Chillers Market Size, Share & Industry Analysis, By Type (Screw Chillers, Scroll Chillers, Centrifugal Chillers, and Others), By Application (Chemicals and Petrochemicals, Food and Beverages, Plastics, Rubber, Medical, and Others), and Regional Forecast, 2019-2032

The global chillers market size was valued at USD 9.65 billion in 2018 and is expected to reach USD 17.60 billion by 2032, exhibiting a CAGR of 4.1% during the forecast period. Asia Pacific dominated the Chillers market with a market share of 50.15% in 2018. Rising demand for frozen food is driving the global chillers market. The chillers faucets market in the U.S. is projected to grow significantly, reaching an estimated value of USD 2.19 billion by 2032, driven by the growing industrial development and popularity of smart chillers.

The global chiller market is essential for industrial process cooling and commercial HVAC operations in industries such as manufacturing, healthcare, data centers, and food processing. Chillers enable accurate temperature control, ensuring constant performance and product integrity in temperature-sensitive environments.

Rapid industrialization, rising commercial real estate development, and a strong emphasis on energy efficiency and sustainability all contribute to market growth. The transition to low-GWP refrigerants, combined with developments in variable-speed compressors and sophisticated control technologies, is revolutionizing system design and purchase behavior.

Evolving government industrial policies is driving the industrialization in developing economies such as India, China, and Thailand. In 2015, China launched “Made in China 2025” a plan making innovation its top priority through various initiatives such as modernization and up-gradation of China’s manufacturing sector. China’s southern province of Hunan issued a three-year plan for AI sector in 2019. The Chinese minister of industry and information technology in 2019 commented on government planning on reduction of taxes and betterment of intellectual property rights in China Development Forum.

Water-cooled chillers remain dominant in large-scale installations due to their better thermal performance, although air-cooled systems are gaining favor in retrofit and space-constrained applications. Asia-Pacific remains the fastest-growing regional market, because to industrial development and infrastructure investment. North America leads in retrofit and replacement projects, which are supported by evolving energy-efficiency requirements.

As global environmental initiatives gain pace, end users increasingly regard chillers as strategic long-term assets. The next wave of market expansion is likely to be driven by the integration of automation, predictive maintenance, and energy optimization techniques, with chillers serving as the foundation for modern energy-efficient infrastructure.

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Global Chillers Market Overview

Market Size:

• 2018 Value: USD 9.65 billion
• 2032 Value: USD 17.60 billion
• CAGR: 4.1%
• Regional data (Asia Pacific): About USD 4.84 billion in 2018

Market Share:

• Regional Leader: Asia Pacific led the global market with 50.15% share in 2018, driven by industrial expansion in countries like China and India
• End-User Leader: The petrochemical industry emerged as a key adopter, representing a major application segment for chillers
• Product Segment Leader: Screw chillers were identified as the fastest-growing product segment during the forecast period

Industry Trends:

• Smart chiller adoption rising due to emphasis on preventive maintenance and IoT connectivity
• Shift toward low-energy, high-efficiency systems, including screw chillers powered by eco-friendly refrigerants
• Ongoing product innovations focused on reduced noise, minimal vibration, and compact design

Driving Factors:

• Industrialization and infrastructure development enhancing demand for temperature regulation systems
• Urbanization and construction activity, especially in Asia Pacific, as hotels, data centers, and commercial projects expand
• Environmental regulations and energy efficiency mandates pushing industries toward modern, clean refrigerant systems
• Demand in critical sectors like petrochemicals, pharmaceuticals, and food & beverages fueling chiller uptake

CHILLERS MARKET KEY TRENDS & INSIGHTS

The chillers market is undergoing a significant transformation as technology, policy, and sustainability come together. One of the most noticeable trends is the emphasis on energy efficiency and part-load optimisation, as most facilities operate below full capacity for extended periods of time.

Manufacturers are increasingly using variable-speed drives and smart control systems to adjust energy consumption and improve seasonal efficiency. The global shift toward low-GWP refrigerants, prompted by environmental agreements and refrigerant phase-down programs, is changing both equipment design and service protocols.

