The Chillers Market size was valued at USD 9.80 billion in 2020 and is projected to be worth around USD 14 billion by 2030, exhibiting a CAGR of 4.6% during the forecast period (2021 – 2030). The global Chillers Market will grow considerably driven by recent product advancements and wider application scope.
Chillers are used in large commercial and industrial spaces, where a huge amount of heat is generated. The mechanism of a chiller is to generate cold water and circulate it through tubes, subsequently dehumidifying the vapor. This helps regulate the temperature inside the space. In larger spaces, air conditioners tend to have lesser impact. Since chillers can be used as an excellent alternative to air conditioners, they will witness huge demand in the coming years. The growing demand in several industrial sectors will have a direct impact on the growth of the global market in the forthcoming years.
The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, major product types, and leading applications of the product. Besides, the report offers insights into the ongoing Chillers Market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years. Based on extensive research methods, forecast values have been drawn for the period of 2021-2030.
Increasing Consumption of Ready-to-eat Products to Spur Demand
The rising demand for frozen food and milk and beverage will fuel demand for the market. The booming food and beverage industry will further create opportunities for the market during the forecast period. The growing consumption of ready-to-eat products will contribute positively to the growth of the market. The evolving lifestyle of consumers has led to high demand for processed food, which, in turn, will drive the market in the forthcoming years. The growing awareness about the advantages of processed food including easy preservation and storage, immediate consumption, time-efficient, and easy cooking will augur well for the market during the forecast period. The rising demand for soft-drink and alcoholic beverages will have an excellent effect on the market in the foreseeable future. Moreover, the introduction of innovative refrigerants by major industry players will promote the growth of the market.
Driven by High Product Demand, Market to Witness Several New Products
The growing industrialization in several countries across the world has led to an increase in the number of industrial manufacturing units. This, in turn, has led to a subsequent demand for the product. The increasing investment towards the development of chillers will yield several new products. In 2018, Daikin announced the launch of new product to its range of chillers. The company introduced a new series of highly advanced and compact DZ chillers. The products were equipped with eco-friendly features, a factor that will lead to rapid adoption for the device in the coming years. The report identifies several product launches, similar to Daikin's latest range of chillers and gauges the impact of these products on the market.
The water-cooled segment led the market and accounted for 62.5% of the global revenue in 2020, owing to the longer life span and high efficiency of these systems as compared to the air-cooled equipment for large cooling loads. Water-cooled equipment is installed inside the buildings, which ensures the slow deterioration of the components.
The air-cooled segment is anticipated to witness the fastest CAGR of 5.3% from 2021 to 2028, in the Asia Pacific region, on account of the low cost of these equipment attributed to a fewer number of components in the system. These coolers require less space and can be installed on roof-tops of the buildings, resulting in more space within the structure for other amenities.
Compressor Type Insights
Screw chillers led the market and accounted for 50% of the global revenue share in 2020. These coolers work on either air-cooled or water-cooled mechanisms, using two interlocking rotating helical rotors for compressing the refrigerant. The capacity of the products is controlled with the help of a slider or speed control.
Absorption chillers are used in applications with high-quality waste heat, including building with heated swimming pools and hospitals. Furthermore, buildings having combined heat and power (CHP) engines are paired with absorption coolers. The absence of a compressor in the absorption coolers results in direct or indirect firing and controlling the capacity through the amount of heat entering the system.
The demand for reciprocating chillers is estimated to witness growth at a CAGR of 3.1% from 2021 to 2028, in terms of revenue, on account of its installation in small and medium cooling loads with low-cost refrigerators. These coolers use chamber and piston to compress the refrigerant and control the capacity through speed control, and cylinder unloading or compressor staging.
The commercial sector led the market and accounted for 44.2% of the global revenue share in 2020. Chillers are used in various commercial buildings, such as corporate offices, data centers, public buildings, healthcare facilities, education institutes, and warehouses, to maintain the temperature in the structures during warm weather.
Chillers are used in data centers for cooling the heat generated in the high-density enclosed spaces. The requirement of maintaining constant temperature, humidity, air cleanliness, and air movement within the data centers to avoid downtime and equipment failure is expected to augment the product adoption in the commercial sector.
The product demand in the food & beverage industry is estimated to witness growth at a CAGR of 3.2% from 2021 to 2028, in terms of revenue. Glycol chillers are used in wineries and breweries to maintain the temperature of the beverage products. These coolers circulate chilled propylene glycol through the cooling coils for keeping the cold temperature of the beverage and food storage units.
The explosion-proof chillers are used by petrochemical companies, such as Chevron, Shell, and Exxon, and in off-shore oil rigs to maintain the facilities' temperature. The low-temperature systems aid in maintaining temperatures as low as -40° F and are used for petrochemical cooling and to create ice for ice skating rinks.
The Asia Pacific dominated the market and accounted for over 45.5% of global revenue in 2020 due to the investments in the commercial and residential construction industries. The rising number of data centers in the region is anticipated to have a positive impact on the chillers market growth over the forecast period.
The rapid growth of transportation facilities in the Kingdom of Saudi Arabia (KSA) is expected to boost residential and commercial development in vicinities, which is expected to have a positive impact on the product demand over the forecast period. Factors, such as increasing the tourism sector, population growth, and rapid urbanization, are driving the construction industry, in turn, driving the chillers market growth in the country.
The product demand in Europe's food & beverage industry accounted for over 20% of the region's industrial sector revenue, owing to the rising consumption of frozen foods. Furthermore, increasing demand for small- and medium-power cooler units in Southern Europe is anticipated to drive the product demand in the region.
List of Key Companies:
Mercantile & Service
Food & Beverage
Metal Manufacturing & Machining
Medical & Pharmaceutical
By Region Outlook:
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