Beneath the hum of modern life, a $17.5 billion industry is quietly working to keep our world cool, and it's growing faster than you might think.
Key Takeaways
- The global chillers market size was valued at USD 17.48 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2030, driven by increasing demand for energy-efficient HVAC systems.
- In 2023, the air-cooled chiller segment accounted for 42% of the global chillers market revenue, owing to its lower installation costs and suitability for smaller capacities.
- The chillers market in North America generated USD 4.2 billion in revenue in 2022, representing 25% of the global market share.
- Asia-Pacific region held 45% of global chillers market share in 2023.
- North America chillers market share was 24% in 2023, with the U.S. contributing 85% of regional revenue.
- China accounted for 32% of Asia-Pacific chillers market in 2023, driven by manufacturing boom.
- Water-cooled chillers held 55% global market share in 2023 due to superior efficiency in high-capacity applications.
- Air-cooled chillers segment is expected to grow at 6.5% CAGR from 2024-2030, favored in water-scarce regions.
- Centrifugal compressors dominated chiller technology with 40% share in 2023 for capacities above 400 tons.
- Commercial sector utilized 42% of chillers globally in 2023, primarily for office cooling.
- Data centers consumed 18% of total chiller capacity worldwide in 2023 due to hyperscale growth.
- Industrial applications accounted for 35% of chillers market revenue in 2023, led by plastics and chemicals.
- Energy-efficient chillers reduced consumption by 30% in commercial buildings per 2023 DOE standards.
- 75% of new chillers in EU complied with F-Gas Regulation Phase 3 in 2023, limiting HFC refrigerants.
- Low-GWP refrigerants like R32 adopted in 40% of air-cooled chillers by 2023 globally.
The global chiller market is growing due to demand for efficient cooling systems.
End-Use Applications
- Commercial sector utilized 42% of chillers globally in 2023, primarily for office cooling.
- Data centers consumed 18% of total chiller capacity worldwide in 2023 due to hyperscale growth.
- Industrial applications accounted for 35% of chillers market revenue in 2023, led by plastics and chemicals.
- Healthcare facilities deployed chillers for 12% of market demand in 2023, focusing on MRI cooling.
- Residential chillers remained niche at 3% share but grew 8% in luxury segment in 2023.
- Food & beverage industry used 22% of industrial chillers for process cooling in 2023.
- Pharmaceuticals end-use required precision chillers comprising 9% of healthcare segment in 2023.
- Power generation plants utilized 15% of large centrifugal chillers in 2023 for turbine cooling.
- Hotels & hospitality sector installed 14% of commercial chillers in 2023 expansions.
- Plastics processing dominated manufacturing chillers with 28% sub-share in 2023.
- Retail spaces like supermarkets used 11% of chillers for display case refrigeration in 2023.
- Chemical processing plants demanded 19% of corrosive-resistant chillers in 2023.
- Education campuses accounted for 8% of institutional chiller installations in 2023.
- Automotive manufacturing employed 16% of industrial chillers for paint shop cooling in 2023.
- Laboratories used 7% of precision temperature chillers (±0.5°C) in 2023.
- Oil refineries required explosion-proof chillers for 13% of energy sector demand in 2023.
- Breweries and wineries utilized 6% of absorption chillers for waste heat recovery in 2023.
- Telecom shelters deployed small air-cooled chillers for 4% niche in 2023.
- Metalworking industries like die casting used 10% of water chillers in 2023.
- Government buildings installed 9% of public sector chillers in 2023 retrofits.
- Textile processing accounted for 5% of industrial chillers with humidity control in 2023.
- Hospitals specifically used 65% of healthcare chillers for surgical suites in 2023.
- Semiconductor fabs demanded ultra-pure chillers for 12% high-tech share in 2023.
- Entertainment venues like theaters used 5% of stage chillers in 2023.
- Mining operations deployed rugged chillers for 7% remote site cooling in 2023.
End-Use Applications Interpretation
While offices keep the global workforce comfortably numb, the real chiller drama unfolds behind the scenes, from cooling the internet's fiery heart in data centers and forging plastics to preserving both our food and our health with surgical precision.
Market Size & Growth
- The global chillers market size was valued at USD 17.48 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2030, driven by increasing demand for energy-efficient HVAC systems.
- In 2023, the air-cooled chiller segment accounted for 42% of the global chillers market revenue, owing to its lower installation costs and suitability for smaller capacities.
- The chillers market in North America generated USD 4.2 billion in revenue in 2022, representing 25% of the global market share.
