The global chillers market size was valued at USD 11.25 billion in 2024 and is expected to reach USD 16.50 billion by 2033 from USD 11.74 billion in 2025. The market is projected to grow at a CAGR of 4.35%.
Chillers function by removing heat from liquid via vapor-compression or absorption refrigeration cycles, enabling precise climate control that is indispensable in today’s energy-conscious world. The technology has evolved significantly over the past decade, driven by global emphasis on energy efficiency, sustainability, and regulatory compliance. For instance, according to the International Energy Agency, buildings account for nearly 40% of global energy consumption, with cooling systems being one of the largest contributors to this demand.
A notable trend in the marketplace is the growing adoption of low-global-warming-potential (GWP) refrigerants by international agreements like the Kigali Amendment to the Montreal Protocol. Furthermore, data from the U.S. Department of Energy revealed that upgrading to high-efficiency chillers can reduce energy costs by up to 30% by making them an attractive option for businesses seeking both economic and environmental benefits. In urbanized regions such as Asia-Pacific, rapid industrialization and rising temperatures have amplified the need for advanced cooling solutions. Meanwhile, innovations such as magnetic-bearing compressors and IoT-enabled predictive maintenance are redefining operational standards by ensuring that the chiller market remains at the forefront of technological advancement while addressing pressing global challenges related to climate change and resource management.
The escalating demand for energy-efficient cooling systems serves as a major driver for the chillers market. As per the U.S. Environmental Protection Agency, there is an urgent need to adopt technologies that reduce energy consumption with buildings consuming approximately 70% of electricity in the United States. Chillers account for a significant portion of this energy use, prompting governments and organizations to incentivize high-efficiency models. For instance, the U.S. Department of Energy emphasizes that replacing older chillers with modern, energy-efficient units can lead to a 30-50% reduction in energy usage. This shift is further supported by stringent regulations like the European Union’s Energy Performance of Buildings Directive, which mandates improved energy performance in commercial structures. As global temperatures rise, the International Energy Agency projects a 30% increase in cooling demand by 2050 by reinforcing the necessity for advanced chillers that balance performance with sustainability.
Environmental regulations targeting refrigerants are another critical driver propelling the chillers market forward. According to the Kigali Amendment to the Montreal Protocol, over 140 countries, aims to phase down hydrofluorocarbons (HFCs), which are potent greenhouse gases commonly used in chillers. According to the United Nations Environment Programme, implementing this amendment could prevent up to 0.4°C of global warming by 2100. In response, manufacturers are increasingly adopting low-global-warming-potential (GWP) alternatives such as natural refrigerants and HFO blends. The U.S. Environmental Protection Agency’s Significant New Alternatives Policy (SNAP) program actively promotes these substitutes by accelerating innovation in chiller design. According to the European Commission, adherence to F-Gas regulations has already reduced HFC emissions by 10% since 2015. These regulatory frameworks are reshaping the market by encouraging the development of eco-friendly chillers.
The substantial upfront costs associated with acquiring and installing advanced chiller systems pose a significant restraint to market growth. According to the U.S. Department of Energy, high-efficiency chillers equipped with cutting-edge technologies like magnetic-bearing compressors or IoT-enabled controls can cost up to 50% more than conventional models. For small and medium-sized enterprises, these expenses often act as a deterrent, despite the long-term energy savings they offer. As per the International Energy Agency, retrofitting existing infrastructure to accommodate modern chillers can further escalate costs by 20-30%, depending on the complexity of the installation. This financial barrier is particularly pronounced in developing regions where capital constraints limit the adoption of energy-efficient cooling solutions. While government incentives exist, such as tax rebates under the U.S. Energy Policy Act, they often fail to fully offset the initial expenditure, thereby slowing the pace of market expansion.
The intricate maintenance demands of modern chillers represent another major restraint hindering market growth. According to the U.S. Bureau of Labor Statistics, the demand for skilled HVAC technicians is projected to grow by only 5% annually, significantly lagging behind the rapid advancements in chiller technology. This shortage of qualified personnel complicates the upkeep of sophisticated systems, which often require specialized knowledge for tasks like refrigerant management or software diagnostics. As per the European Environment Agency, improper maintenance can reduce chiller efficiency by up to 15% with their energy-saving potential. The reliance on imported spare parts in regions like Asia-Pacific exacerbates the issue by leading to prolonged downtimes and increased operational costs.
