Chillers Market Analysis

Global Chillers Market Overview

Chillers Market Size was valued at USD 10,404.9 Million in 2023. The Global Chillers industry is projected to grow from USD 10,873.12 Million in 2024 to USD 15,374.0 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 4.5% during the forecast period (2024 - 2032).

Increasing demand for air conditioning and refrigeration systems, and opportunities due to expanding markets in developing regions is driving the Chillers Market.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Chillers Market Trends

Increasing demand for air conditioning and refrigeration systems, and opportunities due to expanding markets in developing regions augmenting Chillers Market.

The growing need for cooling solutions in residential, commercial, and industrial setups is a key factor driving the demand for chillers.  According to the National Centres for Environmental Information (NCEI), March 2024 was the warmest March on record for the globe in NOAA's 175-year record. The March global surface temperature was 1.35°C (2.43°F) above the 20th-century average of 12.7°C (54.9°F). This is 0.01°C (°F) warmer than the previous March record set in 2016, and the tenth consecutive month of record-high global temperatures. As temperatures rise globally owing to various factors such as climate change and urbanization the need for efficient cooling systems is anticipated to rise in the forecast period.  Further, the growing populations and developing economies are projected to hugely increase global demand for space cooling, dehumidification, and refrigeration. The ongoing trend of infrastructure development contributes positively to the increasing demand for Chillers in the market. According to data published by the United States Census Bureau 2024, construction spending rose from USD 1,901,401 million to USD 2,083,926 Million in March 2024. This growth is anticipated to trigger a significant uptick in HVAC installation owing to increased demand from newly constructed commercial buildings. As more commercial buildings, data centres, healthcare facilities, and industrial complexes are constructed, the demand for effective and scalable cooling solutions is anticipated to rise. The increasing construction of smart cities and green buildings further propels the demand for modern and sustainable chiller systems.

The global chiller market is growing in regions experiencing industrialization and urbanization. Developing regions such as India, China, Brazil, and South Africa have been experiencing significant growth in industrialization and urbanization trends. This has been creating significant market opportunities for market players to invest in such regions to gain from the rising demand for Chillers in the region. For instance, according to the India Cooling Action Plan (ICAP), chiller systems will comprise 11% of space cooling energy use by 2037–38. Additionally, the installed capacity of chillers in India is expected to reach 38.1 million Tons of Refrigeration (TR) by 2037-38, growing from the present 5.7 million TR as of 2017-18. Thus, market players looking to expand their offerings globally have profitability in shifting to growing regions such as India, and China where there has been significant growth in demand for chillers. These regions are also actively investing in infrastructure projects, and there has been a notable rise in commercial buildings which again create substantial demand for efficient cooling systems in the region. For instance, China’s Belt and Road Initiative has led to massive infrastructure projects requiring efficient cooling systems. Also, the government's push for energy-efficient solutions is pushing market players to come up with new and innovative solutions to cater to the demand.

Chillers Market Segment Insights:

Global Chillers Type Insights

Based on type, the global Chillers are segmented into Screw Chiller, Scroll Chiller, Centrifugal Chiller, Others. The Screw Chiller dominated the global market in 2023, while the Scroll Chiller are projected to be the fastest–growing segment during the forecast period. Screw chillers have a large cooling capacity and are frequently utilized in commercial and industrial settings. There are two types of screw chillers: water-cooled and air-cooled. Depending on their intended uses and architectural layouts, screw chillers can be either water- or air-cooled. They are made up of two helical slot rotors that compress refrigerant gases to provide cooling. Applications requiring high power circulation are utilized with these chillers. The printing, automotive, and chemical sectors all employ screw chillers. Additionally, they provide extremely energy-efficient cooling capabilities that are needed by commercial and industrial end customers. Compared to other chiller types, screw chillers are lightweight, simple to install, and energy efficient. They are frequently used to chill goods in the food business.