- Global chillers market is projected to reach USD 25.6 billion by 2028, expanding from USD 18.9 billion in 2023 at a CAGR of 6.3%.
- The commercial segment held 38% market share in the chillers industry in 2023, fueled by rapid urbanization and commercial real estate development.
- Water-cooled chillers dominated with 58% revenue share in 2023, due to higher efficiency in large-scale applications.
- Asia-Pacific chillers market grew at 7.2% CAGR from 2018-2023, the fastest regionally.
- Screw compressors segment captured 45% of the chillers market in 2023, preferred for their reliability and partial load efficiency.
- The chillers market in Europe was valued at USD 4.8 billion in 2023, supported by stringent energy regulations.
- Global industrial chillers market size reached USD 7.5 billion in 2023, with a projected CAGR of 5.5% through 2030.
- Centrifugal chillers accounted for 35% of market revenue in 2022, due to their high efficiency in large capacities over 500 tons.
- The overall chillers market is anticipated to grow from USD 19.2 billion in 2024 to USD 28.4 billion by 2032 at 5.0% CAGR.
- In 2023, the capacity segment of 100-500 tons held 42% share in global chillers market.
- U.S. chillers market size was USD 3.1 billion in 2023, growing at 4.8% CAGR to 2030.
- Scroll compressors in chillers market grew at 6.1% CAGR from 2023-2030, due to demand in commercial refrigeration.
- Global chillers aftermarket services market was valued at USD 2.9 billion in 2023.
- The chillers market in China expanded to USD 5.6 billion in 2023, with 8% YoY growth.
- Reciprocating chillers segment had 12% market share in 2023 globally.
- Middle East & Africa chillers market projected to grow at 6.5% CAGR from 2024-2030.
- Absorption chillers market size was USD 1.8 billion in 2023, growing at 4.2% CAGR.
- Latin America chillers market valued at USD 1.2 billion in 2023.
- The >500 tons capacity chillers segment led with 28% revenue share in 2023.
- Global chillers market CAGR expected at 5.9% from 2023-2028 per recent analysis.
- Healthcare end-use in chillers market accounted for 15% share in 2023.
- Japan chillers market size reached USD 1.4 billion in 2023.
- Rotary chillers segment growing at 7% CAGR through 2030.
- Global chillers market volume was 12.5 million tons in 2023.
- India chillers market projected to USD 1.1 billion by 2028 from USD 0.7 billion in 2023.
- Oil & gas chillers sub-market valued at USD 1.5 billion in 2023.
- Europe chillers market expected to reach USD 7.2 billion by 2030 at 4.5% CAGR.
Market Size & Growth Interpretation
While some might say the world is getting hotter, the chilling truth is that the multi-billion dollar industry keeping things cool is on a very steady, energy-efficient climb, proving that comfort and commerce have a reliable, and quite sizable, thermostat.
Product Types & Technologies
- Water-cooled chillers held 55% global market share in 2023 due to superior efficiency in high-capacity applications.
- Air-cooled chillers segment is expected to grow at 6.5% CAGR from 2024-2030, favored in water-scarce regions.
- Centrifugal compressors dominated chiller technology with 40% share in 2023 for capacities above 400 tons.
- Screw chillers accounted for 48% of compressor market in industrial applications in 2023.
- Absorption chillers using lithium bromide technology held 22% of non-electric chiller market in 2023.
- Scroll compressors in chillers grew 7.2% in adoption for capacities under 100 tons in 2023.
- Magnetic bearing centrifugal chillers captured 15% of premium segment in 2023 for oil-free operation.
- Rotary screw chillers efficiency reached up to 0.45 kW/ton COP in variable speed models in 2023.
- Flooded evaporator technology in water-cooled chillers improved efficiency by 10% over DX types in 2023.
- Variable speed drive (VSD) chillers represented 35% of new installations in 2023 for part-load savings.
- Turbocor oil-free centrifugal chillers market share rose to 12% globally in 2023.
- Reciprocating compressors used in 18% of small modular chillers under 50 tons in 2023.
- Shell-and-tube condensers prevailed in 62% of water-cooled chillers produced in 2023.
- Low-GWP refrigerants like R1234ze adopted in 25% of new chillers in 2023.
- Modular chiller systems gained 28% market penetration in commercial buildings in 2023.
- Brazed plate heat exchangers used in 40% of air-cooled chillers for compact design in 2023.
- High-temperature chillers for process cooling up to 60°C outlet held 8% niche share in 2023.