The integration of smart technologies and Internet of Things (IoT) capabilities into chillers presents a significant growth opportunity for the market. According to the U.S. Department of Energy, predictive maintenance enabled by IoT can reduce downtime by up to 50% and extend equipment lifespan by improving operational efficiency. Smart chillers equipped with real-time monitoring and data analytics allow businesses to optimize energy consumption, which is critical as global electricity demand for cooling is expected to triple by 2050, according to the International Energy Agency. As per the European Commission, IoT-enabled systems can enhance chiller performance by identifying inefficiencies and enabling remote troubleshooting. The rapid urbanization is driving the demand for smart infrastructure in Asia-Pacific, where cities are projected to house 60% of the population by 2030 with the adoption of connected chillers is set to accelerate by creating new avenues for innovation and market expansion.
The increasing adoption of district cooling systems in densely populated urban areas offers another promising opportunity for the chillers market. According to the International District Energy Association, district cooling can reduce energy consumption by up to 50% compared to conventional air conditioning systems by making it an attractive solution for sustainable urban development. The United Nations projects that by 2050, nearly 70% of the global population will reside in cities, intensifying the need for centralized cooling solutions. Governments in regions like the Middle East are already investing heavily in district cooling, with the UAE aiming to cover 40% of its cooling needs through such systems by 2030. As per the U.S. Environmental Protection Agency, district cooling aligns with carbon neutrality goals by minimizing refrigerant leaks and optimizing resource use. This trend positions chillers as a key component in the transition toward greener urban environments.
The chiller market faces significant challenges due to its reliance on stable energy supplies and the impact of fluctuating energy prices. According to the U.S. Energy Information Administration, electricity costs have risen by an average of 2.5% annually over the past decade is directly affecting the operational expenses of chiller systems, which are among the largest consumers of energy in commercial buildings. Additionally, the International Energy Agency warns that global energy supply disruptions, exacerbated by geopolitical tensions and climate-related events, can lead to price volatility, further straining businesses reliant on chillers. For instance, during the 2021 energy crisis, European natural gas prices surged by over 400% by impacting industries dependent on gas-powered absorption chillers. This instability forces companies to explore alternative energy sources or invest in energy storage solutions, adding complexity and cost to chiller operations.
Another pressing challenge for the chiller market is navigating inconsistent regulatory frameworks, particularly in emerging economies. According to the United Nations Environment Programme, while international agreements like the Kigali Amendment aim to phase down high-GWP refrigerants, weak enforcement mechanisms in regions such as Sub-Saharan Africa and South Asia hinder compliance. For example, a report by the World Bank revealed that less than 30% of countries in these regions have fully implemented policies aligned with global environmental standards. This regulatory ambiguity creates uncertainty for manufacturers and investors, complicating market entry strategies. Moreover, the lack of standardized testing and certification processes often leads to the proliferation of substandard chillers by undermining efforts to promote energy efficiency. These inconsistencies not only slow market growth but also pose risks to achieving global sustainability targets.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2024 to 2033 |
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Base Year |
2024 |
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Forecast Period |
2025 to 2033 |
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CAGR |
4.35% |
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Segments Covered |
By Type, Product Type, Power Range, End User, Sales, and Region |
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Various Analyses Covered |
Global, Regional, & Country Level Analysis; Segment-Level Analysis, DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
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Market Leaders Profiled |
Carrier Global Corporation, DAIKIN INDUSTRIES LTD, MITSUBISHI ELECTRIC CORPORATION, DIMPLEX THERMAL SOLUTIONS, LG Electronics, JOHNSON CONTROLS INTERNATIONAL PLC, Polyscience Inc, SMARDT CHILLER GROUP INC, and THERMAX LTD. |
The centrifugal chillers dominated the chiller market with 40.2% of the global market share in 2024 due to their superior efficiency in large-scale applications, such as district cooling and industrial processes, where they deliver energy savings of up to 35% compared to other types. These chillers are particularly vital in urbanized regions like North America and Europe, where commercial buildings account for nearly 20% of total energy consumption. Their ability to handle high cooling loads with minimal maintenance makes them indispensable in modern infrastructure by ensuring their prominence in the market.
