Modular Chillers Market Size, Share & Trends Report

Modular Chillers Market Size, Share & Trends Analysis Report By Product (Water-cooled, Air-cooled), By End-use (Commercial, Residential, Industrial), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-901-2
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 162

Report Overview

The global modular chillers market size was valued at USD 2.47 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.0% from 2020 to 2027. Rising awareness regarding greenhouse gas emissions and climate changes is expected to augment the demand for energy-efficient products and technologies, which, in turn, is likely to drive the market growth. Modular chillers are connected in either series or parallelly based on the required output. They are managed by a central control system, which aids in controlling the cooling capacity provided to each module, optimizing the energy-efficiency of the entire system, and maintaining the desired temperature. Furthermore, modular chillers offer high reliability, as, in case of a failure, the faulty module can be isolated and repaired without disturbing the entire system. According to the National Association of Home Builders (NAHB), the spending on remodeling was 1.6% in 2019 and 1.1% in 2020 before the COVID-19 outbreak.

The U.S. modular chillers market size

Growth in the construction activities coupled with increasing demand for energy-efficient buildings in the country is expected to drive modular chillers market growth over the forecast period. Modular chillers utilize around one-fifth of the refrigerant required by conventional products, which lowers the energy utilization and reduces the negative impact of the product on the environment. Furthermore, the low installation cost of the product as compared to conventional cooling equipment coupled with easy expandability of the former aids in augmenting its penetration in the market.

The shifting focus of the construction industry toward renovation and modernization of existing structures and converting old energy-consuming buildings into energy-efficient and sustainable structures is anticipated to propel the product demand over the forecast period. Stringent regulations for reducing carbon dioxide and greenhouse gas emissions are expected to drive the product demand in residential, commercial, and industrial sectors.

The shutdown of numerous manufacturing facilities globally in light of the COVID-19 pandemic has reduced the supply of raw materials and components needed for the manufacturing of modular chillers. Furthermore, the closure of end-user facilities, such as various milling, drilling, welding facilities, as well as laboratories which use modular chillers, has resulted in hampering the demand for repair & maintenance and aftermarket sales of the product.

Product Insights

Water-cooled modular chillers led the market and accounted for 58.0% of the global revenue in 2019, as they are energy-efficient compared to air-cooled products. The wet-bulb temperature in the water-cooled products is lower than the dry-bulb temperature, resulting in a lower condensing temperature and pressure in water-cooled chillers compared to air-cooled.

Water-cooled chiller systems require a high supply of water to replace the evaporated volume of water. For instance, the U.S. data centers required around 626 billion liters of water in 2014, including the water used to generate electricity to power the data centers and the quantity of water directly consumed on the sites.

The air-cooled modular chillers are expected to witness a CAGR of 5.8% from 2020 to 2027, in Europe, on account of their smooth operation at extremely low temperatures as they eliminate the problems associated with the activity of cooling towers in winters. Furthermore, increasing water scarcity across the globe is anticipated to boost the demand for air-cooled chillers as they do not require water.

The condensing temperature of air-cooled chillers is dependent on the ambient dry-bulb temperature. Air-cooled modular chillers are predominantly used for their better performance at freezing temperatures, easy installation & design, and lower maintenance costs compared to water-cooled products.

End-use Insights

The commercial sector led the market and accounted for 48.4% of the global revenue share in 2019. Banks, corporate offices, and courts have huge load variations and require cooling throughout the year. As these buildings cannot be shut-down, it is easy to install a modular chiller, based on the cooling requirement, assembled in the factory job floor.

Modular chillers are used in the residential sector to meet the cooling demands of buildings on account of their low installation, operation, maintenance, and repair costs. Furthermore, the feasibility of these products to be installed without significant renovations in the buildings is expected to augment its adoption in various hi-rise buildings.

Global modular chillers market share

Modular chillers aid in providing cooling during the anodizing process, wherein a large quantity of heat is generated during the hard coating processes. Furthermore, these cooling equipment are also used in various machine tools processes such as milling, drilling, turning, plasma cutting, laser cutting, and welding machines.

