Chillers Global Market Report 2024

Chillers are essential systems used for controlled cooling in various industries. They are refrigeration systems designed to lower the temperatures of process fluids, machinery, and other applications by extracting heat and transferring it to other spaces. Chillers play a crucial role in regulating and maintaining temperatures in different industrial settings.

The primary types of chillers include air-cooled chillers and water-cooled chillers. Air-cooled chillers are commonly utilized in commercial and industrial facilities. They function by absorbing heat from process water and transferring it to cool fluids, also contributing to the dehumidification of air. Chillers are categorized based on their power range, which includes less than 50 kW, 50-200 kW, and more than 200 kW. Additionally, chillers vary by compressor type, with options such as screw chillers, centrifugal chillers, absorption chillers, and reciprocating chillers. These chillers find applications in commercial, industrial, and residential spaces.

The Chillers Global market research report is one of a series of new reports that provides Chillers Global market statistics, including Chillers Global industry global market size, regional shares, competitors with a Chillers Global market share, detailed Chillers Global market segments, market trends and opportunities, and any further data you may need to thrive in the Chillers Global industry. This Chillers Global market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The chillers market size has grown steadily in recent years. It will grow from $9.04 billion in 2023 to $9.43 billion in 2024 at a compound annual growth rate (CAGR) of 4.3%. The expansion observed in the historic period can be attributed to various factors, including the growth in industrial and commercial construction, the expansion of HVACR (Heating, Ventilation, Air Conditioning, and Refrigeration) systems in residential and commercial buildings, the adoption of process cooling in industrial applications, an increased demand for air conditioning and refrigeration, and a heightened focus on energy efficiency and sustainable cooling solutions.

The chillers market size is expected to see strong growth in the next few years. It will grow to $11.68 billion in 2028 at a compound annual growth rate (CAGR) of 5.5%. The anticipated growth in the forecast period can be attributed to factors such as urbanization and the growth of megacities, driving increased demand for cooling solutions, the expansion of data centers and IT infrastructure, the adoption of chillers in food and beverage processing, the demand for district cooling systems in urban developments, and market growth in developing economies and emerging markets. Major trends expected in the forecast period include the transition to low-GWP (Global Warming Potential) refrigerants, integration with smart building systems, the development of modular and scalable chiller systems, the use of heat recovery chillers for cogeneration, and the incorporation of advanced controls and predictive analytics.

The uptick in the construction of new commercial buildings is anticipated to drive the growth of the chillers market. Chillers play a crucial role in these structures by facilitating temperature control through the removal of heat from the air. The integration of smart technologies in commercial buildings, such as occupancy sensors, smart thermostats, and HVAC and lighting controls, contributes to energy efficiency by reducing consumption in unoccupied spaces. According to The American Council for an Energy Efficient Economy (ACEEE), the implementation of smart building technologies can lead to an 18% reduction in energy consumption for HVAC systems, a 28% decrease for plugged equipment, and a 33% decline for lighting. This trend creates opportunities for stakeholders in the chillers market as new commercial constructions seek advanced cooling solutions.

The burgeoning food and beverage industry is set to propel the expansion of the chillers market. Across various segments, including production, distribution, and retail, chillers play a vital role in maintaining precise temperatures during food processing, storage, and transportation, ensuring the quality and safety of products. Notably, the industry witnessed a significant 31% increase in exports in 2022 compared to the previous year, as reported by the Food and Drink Federation. The sector's robust performance, with a turnover of $10.84 billion (£10.3 billion) in 2022, making up 33% of Scotland's total manufacturing output, emphasizes the critical role of chillers in supporting the growth of the food and beverage market.

Key players in the chillers market are directing their efforts towards developing energy-efficient water chillers to enhance their competitive position. These advanced chillers contribute to reduced energy consumption and operational costs in cooling systems by efficiently cooling water for various applications. In March 2023, Atlas Copco Compressors LLC introduced its TCA water chiller range, featuring patented adiabatic pre-cooling systems and integrated free-cooling sections. The flagship model, TCA55-215, offers a range of configurations with cooling capacities from 55 to 228 kW. Equipped with innovative features, these units prioritize energy efficiency, operational safety, simplified installation and maintenance processes, and cost-effectiveness. This strategic focus on energy-efficient solutions positions companies to meet the evolving demands of the chillers market.

Prominent players in the chillers market are strategically investing in the development of cutting-edge technologies, specifically focusing on innovative gas and electric hybrid chillers to secure a competitive advantage. Gas and electric hybrid chillers integrate natural gas and electricity for cooling purposes, presenting a dual-energy solution that enhances energy efficiency and offers flexibility in managing cooling loads. A noteworthy example is Tecogen Inc., a US-based manufacturer of combined heat and power products, which introduced the Tecochill Hybrid-Drive air-cooled chiller in January 2023. This hybrid chiller seamlessly integrates cost-effective natural gas and grid electricity, utilizing hybrid drive technology to achieve efficient output adjustments similar to traditional variable frequency drive (VFD) chillers while significantly reducing operational costs.

In January 2022, Piovan Group, an Italy-based company with a subsidiary named Aquatech, completed the acquisition of IPEG, Inc. for approximately $125 million. This strategic move involved Piovan acquiring 100% of the outstanding shares of Ipeg, which owns four prominent brands - Conair, Thermalcare, Pelletron, and Republic Machine. The acquisition provides Piovan with a substantial market share in North America, bolstered by IPEG's formidable customer base. Moreover, it expands production capacity, both in India and the United States, to manufacture advanced chillers. IPEG, Inc., a US-based company specializing in industrial chiller manufacturing, operates globally with subsidiaries in the US, India, Mexico, Germany, China, Taiwan, and Singapore. This acquisition enhances Piovan's position in the chillers market and positions them for further growth and innovation.

Major companies operating in the chillers market include Carrier Corporation, Daikin Industries Ltd., Trane Technologies PLC, Hitachi Air Conditioning Company Ltd., Johnson Controls International PLC, Thermax Limited, Smardt Chiller Group Inc., Mitsubishi Electric Corporation, Midea Group Co. Ltd., LG Electronics Inc., Reynold India Pvt. Ltd., Dimplex Thermal Solutions, Dunham-Bush Ltd., Frigel Firenze SpA, Friulair S.R.L., HYDAC International GmbH, Thermal Care Inc., SKM Air Conditioning, Meccanotecnica Applicata S.r.l., KKT Chillers, Glen Dimplex Thermal Solutions, Delta T Systems Inc., Chase Cooling Systems, TopChiller, CAREL UK Ltd., Thermo Fisher Scientific Inc., Thermionics Corporation, Welkin Solutions, Frost Italy S.r.l., Cold Shot Chillers, York International Corporation, McQuay International, Multistack LLC, Airedale International Air Conditioning Ltd., Blue Star Limited, Gesellschaft für Entstaubungsanlagen Group AG, Danfoss A/S, Climaveneta S.p.A., Lennox International Inc.

Asia-Pacific was the largest region in the Chillers market in 2023. The regions covered in the global chillers market analysis report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the Chillers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The chillers market consists of sales of condenser, compressor, evaporator, expansion valves. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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