Due to the rising global temperatures, the sales of chillers are climbing across the world. The extensive usage of various fossil fuels such as natural gas and coal for energy generation is augmenting the emission of harmful greenhouse gases into the atmosphere, which is, in turn, causing environmental degradation and global warming. Moreover, the increasing concentration of greenhouse gases in the atmosphere is propelling the absorption of toxic infrared radiation into the atmosphere.
Because of the above-mentioned reasons, the global temperature rose by 1.28 °C (2.31 °F) from the late 19th century (that is, 1850–1900) to 2019. This is fueling the usage of chillers in various commercial, residential, and industrial establishments across the world. The rapid growth of the construction sector in several countries is another important factor driving the advancement of the chiller market. According to estimates, the global construction industry will reach a valuation of $12.8 trillion by 2022.
The expansion of this industry is being driven by the development of airports, metro rails, office premises, and residential buildings across the world. For example, there were 115 under-construction high-rise buildings in London in 2018. Similarly, in Chicago in 2019, there were 42 such under-construction projects. On the other hand, China is aiming to build as many as 136 airports all over the country by 2025. The development of these facilities will propel the demand for chillers in the future.
Due to the above-mentioned factors, the global chiller market is set for lucrative growth in the forthcoming years. The value of the market is predicted to grow from $7,330.7 million in 2019 to $10,880.3 million by 2030. Furthermore, the market will demonstrate a CAGR of 5.0% between 2020 and 2030. Depending on type, the market is divided into screw, scroll, absorption, centrifugal, and reciprocating chillers. Amongst these, the centrifugal category is expected to register the fastest growth in the future.
This will be because of the rising requirement for industrial-grade chillers around the world. Furthermore, between the water-cooled and air-cooled chillers, the sales of the air-cooled variants would rise rapidly in the coming years. This will be due to the fact that these chillers are highly cost-effective. Geographically, the chiller market will exhibit the highest growth in the Asia-Pacific (APAC) region in the upcoming years, as per the forecast of P&S Intelligence, a market research company based in India.
In this region, the sales of chillers are currently the highest in China, because of the country’s expanding rail network and construction sector and the increasing number of office complexes and airports in the country. Furthermore, the presence of a booming IT industry, especially in India, is driving the progress of the chiller market in this region. For example, five data centers were inaugurated by Amazon Web Services in Mumbai in 2016.
Hence, it is safe to say that the demand for chillers will shoot-up across the world in the future years, mainly because of their mushrooming usage in various commercial, residential, and industrial facilities and the rising global temperatures.