Chillers Market by Type (Air Cooled Chiller, Water Cooled Chiller, Centrifugal Chiller, Absorption Chiller, Screw Chiller, Scroll Chiller and Others), by Cooling Capacity (Below 20Tons, 20-200 Tons, and Above 200 Tons) and by End User (Commercial, Residential, Healthcare, Food & Beverage, Chemical, Pharmaceutical, and Others)–Global Opportunity Analysis and Industry Forecast 2024-2030

Market Definition

The Chillers Market size was valued at USD 8.26 billion in 2023 and is predicted to reach USD 10.74 billion by 2030 with a CAGR of 3.82% from 2024-2030.

Chillers refers to cooling system that removes heat by circulating a heat absorbing refrigerant through series of mechanism for removing heat and providing cooling effect. The application of chillers market includes its usage in air conditioning, process cooling, ventilating, refrigeration, and others. Chillers aids in precise temperature control, energy efficiency, space saving technology and reduce energy costs significantly adds to the advantage of chillers. The usage of chillers offers reliable and convenient solution to enhance productivity, and comfort that leads to increasing usage in various industrial sectors and for residential purpose.

Market Dynamics and Trends

The rapid industrialization is causing manufacturers to produce cooling system to dissipate heat and maintain stable operation in the industry accelerating the demand of chillers in the market. In October, 2022, Atlas Copco launched its first process chiller in U.S. named TCX Chillers designed for cooling water for range of industrial segments machine cooling, food & beverage, pharmaceutical and printing. Chillers help in removing heat generated by machinery and equipment to maintain consistent temperature for production process.

Additionally, the rising demand of frozen food accelerates the demand for chillers to control the temperature of the food, maintain its food quality, prevent spoilage and extend shelf life. Chillers are required for providing the cold storage needed in warehouses, distribution centers, transportation and retail outlets to keep frozen foods at optimal temperatures until they reach consumers.

According to International Institute of Refrigeration Report, 2022, the global food market generated a revenue of around USD 392.4 billion and is expected to USD 612.3 billion by 2032.  As the global demand for frozen food continues to rise it boosts up the demand of chillers to maintain appropriate temperature and prevent bacterial growth.

Moreover, the growing adoption of sustainable developmental strategy are driving the demand for chillers. As businesses increasingly prioritize environmentally friendly solutions to reduce their carbon footprint and conserve natural resources such as water, air, and soil, necessities the adoption of chillers to maintain energy efficiency.

In November 2023, the European Parliament announced proposals for the amendment of the EU Treaties, to include ambitious provisions related to the reduction of global warming and safeguarding biodiversity, health, and social progress that would strengthen the implementation of the sustainable development goals within EU. The adoption of such sustainability strategies led businesses to adoption of energy-efficient chillers that contribute to environmental sustainability by reducing greenhouse gas emissions caused by various factors such as electricity generation industrialization, and fossil fuel combustion, accelerating the market growth.

However, the high cost associated with installation of chillers acts as a major restraining factor. The chillers are comparatively high priced in comparison to traditional cooling devices such as fans, refrigerator, and natural ventilation lowers its demand among the price sensitive and middle-class customers. The high initial investment for installation of chillers in commercial, industrial or residential places acts as a significant barrier to the market growth.

On the other hand, the integration of magnetic bearings technology in chillers to reduce friction and mechanical losses, resulting in higher energy efficiency and lower power consumption is expected to create ample growth opportunities for the chillers market.

Market Segmentation

The chillers market is segmented on the basis of type, cooling capacity, end users, and region. On the basis of type, the market is divided into air cooled chiller, water cooled chiller, centrifugal chiller, absorption chiller, screw chiller, scroll chiller and others. On the basis of cooling capacity, the market is divided into below 20tons, 20-200 tons, and above 200 tons. On the basis of end user, the market is divided into  commercial, residential, healthcare, food & beverage, chemical, pharmaceutical, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW. 