The scroll chillers segment is likely to experience a fastest CAGR of 6.5% during the forecast period. This growth is driven by their compact design, quiet operation, and suitability for small-to-medium cooling applications, such as retail spaces and light industrial facilities. According to the European Environment Agency, scroll chillers are increasingly preferred due to advancements in inverter technology, which enhances their part-load efficiency by up to 25%. Additionally, their compatibility with low-GWP refrigerants aligns with stringent environmental regulations, boosting adoption.
The water-cooled chillers segment was the largest and held 45.1% of the share in 2024 with their energy efficiency and suitability for large-scale applications like commercial buildings, data centers, and industrial facilities. According to the International Energy Agency, water-cooled systems consume 15-20% less energy than air-cooled variants by making them cost-effective for continuous operations. Additionally, their ability to operate efficiently in high-temperature environments ensures reliability in regions with extreme climates. As per China’s National Bureau of Statistics, over 70% of HVAC installations in urban infrastructure projects utilize water-cooled chillers. This segment’s dominance is further reinforced by its compatibility with renewable energy sources, such as geothermal cooling by enhancing its sustainability appeal.
The air-cooled chillers segment is expected to witness a CAGR of 7.8% from 2025 to 2033. This rapid growth is driven by increasing demand for compact, low-maintenance cooling solutions in small-to-medium scale applications, such as retail spaces, hospitals, and residential complexes. As per U.S. Energy Information Administration, air-cooled systems are preferred in regions with limited water resources, as they eliminate the need for water-based cooling towers. For example, in drought-prone areas of California, government regulations mandate the use of water-efficient HVAC systems by boosting air-cooled chiller adoption. Furthermore, advancements in compressor technology have improved their energy efficiency by up to 25%, as per the International Institute of Refrigeration. These factors, coupled with ease of installation and lower upfront costs with the position air-cooled chillers as a key growth driver for the market.
The 50-200 kW power range segment dominated the diesel generator market by capturing 30.2% of the global share in 2024. This segment's growth is due to its versatility by catering to a wide range of applications such as small-scale industries, commercial establishments, and healthcare facilities. According to the International Energy Agency, over 50% of healthcare facilities in low-income countries rely on generators within this range during power outages. Additionally, the growing demand for reliable backup power in urban areas with unstable grids further drives adoption. These generators strike a balance between cost-effectiveness and sufficient capacity by making them indispensable for both residential and commercial users.
The "more than 200 kW" segment is projected to exhibit a CAGR of 10.2% from 2025 to 2033. This growth is fueled by increasing investments in large-scale infrastructure projects, mining, and data centers. According to the U.S. Department of Energy, data centers, which require high-capacity power systems, are expanding rapidly, with cloud computing driving demand. According to the African Development Bank, mining operations in Sub-Saharan Africa heavily rely on high-capacity generators due to remote locations. The push for hybrid systems integrating renewables also boosts this segment, as these generators can stabilize energy supply in off-grid areas. Their ability to meet industrial demands ensures sustained growth and strategic importance.
The chemicals and petrochemicals sector was the largest segment with prominent share in 2024. The reliance on precise temperature control for processes like polymerization and distillation is ascribed to bolster the segment growth in next coming years. According to the International Energy Agency, cooling systems in this sector consume nearly 20% of industrial energy. With the global petrochemical market projected to grow at 4% annually, the demand for robust and efficient chillers remains paramount. This segment's prominence is further reinforced by its need for high-capacity systems capable of handling extreme conditions.
The food and beverages segment is esteemed to witness a CAGR of 6.5% in the foreseen years. This rapid expansion is driven by the increasing demand for perishable goods, as global food production is expected to rise by 70% by 2050 to meet population needs. According to the U.S. Food and Drug Administration, precise refrigeration is critical to ensuring food safety and reducing spoilage, which currently accounts for 14% of global food losses. Additionally, the rise of cold chain logistics, particularly in Asia-Pacific, where the cold storage capacity grew by 15% in 2022. Innovations in energy-efficient chillers further support this growth by aligning with sustainability goals while meeting escalating consumer demands.
New sales segment dominated the chillers market share in 2024. This segment thrives due to the growing demand for energy-efficient systems in new commercial and industrial infrastructure projects. Urban areas are projected to expand by 30% by 2030 according to the United Nations and the need for advanced chillers in greenfield developments is surging. New sales benefit from government incentives promoting sustainable technologies by ensuring their dominance. The segment's importance lies in its role in establishing long-term cooling solutions that align with modern energy standards.
