PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1638689
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1638689
Global industrial chillers market is projected to witness a CAGR of 4.54% during the forecast period 2025-2032, growing from USD 10.91 billion in 2024 to USD 15.56 billion in 2032.
The increased focus on smart and connected chillers while focusing on sustainability is likely to transform the market landscape. With IoT technology, energy efficiency and operational reliability in chillers are increased through real-time monitoring and predictive maintenance. It is an essential change as the industries strive to minimize downtime and reduce operational costs while meeting environmental regulations. The demand for environmentally friendly chillers with low-GWP (Low Global Warming Potential) refrigerants and energy-efficient designs is on the rise. The global sustainability trend compels manufacturers to develop innovative chillers that minimize their environmental footprint.
The generation process of adsorption refrigeration includes refrigerant vapor molecules desorbing from the solid. In this regard, CFCs (chlorofluorocarbon) or ammonia are not used. The cooling process is driven by heat and is non-polluting. As a by-product of its creation for refrigeration, waste heat must be exhausted for greater efficiency or recovered for heating purposes. The condensing side of the chiller can be either air or water-cooled. Even when a liquid is cooled, the chiller is often cooled by an induced or forced draft cooling tower. Absorption and adsorption chillers require a heat source for operation. Advanced industrial chillers are launching with higher performance for different end-user industries.
For instance, in April 2024, Carrier Global Corporation launched AquaForce 30XF chillers range for data centers. The AHRI and Eurovent-certified units, which come in capacities ranging from 400kW to 2100kW, are built on well-proven Carrier screw compressors, guaranteeing long-lasting, dependable performance. With the use of variable-speed inverter drives and an integrated hydronic free-cooling system, the company's new AquaForce 30XF air-cooled screw chillers can save up to 50% on energy costs while operating completely free-cooling.
Increasing Demand for Process Cooling and Technological Advancements Fuel Market Growth
One of the major trends responsible for maintaining the market for industrial chillers is the increased requirement for process cooling in several industries, including food and beverage, pharmaceuticals, and chemicals. These industries generate a huge amount of heat during production, and efficient cooling systems are necessary to maintain the ideal operating temperatures. The rapid growth of frozen food markets and the requirement for improved maintenance of temperatures in both food processing and storage fuels the market growth. Furthermore, healthcare is a wide sector that has various applications for chillers in cooling imaging equipment and other imperative medical applications, which offer a bright future for the market as these segments develop.
Innovative technology is one of the most important development drivers for the industrial chillers market. Manufacturers are increasingly incorporating advanced features like Internet of Things (IoT) connectivity, smart controls, and energy-efficient designs into products. These innovations facilitate the clocking of operations and reduce downtime, and consumption of energy, making them more appealing to customers. For example, these connected chillers provide real-time monitoring and offer predictive maintenance to prevent possible failures from occurring. Companies are more focused on the need for environmental conservation and economic power aspects, which has resulted in higher demand for these high-end chiller technologies.
For instance, in April 2022, Mitsubishi Heavy Industries Thermal Systems, Ltd. (Mitsubishi Heavy Industries, Ltd.) announced the launch of its new series of large-capacity centrifugal chillers, adopting the CFC-free HFO-1234yf refrigerant, ensuring a low environmental impact. Additionally, a completely new kind of compressor is used in the new series. Expanding the range of models makes it possible to choose the best compressor to match the chiller's output and achieve great performance across the capacity range.
Infrastructure Development and Focus on Sustainability to Fuel Market Growth
Another key driver for the industrial chillers market would be the increasing expenditure on infrastructure projects worldwide. The rise in commercial office spaces, manufacturing operations, data centers, and healthcare facilities is drawing up an increase in demand for effective cooling solutions. Urbanization and modernizing projects in these nations call for very strong infrastructure development. Efforts such as China's Belt and Road Initiative and many other government infrastructure programs are expected to provide significant business opportunities for the chiller manufacturers to satisfy the cooling demand generated by such new developments.
Accordingly, many projects are lagging due to conflicting conditions, which mainly shape the future of the whole project in all its aspects. For example, countries continuing their projects on a grand scale, such as China's Belt and Road initiative or a frenzied construction phase with some key measures such as making dams or laying a railway line in neighboring other countries, are supporting the market dynamics, increasing the demand for industrial cooling solutions. Also, companies seek environmentally friendly equipment for a lower carbon footprint.
For instance, in July 2024, Parker Hannifin Corp announced the launch of its Hyperchill Plus-E, a new eco-friendly industrial process chiller used in HVAC & Refrigeration, Industrial Manufacturing Equipment, Life Science, Oil and Gas, and Power Generation & Renewable Energy applications. Compared to earlier ranges, some extra features include the use of a lower Global Warming Potential (GWP) refrigerant, R513A, which is classified as Safety Class A1 by ISO 817. This GWP refrigerant can be installed both indoors and outdoors without posing any additional safety risks or requiring additional maintenance or transportation expenses because of its non-flammable characteristics.
