The chiller market was valued at approximately US$ 9,972.06 million in 2022 and is anticipated to grow to US$ 14,870.70 million by 2030, reflecting a compound annual growth rate (CAGR) of 5.1% from 2022 to 2030.
Global economic improvements, alongside urbanization, have significantly contributed to the expansion of the industrial sector. This growth is evident in the increased construction of healthcare facilities, shopping malls, hotels, commercial buildings, and manufacturing plants, all of which are driving the demand for chillers. Urbanization has transformed lifestyles, leading to a heightened focus on safety and security. Additionally, advancements in technology and changes in governmental and organizational regulations regarding temperature management are further fueling the chiller market's growth. For instance, in 2018, Japan's healthcare expenditure as a percentage of GDP was around 11%, rising from 7.7% in 2004, with an average annual growth rate of 2.69%. This trend indicates a growing need for chillers in the healthcare sector. In Europe, urbanization and population growth are key factors propelling the chiller market, with United Nations projections suggesting that urbanization in Europe could reach approximately 83.7% by 2050. The European Environment Agency (EEA) reports that 75% of the EU population prefers urban living, and factors such as increasing disposable income, temperature concerns, and spending on comfort and luxury are also contributing to market growth.
Factors such as rising disposable income, technological advancements, and an increase in real estate development for residential purposes, along with the expansion of commercial spaces, are driving the chiller market's share. The construction industry's growth is particularly influential in boosting the chiller market in China. New developments in residential, commercial, and industrial sectors have led to a heightened demand for HVAC systems, which in turn increases the need for HVAC chillers. Innovations in building design and a stronger emphasis on energy efficiency have opened up opportunities for HVAC chiller manufacturers to enhance their market presence. Furthermore, initiatives promoting green building construction in both emerging and developed nations are creating significant growth prospects for the market. Notably, the People's Republic of China has experienced the fastest growth in energy consumption for space cooling globally over the past two decades, driven by rising incomes and a growing demand for thermal comfort. Consequently, the total number of installed residential cooling units, including dehumidifiers, fans, and HVAC chillers, is projected to exceed 1.1 billion by 2030, further supporting the chiller market's expansion.
In the industrial sector, industrial water chillers are employed across a wide array of applications where chilled liquids or water are circulated through process equipment. These chillers are primarily used for cooling machinery and products. Water chillers find applications in various fields, including tool and die cutting, injection molding, food and beverage processing, laser operations, chemical production, semiconductor manufacturing, and machine tooling. Since heat is a common byproduct of industrial processes, it is crucial to manage heat effectively, as no industrial machine or process operates at 100% efficiency. Failure to remove excess heat can lead to reduced production efficiency, premature equipment failure, and potential shutdowns. Therefore, integrating cooling solutions into industrial process designs is essential to mitigate these issues. Companies like Reynold India Private Limited provide a range of industrial chillers, including versatile Scroll Chillers, advanced Screw Chillers, and customized industrial chillers.
Key players in the chiller market include Danfoss, Carrier Global Corporation, DAIKIN Industries, LTD, Johnson Controls, Kaltra, LG Electronics, Mitsubishi Electric Corporation, SKM Air Conditioning, Trane Technologies Inc, and Thermal Care, Inc.
The overall size of the chiller market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast of the chiller market size across various segments. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included VPs, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the chiller market.