling the market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest chiller market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for chiller.

The Asia-Pacific region emerged as the largest market for chillers, driven by rapid industrialization, urbanization, and economic growth. Moreover, the warm climate, increasing construction activities, and expanding industrial sectors in the region are contributing to the market growth. Besides this, the rising growth in sectors, such as data centers, healthcare, and retail, combined with heightened awareness about energy-efficient cooling solutions, is stimulating the chillers demand. Additionally, the imposition of several government energy efficiency regulations that encourage companies to adopt advanced and eco-friendly systems is anticipated to drive the market growth.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the chiller industry include Carrier Global Corporation, Daikin Industries Ltd., Friulair S.r.l., General Air Products, HYDAC International GmbH, Johnson Controls International PLC, KKT Chillers Inc., LG Electronics Inc., Mitsubishi Electric Corporation, PolyScience Inc., Trane Technologies plc, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The top chiller companies are engaged in several strategic activities to strengthen their position in the market and respond to the augmenting demands of the industry. These include investments in research and development (R&D) to innovate and integrate advanced technologies like the Internet of Things (IoT) connectivity and artificial intelligence (AI)-driven predictive maintenance, enhancing efficiency and functionality. Additionally, major companies are focusing on expanding their geographic presence in high-growth regions and forming strategic partnerships and collaborations to leverage shared expertise and resources. In addition, leading manufacturers are using eco-friendly refrigerants and energy-efficient designs to comply with global environmental regulations and meet consumer expectations for sustainable solutions, thereby positively enhancing the chiller market's recent development and opportunities.

Chiller Market News:

• 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 by incorporating MTA's process chillers and expanding the rental and services business.
• In March 2022, Daikin Applied launched Navigator, a screw compressor water-cooled chiller that is engineered with variable volume ratio technology. It is built on Daikin's Applied innovation, VVR technology, and water-cooled technology, and offers the power of efficiencies that meet ASHRAE 90.1-2016 levels and IPLV as low as 0.36.

Chiller Market Report Scope:

Key Questions Answered in This Report:

• How has the global chiller market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global chiller market?
• What is the impact of each driver, restraint, and opportunity on the global chiller market?
• What are the key regional markets?
• Which countries represent the most attractive chiller market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the chiller market?
• What is the breakup of the market based on the product type?
• Which is the most attractive product type in the chiller market?
• What is the breakup of the market based on the power range?
• Which is the most attractive power range in the chiller market?
• What is the breakup of the market based on the end use industry?
• Which is the most attractive end use industry in the chiller market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global chiller market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the chiller market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global chiller market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the chiller industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.