Wide Range of Usage to make the Water-Cooled Segment Leading
Based on medium type, water-cooled chillers lead the industrial chillers market. Water-cooled chillers are known for their superior energy efficiency compared to air-cooled alternatives. They use cooling water, and the thermal conductivity value of water is higher than that of the air. Its dissipation potential is higher, so it consumes less power and saves resources. Therefore, they have become a go-to option where cooling capacities amount to a much larger scale due to manufacturing sites and data centers. They take up a significantly large range and are usually employed in the tons range of 10-4,000.
Water-cooled chillers' scalabilities make them handle heavy loads in cooling, a key factor in industries such as chemicals and pharmaceuticals in which temperature must be maintained with close accuracy. They are designed to last longer and be quite reliable under heavy operational loads. The robust construction and efficient cooling mechanisms present in the machine make it ideal for continuous industrial operations. This reliability is particularly important to industries that cannot afford downtime, such as healthcare and food processing, further securing water-cooled chillers' place as the end-user's first choice. Companies focus on launching water-cooled systems with lower global warming potential to capture a wide range of industrial applications.
For instance, in March 2024, Daikin Industries, Ltd. introduced an enhanced Navigator WWV water-cooled screw chiller with low-global warming potential (GWP) R-513A refrigerant. Building owners and operators can reduce utility costs and expedite their sustainability and decarbonization initiatives by combining a low-GWP refrigerant with a heat recovery arrangement.
Asia-Pacific Leads in the Industrial Chillers Market
Based on the region, Asia-Pacific leads the industrial chillers market and is expected to hold the major share during the forecast period. The region has experienced significant industrial growth, particularly in countries such as China, India, Japan, and South Korea. This rapid industrialization drives the demand for efficient cooling solutions in manufacturing processes, food and beverage production, and pharmaceuticals. The increasing number of manufacturing facilities and urban infrastructure projects necessitate advanced chillers to manage heat loads effectively, thereby propelling market growth.
The region is witnessing a surge in chemical production, with countries such as China and India leading in output growth. As new chemical plants are established, the need for reliable cooling systems becomes critical to ensure efficient processing and product quality. This demand is expected to further escalate as governments support industrial expansion through favorable policies. There is an increasing emphasis on energy-efficient solutions across various sectors in Asia-Pacific. Industries are adopting advanced chiller technologies that reduce energy consumption and operational costs. Water-cooled chillers are particularly favored for their efficiency and effectiveness in large-scale applications, aligning with global sustainability trends.
For instance, in June 2024, Carrier India (Carrier Global Corporation) launched a modular scroll chiller for local markets named 30 RB Air-Cooled Modular Scroll Chiller. The Carrier Modular Scroll Chiller raises the bar for performance and versatility because it was specifically made for India's diverse climate. Its ability to integrate up to 16 units into a single module ensures smooth functioning and continuous performance throughout a wide temperature range of 10°C to 48°C.
Future Market Scenario (2025 - 2032F)
There is a strong shift towards eco-friendly chillers as industries adapt to stringent environmental regulations to reduce greenhouse gas emissions, prompting the phase-out of HFCs in favor of natural refrigerants.
The incorporation of IoT technology into chillers is enhancing operational efficiency through features such as remote monitoring and predictive maintenance, leading to increased demand for smart chillers.
Ongoing infrastructure projects globally, such as China's Belt and Road Initiative, significantly boost the demand for industrial chillers across various sectors.
Screw chillers are expected to be the fastest-growing segment in the market, driven by their efficiency and performance in industrial applications.
Key Players Landscape and Outlook
The industrial chillers market is characterized by a dynamic competitive landscape where companies are leveraging several key strategies to enhance their market presence. Product innovation plays a crucial role, with a focus on developing energy-efficient chillers that utilize environmentally friendly refrigerants to meet regulatory standards and consumer demand for sustainability. Additionally, businesses are increasingly forming strategic partnerships and alliances to expand their technological capabilities and market reach. Integrating smart technologies is another significant trend, as companies adopt IoT solutions for remote monitoring and predictive maintenance, enabling improved operational efficiency and reduced downtime. Furthermore, there is a growing emphasis on customer-centric approaches, where firms tailor their offerings to meet the specific needs of various industries, such as healthcare, food processing, and manufacturing. Companies are expanding their operation across the globe for enhanced supply chains.
For instance, in January 2024, Trane Technologies plc expanded its manufacturing operations in Grand Rapids, Michigan to address growth in the data center and high-tech markets. The recent establishment of a third facility to produce Ascend air-cooled chillers effectively enhances the site's air-cooled chiller manufacturing capacity twofold and increases the overall manufacturing space at the location four times.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.