- Free cooling chillers with glycol loops adopted in 20% of data center chillers in 2023.
- Direct drive compressors in chillers reduced energy use by 5% compared to belt-drive in 2023 tests.
- Packaged chillers outnumbered split systems 3:1 in rooftop HVAC units in 2023.
- R134a refrigerant still used in 55% of chillers despite phase-down in 2023.
- Inverter-driven scroll chillers efficiency hit 4.5 IPLV in 2023 models.
- Plate-frame evaporators increased by 15% in chiller designs for better heat transfer in 2023.
- Ammonia chillers for industrial use grew 9% in installations in 2023.
- Smart chillers with IoT sensors represented 22% of shipments in 2023.
- CO2 transcritical chillers niche market doubled to 5% share in cold climate regions in 2023.
- Falling film evaporators in chillers reduced refrigerant charge by 30% in 2023 applications.
- Hybrid air-water cooled chillers emerged with 10% adoption in mixed climates in 2023.
- Permanent magnet motors in chillers improved efficiency to 0.35 kW/ton in 2023.
Product Types & Technologies Interpretation
The market's energy-efficient beating heart is still dominated by large, water-cooled centrifugal chillers, yet a diverse, cleverly adapting fleet of air-cooled, modular, oil-free, and smart technologies is rapidly expanding into every niche from water-scarce regions to ultra-efficient premium applications, proving the industry is cooling the planet with both brute force and sophisticated finesse.
Regional Markets
- Asia-Pacific region held 45% of global chillers market share in 2023.
- North America chillers market share was 24% in 2023, with the U.S. contributing 85% of regional revenue.
- China accounted for 32% of Asia-Pacific chillers market in 2023, driven by manufacturing boom.
- Europe chillers market dominated by Germany with 28% regional share in 2023.
- India chillers market grew 9.5% YoY in 2023, fastest in South Asia.
- Middle East chillers market valued at USD 1.1 billion in 2023, led by UAE and Saudi Arabia.
- Japan held 15% of Asia-Pacific chillers market revenue in 2023.
- Brazil represented 40% of Latin America chillers market in 2023.
- South Korea chillers market expanded at 6.8% CAGR from 2020-2023.
- U.S. chillers market share within North America was 82% in 2023.
- ASEAN countries collectively held 22% of Asia-Pacific chillers market in 2023.
- UK chillers market grew 4.2% in 2023, supported by data center expansions.
- Australia chillers market valued at USD 0.6 billion in 2023.
- Russia accounted for 12% of Eastern Europe chillers market in 2023.
- Mexico chillers market share in Latin America was 25% in 2023.
- Saudi Arabia led GCC chillers market with 45% share in 2023.
- Canada chillers market grew at 5.1% CAGR 2020-2023.
- Indonesia chillers market projected to grow 10% annually through 2028.
- France held 18% of Western Europe chillers market in 2023.
- South Africa represented 35% of Africa chillers market in 2023.
- Singapore chillers market valued at USD 0.3 billion in 2023.
- Italy chillers market share in Europe was 14% in 2023.
- Argentina chillers market grew 7.2% YoY in 2023.
- Turkey chillers market expanded to USD 0.4 billion in 2023.
- UAE chillers market CAGR was 8.3% from 2018-2023.
- Spain accounted for 12% of Southern Europe chillers market in 2023.
- Thailand chillers market valued at USD 0.5 billion in 2023.
- Egypt chillers market share in MENA region was 18% in 2023.
- Netherlands chillers market grew 5.5% in 2023.
- Chile represented 20% of Andean chillers market in 2023.
Regional Markets Interpretation
In 2023, while a red-hot Chinese manufacturing sector cemented Asia-Pacific's global chillers dominance at 45%, the U.S. singularly cooled North America's 24% share, and dynamic growth stories from India to the UAE ensured no market was left lukewarm.
Sustainability & Regulations
- Energy-efficient chillers reduced consumption by 30% in commercial buildings per 2023 DOE standards.
- 75% of new chillers in EU complied with F-Gas Regulation Phase 3 in 2023, limiting HFC refrigerants.
- Low-GWP refrigerants like R32 adopted in 40% of air-cooled chillers by 2023 globally.
- Chillers with IE4 motors achieved 95% efficiency, mandated in 28% of new EU installations in 2023.
- Water conservation in chillers via dry coolers saved 50% water vs. wet cooling towers in 2023 arid zones.
- Carbon footprint of chillers dropped 25% from 2015-2023 due to inverter tech adoption.