Rental sales segment is gaining huge traction over the growth rate with an expected CAGR of 8.5% from 2025 to 2033. This rapid growth is driven by the increasing demand for temporary cooling solutions during peak summer months, construction projects, or emergency equipment failures. According to the U.S. Environmental Protection Agency, rental chillers offer flexibility and cost savings, especially for small-scale applications or short-term needs. Additionally, the rise in extreme weather events, which have increased by 40% globally over the past two decades according to the World Meteorological Organization. This factor has amplified the need for adaptable cooling systems. Rental sales are pivotal in addressing immediate cooling demands without significant upfront investments, making them indispensable in dynamic operational environments.
Asia-Pacific dominated the chillers market by occupying a 45.8% of share in 2024 with the rapid urbanization and industrialization. The United Nations projecting that the region’s urban population will grow by 60% by 2050. Rising temperatures, coupled with increasing cooling demands, drive adoption. According to the U.S. Department of Energy, energy consumption for air conditioning in Asia-Pacific is expected to triple by 2050. Governments in China and India are investing heavily in energy-efficient infrastructure, that further propelling growth. The region's importance lies in its role as a hub for innovation and sustainability by addressing both economic and environmental challenges.
North America chillers market is expected to showcase a CAGR of 7.8% throughout the forecast period. This growth is driven by stringent environmental regulations, such as the American Innovation and Manufacturing (AIM) Act, which mandates a phasedown of high-GWP refrigerants, pushing industries to adopt advanced, sustainable chiller technologies. According to the International Energy Agency, energy-efficient chillers can reduce cooling-related energy consumption by up to 30%, aligning with North America’s focus on decarbonization. Additionally, the rise in retrofitting projects for aging commercial and industrial infrastructure, particularly in the United States and Canada, further accelerates demand. The urban areas are projected to expand by 15% by 2040, according to the United Nations.
Europe is expected to maintain robust growth, supported by EU climate policies and rapid industrialization, respectively. Latin America shows moderate expansion due to urbanization, with the United Nations projecting a 20% increase in urban populations by 2040, though economic instability may slow progress. In Africa, the International Energy Agency estimates a 60% rise in energy demand by 2040 by creating opportunities for chillers in emerging infrastructure. Meanwhile, the Middle East remains a key player due to investments in district cooling systems, particularly in Gulf nations. Collectively, these regions will contribute to global diversification while addressing energy efficiency and sustainability challenges, albeit at varying paces depending on regional priorities and resources.
Major Players of the global chillers market include Carrier Global Corporation, DAIKIN INDUSTRIES LTD, MITSUBISHI ELECTRIC CORPORATION, DIMPLEX THERMAL SOLUTIONS, LG Electronics, JOHNSON CONTROLS INTERNATIONAL PLC, Polyscience Inc, SMARDT CHILLER GROUP INC, and THERMAX LTD.
The chillers market is characterized by intense competition, driven by the presence of established global players and regional manufacturers striving to gain a competitive edge. Key industry leaders such as Carrier Global Corporation, Daikin Industries Ltd., and Mitsubishi Electric Corporation dominate the market through their extensive product portfolios, technological innovations, and strong distribution networks. These companies leverage advanced technologies like IoT-enabled systems, magnetic-bearing compressors, and low-GWP refrigerants to cater to the growing demand for energy-efficient and sustainable cooling solutions. According to the U.S. Department of Energy, energy-efficient chillers can reduce cooling-related energy consumption by up to 50%.
Regional players, including Thermax Ltd. and SMARDT CHILLER GROUP INC, also contribute to the competitive landscape by offering cost-effective and localized solutions tailored to specific market needs. The Asia-Pacific region, in particular, has emerged as a hotspot for competition due to rapid urbanization and industrialization, with companies investing heavily in expanding their manufacturing capabilities and service networks.
Mergers, acquisitions, and strategic partnerships are common strategies employed to consolidate market share and enhance technological expertise. For instance, Johnson Controls International PLC’s acquisition of YORK® expanded its industrial chiller offerings. Additionally, regulatory pressures to adopt eco-friendly refrigerants and meet carbon neutrality goals have intensified competition, pushing firms to innovate while ensuring compliance with international standards.
Leading companies like Daikin Industries Ltd. and Carrier Global Corporation prioritize research and development to introduce cutting-edge technologies. For instance, Carrier has developed Greenspeed Intelligence, which optimizes energy efficiency by up to 40%, as per the U.S. Department of Energy. Similarly, Daikin’s adoption of R-32 refrigerants reduces environmental impact while improving performance. These innovations not only meet stringent regulatory standards but also cater to the growing demand for sustainable and energy-efficient solutions, enabling these firms to maintain a competitive edge.
