The Asia-Pacific chiller market is projected to grow in the coming years, ascribed to the rising popularity of absorption chillers, caused by higher solar energy adoption. Under the chiller type, the industry is categorized into screw, scroll, centrifugal, absorption, and reciprocating. The crew chiller contributes the highest revenue to the chiller industry of the APAC region.
Hospitals, retail stores, small factories, and hotels are increasingly adopting water-cooled screw chillers, which are low-cost and eco-friendly. China reflects the highest chillers consumption in the APAC region, with an increased focus of the governments on HCFC refrigerants cutting down, due to highly eco-friendly refrigerant R-134a based on HFC. Several companies are producing chillers based on R-134a refrigerant.
Under the end-user segment, the industry is divided into industrial, commercial, and residential categories. Among them, the commercial category captures a significant share of the chiller industry based in the APAC region, owing to the rising demand in the transportation and hospitality sectors.
The rising infrastructure expenditure in the APAC countries such as India and China boost the growth of the region’s chiller industry. The numerous ongoing infrastructural development projects such as the construction of airports, and metro rail contribute to the growth of the industry. For example, there are over 413 mi of metro rail projects in 15 cities of India under various implementation stages.
Moreover, the aviation industry is showcasing the fastest growth in China on YoY. The chillers are increasingly installed at metro stations and airports for cooling.
The rising demand for energy-efficient cooling systems, including chillers is projected to create numerous opportunities for companies in the APAC region, in the coming years. The rising demand for the chillers is projected to come from emerging economies such as India and China. These countries are focusing on the development of energy efficiency programs for energy conservation.
Presently, the absorption chillers have a high preference in the region, ascribed to their low cost. The evaporation and condensation of water drive the cooling process in the absorption chiller, along with lesser consumption of electricity. Energy is generated from waste heat, such as steam from industrial processes, or heat from solar panels. Moreover, absorption chillers operate without causing vibrations, and their operational and maintenance cost is low. It is more eco-friendly as compared to the other cooling systems, as it causes lesser pollution emissions.
The presence of the global and regional key manufacturers of chillers in the APAC is resulting in increased competition in the region’s industry. The major companies include United Technologies Corporation, Johnson Controls International PLC, Daikin Industries Ltd., and Ingersoll-Rand plc.
Therefore, the rising demand for the chillers led by the ongoing infrastructural development projects in the emerging economies of the APAC boosts the region’s industry growth.