Chillers Market Research, 2032
The global chillers market size was valued at $9.8 billion in 2021, and is projected to reach $14.5 billion by 2032, growing at a CAGR of 3.5% from 2023 to 2032. Chillers are refrigeration devices designed to store food, beverages, and related ingredients, medicines, and other such perishable items to increase their life cycle. In addition, they are used for other purposes such as removal of heat from data centers.
Increasing industrialization and urbanization around the world has increased the demand for construction of residential buildings and commercial projects. For instance, according to the World Bank, to adequately meet the needs of the fast-growing urban population in India, which is expected to become 600 million by 2036, or 40% of the country's population, India would need to invest $840 billion, or $55 billion annually, in urban infrastructure over 15 years.
Furthermore, emerging economies are witnessing a boost in the manufacturing industry. For instance, in November 2022, Vietnam is constructing approximately 400 industrial parks around the country. Chillers are an important part of many industrial processes, as they provide reliable and efficient cooling solutions that help maintain optimal temperatures and prevent equipment failure. Thus, growth of manufacturing industry boosts the chillers industry.
In addition, the pharmaceutical manufacturing industry is also witnessing a significant growth, owing to a rise in geriatric population. For instance, in December 2022, Cadila Pharmaceuticals announced spending of about $12 million to build a facility in Odisha, India, for the formulation of pharmaceuticals. As a result, it is anticipated that the increasing number of factories across the world will accelerate the expansion of the chillers market, as chillers are an integral part of the pharmaceutical manufacturing industry.
Furthermore, the food processing market has witnessed significant growth in the past few years. The frozen food products include frozen fruits & vegetables, ready-to-eat meals, sea food, meat & poultry, soups, and others. Chillers are used in meat and poultry processing to maintain a low temperature during various stages of the process, such as slaughter, evisceration, and chilling. This helps to prevent bacterial growth and ensure food safety. In addition, busy lifestyles of people have increased the acceptance of frozen fruits and vegetables, as they offer increased convenience and serve as a healthy meal. Moreover, many consumers in countries such as India, China, U.S., Italy, and others, highly depend on packaged food, considering it to be more hygienic, which is a major factor contributing toward the growth of the global chillers market. A surge in demand from the food & beverage industry for chillers, due to a rise in adoption in areas such as breweries, distillers, food & dairy processing, propel the growth of the market.
However, chillers consist of a large number of components, thus, chillers have a high initial cost. The cost of raw materials such as copper, aluminum, and steel can be a significant portion of the total cost of manufacturing chillers, and any price fluctuations can affect the profitability of the manufacturers. Hence, factors such as high initial cost and fluctuating prices of raw materials restraints the growth of the market.
The chillers market is segmented into type, product type, power range, end user, and region. By type, it is divided into screw chiller, scroll chiller, centrifugal chiller, and others. By product type, it is bifurcated into air-cooled chiller, and water-cooled chiller. By power range, it is classified into less than 20 kW, 50-200 kW, and more than 200 kW. By end user, it is fragmented into chemicals & petrochemicals, food & beverages, medical, and others. By region, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
By type: In 2021, the screw chillers segment dominated the chillers market, in terms of revenue, and the centrifugal chillers segment is expected to grow with a higher CAGR during the forecast period. Screw chillers are used for cooling solutions in air conditioning systems as well as industrial processes. They are compact and lightweight chillers available with a cooling capacity ranging from 20 tons to 1,000 tons. Trane Technologies Plc., Daikin Industries Ltd., and Johnson Controls are some of the major players dealing with screw chillers in the market. Furthermore, centrifugal chillers are cooling systems that utilize vapor compressor to cool water and eliminate the heat from chilled water. Centrifugal chillers have a centrifugal compressor that can be cooled by a cooling tower. These chillers produce less noise, require less maintenance, and have less vibration than reciprocating chillers.