Digital transformation is another defining trend. IoT-enabled monitoring, remote diagnostics, and predictive maintenance solutions help operators extend equipment life and reduce downtime. Hybrid and heat-recovery chillers, which reuse waste heat for other purposes, are also gaining popularity, particularly in areas that prioritize carbon neutrality and net-zero energy goals.

The upsurge in milk and beverage chillers is expected to drive this market demand in the near future. Ready-to-eat products are equally contributing to the popularity of chillers. Increasing demand for processed food is resulting in the growth of chillers industry. The changing lifestyle patterns of the consumers and convenience is the driving factor for the increasing processed food consumption. The various advantages of processed food including easy preservation and storage; immediate consumption; time-efficient and ease of cooking is expected to drive the processed food market. Furthermore, the increasing demand for refrigeration equipment in the soft-drink and alcoholic beverages industry to preserve products is expected to increase the chillers demand.

The popularity of modular chiller systems is altering the way projects are implemented. These systems provide scalability, faster installation, and flexible capacity expansion, addressing the growing demand for resilient and future-ready cooling infrastructure.

GROWTH DRIVERS: WHAT’S FUELING THE CHILLERS MARKET EXPANSION?

Multiple structural forces are driving the global chiller market's growth. The growing demand for process cooling in industries such as chemicals, pharmaceuticals, plastics, and food and beverage remains a significant growth driver. These industries rely on chillers to ensure product quality, operational stability, and regulatory compliance.

The need to incorporate IoT in Chillers has led to the development of connected chillers. Unique features such as preventive maintenance are gaining popularity. The smart chillers offer reduced downtime, fewer disruptions, and long equipment life. Thus, manufacturers are focusing on developing connected chillers. For instance, Johnson collaborated with Microsoft to develop connected services through cloud to get insights on operation. Data analytics, remote monitoring, and diagnostics are expected to be the driving factor of the chillers industry. The smart chillers further prevent problems by quickly responding to emergencies and deteriorating conditions. Thus, the enhanced performance of chillers is resulting in the high demand for smart chillers market.

The growth in infrastructure, including power, dam and commercial projects is fueling the chillers market growth. For instance, China’s Belt and Road Initiative is expected to open opportunities for renewable projects. In 2018, the Trump administration released an infrastructure development initiative to modernize country’s infrastructure with investments more than USD 200 billion. The commercial segment is also growing, driven by the increasing construction of office buildings, hospitals, and data centers, all of which rely on centralized cooling systems. Furthermore, stricter environmental and energy regulations are driving organizations to replace outdated equipment with high-efficiency, compliant chillers, accelerating market turnover.

Industrialization, urbanization, and investment in smart infrastructure are all driving rapid growth in emerging economies. AI-based optimization, IoT monitoring, and smart sensors all help to drive market adoption by improving system efficiency and lifecycle performance.

Chillers are widely used in industries to maintain the temperature of equipment and surroundings in check. Increasing demand from various industries such as semiconductors, paper & cement industry, medical imaging, blow molding machines, and power generation sector is expected to drive the growth of the market. The rise in government initiatives from various countries is resulting in the growth of industrial construction, which in turn is resulting in chillers market growth. For instance, in 2018, Indian government stated in the draft of NPE (National Policy on Electronics), which proposed the development of USD 400 billion of electronic manufacturing industry. Furthermore, the Advanced Manufacturing initiative ESA is attracting interest from European Industry. This initiative is aimed at opening up new avenues in emerging manufacturing technologies concerning infrastructure and high-end technology.

Commitments to sustainability are another key driver. Companies who want to lower their carbon footprints are using low-GWP refrigerants and high-performance systems as part of their overall ESG strategy. These combined forces highlight a worldwide market that is not only growing in size but also transitioning toward sustainability-driven innovation.

CHILLERS MARKET RESTRAINTS

Despite promising growth, several obstacles continue to impede large-scale chiller adoption. High initial capital costs are one of the most significant obstacles, particularly for small and medium-sized facilities. Large-capacity systems frequently necessitate infrastructure changes, control integration, and skilled installation teams, which increases project complexity.

The switch to new refrigerants increases uncertainty. End-users must pay more for retrofits, training, and compliance with new safety standards as global regulations change. Rising electricity prices and grid instability in certain regions also have an impact on operating costs, making high-efficiency equipment less appealing in the short term.

