Chillers Market Size, Share & Trends 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 - 2030

Chillers Market Size & Trends

The global chillers market size was estimated at USD 9,928.3 million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2030. The market is driven by the rising need for cost-effective and energy-efficient space cooling solutions in commercial and industrial sectors. This, in turn, is expected to augment the demand for the chillers market over the forecast period.

According to the U.S. Department of Agriculture (USDA), the growing population, rising consumer disposable income, and ongoing urbanization are expected to augment the growth of commercial and residential sector in the country in the forecast period. The demand for chillers in the U.S. residential sectors is driven by a combination of factors, including the need for efficient and reliable air conditioning systems. With a focus on energy efficiency, homeowners are increasingly adopting chillers equipped with advanced technologies and smart controls to ensure precise temperature regulation while minimizing environmental impact. In the commercial sector, the demand for chillers remains robust, particularly in industries such as hospitality, healthcare, and data centres.

Moreover, chillers play a pivotal role in maintaining optimal temperatures for occupant comfort, equipment reliability, and critical processes. The trend towards sustainable building practices and stringent energy efficiency standards further accelerates the adoption of chillers in both residential and commercial applications across the U.S.

The integration of advanced technologies is transforming the global market. Smart chillers, equipped with IoT capabilities, sensors, and predictive maintenance features, allow for remote monitoring and optimization. These technologies enhance overall system efficiency, reduce downtime, and contribute to cost savings. These aforementioned factors are further expected to drive the demand for market over the forecast period.

Market Concentration & Characteristics

Market growth stage is medium, and pace of the market growth is accelerating. The chillers market is characterized by highly consolidated owing to presence of several established players, which makes it difficult for small-scale manufactures to compete with global players.

The market is also characterized by a high degree of product innovation, for instance, many manufacturers are developing chillers that use low GWP refrigerants, such as HFOs or natural refrigerants like CO2.

Chiller systems are becoming more intelligent and energy-efficient with advancements in technology. Product features such as energy efficiency, expandability, compact design, low environmental impact, and wireless technology are crucial for the product to succeed in the market.

End-user concentration is a significant factor in the market, owing to a huge number of commercial and industrial facilities that require chillers.

Product Insights

Based on product, the water-cooled chillers segment held the market with the largest revenue share of 59.8% in 2023, owing to its compact size, high energy-efficiency and long life. Water-cooled chillers offer a broad cooling capacity of 10-4,000 tons and are an excellent choice for indoor applications. They are best suited for various industrial applications with high thermal output. Water-cooled chillers can handle wide cooling loads, generally observed in chemical plants, manufacturing facilities, and medical facilities (such as laboratories and cleanrooms).

The demand for air-cooled chillers is expected to surge worldwide during the forecast period owing to their smooth operations at extremely low temperatures as these chillers eliminate the problems associated with the activity of cooling towers during the winter season. Moreover, increasing water scarcity across the world is anticipated to contribute to the demand for air-cooled chillers as they eliminate the requirement for water.

Application Insights

In terms of application, the commercial segment led the market with the largest revenue share of 48.6% in 2023. Chillers play a crucial role in commercial buildings by providing essential cooling effects. Their primary function is to counterbalance the heat accumulated from various internal and external sources. External factors, such as sunlight, wind, and outdoor temperature, contribute to heat gain, while internal influences include moisture from individuals, lighting, and heat generated by electrical or mechanical equipment. The advantages provided by chillers in managing these diverse factors within commercial spaces are expected to drive their demand in the forecast period.

In industrial applications, chillers play a vital role in managing and controlling temperatures for various processes and equipment. They are extensively employed in manufacturing facilities, chemical plants, and other industrial settings to cool machinery, control ambient temperatures, and ensure optimal conditions for production. Chillers contribute to process efficiency and product quality by preventing overheating, maintaining consistency in manufacturing processes, and facilitating precise temperature control.

