Chillers Market Size & Share [2033]

Chillers Market Overview

The Chillers Market size was valued at USD 8269.04 million in 2024 and is expected to reach USD 11960.99 million by 2033, growing at a CAGR of 4.2% from 2025 to 2033.

The global chillers market is experiencing significant growth, driven by increasing demand for energy-efficient cooling solutions across various industries. In 2024, the Asia-Pacific region led the market with a 38.14% share, highlighting its dominance in the global landscape. Water-cooled chillers have gained popularity due to their energy efficiency and compact design, making them suitable for industries like manufacturing, data centers, and pharmaceuticals.

Technological advancements, such as the integration of IoT and AI, are enhancing chiller performance and operational efficiency. The market is also witnessing a shift towards eco-friendly refrigerants, with manufacturers adopting low-GWP options like R-513A to meet environmental regulations. These factors collectively contribute to the robust growth trajectory of the chillers market.

Key Findings

Driver: The escalating demand for energy-efficient cooling systems in commercial and industrial applications is a primary driver of the chillers market.

Top Country/Region: Asia-Pacific holds the largest market share, accounting for over 45.2% in 2024, driven by rapid industrialization and urbanization.

Top Segment: The water-cooled chiller segment is expected to hold the largest market share between 2025 and 2034, owing to its energy efficiency and suitability for large-scale applications.

Chillers Market Trends

The chillers market is undergoing transformative changes, influenced by technological advancements and evolving industry requirements. One significant trend is the integration of smart technologies, including IoT and AI, into chiller systems. These innovations enable real-time monitoring, predictive maintenance, and enhanced operational efficiency, reducing downtime and optimizing performance. Another notable trend is the shift towards eco-friendly refrigerants. Manufacturers are increasingly adopting low-GWP refrigerants like R-513A and R-1234ze to comply with stringent environmental regulations and reduce carbon footprints. For instance, Daikin Applied Americas launched the Magnitude WMT high-efficiency water-cooled chiller featuring an ultra-low GWP refrigerant, contributing to reduced carbon emissions. Modular and scalable chiller solutions are gaining traction, offering flexibility and cost-effectiveness. These systems consist of multiple smaller units that can be added or removed based on cooling demands, allowing companies to scale their cooling capacity as needed. This modular approach also provides redundancy, ensuring continuity of operations in the event of a chiller failure. Additionally, the adoption of green technologies, such as geothermal cooling and solar-powered chillers, is on the rise. These solutions utilize renewable energy sources or waste heat to power chillers, aligning with sustainability goals and reducing reliance on traditional energy sources.

Enhanced control and monitoring systems are being incorporated into chillers, allowing for precise temperature control and optimal performance. These systems use sensors and algorithms to continuously monitor chiller operation and make adjustments to ensure optimal efficiency. Remote monitoring capabilities enable operators to track chiller performance and troubleshoot issues from anywhere, improving overall system reliability. The focus on maintenance and serviceability is also shaping the market. Manufacturers are designing chillers with easy access to components and simplified maintenance procedures. Chillers with self-diagnostic capabilities and predictive maintenance features are becoming more common, allowing companies to schedule maintenance tasks proactively and avoid costly downtime. Lastly, there is a growing demand for customized and application-specific chiller solutions. Manufacturers are offering chillers tailored to specific industry requirements, such as food processing, pharmaceuticals, or data centers, ensuring optimal performance and efficiency.

Chillers Market Dynamics

DRIVER

Rising demand for energy-efficient cooling systems.

The increasing emphasis on energy efficiency across industries is a significant driver of the chillers market. Companies are seeking cooling solutions that reduce energy consumption and operational costs. Water-cooled chillers, known for their energy efficiency, are gaining popularity in sectors like manufacturing, data centers, and pharmaceuticals. Technological advancements, such as the integration of IoT and AI, are enhancing chiller performance, enabling real-time monitoring and predictive maintenance, further contributing to energy savings. The adoption of eco-friendly refrigerants like R-513A aligns with environmental regulations and sustainability goals, driving the demand for modern, energy-efficient chillers.

RESTRAINT

High initial investment costs.

The substantial upfront costs associated with purchasing and installing advanced chiller systems can be a barrier for some organizations. While energy-efficient chillers offer long-term savings, the initial capital required for acquisition and setup may deter small and medium-sized enterprises from investing in these systems. Additionally, the complexity of integrating new technologies, such as IoT and AI, into existing infrastructure can pose challenges, requiring specialized expertise and potentially increasing implementation costs.

OPPORTUNITY

Expansion of data centers and healthcare facilities.

The rapid growth of data centers and healthcare facilities presents significant opportunities for the chillers market. These sectors require precise temperature control to ensure optimal performance and safety. In March 2024, Schneider Electric launched a new cooling factory in Bangalore to address India's surging demand for data center solutions, focusing on producing high-efficiency chillers. Similarly, the expansion of healthcare facilities necessitates reliable cooling systems to maintain optimal conditions for medical equipment and patient comfort. The increasing demand in these sectors is expected to drive the adoption of advanced chiller solutions.

CHALLENGE

Stringent environmental regulations.

Compliance with stringent environmental regulations poses a challenge for the chillers market. Manufacturers must invest in research and development to create chillers that meet regulatory standards, such as those related to refrigerant usage and energy efficiency. The transition to low-GWP refrigerants requires redesigning systems and retraining personnel, which can be resource-intensive. Additionally, navigating varying regulations across different regions adds complexity to the manufacturing and distribution processes, potentially impacting market growth.

Chillers Market Segmentation

The chillers market is segmented by type and application.

By Type

0°C to -29°C: Chillers operating in this temperature range are commonly used in commercial applications such as air conditioning and refrigeration. They provide efficient cooling for environments requiring moderate temperature control.
-30°C to -49°C: These chillers are suitable for industrial processes that demand lower temperatures, including certain manufacturing and chemical processes. They offer precise temperature control for specialized applications.
-50°C to -99°C: Chillers in this category are utilized in industries like pharmaceuticals and biotechnology, where ultra-low temperatures are essential for preserving sensitive materials. They ensure the integrity of temperature-sensitive products.
-100°C or less: These ultra-low temperature chillers are employed in specialized applications such as cryogenics and certain scientific research fields. They provide extreme cooling capabilities for niche requirements.
Others: This category includes chillers designed for specific or customized applications that do not fall into the standard temperature ranges. They cater to unique industry needs with tailored solutions.

By Application

Commercial: sector, encompassing office buildings, hospitals, schools, and retail spaces, holds a significant share of the chillers market. The growing focus on energy efficiency, indoor air quality, and occupant comfort in commercial buildings drives the adoption of advanced chiller systems.
Industrial: applications, including manufacturing, data centers, and pharmaceuticals, require precise temperature control for optimal operations. The demand for energy-efficient and reliable chillers in these sectors contributes to market growth.

Chillers Market Regional Outlook

The chillers market exhibits a varied performance across different regions due to differences in industrialization, infrastructure growth, climate conditions, and energy efficiency policies. Each region demonstrates unique trends and demands, influencing the global market structure.

North America

holds a considerable share in the global chillers market, driven primarily by strong demand from data centers, healthcare infrastructure, and manufacturing sectors in the United States and Canada. As of 2024, North America accounted for approximately 26.4% of global market demand. The United States leads in data center deployment, with over 2,700 data centers operational, creating sustained demand for high-efficiency chillers with smart control systems. Additionally, stringent government regulations on energy consumption and refrigerant emissions are encouraging the adoption of chillers using low-GWP refrigerants like R-1234ze and R-513A.

Europe

remains a key market for chillers, driven by strict environmental policies, widespread adoption of green building codes, and growing demand from sectors such as pharmaceuticals, food processing, and automotive. In 2024, the region contributed 22.1% to the global chillers market, with Germany, France, and the U.K. being major consumers. The European Union’s F-Gas regulations and policies promoting climate-neutral buildings by 2050 have led to a significant increase in demand for chillers using eco-friendly refrigerants. Moreover, the adoption of district cooling systems in urban areas is gaining momentum, with cities like Paris, Stockholm, and Vienna expanding their infrastructure. This has led to the deployment of large-scale centrifugal and absorption chillers.

Asia-Pacific

is the largest and fastest-growing region in the chillers market, accounting for more than 38.14% of the global market share in 2024. Rapid urbanization, industrial expansion, and increasing investments in commercial real estate, especially in China, India, Japan, and South Korea, are driving this growth. China alone installed over 50,000 chiller units in 2023, primarily for industrial manufacturing and large-scale real estate projects. India is witnessing a surge in data center projects, particularly in cities like Mumbai, Hyderabad, and Bangalore, where over 150 MW of new capacity is being added yearly—driving high demand for modular and liquid cooling chillers.

Middle East & Africa

region is showing robust growth in the chillers market, supported by large-scale infrastructure development, rising commercial construction, and extreme climatic conditions necessitating high-capacity cooling solutions. In 2024, this region contributed approximately 9.3% to global market demand. Countries such as the UAE, Saudi Arabia, and Qatar are investing heavily in commercial real estate, hospitality, and healthcare facilities as part of their respective national visions. For example, the UAE’s construction of Expo City Dubai and NEOM in Saudi Arabia has created high demand for central chiller systems. District cooling, especially in hot desert climates, is widely adopted in cities like Dubai and Riyadh, where large absorption and centrifugal chillers are used for centralized air conditioning.

List of Top Chillers Companies

Trane
Johnson Controls - Hitachi
Carrier
Mitsubshi
LG Electronics
Daikin
DunAn
Dunham-Bush
TICA
Bosch
Ebara
Smardt?Chiller?Group
Parker Hannifin
Dimplex Thermal Solutions

Trane: holds a dominant market share of approximately 17.6% in the global chillers segment. The company is highly reputed for its energy-efficient centrifugal and screw chillers that meet diverse commercial and industrial cooling demands. Trane’s EcoWise™ portfolio includes chillers using low-GWP refrigerants and has been deployed in more than 80,000 buildings across 100+ countries.

Johnson Controls - Hitachi: This joint venture commands a market share of around 15.8%, offering a comprehensive range of chillers from modular scroll chillers to high-capacity absorption and centrifugal models. In 2023, Johnson Controls – Hitachi launched the YORK® YZ Magnetic Bearing Centrifugal Chiller in several global markets, which delivers up to 35% energy savings compared to traditional systems.

Investment Analysis and Opportunities

The global chillers market is witnessing robust investment activities, primarily driven by industrialization, expansion of commercial infrastructure, data center proliferation, and a strong push toward energy efficiency. In 2023–2024, over USD 3.2 billion was collectively invested in new chiller manufacturing facilities, R&D, and green HVAC technologies worldwide. Industrial sectors such as chemical processing, automotive, and pharmaceuticals are leading the capital inflow due to their demand for consistent and controlled cooling environments. A significant investment trend is directed toward the development of low-GWP refrigerant-compatible chillers, spurred by environmental mandates and F-gas regulations. For example, the European Union and Canada have implemented stricter refrigerant laws, prompting companies to allocate up to 15% of their annual HVAC R&D budgets toward sustainable refrigerant technologies. In 2024, Daikin announced a USD 400 million investment in facilities in India and Southeast Asia to manufacture high-efficiency chillers tailored for tropical climates. Data center expansion represents another promising investment vertical. Global data center capacity crossed 10 GW in 2024, and with over 300 hyperscale data centers under construction, liquid cooling and air-cooled chiller solutions have become indispensable. Companies such as Trane and Johnson Controls are aggressively expanding their production lines to meet the increased demand from data center clients. Trane’s investment of USD 150 million in a new facility in Texas aims to supply modular chillers for colocation and cloud service providers.

Developing nations are emerging as lucrative investment destinations due to rising industrial output and government incentives for manufacturing. For instance, India’s Production-Linked Incentive (PLI) scheme is expected to attract over USD 250 million in HVAC and cooling systems investments by 2026. Likewise, Vietnam and Indonesia have reported a 12% year-on-year increase in industrial cooling equipment imports, signaling an opportunity for regional production hubs. Commercial infrastructure development—particularly green buildings—is creating long-term investment opportunities. In 2023, there were more than 145,000 LEED-certified projects globally, many of which integrated high-performance chillers to reduce energy consumption. These buildings are driving demand for chillers with building automation compatibility, further influencing investment trends toward smart HVAC systems. Private equity firms and venture capitalists are also entering the market. In 2024, Smardt Chiller Group secured USD 85 million in Series C funding to scale up production of oil-free magnetic bearing chillers. Such funding trends underline the growing confidence in smart and sustainable cooling technologies.

