Global Chillers Market Size, Share & Industry Trends Analysis Report By Type, By End User, By Product Type (Water Cooled Chiller and Air Cooled Chiller), By Power Range, By Regional Outlook and Forecast, 2023 - 2029

Global Chillers Market Size, Share & Industry Trends Analysis Report By Type, By End User, By Product Type (Water Cooled Chiller and Air Cooled Chiller), By Power Range, By Regional Outlook and Forecast, 2023 - 2029

The Global Chillers Market size is expected to reach $13.2 billion by 2029, rising at a market growth of 4.0% CAGR during the forecast period.

Asia Pacific is the leading region in chillers because of the demand for air conditioning systems due to increased urbanization and rising global temperatures. In addition to residential and commercial structures, industrial facilities, and moving vehicles, they are employed in many different contexts. Hence, Asia Pacific generated $4,605 million revenue in 2022. In these environments, chillers are used to cool the air, increasing comfort, lowering humidity, and maintaining air quality. Moreover, due to the expansion of the building sector, particularly in emerging economies. Since high-efficiency it can aid in lowering energy consumption and carbon emissions, their use in air conditioning systems also complies with the rising need for energy-efficient solutions.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In February, 2023, LG Electronics USA revealed Inverter Scroll Heat Pump Chiller that features a cooling capacity up to 110° Fahrenheit and a heating capacity of down to 32° Fahrenheit. Additionally, the heat pump chiller features LG inverter technology which enables the unit to adjust according to the changing loads. Additionally, In February, 2023, Johnson Controls unveiled The YORK YLAA Air-Cooled Scroll Chiller and The YORK YVFA Free-Cooling, Variable-Speed Screw Chiller. The new YORK YLAA Air-Cooled Scroll Chiller features a soldered plate evaporator and two autonomous circuits for partial verbosity. The YORK YVFA Free-Cooling, Variable-Speed Screw Chiller features air-to-liquid free-cooling coils and variable-speed drive (VSD) compressors which help in improving productivity.

Based on the Analysis presented in the KBV Cardinal matrix; Carrier Global Corporation is the forerunner in the Market. In October, 2022, Carrier enhanced its AquaForce Vision 30KAV liquid chiller range with five better capacity models. The new models feature a range between 900kw and 1300 kw that would allow customers to meet their needs to increase capacity. The new range also features options for low-noise and heat recovery fans. Companies such as Daikin Industries, Ltd., Trane Technologies PLC, Mitsubishi Electric Corporation are some of the key innovators in Market.

Market Growth Factors

Rising demand for process cooling in industrial sector

The rise in living standards across the world has led to a growth in demand for leisure and comfort goods like refrigerators and air conditioners. Another factor propelling the demand for cooling equipment is the expanding food and healthcare sectors. Furthermore, the demand for refrigeration equipment is expanding rapidly due to rising frozen food consumption and rising population numbers. As a result, the chiller market is growing due to increased demand for refrigeration. All of these elements are predicted to have a beneficial impact on the growth of the market during the projection period.

Growing popularity of smart chillers

Chillers with smart connectivity feed data straight from the unit to the cloud so personnel can use it for advanced analytics and remote monitoring. Now that chillers have smart connectivity, machine operators can anticipate when a chiller may malfunction or run below peak efficiency. With fewer interruptions, less downtime, and longer equipment life, operators can now do early or predictive maintenance. Cloud data storage, critical alarm systems, and remote monitoring and diagnostics functionality are some important aspects of smart connected chillers. The use of smart connected chillers is anticipated to develop due to their numerous advantages, which will stimulate the market's expansion.

Market Restraining Factors

Large sums are required to be invested and maintenance cost is also high

Manufacturers are increasingly providing financing alternatives and leasing contracts to clients to overcome these obstacles and make it simpler for customers to buy and install high-efficiency chillers. Furthermore, some manufacturers are putting a lot of effort towards lowering the maintenance requirements for their chillers by including self-diagnostic capabilities and other cutting-edge technology that can find and fix issues before they become significant difficulties. Therefore, even though the chiller market is hampered by high initial and ongoing costs, manufacturers are addressing these problems and lowering the cost, and increasing the accessibility of chillers for a wider variety of consumers.

Type Outlook

By type, the market is segmented into screw chiller, scroll chiller, centrifugal chiller, and others. In 2022, the screw chiller segment held the highest revenue share in the market. Product popularity results from several aspects like affordability, ease of upkeep, and high efficiency. Furthermore, it is anticipated that the market will be driven in the near future by rising demand from sectors like oil and gas, pharmaceuticals, chemicals, food and beverage, and the automotive industry. In addition, because screw compressors use an environmentally benign refrigerant, environmentally concerned consumers are largely embracing them.