Figure 1: Chillers Market, by Type, 2023 & 2032 (USD Million)

Global Chillers Product Type Insights

Based on Product Type, the global Chillers are segmented into Air Cooled Chiller and Water-Cooled Chiller. The Water-Cooled Chiller segment dominated the global market in 2023, while the Air Cooled Chiller is projected to be the fastest–growing segment during the forecast period. Industrial and commercial buildings utilize air-cooled chillers as refrigeration systems to dehumidify air and/or cool liquids. Hotels, business gatherings, dining establishments, athletic events, large-scale building sites, manufacturing and industrial facilities, and more are just a few of the places they are utilized. The heat from processed water is actively absorbed by air-cooled chillers, which then release it into the surrounding air. In locations where increased heat discharge is advantageous rather than a problem, this kind of unit is usually utilized. In comparison to conventional heating systems, the extra heat can be utilized to warm a space in the winter.

Global Chillers Power Range Insights

Based on Power Range, the global Chillers are segmented into Less than 50 kW, 50-200 kW, and More than 200 kW. The More than 200 kW segment dominated the global market in 2023, while Less than 50 kW projected to be the fastest–growing segment during the forecast period. The domination of more than 200 kW is attributed to a range of factors, which includes the increase of industrial and business sectors, such as huge workplace complexes, shopping department shops, statistics centers, and industrial production facilities, all of which require robust cooling infrastructure to maintain optimal operating conditions. Furthermore, technological developments, such as more efficient and sustainable chiller designs, is growing the market by providing improved performance and cost-effectiveness for large-capacity cooling applications.

Global Chillers End User Insights

Based on End User, global Chillers are segmented into Chemicals & Petrochemicals, Food & Beverages, Medical, Metal Manufacturing, and Others. The others segment dominated the global market in 2023, while metal manufacturing projected to be the fastest–growing segment during the forecast period. In others, commercial, data center, textiles, hotels, jewel shops etc. The market for chillers is expanding in several industries, including hotels, jewelers, textiles, data centers, and commercial buildings. Efficient cooling systems are becoming more and more necessary in commercial settings to keep customers and employees comfortable while reducing energy expenses. Reliable chillers are necessary in data centers because sensitive equipment needs precise temperature control to operate at its best. Chillers are used by textile manufacturers to keep the perfect environment for their production processes. Chilterns are used by hotels and jewelry stores to maintain product quality and improve customer comfort. The need for chillers is growing as these sectors develop and grow, with an emphasis on dependable, energy-efficient systems that can be customized to meet unique cooling needs.

Global Chillers Sales Insights

Based on Sales, global Chillers are segmented into Rental Sales and New Sales. The new sales segment dominated the global market in 2023 and projected to be the fastest–growing segment during the forecast period. The market for chillers is expanding due to multiple important factors that are driving the development in new sales. First, there is a growing need for new chillers as enterprises realize more and more how crucial effective cooling systems are to their operations. Second, companies aiming to modernize their cooling infrastructure are drawn to the more energy-efficient and ecologically friendly chiller solutions that have been made possible by technical breakthroughs. In addition, businesses are encouraged to invest in up-to-date, compliant equipment by regulatory standards and sustainability objectives.

Global Chillers Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The Asia-Pacific Chillers market accounted for largest market share in 2023 and is expected to exhibit significant CAGR growth during the study period. The demand for chillers in the region is considerable due to the rapid rise in investments from many industrial giants. As demand for frozen items rises, the food and beverage industry is growing, which is spurring the growth of chillers. Additionally, the quantity of money the industrial industry spends on passive cooling technologies. With strong growth that boosts income and creates new prospects for industry, the Asia Pacific area is currently the second-largest hub for data centers. Asia Pacific's data center footprint is growing, and operators are aggressively looking into new markets for further growth.

Figure 2: Chillers Market, by region, 2023 & 2032 (USD Million)

Moreover, North America is the second-largest region in the Chillers Market. The building of theaters, offices, hospitals, and massive retail establishments has increased as a result of rising urbanization and sustained economic expansion. The governments of the countries in North America are in favor of developing smart cities and expanding airport infrastructure. Thus, the need for chillers in the residential, commercial, and industrial sectors of the region is being driven by growing tourism, smart city projects, and construction activities. To improve energy efficiency standards across the country, the US Department of Energy (DOE) is investing heavily. The DOE seeks to address the nation's nuclear, energy, and environmental issues by creating ground-breaking scientific and technological solutions. Companies are releasing new items into the market to satisfy a diverse variety of consumer wants and expand their market share.