Geographical Analysis

Asia Pacific holds the dominant share in the chillers market and is projected to maintain its dominance throughout the forecast period. This is due to presence of stringent regulation towards sustainability such as use of renewable energy, reduction of carbon emission rate and waste reduction in the countries such as China and India.

According to the report of World Bank, 2022, Indian government issued its first sovereign green bonds in January, 2023 to expand renewable energy production and reduce carbon intensity through supporting expenditures of renewable energy.  The widespread adoption of sustainability strategies in the region fuelled demand for energy-efficient chillers.

These chillers incorporate advanced technologies such as variable speed compressors, heat recovery systems, and smart controls that enable substantial energy savings while ensuring optimal performance leading to significant boost in the demand for chillers in the region.

Moreover, increasing pollution levels in countries such as China and India is driving the chillers market in the region. Pollution resulted in increased temperatures level, intensifying the need for cooling solutions to combat heat-related challenges consequently driven up the demand for chillers in the region.

According to a report published by the World Bank Organization in 2022, China emits around 27 percent of global carbon dioxide and a third of the world’s greenhouse gas emission. The rising temperature issue accelerates the demand of air and water chillers to lower temperature to desired level along with providing cooling effect.

On the other hand, North America is expected to show a steady rise in the chillers market due to presence of highest number of data centers in the region. Data centers includes a large number of servers and networking devices that generate substantial heat during operation, requiring chillers to this heat and prevent device failure. 

According to the report of McKinsey & Company, 2023, U.S. has around 40% of the global data centers leading to electricity consumption to reach 35GW by 2030 from 17GW in 2022. The growing numbers of the data centers in the region requires precise temperature and humidity control to ensure the reliable operation of sensitive IT equipment accelerating the demand of chillers to ensure consistent cooling in the data centers.

Furthermore, the presence of key market players such as Smardt Chiller Group Inc., LG Electronics Inc and Daikin Industries in the region that are adopting various strategies including product launches is driving the growth of chillers market. In February, 2023, LG Electronics Inc. launched inverter heat pump chiller in Canada offering efficient and flexible cooling solutions. This expansion in the chiller market provides Canadian businesses with access to advanced technology for optimizing energy usage and reducing environmental impact.

Competitive Landscape

The chillers market comprises of various market players such as Daikin Industries, Ltd., Carrier Global Corporation, Trane Technologies plc, Johnson Controls-Hitachi Air Conditioning India Ltd., Mitsubishi Electric Corporation, KKT Chillers Inc., Smardt Chiller Group Inc., G& D Chiler Inc., LG Electronics Inc., and Reynold India Pvt. Ltd. These market players are adopting various strategies including product launches and partnership to stay competitive and maintain their market positions. 

Furthermore, in April, 2023, G&D Chiller partnered with Farm Tech, and GEA, led to enhancement in distribution networks and expanded market reach for innovative chiller solutions. This collaboration combined expertise to deliver advanced cooling technologies efficiently to various industries, fostering growth and innovation in the chiller market.

Further, in February, 2023 Daikin launched second-generation cooling-only chiller range with R32 scroll compressors, extending low GWP scroll compressor technology for IT and comfort cooling applications. This product launch enhanced efficiency and environmental sustainability in the chillers market through utilization of refrigerants with lower global warming potential (GWP) while catering to various cooling needs.

Moreover, in October, 2022, Mitsubishi Electric launched new air sourced chillers that offers advanced cooling solutions with enhanced efficiency and performance. This expansion in the chiller market reflects Mitsubishi Electric’s commitment to deliver cutting-edge technology to meet evolving customer needs for sustainable and reliable cooling systems.

Key Benefits

• The report provides quantitative analysis and estimations of the chillers market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the chillers market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the chillers market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Type

• Air Cooled Chiller

• Water Cooled Chiller

• Centrifugal Chiller

• Absorption Chiller

• Screw Chiller

• Scroll Chiller

• Others

By Cooling Capacity

• Below 20 Tons

• 20-200 Tons

• Above 200 Tons

By End User

• Commercial 

• Residential

• Healthcare Food & Beverage

• Chemical

• Pharmaceutical

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

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