Chiller Market To Be Worth $10,880.3 Million by 2030
- Published: September 2020
Due to the emission of greenhouse gases from the transportation, industrial, and residential sectors, the earth’s temperature continues to rise. Due to this, the global chiller market, which valued $7,330.7 million in 2019, would witness a CAGR of 5.0% during 2020–2030 (forecast period), to reach past $10,880.3 million by 2030. Other key reasons behind the rising demand for these cooling systems are the expansion of the construction sector and rising rate of industrialization.
2020 hasn’t been a great year for the chiller market, as the COVID-19 pandemic, which is presently rampaging across the world, has disrupted all its facets. From the shutting down of manufacturing plants and restrictions being imposed on international trade to the hesitation of people in purchasing non-essential goods, the chiller industry has been hit hard in numerous ways. Moreover, even upcoming real estate projects, be it for residential or commercial units, have witnessed slow or no construction, as most of the laborers have gone back home, in response to the lockdown in numerous countries.
Centrifugal Chillers To Witness Fastest Rise in Demand in Future
The chiller market, when segmented on the basis of type, is categorized into scroll, screw, reciprocating, absorption, and centrifugal chillers. Among these, the centrifugal category is predicted to witness the fastest growth in the forecast period, as the demand for industrial-grade chillers is rising. Further, of the two types of centrifugal chillers — air-cooled and water-cooled — air-cooled variants would observe the faster-growing demand, on account of their cost-effectiveness, compared to their water-cooled counterparts.
Commercial, industrial, and residential are the three divisions of the industry, within the end-user segment. In 2019, the chiller market was dominated by the industrial division, majorly due to the replacement of the existing chillers in factories with new ones, driven by operational efficiency and environmental protection initiatives. Within the industrial category, food and beverage plants installed such cooling equipment in the highest number in the past. With the rising demand for ready-to-eat and frozen foods, the number of food and beverage plants is rising, thereby driving the market.
Till 2019, Asia-Pacific (APAC) contributed the highest revenue to the chiller market, and the situation will remain unchanged till 2030. China is the largest user of chillers, owing to its expanding construction sector and rail network and rising number of airports and office complexes. Similarly, the IT industry is growing in the region, especially in India, driven by government initiatives for digitization. For instance, Amazon Web Services inaugurated five data centers in Mumbai in 2016. With the growth of the data center industry, the installation rate of chillers will continue surging in APAC.
Facility Expansions Allowing Players to Increase Their Reach
Facility expansion has become one of the best strategic measures in the chiller market, as such a move allows companies to significantly widen their geographical reach.
For instance, in February 2019, a $23-million manufacturing facility was inaugurated by Thermax Ltd. in Sri City, Andhra Pradesh, India. This 40-acre factory is manufacturing 400 heat pumps, heaters, chillers, and other vapor-absorption machines in the first phase.
In the same vein, in December 2018, Al Salem Johnson Controls, a provider of heating, ventilation, and air conditioning (HVAC) systems, reached an agreement with AL Watania poultry company, for the construction of industrial cooling plants in the Al Qassim area in Saudi Arabia. The agreement is for Al Salem Johnson Controls to deploy its Sabroe chillers for cooling the production lines of the poultry company.
The major companies functioning in the global chiller market are Carrier Global Corporation, Johnson Controls International Plc, Trane Technologies Plc, Daikin Industries Ltd., Mitsubishi Electric Corporation, Thermax Limited, Gree Electric Appliances Inc. of Zhuhai, Midea Group Co. Ltd., Danfoss A/S, and LG Electronics Inc.