Additionally, the Europe Chillers Market has grown significantly in recent years, driven by region’s industrial sector expansion because of urbanization and increasing global economic conditions. The need for HVAC chillers is being driven by an increase in the construction of medical centers, shopping centers, complexes, hotels, commercial buildings, and manufacturing facilities. People's lifestyles have altered because of urbanization, and their desire for security and safety has grown. The governmental and organizational rules pertaining to temperature control have been modified in conjunction with technological advancements to foster the growth of the Chiller industry. It is expected that the need for chillers in the medical industry will continue to increase. The European countries' urbanization and population increase are the main drivers of the chillers market's expansion in this area.

Further, the major countries studied in the market report are the U.S., Canada, Mexico, Germany, France, Italy, UK, Spain, Japan, UAE, South Africa, Saudi Arabia, Argentina, and Brazil.

Global Chillers Key Market Players & Competitive Insight

Chillers are essential components of HVAC systems, providing cooling for various applications such as comfort cooling in commercial buildings, industrial process cooling, and data center cooling. They come in different types, including air-cooled chillers and water-cooled chillers, each with their advantages and suitability for specific environments and requirements. Additionally, advancements in chiller technology are driving the market towards more sustainable solutions.

The chillers market is extremely competitive, driven by increasing demand from various end user sectors. Players in the industry are heavily investing in research and development to gain a competitive edge, leading to significant advancements in chiller technology. As demand grows, companies are forming strategic partnerships and collaborations to enhance operational efficiency and expand their market presence. This competitive landscape has resulted in a fragmented market, with companies competing for market share through innovation, quality, and strategic alliances.

The growth of prominent industry players is dependent on various factors, such as market conditions, government support, and industry development. Key manufacturers in the chillers market are focusing on improving carbon neutrality and reducing environmental impact with a sustainable approach and smart chiller technologies. It is also projected that a rise in the investments in R&D will also boost the market's growth in the upcoming future.

Key Companies in the Chillers Market include.

• Carrier Global Corporation


• DAIKIN INDUSTRIES LTD


• MITSUBISHI ELECTRIC CORPORATION


• DIMPLEX THERMAL SOLUTIONS


• LG Electronics


• JOHNSON CONTROLS INTERNATIONAL PLC


• Polyscience Inc


• SMARDT CHILLER GROUP INC


• THERMAX LTD.


• TRANE Technologies Plc

Global Chillers Industry Developments

• In April 2024, Mitsubishi Electric introduces MECH-iF, an air-cooled chiller range featuring proprietary single screw compressors for enhanced energy efficiency and reliability.


• In March 2024, Carrier introduced a new line of high-performance chillers tailored for data centres, featuring energy-saving technology and resilient operation. The AquaForce 30XF air-cooled screw chillers offer up to 50% energy savings with integrated hydronic free-cooling systems.


• In March 2024, Daikin Applied unveils the enhanced Navigator WWV water-cooled screw chiller with an integrated heat recovery configuration, featuring low-global warming potential refrigerant R-513A, enabling significant energy savings and bolstering sustainability efforts in HVAC solutions.

Chillers Market Segmentation:

Chillers Market by Type Outlook (USD Million, 2019-2032)

• Screw Chiller


• Scroll Chiller


• Centrifugal Chiller


• Others

Chillers Market by Product Type Outlook (USD Million, 2019-2032)

• Air Cooled Chiller


• Water-Cooled Chiller

Chillers Market by Power Range Outlook (USD Million, 2019-2032)

• Less than 50 kW


• 50-200 kW


• More than 200 kW

Chillers Market by End User Outlook (USD Million, 2019-2032)

• Chemicals & Petrochemicals


• Food & Beverages


• Medical


• Metal Manufacturing


• Others

Chillers Market by Sales Outlook (USD Million, 2019-2032)

• Rental Sales


• New Sales

Global Chillers Regional Outlook

• North America


• US


• Canada


• Mexico


• Europe


• Germany


• France


• UK


• Spain


• Italy


• Rest of Europe


• Asia-Pacific


• China


• Japan


• India


• South Korea


• Rest of Asia-Pacific


• Middle East and Africa


• Saudi Arabia


• UAE


• South Africa


• Rest of Middle East and Africa


• South America


• Argentina


• Brazil


• South America