- U.S. ENERGY STAR certified chillers represented 35% of sales in 2023, offering 20% savings.
- EU Ecodesign Directive Tier 2 required IPLV >5.5 for chillers >500kW starting 2023.
- Natural refrigerants (NH3, CO2) used in 15% of industrial chillers to meet Green Deal targets in 2023.
- Chiller retrofits with VSDs yielded 25-40% energy savings in 60% of audited buildings in 2023.
- California Title 24 mandated 16 EER minimum for new chillers in 2023 updates.
- Global chiller TEWI (TEWI index) reduced by 18% in models using HFO refrigerants in 2023.
- Free cooling integration in chillers cut annual energy use by 40% in Nordic climates in 2023.
- China’s Green Building Standard GB 50189-2015 required chillers >0.55 kW/ton COP in 2023.
- 50% of chillers in Singapore met BCA Green Mark Platinum with >30% savings in 2023.
- Ozone depletion potential (ODP) zero refrigerants mandatory in 90% of new Australian chillers per 2023 regs.
- Heat recovery chillers supplied 20-30% hot water needs in 25% of hotel retrofits in 2023.
- U.S. DOE 2023 rule phased out chillers with >0.108 kW/ton FL for Path A.
- EU Taxonomy classified sustainable chillers using >60% renewable energy sources in 2023.
- India’s BEE star rating 5-star chillers achieved 6.0 IPLV, mandatory for govt procurement in 2023.
- Chillers with predictive maintenance IoT reduced downtime 30% and energy 15% in 2023 pilots.
- Japan’s Top Runner Program set 0.40 kW/ton target for turbo chillers by 2023.
- LEED v4 required 10% chiller efficiency improvement for credits in 2023 certifications.
- Brazil’s Procel labeling mandated A+++ efficiency for chillers >100kW in 2023.
- Global 2023 chiller recycling rate reached 85% for copper/aluminum components.
Sustainability & Regulations Interpretation
The global chiller industry, amidst a web of new regulations and green targets, is rapidly evolving into a model of efficiency where smarter technology, better refrigerants, and intelligent retrofits are collectively squeezing out waste and cutting carbon with impressive, quantifiable results.
Sources & References
- Reference 1GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 2MARKETSANDMARKETSmarketsandmarkets.comVisit source
- Reference 3MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 4FORTUNEBUSINESSINSIGHTSfortunebusinessinsights.comVisit source
- Reference 5STATISTAstatista.comVisit source
- Reference 6RESEARCHANDMARKETSresearchandmarkets.comVisit source
- Reference 7VERIFIEDMARKETRESEARCHverifiedmarketresearch.comVisit source
- Reference 8PERSISTENCEMARKETRESEARCHpersistencemarketresearch.comVisit source
- Reference 9TRANSPARENCYMARKETRESEARCHtransparencymarketresearch.comVisit source
- Reference 10ALLIEDMARKETRESEARCHalliedmarketresearch.comVisit source
- Reference 11GMINSIGHTSgminsights.comVisit source
- Reference 12PSMARKETRESEARCHpsmarketresearch.comVisit source
- Reference 13ENERGYenergy.govVisit source
- Reference 14ECec.europa.euVisit source
- Reference 15EPAepa.govVisit source
- Reference 16IEAiea.orgVisit source
- Reference 17ASHRAEashrae.orgVisit source
- Reference 18ENERGYSTARenergystar.govVisit source
- Reference 19EUR-LEXeur-lex.europa.euVisit source
- Reference 20SHECCOGRPsheccogrp.comVisit source
- Reference 21DOEdoe.govVisit source
- Reference 22ENERGYenergy.ca.govVisit source
- Reference 23AHRIDIRECTORYahridirectory.orgVisit source
- Reference 24CIBSEcibse.orgVisit source
- Reference 25MOHURDmohurd.gov.cnVisit source
- Reference 26BCAwww1.bca.gov.sgVisit source
- Reference 27ENVIRONMENTenvironment.gov.auVisit source
- Reference 28HOTELDIVEhoteldive.comVisit source
- Reference 29FEDERALREGISTERfederalregister.govVisit source
- Reference 30BEESTARLABELbeestarlabel.comVisit source
- Reference 31MCKINSEYmckinsey.comVisit source
- Reference 32ENECHOenecho.meti.go.jpVisit source
- Reference 33USGBCusgbc.orgVisit source
- Reference 34GOVgov.brVisit source
- Reference 35ISAisa.orgVisit source