According to the latest research report titled “HVAC Chillers Market Forecast to 2028 - COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to grow from US$ 9,425.53 million in 2021 to US$ 12,878.92 million by 2028; it is estimated to grow at a CAGR of 4.56% from 2021 to 2028.
Increasing Number of Data Centers to Drive Market Growth during Forecast Period
Data centers need a lot of energy, and the main driver of data center design engineers’ work is to offer reliable, energy-efficient, and cost-effective HVAC systems. The newest commercial chiller equipment provides proven reliability, competitive energy performance, and integral controls in a modular package without the requirement for water. Efficiency is a crucial factor while selecting the chiller for the data center. So, when it comes to finalize the chiller for this application, the selection of a unit having the right compressor is a primary task. In data centers, free cooling doesn’t always need an extremely cold climate. Whenever the outdoor temperature is sufficient cold, the chillers turn off the compressors and take the advantage of favorable outdoor temperature. Now-a-days, many companies are outsourcing their data operations to the third-party providers, which have got expertise in data center operations. Colocation data centers are particularly famous because they offer power, physical space, and cooling systems for local communication systems. Thus, rise in the number of data centers is anticipated to drive the growth of the global HVAC chillers market in the future.
The COVID-19 pandemic is predicted to have a greater impact on European industries than the 2008-2009 industrial crisis. The industrial sector in the region reported lower production levels in 2020 than those recorded in 2019. Several industries in Europe faced downfall in the second quarter of 2020, compared with second quarter of 2019. Disrupted supply chains and high demand from food & beverage facilities across the regions are a few of the major effects of the health crisis on the European HVAC chillers market.
Currently, Germany HVAC chillers market is the most impacted country by the COVID-19 pandemic across Europe, followed by France, the UK, and Italy. Owing to the implementation of containment measures, such as travel restriction and shutdown of manufacturing facilities and businesses in the region, the HVAC chiller market witnessed a crunch from supply side. Moreover, containment measures disrupted the operations of the end users of HVAC chillers, which subsequently affected negatively the market from demand side. However, as containment measures were relaxed, the HVAC chillers market started witnessing positive growth from the Q1 of 2021.
Several companies have adopted various strategies to continue their operations and increase their annual sales statistics. In 2021, rapidly expanding refrigeration and air conditioning wholesaler, TF Solutions announced that it is stocking Mitsubishi Electric products in all its branches. These products comprise e-series chillers, heat pumps, and air handling units etc. In 2020, Daikin agreed a joint venture with Singapore Electric Power to supply a centralized cooling system in Singapore’s first smart city. The company also signed a maintenance contract for the chillers.
Key Findings of Study:
The global HVAC chillers market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South America (SAM). The HVAC chiller market in Europe is subsegmented into France, Germany, Russia, Italy, the UK, and the Rest of Europe. Western European countries are more developed and technologically advanced than Nordic and Eastern European countries. The market growth in the region is largely attributed to the growing demand for HVAC chillers in hotels, restaurants, food and beverages industry, office buildings and medical centers. The rising adoption of green building technologies is further expected to fuel the market growth in Europe. The green buildings are known to have energy-efficient operations, lower carbon footprints, and reduced environmental impact, which is encouraging residential and commercial developers, and governments to invest in this technology. Subsequently, the demand for HVAC systems is expected to increase with the rise in application of renewable energy for heating and ventilation of premises. The surge in demand for frozen food, increase in number of data centers, and high demand for district cooling, coupled with growing application areas of scroll chillers across the industrial sector, is further contributing to the HVAC chillers market growth in Europe. Furthermore, the rising consumption of wines in Europe, such as Australian wines; growing number of grocery stores; and surging food delivery services would drive the growth of the HVAC chillers market in Europe. Continuous proliferation of the tourism industry in Europe also adds to the demand for district cooling systems, such as HVAC chillers, in new hotels and public infrastructure construction projects.
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