Chiller Market Size

Chillers Market Analysis

The Global Chiller Market is expected to register a CAGR of 4.2% during the forecast period (2022-2027). The growth in construction of new commercial buildings, urbanization, and modernization of healthcare infrastructure is anticipated to drive the market's growth worldwide. Additionally, an increasing number of chemical plants, one of the biggest consumers of chiller systems, is anticipated to fuel demand for chiller systems during the forecast period.

• According Indian Brand Equity Foundation, by 2025, it is anticipated that investments in the Indian chemicals and petrochemicals sector will total INR 8 lakh crore (USD 107.38 billion). In December 2021, in India, the chemical output totaled 903,002 MT, while petrochemical production totaled 1,877,907 MT. The following chemicals were produced at a high level in December 2021: soda ash (257,199 MT), caustic soda (277,638 MT), liquid chlorine (190,492 MT), formaldehyde (22,794 MT), and pesticides and insecticides (22,110 MT).
• Additionally, with the approaching HFC (hydrofluorocarbon) phasedown, the demand for environmentally friendly cooling solutions is driving chiller manufacturers to innovate. To cater to this, in February 2022, Washington-based Pro-Refrigeration, Inc., a manufacturer and supplier of chillers for beverage processing and industrial markets, developed the idea of a CO2 chiller. Since CO2 is a natural refrigerant with a global warming potential (GWP) rating of 1, it has zero impact on global warming. It also allows refrigeration systems to recover 100% of the heat rejected from their systems, generating hot water at up to 200°F. Heat recovery capability is an essential product feature for Pro-Refrigeration, as beverage plants, dairy farms, use a high amount of natural gas or propane to heat water for sanitizing and wash-down.
• The increasing need for environment friendly and sustainable products is leading various manufacturers to develop sustainable products and solutions. For instance, in March 2021, Rhoss launched MiDIpack-I Eco, a new range of air-cooled water chillers and reversible heat pump products range with inverter scroll compressors and R32 ecological gas. The range was aimed at the companies that opt for eco-sustainability.
• On the flip side, environmental concerns regarding global warming and ozone depletion have led over time to the development of evolving global and regional regulations, which have had significant implications for refrigerants across applications. Manufacturers and end-users who purchase, design, install, and service air conditioning and refrigeration equipment should consult their specific country's current regulations, codes, and standards to aid with refrigerant selection for each intended use.
• The United Nations Environment Program - Division of Technology, Industry, and Economics (UNEP DTIE) OzonAction Branch assists countries in complying with their commitments under the Montreal Protocol on Substances that Deplete the Ozone Layer, especially those related to the phase-out of hydrochlorofluorocarbons (HCFCs). The substitutes to HCFCs include the climate and ozone-friendly alternatives such as natural refrigerants - ammonia, hydrocarbons, and carbon dioxide; and lower global warming potential (GWP) HFCs, both saturated HFCs and unsaturated HFCs (HFOs). These factors pose a challenge to the current market ecosystem. However, they also double as significant opportunity providers for several companies to adopt advanced technologies, nurture innovations and promote efficiency.