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 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 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.

Modular Chillers Market Trends

Modular chillers are increasingly used in the commercial, residential, and industrial industries. The rising construction investment as a result of strong industrial and economic development, along with increasing population, is expected to boost demand for global modular chillers throughout the forecast period.

The growing demand for non-residential constructions has resulted in a number of ongoing and prospective development projects. The rise in construction investment can be attributed to increased government programs aimed at revamping infrastructure and developing energy-efficient dwellings, which has resulted in greater construction activity. The growing number of residential and public development projects is predicted to stimulate demand for modular chillers.

Modular chiller systems are expected to grow significantly during the forecast period due to their numerous advantages, which include compact design, ability to be installed in existing structures, expandability, high efficiency, flexibility, and coordinated microcontroller control for adjusting energy utilization of each compressor individually. Furthermore, modular chillers compliance with ASHRAE Standard 15 mechanical ventilation regulations contributes to their eco-friendliness.

The construction activity around the world is expected to contribute to higher energy consumption The World Green Building Council (World GBC) and the International Energy Agency (IEA) are two of the most important organizations working on green building principles and advising builders on energy-efficient designs. Favorable government policies and rising consumer awareness are projected to continue to drive the modular chillers market throughout the forecast period.

Several efforts to promote and encourage energy efficiency have been devised and implemented throughout Europe. The European Commission’s program “The European Portal for Energy Efficiency of Buildings,” for example, promotes the investigation and exchange of information and best practices for building energy efficiency. The growing need for energy-efficient buildings due to rising environmental consciousness combined with stringent government restrictions is predicted to drive demand for modular chillers over the forecast period.

Water is used extensively in industrial processes for manufacturing and other tasks. Agriculture, oil and gas, paper and pulp, and food and beverage all require water for diverse activities. The requirement for high-quality water for the operation and cleaning of brazed plate heat exchangers in modular chillers to prevent scaling, clogging, and fouling is likely to hinder the market growth.

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.

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

The Asia Pacific is the largest region in terms of revenue and accounted for 44.8% in 2020. The Asia Pacific construction sector is predicted to increase as a result of rising per capita income, rapid urbanization, and a growing population. The economies in the area are likely to thrive throughout the forecast period as a result of substantial government expenditures in the development of public infrastructure and the expansion of the residential construction sector, which is predicted to boost the Asia Pacific modular chillers market.

China’s industrial sector is one of the greatest users of heat. Chemicals, papermaking, pharmaceuticals, textiles, iron and steel, and machine tooling require heat as the major energy input, which is likely to boost demand for cooling equipment, and thereby fueling the demand for modular chillers, throughout the forecast period.

Middle East & Africa is the major market for modular chiller. The increased emphasis of Middle Eastern governments on decreasing their dependency on the energy industry, as well as expanding measures to raise domestic manufacturing output in the petrochemical, chemical, and other industrial sectors, are predicted to increase the need for cooling equipment.

The fast expansion of transportation infrastructure in the country is predicted to increase residential and commercial development in surrounding areas, which will have a favorable influence on product demand throughout the projection period. The construction sector is being driven by factors such as increased tourism, population expansion, and urbanization. The expansion of the construction sector is expected to drive demand for modular chillers in Saudi Arabia throughout the projected 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

Global Modular Chillers Market Segmentation

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