Product Type Outlook

On the basis of product type, the market is categorized into air cooled chiller, and water cooled chiller. In 2022, the water cooled chiller segment witnessed the largest revenue share in the market. This is because these systems, as compared to air-cooled equipment for significant cooling loads, have a longer lifespan and higher efficiency. The inside of the buildings is equipped with water-cooled machinery, which guarantees the gradual deterioration of the parts. Typically utilized for high-capacity applications, water-cooled chillers employ water from external cooling towers.

Power Range Outlook

Based on power range, the market is divided into less than 50 kW, 50-200 kW, and more than 200 kW. The 50-200 kW segment garnered a significant revenue share in the market in 2022. The residential & commercial spaces are best suited for chillers that are less than 50 kW. They are sturdy, easy to install, lightweight, and energy efficient. According to the necessary cooling conditions in the laser industry, plastics industry, and other industries, these chillers are utilized to effectively carry out a wide range of medium-duty applications.

End User Outlook

By end user, the market is bifurcated into chemicals & petrochemicals, food & beverages, medical and others. The food & beverages segment covered a considerable revenue share in the market in 2022. The segment is anticipated to experience growth over the next ten years due to an increase in the demand for glycol chillers in wineries and breweries to maintain beverage temperatures. Additionally, industrial chillers may effectively circulate chilled propylene glycol through creative cooling coils to maintain the cold temperature of the food storage containers and beverages.

Regional Outlook

Region wise, the market is analyzed across North America, Europe, Asia Pacific and LAMEA. In 2022, the Asia Pacific region led the market by generating the highest revenue share. Chillers are widely used in China's industrial sector since they are affordable and simple to install. Additionally, it is anticipated that the market will grow due to a rise in construction projects in Asia. Also, the chiller market is anticipated to expand due to the rising demand brought on by increased investments in data centers.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Carrier Global Corporation, Mitsubishi Electric Corporation, Daikin Industries, Ltd., Dimplex Thermal Solutions, Inc. (GlenDimplex), LG Electronics (LG Corporation), Johnson Controls International PLC, PolyScience (Preston Industries, Inc.), Smardt Chiller Group Inc. (Nanjing TICA Environmental Technology Co., Ltd.), Thermax Limited and Trane Technologies PLC.

Recent Strategies Deployed in Chillers Market

Partnerships, Collaborations, and Agreements:

Jan-2023: LG Gulf Electronics, a subsidiary of LG Electronics Global announced a distribution agreement with Khansaheb Industries, an HVAC contractor based in Dubai. Under the agreement, Khansaheb Industries will promote LG HVAC equipment in the UAE market, thereby allowing LG to strengthen its presence in the UAE market.

Jun-2021: Trane Technologies announced a partnership with Honeywell. The partnership would enable the company to offer its clients solutions for the adaptation of environment-friendly refrigerants. The partnership allows Trane to serve its customers in a better way by facilitating them in meeting their sustainability goals.

Product Launches and Product Expansions:

Feb-2023: LG Electronics USA revealed Inverter Scroll Heat Pump Chiller. The LG Inverter Scroll Heat Pump Chiller features a cooling capacity up to 110° Fahrenheit and a heating capacity of down to 32° Fahrenheit. Additionally, the heat pump chiller features LG inverter technology which enables the unit to adjust according to the changing loads.

Feb-2023: Johnson Controls unveiled The YORK YLAA Air-Cooled Scroll Chiller and The YORK YVFA Free-Cooling, Variable-Speed Screw Chiller. The new YORK YLAA Air-Cooled Scroll Chiller features a soldered plate evaporator and two autonomous circuits for partial verbosity. The YORK YVFA Free-Cooling, Variable-Speed Screw Chiller features air-to-liquid free-cooling coils and variable-speed drive (VSD) compressors which help in improving productivity.

Oct-2022: Carrier has enlarged its AquaForce Vision 30KAV liquid chiller range with five better capacity models. The new models feature a range between 900kw and 1300 kw that would allow customers to meet their needs to increase capacity. The new range also features options for low-noise and heat recovery fans.

Oct-2022: Carrier made an enhancement to its AquaEdge 19DV range in North America. The new features include a capacity of up to 1150 tonnes, and a Variable frequency drive (VFD). Furthermore, the range is now supported by Carrier’s BluEdge service platform which is used for providing instant dashboards and executable analytics.