Strategic acquisitions and collaborations are widely used to expand market share and diversify offerings. Johnson Controls International PLC, for example, acquired YORK® to bolster its portfolio of industrial chillers, enhancing its presence in high-growth regions like Asia-Pacific. Such moves allow companies to leverage synergies, access new customer bases, and integrate complementary technologies, as noted by the European Commission.
To tap into emerging markets, key players focus on geographic expansion and localized production. Mitsubishi Electric Corporation has established manufacturing hubs in Southeast Asia to cater to regional urbanization trends, as reported by the United Nations. This localization strategy reduces costs, shortens supply chains, and ensures compliance with local regulations, strengthening their foothold in diverse markets.
Sustainability is a cornerstone of market strategies. Companies like Thermax Ltd. and SMARDT CHILLER GROUP INC emphasize low-GWP refrigerants and energy-efficient designs to align with global agreements such as the Kigali Amendment. According to the International Energy Agency, these efforts not only reduce environmental impact but also appeal to environmentally conscious consumers by enhancing brand reputation.
The integration of IoT and predictive maintenance technologies is another critical strategy. LG Electronics and Polyscience Inc have incorporated smart monitoring systems into their chillers, enabling real-time performance tracking and reducing downtime by up to 50%, according to the U.S. Department of Energy. This digital transformation enhances operational efficiency and customer satisfaction, positioning these companies as leaders in smart cooling solutions.
Carrier Global Corporation is a global leader in the chillers market. The company’s dominance stems from its cutting-edge innovation in energy-efficient and sustainable cooling solutions, including its proprietary Greenspeed Intelligence technology, which enhances chiller performance by up to 40%. Carrier’s commitment to reducing carbon footprints is evident in its adoption of low-GWP refrigerants and smart-enabled systems for predictive maintenance. With a strong presence in North America and Europe, Carrier plays a pivotal role in shaping global standards for HVAC systems. Its contributions extend to supporting international climate goals, such as the Kigali Amendment, by developing eco-friendly products that align with regulatory frameworks.
Daikin Industries Ltd is renowned for its expertise in inverter technology and variable refrigerant flow (VRF) systems, Daikin has revolutionized energy efficiency in commercial and industrial cooling. The company’s focus on sustainability will enhance its development of next-generation refrigerants, such as R-32, which reduces environmental impact by up to 75% compared to traditional options. Daikin’s global footprint spans over 160 countries, with significant investments in Asia-Pacific, where it capitalizes on urbanization trends. By integrating IoT and AI into its chillers, Daikin ensures optimal performance and energy savings, reinforcing its position in smart cooling solutions.
Mitsubishi Electric Corporation is leveraging its reputation for high-quality and innovative products, as noted by the European Commission. The company excels in centrifugal and absorption chillers, offering solutions tailored for large-scale applications like district cooling and industrial processes. Mitsubishi’s advancements in magnetic-bearing compressor technology have set new benchmarks for energy efficiency, achieving up to 50% energy savings compared to conventional models. Its commitment to sustainability is reflected in its alignment with global decarbonization efforts, including the Paris Agreement. Mitsubishi’s strong presence in Asia-Pacific and Europe, coupled with its focus on smart building integration, positions it as a key contributor to the global transition toward greener and more efficient cooling technologies.
This research report on the global chillers market has been segmented and sub-segmented based on type, product type, power range, end user, sales & region.
By Type
By Product Type
By Power Range
By End User
By Sales
By Region
Frequently Asked Questions
The global chillers market is driven by increasing demand for energy-efficient cooling systems, the rise of industrialization, and the growing need for temperature control in industries like food & beverage, healthcare, and data centers.
Major industries using chillers include HVAC (Heating, Ventilation, and Air Conditioning), food & beverage, pharmaceuticals, chemicals, data centers, and manufacturing.
The global chillers market is expected to grow due to advancements in energy-efficient cooling technologies, increasing demand in emerging economies, and government regulations promoting eco-friendly refrigerants.
Some of the leading manufacturers in the chillers market include Trane Technologies, Johnson Controls, Daikin Industries, Carrier Global Corporation, Mitsubishi Electric, and LG Electronics.
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