Report Details:
15 Companies Covered
128 Pages
The chillers market is poised to expand significantly from USD 10,873.12 million in 2024 to USD 17,683.11 million by 2035, registering a compound annual growth rate (CAGR) of 4.52% during the forecast period.
The market growth is driven by rising demand for air conditioning and refrigeration systems, growing industrialization and urbanization, and the increasing focus on energy-efficient cooling technologies across commercial and industrial sectors.
Chillers Market Overview
Chillers are essential components in air conditioning, industrial cooling, and process temperature regulation systems. The increasing global temperature and demand for sustainable cooling systems are driving substantial growth in the chiller market.
According to the National Centers for Environmental Information (NCEI), March 2024 recorded the warmest March globally in NOAA’s 175-year record, further emphasizing the rising need for efficient cooling systems.
Rapid industrialization, infrastructural development, and the growing need for HVAC systems across manufacturing, healthcare, and data centers continue to support market growth.
Moreover, the emergence of smart cities and green building initiatives is propelling the demand for energy-efficient chillers that align with sustainable building standards.
Market Drivers
Rising Energy Efficiency Requirements:
Energy efficiency has become a central focus for industries worldwide. The growing need to minimize energy consumption and operational costs is pushing companies to adopt advanced chillers equipped with smart controls and variable speed technologies.
Regulatory frameworks supporting sustainable energy use are further accelerating adoption. Developing economies such as India, China, and Brazil are witnessing rapid urban expansion and industrial development.
This trend is contributing to increased demand for industrial-scale chillers across sectors like manufacturing, petrochemicals, and construction. According to the India Cooling Action Plan (ICAP), chillers will account for 11% of India’s total space cooling energy use by 2037–38.
The integration of IoT and AI in chiller systems allows for real-time monitoring, predictive maintenance, and optimized energy consumption. Smart chillers with cloud connectivity and fault detection systems are reshaping market dynamics by enhancing reliability and reducing downtime.
The food and beverage industry’s dependence on temperature-sensitive production and storage systems is further fueling chiller adoption. The sector’s steady expansion, particularly in emerging markets, continues to create substantial demand for both air- and water-cooled chillers.
Segmental Insights
In the chiller market, the type segment is categorized into screw, scroll, centrifugal, and other chillers. Screw chillers dominated in 2023 due to their wide applications in industrial environments requiring high-capacity cooling.
Scroll chillers, on the other hand, are expected to grow the fastest owing to their compact design and energy efficiency advantages.
The product type segment contains air-cooled and water-cooled systems, among which water-cooled chillers accounted for the largest share in 2023. However, air-cooled chillers are projected to record notable growth during the forecast period due to their flexibility and lower maintenance needs.
In the power range segment, the above 200 kW category leads the market, attributed to increasing installation in commercial complexes, data centers, and industrial manufacturing units. The below 50 kW segment will grow the fastest, supported by rising small-scale industrial applications.
On the other hand, End users include chemicals & petrochemicals, food & beverages, medical, metal manufacturing, and others.
The others segment, comprising commercial buildings, data centers, and hospitality, held the largest share in 2023, while metal manufacturing is anticipated to grow the fastest due to higher demand for precise temperature control in production processes.
New sales of the sales type segment dominated the global market in 2023, fueled by increased investments in advanced cooling infrastructure and the replacement of outdated, energy-intensive systems.
Regional Insights
The Asia-Pacific region remains the largest market for chillers, driven by rapid industrialization, expanding commercial infrastructure, and supportive government initiatives promoting energy-efficient solutions. Countries such as China, India, and Japan are key contributors to regional growth.
North America is witnessing steady growth due to retrofitting trends and strong adoption of sustainable cooling technologies. Meanwhile, Europe focuses on regulatory compliance and environmental sustainability, driving the shift toward low-GWP refrigerant systems.
Recent Developments
- In April 2024, Mitsubishi Electric launched its MECH-iF air-cooled chiller range featuring proprietary single screw compressors for improved efficiency.
- In March 2024, Carrier introduced AquaForce 30XF air-cooled screw chillers designed for data centers, offering up to 50% energy savings with integrated free-cooling systems.
- In March 2024, Daikin Applied unveiled the Navigator WWV water-cooled screw chiller with low-GWP refrigerant R-513A, enhancing energy savings and sustainability.
Key Players
Leading companies in the global market include Carrier Global Corporation, Daikin Industries Ltd, Mitsubishi Electric Corporation, Johnson Controls International PLC, LG Electronics, Trane Technologies PLC, Thermax Ltd, Dimplex Thermal Solutions, SMARDT Chiller Group Inc, and Polyscience Inc.
Key Findings
- The global Chillers Market is expected to reach USD 17.68 billion by 2035 at a 4.52% CAGR.
- Screw chillers led the market in 2023; scroll chillers projected to grow the fastest.
- Asia-Pacific dominates the global market with strong industrial and commercial demand.
- New sales segment expected to remain the primary revenue driver.
- Technological innovations and sustainability regulations are shaping future market dynamics.
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