Chillers Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Chillers Market is Segmented By Type (Screw Chillers, Centrifugal Chillers, Absorption Chillers, Scroll Chillers, Reciprocating Chillers By Product (Air Cooled Chiller, Water Cooled Chiller, By Power Range (Less than 50 kW, Less than 50 kW, More than 200 kW), By End-User (Plastics, Food & beverage, Rubber, Printing, Medical & Pharmaceuticals, Chemicals & petrochemicals, Alternative energy, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031 

Chillers Market Report Overview

The chillers market report provides an analysis of the market size, current trends, competitive landscape, and future market outlook. The demand for chillers is increasing due to their wide application in various industries such as pharmaceutical, food and beverage, and chemical processing. The market is highly competitive, with players like Daikin Industries, Ltd., Johnson Controls, and others operating in the industry.

Chillers Market Scope

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A chiller is a machine that uses adsorption refrigeration, vapor compression, or absorption refrigeration to remove heat from a liquid coolant. After that, the liquid might be circulated through a heat exchanger to cool equipment or another process stream. Refrigeration produces waste heat as an essential by-product, which must be discharged into the atmosphere or recovered for heating purposes for greater efficiency.

Compressors used in vapor compression chillers can be of a variety of sorts. The most prevalent today are hermetic scrolls, semi-hermetic screws, and centrifugal compressors. The chiller's condensing side can be either air or water-cooled. The chiller is frequently cooled by an induced or forced airflow cooling tower, even when liquid-cooled.

Absorption and adsorption chillers require a heat source to function. Chilled water is utilized to cool and dehumidify the air in mid-to large-size commercial, industrial, and institutional facilities. Water or liquid chillers can be evaporatively cooled, air-cooled, or liquid-cooled. Water or liquid-cooled systems can outperform air-cooled systems' inefficiency and environmental effect.

Furthermore, global warming has resulted in numerous changes as temperatures in the environment have risen. A chiller removes excessive heat from a residential, commercial, or industrial building. The HVAC systems in hotels, restaurants, hospitals, sporting arenas, and industrial and manufacturing enterprises have become vital. Because of their sun-cooling uses, chillers are gaining popularity worldwide. Chemicals, refrigeration equipment, air conditioning equipment, electronics, hydraulics, and military systems are among the equipment and systems manufactured.

Chillers Market Trends

Tremendously improving demand for process cooling in industrial applications is driving the market share for chillers across the globe.

Tremendously improving demand for process cooling in industrial applications is driving the market share for chillers across the globe

Globally, rising per capita income has improved people's living standards, increasing demand for comfort and leisure products like refrigerators and air conditioners. The expansion of the refrigeration equipment market is aided by factors such as rising population and increased frozen food consumption. As a result, there is a greater demand for refrigeration, which boosts the market for chillers

Furthermore, Process cooling is widely utilized in the food and beverage sector for high-heat procedures such as pasteurization and food baking. In these procedures, chillers are utilized to cool the equipment and prevent overheating. Chillers are used in the medical and pharmaceutical industries to lower the temperature of X-Ray equipment, CAT scans, and laser therapy processes that require cooling. All of these things have a beneficial impact on the market for chillers.

In addition, the market is predicted to increase due to rising demand from various industries such as semiconductors, paper & cement, medical imaging, blow molding machines, and the power generating sector. Improving government initiatives from various countries has increased industrial construction, increasing the chiller market.

For example, in 2018, the Indian government suggested the construction of a USD 400 billion electronic manufacturing industry in a draught NPE (National Policy on Electronics). Furthermore, the European Space Agency's Advanced Manufacturing Initiative (ESA) piqued the European industry's interest.

Stringent government regulatory standards and the high cost of chillers are hurdling the growth of the product

Industrial chillers are more expensive than standard chiller systems. Building operators should consider initial setup cost, operational cost, and energy savings when determining the operating cost of industrial chillers systems. Industrial chillers have a 20–30% higher initial setup cost for the same capacity installation than commercial chillers.

Furthermore, while installing chiller systems, operators do not consider operational costs, leading them to purchase less expensive HVAC systems. Small-scale industries demand cost-effective solutions with low initial setup expenses for this reason. In addition, the long-term benefits of industrial chillers are not adequately communicated to industries, limiting demand for chillers and limiting the market growth.

In addition, Fluorinated gases (F-gases) regulations are one of the most significant difficulties in the chiller sector, affecting the usage of chillers as evaporators and condensers. In 2015, the European Union (EU) proposed several significant revisions to the F-gas laws to reduce hydrofluorocarbon emissions (HFCs).

EU has approved two legislative acts due to these modifications: the MAC Directive on air conditioning systems used in compact motor cars and the F-gas regulation, which covers all other essential applications where these gases are utilized. In some applications, the usage of HFC is prohibited. HFC refrigerants are only permitted if the systems in question meet the Ecodesign standards. Such stringent regulations set by the government for controlling the emission of F-gases act as a primary hurdle for the growth of the growth chillers industry.

COVID-19 Impact on Chillers Market Growth

The COVID-19 outbreak led to a slow growth rate for the chillers market in value and volume in 2020 compared to 2019. In 2020, the chillers market was disrupted by supply chain disruption and a reduction in end-use industries due to the pandemic outbreak.

In the initial quarters of 2020, end-use sectors such as chemicals and petrochemicals, printing, and laser cutting saw a decrease in production compared to the same time in 2019. A drop further hampered the chillers' output in demand from end-use industries.