Maintenance and technical expertise are additional impediments. Many smaller operators lack the resources or skilled personnel required for effective operation and maintenance. Companies in such cases postpone upgrades or use modular approaches to reduce disruption and capital expenditure.

To address these barriers, industry players and policymakers are emphasizing service-based models, government incentives, and energy performance contracting to encourage adoption. Addressing these financial and technical barriers will be critical for long-term market growth.

Chillers Market Segmentation Analysis

By Type Outlook

“Screw Chillers Is Expected To Be The Fastest Growing Product In The Market”

Based on type the chillers market is drilled down into Screw Chillers, Scroll Chiller, Centrifugal Chillers and, Others.

Screw chillers are dominant in medium to large applications, providing excellent part-load performance and operational flexibility. They are ideal for industries that require continuous cooling, such as plastics, pharmaceuticals, and chemical manufacturing.

Screw chillers are expected to exhibit the highest CAGR in the global market. The various features such as cost-effectiveness, low maintenance, and high efficiency are resulting in product popularity. Moreover, the increasing demand from industries such as oil & gas, pharmaceutical, chemical, food & beverages, and automotive sector is expected to drive the market in the near future. The environmentally conscious consumers are readily adopting screw compressors owing to its eco-friendly refrigerant. For example, Hitachi introduced the Semi-Hermetic Twin-Screw compressor, which uses eco-friendly refrigerant R134a. Moreover, features such as low noise, low vibration, and user-friendly touch panels are specifically designed to cover all operations from process applications in factories to air conditioning of buildings.

Scroll chillers are compact and dependable, and are commonly used for small to medium-capacity cooling in commercial buildings and light industrial settings. Their low vibration, ease of maintenance, and modular design make them affordable and scalable solutions.

“Centrifugal Chillers Is Expected To Show Significant Growth In The Market”

Centrifugal Chillers are commonly used for large space cooling applications such as buildings, universities, government buildings, and airports. Thus, manufacturers are continuously innovating in centrifugal chillers. For example, in 2018, Daikin launched its advanced centrifugal oil-free water-cooled inverter chiller series with magnetic bearing technology. DZ chiller series comes with 32% footprint reduction as compared to old series and low noise solution with a dedicated soundproof cabinet for the compressor. The application flexibility of the DZ chiller series with various functionalities such as rapid restart, with an automatic transfer switch to backup generator is suitable for data center applications. Furthermore, the manufacturers are focusing on capacities less than 300TR. For instance, Danfoss Turbocor compressors range from 40 to 400 TR capacity.

Centrifugal chillers are in the high-capacity class, providing remarkable efficiency for huge infrastructure projects such as data centers, hospitals, and district cooling networks. Recent advances, such as magnetic-bearing compressors and oil-free systems, are lowering maintenance requirements and increasing energy efficiency.

The chiller type is chosen based on capacity requirements, efficiency goals, and lifespan cost considerations. As digital controls and variable-frequency motors become more commonplace, all chiller categories are shifting toward more intelligent, adaptive, and environmentally responsible solutions.

By Application Outlook

“Petrochemicals & Chemicals Segment Is Resulting In The Growth Of Chillers Market”

Based on the applications, the report scope is segmented into Chemicals & Petrochemicals, Food & Beverages, Plastics, Rubber, Medical & Others.

The petrochemical industry is expected to observe a significant growth in the near future. The increasing demand from end-users for oil, gasoline and petroleum products such as olefins, including propylene, ethylene, and aromatics is resulting in the growth of the petrochemical industry. The demand for petrochemicals and its derivatives in various applications such as pharmaceutical, tires and paint sectors. According to sources the global petrochemical sector was valued at more than USD 530 billion in 2018 and is expected to grow around 8% in the near future. Chillers are playing a significant role in maintaining the equipment temperatures in petrochemical sector. Cefic (European Chemical Industry Council) the world chemical sales in 2017 were valued at USD 3,879.48 billion, with a year on year growth of 4.6%. Thus the increase in petrochemicals & chemical demand, in turn, is expected to result in the chillers market growth.        

