Chillers Market Share, Size, Trends, Industry Analysis Report, By Product, By Application, By Compressor Type (Screw Chillers, Centrifugal Chillers, Absorption Chillers, Scroll Chillers, Reciprocating Chillers), By Region, And Segment Forecasts, 2024 - 2032
- Published Date:Mar-2024
- Pages: 117
- Format: PDF
- Report ID: PM4794
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
Global chillers market size was valued at USD 4.15 billion in 2023. The market is anticipated to grow from USD 4.26 billion in 2024 to USD 5.34 billion by 2032, exhibiting the CAGR of 2.9% during the forecast period.
Market Overview
The anticipated rise in demand for milk and beverage chillers is set to propel market growth in the foreseeable future, with ready-to-eat products also playing a significant role in driving the popularity of chillers. The growing demand for processed food is a key factor contributing to the expansion of the chiller industry, driven by shifting consumer lifestyles and the desire for convenience in food consumption. Processed foods offer several advantages, including easy preservation, immediate consumption, time efficiency, and ease of cooking, which are expected to stimulate growth in the processed food market. Additionally, the increasing need for refrigeration equipment in the soft drink and alcoholic beverage sectors to maintain product quality is expected to further boost demand for chillers.
- For instance, data from Deutsches Tiefkühlinstitut reveals that per capita consumption of frozen food in Germany rose from 44.8 kilograms in 2020 to 46.1 kilograms in 2021. Additionally, the Organization for Economic Co-operation and Development (OECD) projects a growth trajectory in the volume of cheese production within the European Union (EU 27), estimating an increase from 9,938 thousand tonnes in 2018 to 11,543 thousand tonnes by 2030.
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The demand for integrating IoT technology into chillers has spurred the emergence of connected chillers. Unique functionalities such as preventive maintenance are gaining traction among consumers. Smart chillers offer benefits like reduced downtime, fewer interruptions, and prolonged equipment lifespan. Consequently, manufacturers are prioritizing the development of connected chillers. For instance, Johnson partnered with Microsoft to create connected services via the cloud for gaining operational insights. Data analytics, remote monitoring, and diagnostics are anticipated to be the primary drivers of the chiller industry. Smart chillers also proactively address issues by promptly responding to emergencies and deteriorating conditions.
Growth Drivers
Growing adoption of absorption chillers
The demand for absorption chillers is on the rise due to the growing adoption of environmentally friendly cooling systems across a range of industries including chemicals & petrochemicals, plastics, rubber, and medical & pharmaceutical. Governments worldwide are emphasizing energy conservation and environmental protection by reducing emissions during the cooling process. Consequently, absorption chillers are gaining popularity as they emit minimal amounts of CO2 and other harmful gases. The energy efficiency and environmentally friendly characteristics of absorption chillers are key factors driving their demand in the market.
Rise in residential and commercial buildings
As the number of residential and commercial buildings increases, so does the demand for air conditioning systems to provide comfort cooling. Chillers are a key component of centralized air conditioning systems, especially in larger buildings where individual room air conditioners may not be practical or efficient. With growing concerns about energy consumption and environmental sustainability, there is a trend towards more energy-efficient HVAC systems in buildings. Chillers play a crucial role in these systems, as modern chillers are designed to offer higher efficiency and lower energy consumption compared to older models. This makes them attractive options for building owners and operators looking to reduce operating costs and meet regulatory requirements.
The chillers market has seen significant advancements in technology, leading to the development of more efficient and environmentally friendly chiller systems. These advancements include the use of variable speed drives, advanced refrigerants, and improved controls, all of which contribute to higher performance and energy savings. Rapid urbanization and infrastructure development, particularly in emerging economies, drive the construction of new residential and commercial buildings. As these buildings come online, there is a corresponding increase in the demand for HVAC systems, including chillers, to provide indoor comfort and climate control. In addition to new construction, there is also a significant market for chillers in renovation and retrofit projects aimed at improving the energy efficiency and comfort of existing buildings. As building owners and operators seek to upgrade their HVAC systems to meet modern standards, there is a growing demand for new chillers and replacement units.
Restraining Factors
Regulations penetrating to fluorinated greenhouse gases
One of the primary challenges encountered in the chillers market is the regulatory framework governing fluorinated gases (F-gases), which impacts the utilization of chillers as evaporators and condensers. European Union (EU) introduced significant revisions to F-gas regulations aimed at controlling Hydrofluorocarbon (HFC) emissions. These revisions encompass two legislative acts: the MAC Directive, governing air conditioning systems in small motor vehicles, and the F-gas regulation, which addresses other key applications employing these gases. Certain applications have banned the use of HFC, permitting their usage only if systems adhere to Ecodesign criteria.
Report Segmentation
The market is primarily segmented based on product, end-user, type, application and region.
