Global Chiller Market Overview, 2024-29

Market Dynamic

Market Drivers • Expansion of Data Centres and IT Infrastructure: The expansion of data centres and IT infrastructure is a significant driver of the global chiller market. With the increasing digitization of businesses and the proliferation of cloud computing services, the demand for data centres and IT infrastructure has skyrocketed. Data centres house thousands of servers and electronic equipment that generate significant amounts of heat during operation. Chillers play a crucial role in cooling these facilities, ensuring that optimal temperatures are maintained to prevent overheating and equipment failures. As the demand for data storage, processing, and analysis continues to grow, driven by trends such as big data, IoT (Internet of Things), and artificial intelligence, the need for efficient and reliable cooling solutions in data centres becomes paramount. Chillers equipped with advanced technologies such as variable-speed compressors, intelligent controls, and heat recovery systems are increasingly sought after to maximise energy efficiency, reduce operating costs, and enhance the reliability of data centre cooling infrastructure. • Healthcare Sector Growth: The growth of the healthcare sector is another key driver of the global healthcare market. Chillers play a critical role in maintaining precise temperature and humidity levels in healthcare facilities, including hospitals, clinics, laboratories, and pharmaceutical manufacturing plants. In healthcare settings, chillers are used for a variety of applications, such as cooling MRI machines, laboratory equipment, vaccine storage, and operating room environments. Maintaining strict temperature control is essential for preserving medication efficacy, ensuring accurate diagnostic test results, and creating comfortable and sterile conditions for patients and healthcare professionals. With the ageing population, increasing healthcare expenditures, and advancements in medical technology, the demand for healthcare services and facilities is on the rise globally. This growth in the healthcare sector translates into increased demand for chillers to support temperature-sensitive operations and maintain optimal conditions for patient care and medical procedures. Market Challenges • Environmental Regulations and Compliance: Compliance with environmental regulations and laws poses serious obstacles for the global chiller market. All around the world, governments are putting strict laws into place with the intention of lowering greenhouse gas emissions, encouraging energy efficiency, and gradually phaseing out the use of ozone-depleting substances (ODS) in refrigerants. In order to comply with these regulations, chiller manufacturers must spend money on research and development to create environmentally friendly chillers that adhere to energy efficiency standards like ENERGY STAR and the European Union Ecodesign Directive and that use low-GWP (Global Warming Potential) refrigerants. For manufacturers, however, the switch to eco-friendly refrigerants and regulatory compliance can be difficult and expensive. Furthermore, global manufacturers must navigate a patchwork of regulations and standards due to varying regulations across different regions. • Market Competition and Pricing Pressures: One of the biggest obstacles facing companies in the global chiller market is pricing pressure and competition in the market. Customers are looking for affordable solutions, and there are many manufacturers fighting for market share in this fiercely competitive market. Pricing pressure can result from intense competition, particularly in segments where prices are critical, like residential and commercial applications. It could be difficult for chiller manufacturers to keep their profit margins high while still providing customers with competitive prices. Pricing pressure is further increased by the commoditization of chillers and the emergence of low-cost substitutes from emerging markets. Manufacturers need to innovate and set themselves apart from the competition with their product features, energy efficiency, dependability, and service quality.

Key Development

• On February 23, 2023, Daikin launched the second generation cooling only chiller range with R32 scroll blowers. Daikin's second generation of R32 cooling-just chillers conveys high full- and part-load efficiencies with an expanded limit range up to 1,010 kW (contrasted with the current 704 kW) inside a new, minimized impression offering a decreased size of 275 mm. • On February 10, 2023, the YORK YLAA Air-Cooled Scroll Chiller, manufactured by Johnson Controls, became the first air-cooled scroll chiller in the U.S. to utilize the refrigerant R-454B. Additionally, the YORK YVFA Free-Cooling, Variable-Speed Screw Chiller, manufactured by Johnson Controls, became the first free-cooling screw chiller in the U.S. to utilize the refrigerant R-1234ze. Both of these products aim to improve performance. • On October 12, 2022, Mitsubishi Electric launched the latest air-source chillers and heat pumps, which were developed at the company's Italy-based facility. The MECH-iS-G07 air-cooled chiller and the MEHP-iS-G07 air source reversible heat pump have been included in the new range. Seven sizes of the new range of scroll compressors with variable speeds are available. Additionally, each system is available in three modules with a cooling capacity of 50 to 220 KW. • In December 2022, Trane unveiled its latest offerings, the water-cooled XStream eXcellent GVWF and air-cooled Sintesis eXcellent GVAF chillers. These innovative chillers incorporate magnetic-bearing compressors and utilize the low global warming potential (GWP) refrigerant R1234ze. Equipped with high-speed centrifugal compressor technology, these chillers deliver larger capacities, wider operating maps to meet challenging European climate conditions, and enhanced seasonal efficiencies, all while maintaining a compact size.