Chillers Market Expected to Reach $12.7 Billion by 2028

According to a new report published by Allied Market Research, titled, “Chillers Market by Type, Product Type, Power Range, and End User: Global Opportunity Analysis and Industry Forecast, 2021–2028,” The global chillers market size was $10.05 billion in 2019 and is expected to reach $12.67 billion by 2028, registering a CAGR of 3.7% from 2021 to 2028.  In 2019, Asia-Pacific dominated the global chillers accounting for nearly half the share of the market.

An increase in demand for process cooling in the industrial application, to control room atmosphere is anticipated to proliferate the growth of the global chillers market. In addition, rise in construction spending in countries such as India, Germany, Japan, the U.S., and others drives the growth of the market. For instance, expenditure on private construction activities by the U.S. government increased by over 50% and that on public construction surged by over 20% from 2012 to 2020. Further, the government spending on installing heating, ventilation, and air conditioning (HVAC) systems is expected to boost the global chillers market growth. For instance, in 2020, the German government spent $603.4 million for installing and upgrading heating, ventilation, and air conditioning systems in commercial and industrial buildings. An increase in spending on the tourism sector is expected to lead to rise in demand for chillers in the commercial and public buildings. This in turn is estimated to fuel the demand of the global chillers. For instance, according to the Central office of the Federal Agency for tourism, the Russian government planned to spend $1.85 million per year for 3-year period from 2020 to 2022. 

However, one of the major restraints for market is high initial capital investment and setup cost. In addition, fluctuation in raw material prices is anticipated to hamper the growth of the market. Conversely, technological innovation in the chillers is predicted to offer lucrative opportunities for the global chillers industry development. 

The COVID-19 pandemic has spread globally, causing an enormous impact on the overall community. This pandemic imposes health issues and a significant threat to worldwide economy, trade, and finance. The demand for chillers decreased in 2020, owing to low demand from various industries such as data centers, healthcare, and manufacturing companies, due to lockdown imposed by governments of many countries such as the U.S., India, and others. In addition, this epidemic has shut down the production of various products in the chillers market. This has constrained the growth of the chillers market since the past few months and is expected to continue during 2021.

For instance, net sales of LG Electronics dropped by 24.1% from quarter 2 (April 2019 to July 2019) to quarter 2 (April 2020 to July 2020). Also, lack of man power, and raw materials, in turn, halt the supply chain of the global chillers market. However, the market is expected to recover slowly  by the end of 2021 or the start of 2022 due to reduced restrictions and reopening of the chillers manufacturing companies at full scale.  In addition, with the availability of vaccine against COVID-19, the global chillers market share is expected to gradually witness growth from 2022 onwards.

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. Screw chiller segment having the highest revenue in 2019. 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.  More than 200 kW segment generated the highest revenue in 2019. By end user, it is fragmented into chemicals & petrochemicals, food & beverages, medical, and others. The others segment contributed the highest revenue in 2019.By region, it is studied across North America, Europe, Asia-Pacific, and LAMEA. 

The major players, such as 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 have focused on developing new products to strengthen their presence in the market. Moreover, these companies have adopted product launch, and business expansion as their key developmental strategies to improve their product portfolio. For instance, in December 2020, Mitsubishi Electric Corporation launched a new Climaveneta NX2 chillers. It is air cooled chiller having two or four scroll compressors. This chiller has cooling capacity ranging from 40 to 376 Kw. It is high energy-efficient chiller and is best suited for hotels, offices, hospitals, and universities.    

Key Findings Of The Study

• By type, the water-cooled segment was the largest revenue contributor in 2019.
• By product type, the screw chiller segment generated the highest revenue in 2019.
• By power range, the more than 200 kW segment generated the highest revenue in 2019.
• By end user, the others segment generated the highest revenue, in 2019. 
• By region, Asia-Pacific is anticipated to dominate the global chillers market trends throughout the study period.