Oct-2022: Mitsubishi Electric has released R32 air-source reversible heat pump chiller (the MEHP-iS-G07) and R32 air-cooled chiller (the MECH-iS-G07). The new range features a cooling capacity between ranges of 50 to 220 kW. Additionally, the R32 air-cooled chiller and an R32 air source reversible heat pump chiller come with variable-speed scroll compressors and are available in seven sizes.

Mar-2022: Carrier unveiled AquaForce Vision 30KAV with PUREtec refrigerant chillers line. The new line is useful in various applications including plastics, pharmaceuticals, chemicals, etc. The new chiller line features capacity ranges from 280kW to 800 kW and -4 to -8 degree medium temperature process cooling and 530kW to 1300kW for 12 to 7 degC for high-temperature process cooling.

Jan-2022: Daikin has launched SiteLine Building Controls. SiteLine Building Controls is a system of cloud-based technologies that are used to monitor, connect and manage individual fragments of HVAC equipment. SiteLine Building Controls features three offerings namely, SiteLine for Wireless BAS, SiteLine for Dedicated Equipment, and SiteLine for Pre-Programmed BAS.

Feb-2021: Daikin has launched the VZ series (Water-cooled chiller range) and TZ series (Air-cooled chiller range). The VZ series features a cooling capacity between the range 340 kW up to 1600 kW and the TZ series features a cooling range between 130 kW up to 830 kW. Additionally, the two ranges feature Variable Volume Ratio (VVR) equipped inverter driven single screw compressor.

Dec-2020: Mitsubishi Electric has introduced NX2 range of air-source scroll chillers. The new chillers feature a capacity range from 40kW to 376kW and additional features including night modes which decreases sound level by reducing resource activity during low load periods, and leak detection.

Acquisition and Mergers:

May-2023: Trane Technologies had announced the acquisition of MTA, a chiller manufacturer based in Italy. The acquisition would improve Trane's HVAC abilities in several key markets. Additionally, the acquisition also allows the company to serve their customers in a better way by facilitating decarbonizing their operations.

Mar-2023: Daikin has announced the acquisition of Alliance Air Products, an air-handling equipment manufacturer based in San Diego. The acquisition provides Daikin with technology and engineering expertise related to data center cooling thereby strengthening their portfolio and allowing Daikin's ability to better serve their customers.

Jan-2023: Daikin Comfort Technologies North America, Inc., a subsidiary of Daikin, has announced the acquisition of Williams Distributing, Co., a distributor of ventilation, heating, and HVAC equipment. The acquisition provides Daikin with a strategic location for the development and testing of products. Furthermore, the acquisition strengthens the ability of Daikin to serve its customers in North America in a better way.

Jul-2022: Carrier has acquired Toshiba Carrier Corporation, a joint venture formed by the two companies earlier. The acquisition significantly aids the company in its multi-brand strategy and makes it a VRF leader by increasing its sales.

Oct-2021: Trane Technologies acquired Farrar Scientific, a chillers manufacturer based in the United States. The acquisition adds Farrar's low-temperature specialties to Trane's portfolio thereby allowing Trane to serve its biopharmaceutical and life science industries in a better way.

Jun-2021: Carrier took over Guangdong Giwee Group (Giwee Group), a technology group based in China. The acquisition enhances Carrier's stand in VRF and light commercial products and aids the company in its bid for geographical expansion.

May-2021: Johnson Controls International plc announced the acquisition of Silent-Aire, an air handler manufacturer based in Canada. The acquisition expands the portfolio of data center solutions of Johnson Controls International and aids them in their strategy for growth in worldwide markets.

Jan-2021: Daikin took over Citizen Industries Ltd., an air handling unit manufacturer based in India. The acquisition supports Daikin's strategy of gaining a dominant share across the Indian market. Additionally, the acquisition strengthens Daikin's infrastructure in India.

Scope of the Study

Market Segments covered in the Report:

By Type

• Screw Chiller
• Scroll Chiller
• Centrifugal Chiller
• Others

By End User

• Chemicals & Petrochemicals
• Food & Beverages
• Medical
• Others

By Product Type

• Water Cooled Chiller
• Air Cooled Chiller

By Power Range

• More than 200 kW
• 50-200 kW
• Less than 50 kW

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Carrier Global Corporation
• Mitsubishi Electric Corporation
• Daikin Industries, Ltd.
• Dimplex Thermal Solutions, Inc. (GlenDimplex)
• LG Electronics (LG Corporation)
• Johnson Controls International PLC
• PolyScience (Preston Industries, Inc.)
• Smardt Chiller Group Inc. (Nanjing TICA Environmental Technology Co., Ltd.)
• Thermax Limited
• Trane Technologies PLC

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