The HVAC chillers market is projected to expand from US$ 9,425.53 million in 2021 to US$ 12,878.92 million by 2028, reflecting a compound annual growth rate (CAGR) of 4.56% during the period from 2021 to 2028.
Global economic improvements, alongside increasing urbanization, have significantly boosted the industrial sector. This growth is evident in the surge of construction projects, including hospitals, shopping malls, hotels, commercial buildings, and manufacturing plants, all of which drive the demand for HVAC chillers. Urbanization has transformed lifestyles, leading to a heightened focus on safety and security. Furthermore, advancements in technology, along with changes in governmental and organizational regulations regarding temperature management, are contributing to the expansion of the HVAC chiller market. For instance, in 2018, Japan's healthcare expenditure as a percentage of GDP was approximately 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. Additionally, urbanization and population growth in European nations are key factors propelling the chillers market in that region. According to United Nations projections, urbanization in Europe is expected to reach around 83.7% by 2050. The European Environment Agency (EEA) reports that 75% of the EU population prefers urban living. Rising disposable incomes, concerns about temperature control, and increased spending on comfort and luxury are among the factors fueling the global HVAC chillers market.
The HVAC chillers market is categorized based on technology, type, application, and geography. In terms of technology, the market is divided into air-cooled, water-cooled, and steam-fired chillers. The air-cooled segment held the largest market share in 2020. Regarding type, the market includes process chillers, scroll chillers, screw chillers, centrifugal chillers, and absorption chillers, with screw chillers representing a significant portion of the market in 2020. The application segment is divided into commercial, industrial, and residential categories, with the industrial segment accounting for the largest share in 2020. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with North America holding a substantial share of the global market in 2020.
The Asia Pacific region, home to some of the world's most populous nations such as China, India, and Japan, has experienced a significant impact from the COVID-19 pandemic. The temporary closure of industrial facilities disrupted both industrial and commercial operations due to decreased demand during the pandemic. Additionally, the crisis raised concerns about reduced investments in the commercial and industrial construction sectors across Asian countries, including India, Japan, South Korea, and other Southeast Asian nations. For example, Daikin Industries Ltd., a prominent player in this market, reported a revenue decline of approximately 2.2% in FY 2020 compared to FY 2019. The Asia Pacific market itself saw a year-on-year decline of 5.9% compared to FY 2019. However, forecasts suggest that the Asia Pacific region is expected to recover and exceed its 2019 performance by the end of FY 2022.
The overall size of the HVAC chillers market has been determined through a combination of primary and secondary research methods. The research process began 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 for the HVAC chillers market across all segments. Additionally, primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the HVAC chillers market.
Key players in the global HVAC chillers market include LG Electronics, Mitsubishi Electric Corporation, Carrier Global Corporation, DAIKIN INDUSTRIES, Ltd., Thermal Care, Inc., Trane, Kaltra, SKM Air Conditioning, Johnson Controls, Inc., and AIREDALE INTERNATIONAL AIR CONDITIONING LTD.