By power range: In 2021, the more than 200 kW segment dominated the chillers market, in terms of revenue, and the less than 50 kW segment is expected to grow with a higher CAGR during the forecast period. Chillers of cooling capacity more Than 200kW are highly reliable, energy-efficient, and consist of intelligent control. They are ideal for performing cooling applications in large factories and manufacturing plants.
The less than 50 kW chillers are most suitable for residential and commercial areas. They are easy to install, energy-efficient, lightweight, and robust. These chillers are used to efficiently perform a broad range of medium-duty applications as per the required cooling conditions in the plastic industry, laser industry, and others. Major players such as Smardt Chiller Group, and Mitsubishi Electric Corporation are offering less than 50 kw chillers.
By end user industry: In 2021, the other segment dominated the chillers market, in terms of revenue, and the medical segment is expected to grow with a higher CAGR during the forecast period. An increase in demand from pharmaceuticals and medical industries to remove excess heat from hospitals MRI units to continue its operation is expected to drive the growth of the global chiller market. Advancement in health facilities has led to an increase in the number of surgeries taking place in hospitals, which boosts the demand for surgical and orthopedic devices, which, in turn, caters to the growth of the market.
By region: In 2021, Asia-Pacific accounted for the largest chillers market share of the market in 2021, and it is expected to experience rapid growth during the forecast period.
Asia-Pacific region includes China, Japan, India, South Korea and Australia, and rest of Asia-Pacific. Asia-Pacific has a rapidly growing chemical industry, owing to expansion strategies adopted by various private and public players. For instance, in November 2021 India, Indian Oil Corporation (IOCL) announced its plan to build India's first mega-scale maleic anhydride facility for producing high-value specialty chemicals at its refinery in Haryana, at a cost of $495.2. Furthermore, Asia-pacific has the fastest growing manufacturing industry in the world. All such instances are anticipated to provide lucrative opportunities for the chillers market growth.
Key companies profiled in the chillers market forecast report include, Carrier Global Corporation, Mitsubishi Electric Corporation, Daikin Industries Ltd, Dimplex Thermal Solutions, LG Electronics, Johnson Controls International Plc, Gree Electric Appliances Inc of Zhuhai, Midea Group Co. Ltd, Thermax Ltd, and Trane Technologies Plc. The major players, in the industry have focused on developing new products to strengthen their presence in the market. For instance, in December 2020, Mitsubishi Electric Corporation launched a new Climaveneta NX2 chillers. It is an air-cooled chiller having two or four scroll compressors. This chiller has a cooling capacity ranging from 40 to 376 Kw. It is a high energy-efficient chiller, best suited for hotels, offices, hospitals, and universities.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the chillers market analysis from 2021 to 2032 to identify the prevailing chillers market opportunities.
- The market research is offered along with information related to key drivers, restraints, and chillers market opportunity.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the chillers market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global chillers market trends, key players, market segments, application areas, and market growth strategies.
Chillers Market Report Highlights
Market Size By 2032
USD 14.5 billion
CAGR of 3.5%
2021 - 2032
By PRODUCT TYPE
By POWER RANGE
By END USER
Key Market Players
TRANE Technologies Plc, THERMAX LTD., SMARDT CHILLER GROUP INC., LG Electronics, MITSUBISHI ELECTRIC CORPORATION, Polyscience Inc., DIMPLEX THERMAL SOLUTIONS, Carrier Global Corporation, JOHNSON CONTROLS INTERNATIONAL PLC, DAIKIN INDUSTRIES LTD
Growth of manufacturing industries, especially in countries such as India, China, and Vietnam, has led to rise in demand for chillers. In addition, growth in the foods & beverages sector in countries such as South Korea, Germany, and the U.S. has increased demand for chillers. Furthermore, scroll chillers are ideal for use in small and medium scale industries.
In addition, advancements in technologies are expected to reduce the negative environmental impact of chillers. For instance, the introduction of low-GWP (global warming potential) refrigerant in chillers is anticipated to reduce pollution caused by them. Furthermore, the availability of chillers in a wide range of configurations and capacities increase its usability and positively influence the market.