Compressor Type Insights

Based on compressor type, the screw chillers segment led the market in 2023 with the largest revenue share of 49.6%. Screw chillers can be an air-cooled or water-cooled chillers depending on their functions and designs. They comprise two helical slot rotors, which compress refrigerant gases for cooling purposes. These chillers are used in applications that have high-power circulation requirements. Screw chillers are used in the chemicals, automotive, and printing industries.Moreover, they offer highly energy-efficient cooling capabilities required by industrial and commercial end users.

The primary application of centrifugal chillers is in the HVAC industry wherein the load requirements are between 300 tons and several thousand tons. Therefore, the growth of the HVAC industry across the world is expected to fuel the demand for centrifugal chillers. Key players in the market are actively focusing on new product launches to cater to the increasing demand for centrifugal chillers from the HVAC industry and fulfill the cooling requirements of various end-use applications.

Regional Insights

The Asia Pacific dominated the market with a revenue share of 45.5% in 2023. Asia Pacific region stands as the second-largest hub for data centers, driven by robust growth that not only enhances revenue but also generates fresh opportunities within the sector. The scale of data centers in Asia Pacific is expanding, with operators actively exploring new markets for potential expansion. This strategic move is in anticipation of rising demand fueled by ongoing digitization and the broader adoption of artificial intelligence. Factors such as improving economic conditions, rapid industrialization, and commercialization are anticipated to have a positive impact on the market growth.

The growth of chillers in Central & South America is attributed to increasing investments in the public and private sectors, which is likely to drive the market over the forecast period. For instance, with the improving security conditions in metropolitan area with a market of 51.8 million people, Colombia remains an attractive destination for FDIs in Central & South America.

Key Chillers Company Insights

The global market is highly competitive on account of the presence of global and local manufacturers. Companies are engaged in expansion through mergers & acquisitions and joint ventures. These companies offer a wide range of systems that are sold through multiple channels, including distributors, company-owned websites, retailers & their websites, and e-commerce websites. For instance, 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, particularly in key markets, by incorporating MTA's process chillers and expanding the rental and services business. With manufacturing sites located in Tribano and Conselve and a workforce of approximately 500 employees, MTA has an annual production capacity of 13,500 systems.

Recent Developments

• In December 2022, Trane unveiled its latest offerings, the water-cooled XStream eXcellent GVWF and air-cooled Sintesis eXcellent GVAF chillers. These innovative chillers incorporate magnetic-bearing compressors and utilize the low global warming potential (GWP) refrigerant R1234ze. Equipped with high-speed centrifugal compressor technology, these chillers deliver larger capacities, wider operating maps to meet challenging European climate conditions, and enhanced seasonal efficiencies, all while maintaining a compact size

• In April 2021, refrigeration equipment manufacturer Refra initiated production operations at its newly established facility in Vievis, located in close proximity to the capital city, Vilnius, Lithuania. Spanning an area of 12,000 square meters, the factory is situated approximately 40 kilometers northwest of Refra's headquarters in Vilnius. The expansion has resulted in the creation of employment opportunities for an additional 100 individuals

Chillers Market Report Scope

Global Chillers Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the global chillers market report based on product, application, compressor type, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Water-Cooled

    • <50kW

    • 51-100kW

    • 101-500kW

    • 501-1000kW

    • 1001-1500kW

    • >1501kW

  • Air -Cooled

    • <50kW

    • 51-100kW

    • 101-500kW

    • 501-1000kW

    • 1001-1500kW

    • >1501kW

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Commercial

    • Corporate Offices

    • Data Centers

    • Public Buildings

    • Mercantile & Service

    • Healthcare

    • Others

  • Industrial

    • Chemicals & Pharmaceuticals

    • Food & Beverage

    • Metal Manufacturing & Machining

    • Medical & Pharmaceutical

    • Plastics

    • Others

  • Residential

• Compressor Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Screw Chillers

  • Centrifugal Chillers

  • Absorption Chillers

  • Scroll Chillers

  • Reciprocating Chillers

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • Thailand

    • South Korea

    • Indonesia

    • Malaysia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE