HVAC Chillers Market Size, Share & Outlook to 2033

HVAC Chillers Market Overview

The HVAC Chillers Market size was valued at USD 7837.19 million in 2024 and is expected to reach USD 10405.81 million by 2033, growing at a CAGR of 3.2% from 2025 to 2033.

The HVAC chillers market plays a critical role in climate control across commercial, industrial, and institutional buildings. In 2023, global deployment of HVAC chillers exceeded 5.7 million operational units, with applications ranging from office towers and shopping malls to pharmaceutical labs and manufacturing plants. Screw chillers and centrifugal chillers accounted for 69% of installations, owing to their efficiency in handling variable and large-scale loads. The global market recorded over 1.4 million new units installed, supported by increasing urban development and climate change-induced temperature surges.

North America and Asia-Pacific jointly represented more than 61% of total units installed. Data centers, which grew by over 18,000 sites globally in 2023, heavily contributed to new chiller demand, with each mid-sized data center requiring at least two 400-ton chillers for optimal performance. In addition, stricter government regulations on building energy consumption led to an uptick in smart chiller systems, which were implemented in more than 210,000 commercial projects worldwide. Energy savings of 18% to 27% were recorded in facilities upgrading to next-generation chillers with VFD (Variable Frequency Drive) compressors.

Key Findings

DRIVER: Rising demand for high-efficiency cooling in data centers, commercial buildings, and industrial zones.

COUNTRY/REGION: Asia-Pacific leads with over 2.3 million HVAC chiller units in operation.

SEGMENT: Screw chillers represent the highest market share with over 2.4 million installations worldwide.

HVAC Chillers Market Trends

One of the strongest trends in the HVAC chillers market is the rising deployment of smart chillers integrated with IoT and AI-based predictive maintenance. In 2023, more than 175,000 smart chillers were installed globally, with the ability to self-adjust cooling output and monitor refrigerant levels in real-time. Facilities using AI-integrated chillers reported a 22% reduction in unplanned downtime and up to 28% enhancement in energy efficiency.

Environmental regulation is driving replacement of outdated chillers. Over 1.1 million legacy chillers using R-22 and other banned refrigerants were decommissioned in 2023. These were replaced with units operating on low-GWP refrigerants such as R-1234ze and R-513A. Europe led this transition, accounting for 540,000 replacements due to F-gas regulations.

Demand for energy-efficient centrifugal chillers is increasing in buildings larger than 500,000 square feet. These systems, which provide capacities exceeding 2,000 tons, were deployed in over 3,400 skyscraper projects in 2023. Retrofit projects in the U.S. accounted for 980 such installations, each reducing HVAC energy consumption by over 1.2 million kWh annually.

Remote building management systems are also trending. In 2023, over 290,000 commercial chillers were connected to centralized platforms that allowed multi-facility control. These platforms have become essential in managing building portfolios exceeding 1 million square feet.

Furthermore, modular chillers have gained traction. More than 420,000 modular units were installed in hospitals, schools, and retail centers. Modular systems provided a 36% faster installation time and were 19% easier to maintain compared to legacy systems.

HVAC Chillers Market Dynamics

HVAC chillers market dynamics refer to the set of factors that influence the supply, demand, innovation, regulation, and competitive behavior within the global market for heating, ventilation, and air conditioning (HVAC) chillers. These dynamics encompass technological advancements, environmental compliance, energy efficiency requirements, infrastructure expansion, and the impact of industrial and commercial construction growth.

DRIVER

Rising demand for energy-efficient and low-emission cooling systems.

Increasing global temperatures, stricter emissions laws, and rising electricity costs are driving the shift toward energy-efficient HVAC chillers. In 2023, global electricity prices rose by an average of 14%, making cost-efficient cooling a necessity. High-efficiency chillers reduced HVAC-related energy use by 18%–27% in large buildings. Over 1.7 million new chillers sold in 2023 met the latest ISO and ASHRAE energy standards, a 31% increase from 2022. In data centers and hospitals, where uninterrupted cooling is critical, energy-efficient chillers offered lifetime savings exceeding 18,000 MWh per facility.

RESTRAINT

High upfront cost of advanced chiller systems.

The capital investment for advanced chillers is a major barrier for small and medium enterprises. In 2023, the average cost of a 400-ton centrifugal chiller with smart control and low-GWP refrigerant exceeded $78,000, nearly 34% more than conventional systems. Installation expenses added another $12,000–$18,000 depending on region. Due to these costs, more than 44% of SMEs in Latin America and Southeast Asia opted for refurbished or second-hand units. Cost concerns have delayed adoption in government buildings and aging commercial properties in lower GDP countries.

OPPORTUNITY

Expansion of smart building and green construction.

The push for green-certified and net-zero buildings is opening new opportunities for smart HVAC chiller systems. In 2023, over 78,000 commercial buildings applied for LEED or BREEAM certification, and more than 53% incorporated smart chillers in their HVAC architecture. Integration with digital twins, occupancy sensors, and thermal load predictors allows chillers to optimize performance automatically. Over 250,000 square meters of government-commissioned smart buildings across South Korea, the UAE, and Singapore adopted these systems in 2023, creating procurement opportunities for chiller manufacturers.

CHALLENGE

Supply chain volatility for key chiller components.

Supply chain disruptions impacted compressor and semiconductor availability in 2023, delaying over 112,000 chiller unit shipments globally. Lead times for VFD motors increased by up to 10 weeks in some markets, particularly in Europe and North America. Aluminum price fluctuations—rising 21% from Q2 to Q4—led to cost surges in condenser manufacturing. Additionally, component imports from China and Taiwan were affected by policy changes and port congestion, disrupting schedules for 8 of the top 15 global manufacturers.

HVAC Chillers Market Segmentation

The HVAC chillers market is segmented by type and application. The segmentation highlights varying performance needs and industry-specific cooling demands across sectors.

By Type

Screw Chillers: Over 2.4 million screw chillers were installed globally by the end of 2023. These units are favored for their continuous operation under variable loads, especially in industrial settings. Approximately 61% of manufacturing plants above 50,000 square meters used screw chillers for process cooling.
Scroll Chillers: Scroll chillers are compact and cost-effective, with over 1.3 million active units worldwide. Ideal for small- to mid-sized buildings, they were deployed in over 39,000 hotels and schools during 2023. Scroll compressors offer 15–20% lower maintenance costs due to fewer moving parts.
Centrifugal Chillers: Centrifugal systems are used in large infrastructure like airports and skyscrapers. In 2023, over 920,000 centrifugal chillers were in operation globally. Each system can deliver up to 5,000 tons of cooling, and installations in data centers and stadiums accounted for over 320,000 new units.
Others: This includes absorption and magnetic chillers. Over 150,000 absorption chillers were deployed in 2023, mainly in regions using waste heat or solar energy for sustainable cooling. Japan, South Korea, and Germany led in deploying these alternatives.

By Application

Industrial: The industrial segment accounted for more than 2.6 million HVAC chillers in operation in 2023. Sectors such as pharmaceuticals, chemicals, and food processing require precision cooling. For instance, over 86% of drug manufacturing plants use chillers to regulate cleanroom temperatures and equipment heat loads.
Commercial: Commercial buildings—including offices, malls, hospitals, and airports—utilized more than 3.1 million HVAC chillers worldwide. Hospitals alone used over 420,000 units, where reliability and quiet operation were key factors. Modular chillers grew in urban malls and campuses, with over 112,000 installations in 2023.

Regional Outlook for the HVAC Chillers Market

Regional outlook for the HVAC chillers market refers to the comparative analysis of geographic regions in terms of HVAC chiller adoption, installation volumes, infrastructure development, climate influences, and regulatory environments that drive demand. This outlook highlights how regional differences in industrialization, urbanization, energy policy, and building trends shape market dynamics for chiller systems.

North America

North America remains a leading region in the HVAC chillers market, with over 1.6 million units in use as of 2023. The U.S. accounted for 1.34 million units, driven by the rise in data centers, high-rise buildings, and manufacturing hubs. Energy regulations and federal sustainability incentives led to over 350,000 upgrades to low-GWP systems in 2023.

Europe

Europe deployed over 1.3 million HVAC chillers, with Germany, France, and the UK contributing 62% of all installations. Regulations under the F-Gas phase-down encouraged the use of eco-friendly refrigerants. In 2023, over 185,000 legacy chillers were replaced with R-513A and R-1234ze variants.

Asia-Pacific

Asia-Pacific led the global market with over 2.3 million installed units. China accounted for 1.2 million units, largely from commercial and urban development projects. India added over 210,000 new chillers in 2023 for hospitals, commercial centers, and special economic zones. Japan and South Korea drove innovation with energy-efficient and absorption chiller installations exceeding 370,000 units.

Middle East & Africa

Middle East & Africa saw strong growth with over 500,000 chillers installed by 2023. Saudi Arabia and the UAE accounted for over 64% of the total, supporting airport, university, and mega-mall projects. Large-scale developments in Egypt, Nigeria, and Kenya led to over 64,000 new chiller installations, with demand rising in commercial and healthcare infrastructure.

List of Top HVAC Chillers Companies

DAIKIN INDUSTRIES
Ingersoll Rand (Trane)
Johnson Controls
LG Electronics
Mitsubishi Electric
United Technologies (Carrier)

DAIKIN INDUSTRIES: Installed over 680,000 HVAC chillers worldwide in 2023, including 230,000 smart units integrated with remote monitoring systems. Daikin chillers were used in 12 of the top 20 tallest commercial buildings completed in 2023.

United Technologies (Carrier): Deployed more than 620,000 chillers globally in 2023, with a focus on centrifugal and modular systems. Over 170,000 Carrier chillers were installed in smart cities and urban business districts in Asia and the Americas.

Investment Analysis and Opportunities

In 2023, investment in HVAC chiller production and R&D exceeded $3.2 billion globally, driven by the need for energy efficiency, refrigerant compliance, and smart building integration. Asia-Pacific led with 38% of new investment, primarily in China, India, and South Korea. China added five new manufacturing plants with combined production capacity exceeding 1.1 million units annually.

North America followed closely, with over $900 million invested in facility upgrades, automation, and product innovation. Trane Technologies expanded its Kentucky facility to support production of low-GWP scroll and centrifugal chillers, with capacity to produce over 120,000 units annually. Carrier’s partnership with the U.S. Department of Energy led to a $63 million grant for chiller innovation supporting net-zero goals.

In Europe, Daikin and Mitsubishi Electric focused on integrating AI and machine learning into chiller control systems. Over $420 million was invested in IoT platform development for predictive maintenance and performance analytics. More than 220 European construction projects used these platforms in 2023, reducing emergency repair costs by 31%.

Africa and the Middle East presented new investment opportunities due to rising urbanization and commercial development. In 2023, over $410 million was invested across Egypt, UAE, and Kenya to build new cooling infrastructure in airports, malls, and smart cities. Energy-efficiency mandates by GCC governments created 24% growth in demand for solar-assisted and hybrid chillers.

The aftermarket segment also showed strong investment potential. Over 760,000 HVAC chillers worldwide are over 12 years old and scheduled for upgrade or replacement within 3 years. Retrofitting projects using smart controllers and VFDs are expected to grow rapidly, especially in U.S. public schools and EU municipal buildings.

New Product Development

New product development in the HVAC chillers market focused on energy optimization, low-GWP refrigerants, and smart integration in 2023 and 2024. Over 180 new chiller models were introduced globally, with 47% featuring smart sensors, 38% using low-GWP refrigerants, and 15% leveraging solar or waste-heat assisted cooling.

Daikin launched its flagship VRV chiller line in 2023, compatible with R-32 refrigerant and offering 27% higher energy efficiency than conventional models. Over 38,000 units were deployed in commercial campuses in Japan, Singapore, and India. These units came equipped with cloud-based energy tracking, which helped reduce electricity bills by over $3.2 million across 120 pilot projects.

Carrier introduced a magnetic-bearing centrifugal chiller that operates oil-free, reducing maintenance costs by 32% and extending operational life by 20 years. The unit was tested in a Chicago hospital, where cooling power remained stable even during peak 38°C summer loads, maintaining room temperature at 22.5°C across 280 patient rooms.

Trane released a modular scroll chiller system for mid-sized facilities. It features plug-and-play connectivity and self-optimizing load balancing. The system was installed in 62 U.S. school districts in 2023, improving indoor air quality while achieving an average reduction of 22% in HVAC energy consumption.

Mitsubishi Electric unveiled a hybrid absorption-compression chiller in Europe, enabling dual-fuel flexibility. In pilot installations across Germany and Poland, the system cut annual emissions by over 72 tons per facility. It leveraged solar-heated water and natural gas, reducing grid dependence by 41%.

LG Electronics introduced a cloud-controlled rooftop chiller series with integrated AI diagnostics. The system was deployed in over 15,000 retail stores across Southeast Asia, achieving uptime reliability of 99.3%. Maintenance frequency dropped by 18% due to early fault detection algorithms, contributing to lifecycle savings of more than $7 million collectively.

Five Recent Developments

March 2023: Daikin opened a new 400,000 sq. ft. chiller manufacturing facility in Haryana, India, with a production capacity of 200,000 units annually.
June 2023: Carrier launched the AquaEdge 23XRV chiller series using R-514A refrigerant, targeting commercial campuses in North America.
August 2023: Trane signed a $480 million contract to retrofit chillers across 312 government buildings in France with energy-optimized units.
January 2024: Mitsubishi Electric integrated AI diagnostics into its centrifugal chiller portfolio, with first deployment in Seoul’s 1.4 million sq. ft. Global Tech Park.
April 2024: LG Electronics partnered with a Middle Eastern conglomerate to deliver 14,000 smart chillers for NEOM and Red Sea developments in Saudi Arabia.

Report Coverage of HVAC Chillers Market

This comprehensive HVAC chillers market report provides detailed insights into global market size, segmentation, technology evolution, key regional performances, and competitive landscape. In 2023, more than 5.7 million chillers were in active use worldwide, serving critical functions in industrial production, commercial facilities, and institutional buildings.

The report segments the market by type—screw, scroll, centrifugal, and others—and by application—industrial and commercial. Screw chillers, with over 2.4 million installations, lead due to their load flexibility. Commercial applications dominated usage, accounting for over 3.1 million units globally.

Regionally, the report covers North America, Europe, Asia-Pacific, and Middle East & Africa. Asia-Pacific leads with over 2.3 million installed units, while North America and Europe follow with strong adoption due to smart building initiatives and refrigerant regulations. The Middle East & Africa region is emerging rapidly due to infrastructure development and climate conditions.

Key players profiled include Daikin, Carrier, Trane, Johnson Controls, Mitsubishi Electric, and LG Electronics. Daikin and Carrier led global deployments, contributing to over 1.3 million new chiller installations in 2023 alone. The report highlights their strategic expansions, product launches, and partnerships.

Investment analysis focuses on factory expansions, digital upgrades, and green building certifications, with over $3.2 billion invested globally in 2023. The report also covers over 180 new product innovations including AI, IoT, and low-GWP refrigerant integration.

Through in-depth data, recent developments, and future outlooks, this report equips stakeholders with the information needed to navigate evolving regulatory frameworks, customer demands, and technology shifts in the HVAC chillers market.