“Plastic Industry Is Driving The Chillers Demand Around The Globe”

Chillers form a crucial part of the plastic industry for plastic extrusion and injection mold cooling. The increasing demand for plastic materials from daily use products such as toys, food packaging, and consumer electronic products. Rising use of plastic in industrial applications such as building and construction materials is driving the plastic sector which in turn is expected to drive the chillers market. Thus, manufacturers are especially focusing on industry-specific chiller features such as temperature control for temperature-sensitive processes in plastic industry. For instance, Chase Cooling System introduced their QBE Series and CWE Series fluid chillers with an optional hot gas bypass valve for temperature-sensitive processes.

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REGIONAL INSIGHTS: CHILLERS MARKET DYNAMICS ACROSS KEY GEOGRAPHIES

Geographically, the scope is segmented across five major regions, such as North America, Europe, Asia Pacific, Middle East & Africa, and Latin America, which is further categorized into countries.

Asia Pacific dominated the market owing to the increasing demand from China. The cost-effectiveness and ease of installation has resulted in popularity of Chillers in China’s industrial sector. Moreover, the increase in construction projects in Asia is expected to drive the chillers market over the forecast period.

Asia-Pacific is the fastest-growing region, driven by rapid industrialization, expanding manufacturing sectors, and large-scale infrastructural projects. Countries such as China, India, and Japan are making significant investments in sustainable cooling systems to satisfy rising energy and environmental needs.

The increasing demand from the rise in investments in data centers is expected to result in the growth of chillers market. For instance, in 2019, Equinix a Californian data center provider formed a joint venture of USD 1 billion with Singapore based GIC to operate and build hyper scale data centers in Europe. Furthermore, in 2019, the Australian based property developer Lendlease entered into partnership of USD 1 billion with an institutional investor to build data centers in Asia Pacific.

Europe witness stable growth as a result of chiller replacement demand. The adoption of new technology such as oil-free compressors is expected to result in increase in demand of chillers demand. Europe growth, aided by strong environmental legislation under the EU F-Gas Regulation. The region's concentration on low-GWP refrigerants and renewable integration fosters innovation in environmentally friendly chillers.

North America is expected to show significant growth in chillers demand owing to the increasing demand of various industries such as chemicals & petrochemicals, food & beverages, and medical sectors. Strong retrofit activity and stringent energy-efficiency rules are driving North America's growth. Continuous policy support for sustainability and refrigerant phase-down activities encourages the adoption of next-generation systems.

Middle East & Africa is expected to observe lucrative growth owing to the increase in construction projects. For example, Saudi Arabia is undergoing the construction of three metro projects in Riyadh and Jeddha which are expected to operate by 2020. Thus, increasing investments in transportation are driving the chillers demand in the near future. The Middle East market is booming as a result of large-scale district cooling projects that address severe temperatures and water scarcity issues. Meanwhile, Latin America and Africa are emerging markets where infrastructure modernization and climate adaptation activities are encouraging incremental adoption.

Chillers are increasingly considered as critical enablers of energy-efficient and sustainable cooling solutions that are consistent with global decarbonization targets.

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INDUSTRY KEY PLAYERS

The manufacturers are focusing on advancement in technologies to provide customers with highly efficient chillers at low cost, maintenance, noise, and; vibrations. Johnson Controls is expected to be one of the leading players in the industry.

List of Top Chillers Market Companies:

• Daikin
• Johnson Controls
• Johnson Controls-Hitachi Air Conditioning
• Mitsubishi Heavy Industries, Ltd.
• Polaris Industries Australasia
• LG Electronics
• Midea
• Dunham-Bush Americas
• Chongqing General Industry Co., Ltd.
• Carrier Corporation

• The Danfoss Group

Report Coverage 

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A growing trend is observed in the penetration of the chillers market position across the industries.  
This market research report provides various key insights such as adoption trend analysis, recent industry developments including mergers & acquisitions, ecosystem analysis, macro, and microeconomics factors, consolidated SWOT analysis, key industry trends, competitive landscape and company profiles.

Report Scope and Segmentation

INDUSTRY DEVELOPMENT:

• July 2018: Daikin launched its highly advanced and compact DZ chiller series with eco-friendly R134a and R-1234ze refrigerants.
• June 2018: Johnson Controls introduced the YORK YZ Magnetic Bearing Centrifugal Chiller fully optimize with next-generation low-global warming potential refrigerants.