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How Is Expanding Construction Sector Driving Chiller Demand?

The type segment of the chiller market is classified into absorption, centrifugal, reciprocating, scroll, and screw. Among these, the scroll category generated the highest revenue in 2019 due to the burgeoning demand for low-cooling-capacity chillers from the hospitality sector and commercial buildings, including offices. This category is further bifurcated into air-cooled and water-cooled.

Of these, the air-cooled category accounted for the larger market share during the historical period (2014–2019) because it is not feasible to use water to cool low-capacity scroll chillers. These machines are used in the automotive, pharmaceutical, textile, electronics, food and beverage, chemical and cement, and energy and utilities industries. Furthermore, the hospitality, transportation, healthcare, residential, and government sectors procure them in large numbers.


 Other users of chillers include offices and buildings, department stores, supermarkets/hypermarkets, convenience stores, data centers, and banks. In recent years, most of them have shifted from R410A and R22 refrigerants to the R32 refrigerant due to the lower Global Warming Potential (GWP) and higher cooling capacity of R32.

Geographically, Asia-Pacific (APAC) accounted for the largest share in the chiller market during the historical period (2014–2019), with China the largest contributor to regional sales. The dominance of China can be ascribed to its flourishing construction sector and surging number of airports and office complexes here. Additionally, the APAC market is expected to exhibit the fastest growth throughout the forecast period owing to the increasing number of data centers and the booming IT sector in the region, especially in India.

Therefore, the rising temperatures and flourishing industrial sector will augment the adoption of chillers globally.

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