New Product Development

The chillers market has seen notable advances in product development, largely influenced by the growing demand for energy efficiency, climate-friendly refrigerants, and smart technology integration. Between 2023 and 2024, over 60 new chiller models were introduced globally, integrating high-efficiency components, IoT-enabled monitoring systems, and advanced refrigerant technologies. One of the most significant developments was the release of Daikin’s EWDCZ screw chiller series in early 2024. These air-cooled screw chillers use low-GWP R-1234ze refrigerant and feature inverter-driven twin-rotor compressors, which deliver energy savings of up to 28% over conventional fixed-speed chillers. Designed for both industrial and commercial use, the series supports building automation systems and is ideal for LEED-certified projects. Johnson Controls – Hitachi also introduced its new YORK® YVWH Water-to-Water Heat Pump Chiller, which offers simultaneous heating and cooling for data centers and multi-use buildings. The unit provides up to 10.7 EER and can reduce HVAC energy consumption by nearly 30%. These dual-purpose chillers address the need for thermal management flexibility, particularly in mixed-use facilities and cold climate regions.

In the magnetic bearing technology space, Smardt Chiller Group launched its new G-Class chiller, which uses oil-free magnetic bearings and offers capacities from 100 to 1600 tons. These chillers are compatible with R-515B refrigerant, which has a GWP of less than 300. Smardt reports that the G-Class chillers improve efficiency by 25–30%, with near-zero maintenance due to frictionless operation. Trane, a market leader, expanded its EcoWise™ portfolio with the CenTraVac CVHE II centrifugal chiller. This unit is tailored for mission-critical environments and complies with ASHRAE 90.1 standards. It uses R-514A refrigerant, which has a GWP of only 1, making it one of the greenest refrigerants available. It also integrates with Tracer™ SC+ building control systems to offer real-time performance analytics. Another notable innovation is the LG Inverter Scroll Modular Chiller, which was released in late 2023. Featuring inverter scroll compressors and modular stacking up to 16 units, this product targets mid-sized commercial buildings.

Five Recent Developments

In 2023, Trane announced the expansion of its EcoWise™ portfolio with the launch of the CenTraVac CVHE II centrifugal chiller, featuring ultra-low GWP refrigerant R-514A and enhanced integration with building management systems. This model offers up to 30% energy savings compared to older units.
Johnson Controls - Hitachi launched the YORK® YVWH Water-to-Water Heat Pump Chiller in mid-2023, designed for simultaneous heating and cooling applications in data centers and commercial buildings. This unit provides an Energy Efficiency Ratio (EER) of 10.7, reducing HVAC energy consumption significantly.
In early 2024, Daikin introduced the EWDCZ screw chiller series that uses R-1234ze refrigerant and inverter-driven compressors. The new chillers have demonstrated energy savings of up to 28% and are compliant with emerging environmental regulations globally.
Smardt Chiller Group released its new G-Class magnetic bearing chillers in 2024, capable of capacities ranging from 100 to 1600 tons. These chillers use low-GWP R-515B refrigerant and provide efficiency improvements of 25–30%, alongside reduced maintenance costs due to oil-free operation.
In late 2023, LG Electronics launched its Inverter Scroll Modular Chiller series, enabling modular stacking of up to 16 units for mid-sized commercial buildings. The product reduces startup electrical current by 45% and enhances part-load efficiency, making it suitable for retrofit projects in energy-conscious markets.

Report Coverage of Chillers Market

The report on the chillers market offers a comprehensive analysis covering various facets essential for a holistic understanding of the industry’s present state and future prospects. It extensively addresses the segmentation by type, application, and geography, providing detailed numerical data on market shares, unit shipments, and installed capacities. The report includes an in-depth examination of chillers operating in temperature ranges from 0°C to -29°C, -30°C to -49°C, -50°C to -99°C, and below -100°C, highlighting the distinct demand patterns across industrial, commercial, and specialized sectors. Geographically, the report analyzes the market distribution and growth potential across North America, Europe, Asia-Pacific, and the Middle East & Africa regions. It quantifies market contributions, with Asia-Pacific accounting for more than 38% of global demand and North America maintaining a solid 26.4% share in 2024. The regional analysis includes insights into infrastructural developments, regulatory environments, and climatic influences impacting market performance.

The report further delves into key market dynamics, detailing drivers such as rising industrialization, stringent environmental regulations prompting adoption of low-GWP refrigerants, and growth in data centers and commercial real estate construction. It also outlines restraints like high initial capital expenditure and challenges related to refrigerant phaseouts. Additionally, the coverage includes competitive landscape assessments with market shares of leading companies, particularly highlighting Trane’s 17.6% and Johnson Controls – Hitachi’s 15.8% shares. The report also explores recent product innovations, including the emergence of magnetic bearing chillers, AI-integrated systems, and new refrigerant technologies, illustrating ongoing efforts to enhance energy efficiency and reduce environmental impact.