What Drove the Growth in The Chillers Market in Recent Times?
The chillers market has maintained a steady growth trajectory.
• From a market worth of $10.68 billion in 2024, it grew to $11.14 billion in 2025 at a compound annual growth rate (CAGR) of 4.3%.
Key growth drivers during this period included industrial and commercial construction, expansion of HVACR systems in residential and commercial buildings, process cooling demand in industry, and increased demand for air conditioning and refrigeration. An underlying focus on energy efficiency and sustainable cooling solutions also propelled the market forward.
What Is The Anticipated Growth of The Chillers Market in The Coming Years?
The chillers market is set to continue its steady growth trajectory over the next few years.
• It is forecast to reach $13.22 billion by 2029, growing at a CAGR of 4.4%.
Several factors are anticipated to fuel the market's growth, including urbanization and mega-city development, the expansion of data centers and IT infrastructure, chillers' use in food and beverage processing, district cooling system demand in urban developments, and growth in developing economies and emerging markets. Important trends for this period include a transition to low-GWP refrigerants, smart building systems integration, modular and scalable chiller systems, cogeneration heat recovery chillers, and advanced controls and predictive analytics adoption.
What Factors are Propelling the Growth of The Chillers Market?
The rise in the construction of new commercial buildings is a significant driver for the chillers market. Commercial buildings extensively employ chillers for efficient heat removal and temperature control. Notably, smart commercial buildings are introducing smart technologies such as occupancy sensors, smart thermostats, and HVAC and lighting controls, which reduce energy usage in unoccupied offices, conference rooms, and other spaces. For instance, The American Council for an Energy Efficient Economy (ACEEE) states that smart building technologies can reduce HVAC systems' energy consumption by 18%, plugged equipment by 28%, and lighting by 33%. Therefore, new commercial construction growth provides opportunities for various players in the chillers market.
What Are The Key Segments of The Chillers Market?
The chillers market covered in this report is segmented by:
1) Product Type: Air Cooled Chiller, Water Cooled Chiller
2) Power Range: Less than 50 kW, 50-200 kW, More than 200 kW
3) Compressor Type: Screw Chillers, Centrifugal Chillers, Absorption Chillers, Reciprocating Chillers
4) End User: Commercial, Industrial, Residential
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Which Trends Are Shaping The Chillers Market?
Notably, companies in the chillers market are striving to gain a competitive edge by developing energy-efficient water chillers. These chillers aid in reducing energy consumption and operational costs in cooling systems by effectively chilling water for various applications. For instance, in March 2023, Atlas Copco Compressors LLC introduced its TCA water chiller range, which includes four distinct configurations. They are innovative, energy-efficient, safe, easy-to-install and maintain, and also cost-effective.
Who Are The Major Players in The Chillers Market?
Key players in the chillers market include:
• Carrier Corporation
• Daikin Industries Ltd.
• Trane Technologies plc
• Hitachi Air Conditioning Company Ltd.
• Johnson Controls International plc
• Thermax Limited
• Smardt Chiller Group Inc.
• Mitsubishi Electric Corporation
• Midea Group Co. Ltd.
• LG Electronics Inc.
• Reynold India Pvt. Ltd.
What Are The Regional Insights Into The Chillers Market?
In 2024, the Asia-Pacific region emerged as the largest segment in the chillers market. This report includes insights into other crucial regions such as Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