The demand for modular chillers in the food & beverage industry is estimated to witness a CAGR of 4.7% from 2020 to 2027, owing to its increasing adoption in the breweries, wineries and vineyards, distilleries, dairy, and food processing units. They are installed in the beverage manufacturing facilities to remove the heat generated during various processes such as pasteurizing, cooking, and cleaning.

Regional Insights

Asia Pacific dominated the market and accounted for 44.5% of global revenue in 2019 due to the ongoing investments in the commercial and residential construction industries across the region. Increasing residential and construction activities across the region, coupled with rising demand for HVAC and refrigeration, is anticipated to augment market growth in the region.

The Spain modular chillers market is expected to witness considerable growth in the coming years owing to the substantial surge in residential construction activities driven by long-term investments in the sector. Increased tourism and retail trade in the country is projected to boost commercial construction, including hotels and restaurants, resorts, shopping malls, supermarkets, and offices, complementing the market growth.

The industrial sector in Central and South America is anticipated to witness substantial growth on account of rising GDP in the region. In addition, the increasing demand for manufacturing facilities coupled with inexpensive labor in the emerging economies of the region is projected to have a positive impact on industrial construction, thereby boosting the adoption of modular chillers in the industrial sector over the forecast period.

France is estimated to witness a CAGR of 4.9% from 2020 to 2027, in terms of revenue. The rising environmental concerns, coupled with stringent energy-efficiency requirement regulations established by the French government, such as RT2012 and RT2020, are expected to drive the market growth over the forecast period.

Key Companies & Market Share Insights

The global market is highly competitive, owing to the presence of both multinational and local manufacturers. The market participants compete based on multiple parameters, including product performance, technical competence, price, quality, and corporate reputation. Market players are focusing on acquiring certifications and expanding production capabilities to cater to increasing product demand. In addition, they comply with various energy-efficiency requirements stated by the regulatory authorities. These companies offer a wide range of modular chillers that are sold through multiple channels, including distributors, company-owned websites, retailers and their websites, and e-commerce websites. Some of the prominent players in the modular chillers market include:

  • Trane Technologies plc
  • Gree Electric Appliances, Inc.

  • Carrier

  • Frigel

  • Midea Group

  • Multistack International Limited

  • McQuay Air-Conditioning Ltd. (Daikin)

  • Johnson Controls-Hitachi Air Conditioning

  • Haier Group

  • Mitsubishi Electric Corporation

Modular Chillers Market Report Scope

Report Attribute


Market size value in 2020

USD 2.59 billion

Revenue forecast in 2027

USD 3.93 billion

Growth Rate

CAGR of 6.0% from 2020 to 2027

Base year for estimation


Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, end-use, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope

U.S.; Canada; Mexico; Germany; France; Italy; Spain; U.K.; China; India; Japan; South Korea; Australia; Brazil; Argentina; UAE; Saudi Arabia

Key companies profiled

Trane Technologies plc; Gree Electric Appliances, Inc.; Carrier; Frigel; Midea Group; Multistack International Limited; McQuay Air-Conditioning Ltd. (Daikin); Johnson Controls-Hitachi Air Conditioning; Haier Group; Mitsubishi Electric Corporation

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global modular chillers market report on the basis of product, end-use, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2027)

    • Water-Cooled

      • <50kW

      • 51-100kW

      • 101-200kW

      • 201-300kW

      • >301kW

    • Air-Cooled

      • <50kW

      • 51-100kW

      • 101-200kW

      • 201-300kW

      • >301kW

  • End-Use Outlook (Revenue, USD Million, 2016 - 2027)

    • Commercial

      • Corporate Offices

      • Data Centres

      • Public Buildings

      • Mercantile & Service

      • Healthcare

      • Others

    • Residential

    • Industrial

      • Chemical

      • Food & Beverage

      • Metal Manufacturing & Machining

      • Medical & Pharmaceutical

      • Plastics

      • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • France

      • Germany

      • Italy

      • Spain

      • The U.K.

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Australia

    • Central & South America

      • Argentina

      • Brazil

    • The Middle East & Africa

      • UAE

      • Saudi Arabia

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