Chillers Market Segment and Shares

The global chillers market can be segmented by type, product, power range, end-user, and region.

Screw chillers are cleverly designed to work according to the requirements offering high-quality functions in different applications

The global chillers market is segmented based on type into screw chillers, centrifugal chillers, absorption chillers, scroll chillers, and reciprocating chillers. Out of the mentioned chillers, screw chillers hold a dominating portion of the global chillers market. Screw chillers are cleverly designed to work according to the requirements. These chillers are made from high-quality materials obtained from reputable vendors. The quality management section closely monitors the development of these chillers.

Screw coolers use two interlocking revolving helical rotors to compress the refrigerant and can be air-cooled or water-cooled. A slider or speed control is used to control the capacity of the products. Different types of screw chillers are available in the market, including air-cooled screw chillers, water-cooled screw chillers, and industrial screw chillers.

The air-cooled screw chillers are suitable for working in extreme tropical weather conditions and maintaining energy and operational efficiency. The equipment is developed and built to the highest possible design and manufacturing standards. The environmentally friendly chillers are simple to install and have passed all of the necessary international tests to ensure they are up to par with the best.

Furthermore, Industrial screw chillers are designed and constructed for various cooling processes, each distinct from the others. The industrial chillers are made of high-quality materials and metallurgy and they're equipped with Europe's most efficient compressors. Materials and metallurgies are selected based on the process fluid used and requirements.

For instance, on March 30, 2021, Kaltra launched its next-generation screw chillers. The new ERP 2021 (Tier-2) compliant range delivers around 250 to 1850kW cooling with an energy efficiency of around 3.56 for 7/12° water and 35°C ambient air. Seasonal efficiency (ESEER) is as high as 4.89

Chillers Market Geographical Analysis

The recovery of several end-use sectors focusing on the chiller market in China, India, and Southeast Asian countries is driving the market share for the product in the region

In terms of volume and value, Asia-Pacific accounted for the highest share of the chillers market in 2020. During the forecast period, chillers are predicted to rise the most in Asia-Pacific. The recovery of several end-use sectors in China, India, and Southeast Asian countries is driving the market in this region.

Global chiller manufacturers are establishing production sites in Asia-Pacific countries to expand their market position. India is a big manufacturing process market and one of the world's largest chiller consumers.

Furthermore, rising investments in the region's commercial and residential construction industries and the rising number of data centers are anticipated to impact the chillers market growth over the forecast period positively.

The rapid expansion of transportation infrastructure in the Kingdom of Saudi Arabia (KSA) is predicted to spur residential and commercial development in surrounding areas, boosting product demand over the forecast period. Factors such as increased tourism, population expansion, and rapid urbanization are propelling the construction industry, which is driving the chiller market in the country.

Furthermore, due to the increased consumption of frozen foods, product demand in Europe's food & beverage industry accounted for over 20% of the region's industrial sector revenue. In addition, rising demand for small and medium-power cooler units in Southern Europe is expected to boost product demand in the region.

Chillers Companies and Competitive Landscape

The global chillers market is highly competitive with local and global companies. Some prime companies contributing to the market's growth are Daikin Industries, KKT Chillers, MTA S.P.A, Friulair S.R.L, Carrier Corporation, Trane Technology, Johnson Controls- Hitachi Air Conditioning, Mitsubishi Electric Corporation, Smardt Chiller Group Inc., HYDAC International, Reynold India Pvt. Ltd and others.

The major companies are adopting several growth strategies such as acquisitions, product launches, and collaborations, contributing to the global growth of the chillers market.

• In June 2021, Carrier Corporation acquired Guangdong Giwee Group and its subsidiaries, Guangdong Chigo Heating & Ventilation Equipment Co., Ltd. The acquisition aims to expand Carrier Corporation's access to the rapidly growing variable refrigerant flow (VRF) and light commercial market, which is expected to reach approximately US$ 20 billion by 2025

Daikin

Overview: Daikin Industries, Ltd is a Japanese multinational air conditioning manufacturing company headquartered in Osaka. It has operations in Japan, China, India, Southeast Asia, Europe, Australia, the U.S., the Middle East, Latin America, and Africa. Akira Yamada created Daikin Industries Ltd in 1924 as Osaka Kinzoku Kogyosho LP. Daiflon, or polychlorotrifluoroethylene, was invented in 1953. The company was called Daikin Kogyo Co Ltd in 1963 when Neoflon was developed. The company was renamed Daikin Industries Ltd in 1982.

Product Portfolio:

• Water-Cooled Chillers: Daikin water-cooled chillers are built to last in difficult environments worldwide, delivering great quality, efficiency, and energy savings. Air conditioning applications, industry-type process cooling, and large-scale district heat source systems are all possibilities.

Key Development

• In January 2021, Daikin acquired ABCO HVACR Supply + Solutions ABCO. The strategy gives Daikin's extensive range of equipment, components, and accessories a strong foundation. Furthermore, it improves Daikin's ability to collaborate in local regions with ABCO branches, Daikin group companies, and Daikin's complete regional customer base.

Why Purchase the Report?

• Visualize the global chillers market segmentation by type, product, power range, end-user, and region, highlighting key commercial assets and players.
• Identify commercial opportunities in the chillers market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global chillers market-level 4/5 segmentation points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the critical product of all major market players

The global chillers market report would provide approximately 69 market data tables, 68 figures, and 180 pages.

Target Audience 2023

• Service Providers/ Buyers
• Chemicals & petrochemicals Companies
• Research Laboratory
• Manufacturers
• Food and Beverage companies
• Distributors