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By Product |
By Application |
By Compressor Type |
By Region |
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By Product Analysis
Water cooled chillers segment held the largest share
The water-cooled chillers segment accounted for the largest revenue share. This was attributed to their compact size, superior energy efficiency, and extended lifespan. Water-cooled chillers are known for their high efficiency and performance, making them a preferred choice for large-scale commercial and industrial applications. They are particularly well-suited for buildings with high cooling loads or continuous cooling requirements.
Water-cooled chillers typically have lower operating costs compared to air-cooled chillers, especially in environments with hot ambient temperatures. Water-cooled systems rely on water as the cooling medium, which can absorb heat more efficiently than air, leading to lower energy consumption and operating expenses.
Air cooled chillers segment will grow with the rapid pace. This growth is due to their ability to operate seamlessly at very low temperatures, thereby mitigating issues related to the functioning of cooling towers in winter. Additionally, the growing water scarcity worldwide is expected to drive the adoption of air-cooled chillers, as they eliminate the need for water in their operation.
By Application Analysis
Commercial segment accounted for the largest market share in 2023
Commercial segment accounted for the largest market. Commercial buildings such as office spaces, retail centers, hotels, and healthcare facilities require efficient and reliable cooling systems to maintain comfortable indoor environments for occupants. Chillers are integral components of centralized HVAC systems in these buildings, providing chilled water for air conditioning and climate control.
Commercial buildings often have larger cooling loads compared to residential or industrial facilities, necessitating the use of chillers with higher capacities. As a result, the demand for chillers in the commercial sector is significant, contributing to the segment's dominance in the market.
By Compressor Type Analysis
Screw chillers segment held the largest share
Screw chillers segment dominated the market. Screw chillers are known for their high efficiency and reliability, making them a preferred choice for various applications. They are capable of providing consistent cooling performance even under heavy loads, making them suitable for commercial, industrial, and institutional settings. Screw chillers are available in a wide range of capacities, from small to large systems, making them versatile options for different cooling requirements. This flexibility allows them to meet the needs of various applications, including commercial buildings, manufacturing facilities, data centers, and more.
Regional Insights
APAC held the largest share of the global market in 2023
APAC region dominated the market. APAC is experiencing significant urbanization and industrialization, driving the construction of new commercial, residential, and industrial buildings. The demand for chillers in these sectors is high to provide cooling solutions for various applications, including air conditioning, process cooling, and refrigeration. The construction industry in APAC is booming, with ongoing infrastructure development projects and investments in residential and commercial real estate.
Chillers are essential components of HVAC systems in these buildings, contributing to the strong demand for chillers in the region. With rising concerns about energy consumption and environmental sustainability, there is a growing demand for energy-efficient cooling solutions in APAC. Modern chillers with advanced technologies, such as variable-speed compressors and high-efficiency heat exchangers, are in high demand to meet stringent energy efficiency requirements and reduce operating costs.
Key Market Players & Competitive Insights
The chillers market is currently experiencing moderate growth with an accelerating pace. It is marked by high consolidation due to the presence of numerous established players, posing challenges for small-scale manufacturers to compete against global counterparts. Advancements in technology are leading to smarter and more energy-efficient chiller systems. Key product attributes including energy efficiency, scalability, compactness, environmental friendliness, and wireless connectivity are essential for ensuring success in the market.
Some of the major players operating in the global market include:
- Carrier Corporation (US)
- Daikin Industries (Japan)
- Friulair S.R.L (Italy)
- HYDAC International (Germany)
- Johnson Controls- Hitachi Air Conditioning (Japan
- KKT Chillers (Germany)
- Mitsubishi Electric Corporation (Japan)
- MTA S.P.A (Italy)
- Reynold India Pvt. Ltd (India).
- Smardt Chiller Group Inc. (Canada)
- Trane Technology (Ireland)
Recent Developments in the Industry
- In April 2022, Meta, initiated two additional data center projects located in Missouri and Texas. This expansion brings Meta's total investment in U.S. data center construction and operations to nearly USD 16 billion.
Report Coverage
The chillers market report emphasizes on key regions across the globe to provide better understanding of the product to the users. Also, the report provides market insights into recent developments, trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides detailed analysis of the market while focusing on various key aspects such as competitive analysis, product, end-user, type, application and their futuristic growth opportunities.
Chillers Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 4.26 billion |
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Revenue forecast in 2032 |
USD 5.34 billion |
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CAGR |
2.9% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
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Regional scope |
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
The global chillers market size is expected to reach USD 5.34 billion by 2032
Key players in the market are Carrier Corporation, Daikin Industries, Johnson Controls- Hitachi Air Conditioning
Asia Pacificcontribute notably towards the global Chillers Market
Chillers Market exhibiting the CAGR of 2.9% during the forecast period.
The Chillers Market report covering key segments are product, application, compressor type and region.
