GVR Report cover 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 (Middle East & Africa, Asia Pacific), And Segment Forecasts, 2021 - 2028

  • Report ID: GVR-4-68038-901-2
  • Number of Pages: 162
  • Format: Electronic (PDF)

Report Overview

The global modular chillers market size was valued at USD 2.39 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 6.7% from 2021 to 2028. The growing demand for energy-efficient buildings on account of the rising awareness regarding environmental degradation coupled with stringent government regulations is anticipated to fuel the market growth over the forecast period. Rising awareness about energy-efficient systems and the harmful impacts of burning fossil fuels along with supporting energy-efficient technological innovations is expected to fuel the product demand over the coming years. In addition, tax rebates and financial support for the implementation of energy-saving technologies offered by governments across the globe are anticipated to further stimulate market growth over the forecast period.

The U.S. modular chillers market size, by product, 2017 - 2028 (USD Million)

The development of privately-owned construction firms in the UAE, India, and China is anticipated to augment the spending in the construction industry over the forecast period. According to the Global Construction 2030 report, the construction industry is estimated to reach USD 15.5 trillion by 2030, with China, India, and the U.S. contributing to over 57% of the overall growth. The growth in the construction industry in the U.S. is more focused on the southern states due to the high population growth.

Several initiatives promoting and encouraging energy-efficiency have been adopted and implemented in Europe. For instance, the European Commission’s initiative “The European Portal for Energy Efficiency of Buildings” allows exploration and sharing of knowledge and optimal practices offering energy solutions for buildings.

The water used in a modular chiller needs to be treated or filtered to maintain its quality to prevent fouling. Particulate fouling is caused by suspended solids, including sand, silt, mud, and other particulate matter present in the heat transfer medium. This, in turn, entails regular flushing of the system for the removal of organics and dirt in the system.

Public construction witnessed the minimal short-term impact of the Covid-19 pandemic. Companies have been executing their contracts to avoid liquidation damage. However, disruption of supply chains has resulted in shortages of construction equipment and materials, causing delays or cancellations of ongoing projects and lower budgets for future projects.

Product Insights

The water-cooled systems led the global market in 2020 and accounted for a revenue share of over 57%. However, the demand for water-cooled chillers is witnessing sluggish growth on account of the requirement of critical maintenance including freeze protection, mechanical tower maintenance, chiller condenser-tube cleaning, and water treatment. Furthermore, the chillers using open cooling towers are required to have a water treatment program for preventing contaminants such as algae and bacteria.

The condensing temperature of air-cooled modular chillers is dependent on the ambient dry-bulb temperature. These chillers are widely used due to their lower maintenance costs, easy installation & design, and high efficiency at freezing temperatures, compared to water-cooled chillers. The demand for air-cooled chillers is expected to witness the fastest CAGR on account of their low cost, attributed to the absence of condenser water pumps and cooling towers.

In response to the Covid-19 pandemic, various companies sourcing raw materials from China or other affected economies are focusing on labor or workforce planning, extended supply networks, and activating alternative supply sources, production scheduling agility, visibility of inbound materials, and evaluating alternative outbound logistics options, which can create opportunities for product manufacturers over the coming years.

End-use Insights

The commercial segment led the market in 2020 with a share of over 48% and will expand further at the fastest CAGR from 2021 to 2028. Modular chillers are used in healthcare facilities, including clinics, retirement homes, and hospitals, to provide cooling to these buildings. These facilities deal with a large number of people having health-related problems and these buildings contain a lot of equipment generating heat. Thus, rising awareness regarding the benefits of chillers along with increasing demand for cooling infrastructure is anticipated to augment the demand over the coming years.

Historical buildings, such as churches, museums, and state capital buildings, often do not have proper air conditioning, or the existing systems are obsolete. The presence of small doorways, thick walls, etc. makes it difficult to install a completely new air conditioning system. Hence, modular chillers are considered for installation in such a building owing to their compact design.

Global modular chillers market share, by end-use, 2020 (%)

The compact design of the chillers allows their transportation through limited spaces, such as stairwells, hallways, and doorways. Modular chillers provide a replacement to the centralized air conditioning systems on account of their ability to fulfill the requisite cooling demands of structures. Thus, the residential sector is anticipated to witness a significant CAGR of 5.8% from 2021 to 2028 in terms of revenue over the forecast period.

Modular chillers are also used for transferring heat from the feed throat of injection molding machines, thermometers (mold temperature controllers), and hydraulic heat exchangers. In addition, in the printing industry, these systems cool the paper after it comes out of the ink drying ovens. These systems are used to cool the power supplies and lasers in light projection and laser cutting facilities.

Regional Insights

Asia Pacific accounted for the highest market share of over 44% in 2020 and will retain its leading position throughout the forecast period. In the Asia Pacific, the overall capital project and infrastructure market is expected to grow by 7% to 8% per year over the next decade and is expected to approach USD 5,300 billion by 2025, representing nearly 60% of the global market share. The development of new constructions and buildings in the region is anticipated to have a positive impact on market growth.

Residential construction in Europe witnessed a moderate growth rate with Hungary, Poland, and the Slovak Republic driving the growth in Eastern Europe and the U.K., Sweden, and Ireland, leading the growth in Western Europe. The construction sector in Hungary is expected to grow by 14.9% over the forecast period on account of residential construction schemes offered by the government.

New residential constructions exhibit more significant output contractions, while renovation output has been consistent in the residential construction sector. Renovation accounts for over half of the total residential construction activities in Europe and has largely contributed to the recovery of the construction sector since 2014.

The Asia Pacific and Central & South America are anticipated to contribute to the rising energy consumption owing to the increasing construction activities. Favorable government policies and increasing consumer awareness are expected to remain the key driving factors for the market growth over the forecast period.

Key Companies & Market Share Insights

Mergers & acquisitions, new product launches, and licensing agreements are a few of the strategies adopted by the market players to strengthen their positions in the market. For instance, Frigel introduced the 3FX water-cooled chillers in May 2019, a modular chiller line with a capacity in the range of 25 and 139 tons designed specifically to build integrated systems either in series or parallel configurations for industrial users to fulfill the demand for system redundancy. Some prominent players in the global modular chillers market include:

  • Trane Technologies plc

  • Gree Electric Appliances, Inc.

  • Carrier

  • Frigel

  • Midea Group

  • Multistack International Ltd.

  • McQuay Air-Conditioning Ltd. (Daikin)

  • Johnson Controls-Hitachi Air Conditioning

  • Haier Group

  • Mitsubishi Electric Corp.

Modular Chillers Market Report Scope

Report Attribute


Market size value in 2021

USD 2.53 billion

Revenue forecast in 2028

USD 4.02 billion

Growth rate

CAGR of 6.7% from 2021 to 2028

Base year for estimation


Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

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; France; Germany; 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 Ltd.; McQuay Air-Conditioning Ltd. (Daikin); Johnson Controls-Hitachi Air Conditioning; Haier Group; Mitsubishi Electric Corp.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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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 2017 to 2028. 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, 2017 - 2028)

    • 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, 2017 - 2028)

    • Commercial

      • Corporate Offices

      • Data Centers

      • Public Buildings

      • Mercantile & Service

      • Healthcare

      • Others

    • Residential

    • Industrial

      • Chemical

      • Food & Beverage

      • Metal Manufacturing & Machining

      • Medical & Pharmaceutical

      • Plastics

      • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • France

      • Germany

      • Italy

      • Spain

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Australia

    • Central & South America

      • Argentina

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

      • UAE

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