Asia Pacific Chillers Market Size, Share & Covid-19 Impact Analysis, By Type (Screw, Scroll, Centrifugal, and Others), By Application (Chemicals & Petrochemicals, Food & Beverage, Medical, Plastic, and Rubber) and Regional Forecast, 2032

The Asia Pacific chillers market size was USD 4.82 billion in 2019 and is projected to grow USD 8.46 billion in 2032 at a CAGR of 4.3% in the 2020-2032 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The regional impact of COVID-19 has been unprecedented and staggering, with chillers witnessing a declining impact on demand across the regions amid the pandemic. Based on our analysis, the Asia Pacific chillers market will exhibit a lower growth of 3.2% in 2020 compared to the average year-on-year growth during 2016-2019. 

Chillers are basic refrigeration systems that offer the cooling facility for commercial and industrial applications. The food and beverage sector has the highest usage of this system with rising foodservice facilities globally. Commercial food service establishments account for bulk orders of this system in fast food outlets, full service and quick service restaurants, caterers, etc.  

The rising demand for energy-efficient equipment is creating several opportunities for market players in the APAC region. Demand for these energy-efficient systems is expected to fulfill from developing markets such as China and India with relevant government programs to conserve energy. For example, in 2017, the Asian Development Bank and the Government of India signed a loan agreement of USD 200 million to expand the APAC market for energy-efficient products while reducing greenhouse gas emissions.

COVID-19 to Hamper Heating, Ventilation and Air-Conditioning System (HVAC) Investments Creating Impulsive Business Conditions

The sudden lockdown imposed by various governmental bodies across countries including India, China, U.S., U.K., Italy, and others is creating challenges impacting organizations of all sizes. However, it has moderately affected the HVAC system business across the world. It is because very few refrigerating, ventilation, and air conditioning activities have been halted in the first quarter. The HVAC activities refer to repairing existing equipment, changing Heating, Ventilation, Air-Conditioning system (HVAC), etc.

Manufacturers such as Carrier, Trane, Daikin Industries, Ltd., Johnson Controls, and others have experienced roughly unchanged operations in the HVAC industry. The companies have utilized the current time to invest in research to fetch the opportunities created by regulations that require a critical infrastructural workforce across the HVAC industry. The governments across countries have ordered to re-open some markets, business, and other sectors, which will boost the market growth.

Therefore, on a long term basis, the outlook seems dynamic as the chillers utilization across end-use applications is expected to consolidate the market in the post-COVID-19 era. Additionally, technology-centric opportunities, including the internet of things (IoT) to automate the chillers, are expected to bolster the market growth in the forthcoming years. Considering the factors above, growth is expected to be a trajectory for the market. It is anticipated to be solid with the moderate impact of the COVID-19 pandemic in the years to come.

LATEST TRENDS

Adoption of Absorption Chillers is the Key Market Trend

In the coming years, increasing demand for cost-effective systems has led to the innovation of absorption chillers that cater to the energy efficiency demand across several applications in the APAC market. The cooling process in this system is driven by the condensation and evaporation of water while consuming minimum electricity that offers vibration-free operation and low maintenance and operational cost.

The rise in the adoption of the internet of things (IoT) and multi-cloud services results in high demand for this equipment for data centers. Modernizations in the data center expertise to cater to the necessities of tech-savvy consumers are a key trending factor in the APAC market. Chillers with single screw inverter compressors turn out to be the efficient solution in most data centers.

DRIVING FACTOR

Fast-tracked Green Building Construction to Trigger Market Growth

The growing trend towards the construction of green buildings is empowering the market across Asia Pacific. This is owing to the stringent government norms and standards for energy consumption, rising awareness of occupants for health, rising hazardous emissions, etc. Chillers are the crucial components in green building design. While evaluating this system's performance as a whole, it is essential to look beyond pressure drop and efficiency of cooling systems for commercial applications and efficiency for industrial applications. This is likely to drive the market over the forecast period.

According to the World Green Building Council (World GBC), countries such as Australia with nearly 46%, China (majorly Hong Kong) with approximately 42%, majorly focus on green buildings. The emerging countries such as India, China, and Singapore are extensively focusing on providing energy-efficient chillers.

RESTRAINING FACTORS

Alternative Cooling Technologies to Hamper Market Growth

One of the major restraining factors in the market is the alternative cooling system, i.e., variable refrigerant flow (VRF). The increasing adoption of this system is expected to hamper the market growth, as VRF can offer heating and cooling facilities simultaneously in the same mode of operation. Moreover, VRF systems are easy in installation, with limited connection, hence requiring minimum installation and maintenance costs than chillers. VRF is more energy-efficient than chillers and is anticipated to limit the market growth in the forthcoming years.

SEGMENTATION

By Type Analysis

Screw Chillers Segment is Projected to Grow at a Higher CAGR Owing to Rising Demand from Medical Sector

Based on type, the Asia Pacific chillers market is divided into the screw, centrifugal, scroll, and others.

Among these, the screw segment is projected to grow exponentially during the forecast period. This is attributed to the rising demand from the medical sector to provide an essential chilled atmosphere that stores medicines, blood or plasma samples, and other medicinal compounds. These chillers have a wide range of commercial applications across the Asian chemicals and food sector.

Centrifugal chillers are anticipated to portray progressive market growth. These chillers are the main part of the most central systems in large buildings, whether a hospital, chemical lab, or restaurant. Centrifugal chillers are installed in single and multiple units to offer chilled water for air conditioning large complexes through district cooling systems.

Scroll chillers are expected to depict substantial market growth with moderate demand for air and water-cooled chillers with single or multiple compressors, suitable for factory applications.

The others segment is likely to witness stagnant growth over the forecast period with limited applications and minimal cooling facility.

By Application Analysis

Chemicals & Petrochemicals Application is Projected to Dominate Market Share

The chemicals and petrochemicals sector dominates the market with the highest share. The rising need for chillers in chemical factories and laboratories is expected to drive the segment growth. The storage of highly inflammable chemicals must be handled with the care that requires a specific temperature for its storage achieved with the installation of chillers.

The plastic, food and beverage, and medical sector are anticipated to experience exponential market growth in the forthcoming years with the rising demand for stabilizing temperature across these commercial applications. Large complexes or buildings temperature is maintained using the chillers, thus preserving the quality of products stored.

The rubber application is projected to showcase moderate market growth with limited demand for chillers in the rubber factory or storage sections.

COUNTRY INSIGHTS

The rising elderly population and the increasing burden of diseases in developed and developing countries of Asia Pacific propel the need for chillers across the region during the forecast period. As per the United Nations, in 2016, around 12.4% of the Asian population is above 60 years and is estimated to rise in the forthcoming years. Moreover, the increasing medical applications for storing plasma and platelets that help treat diseases in the geriatric population is expected to enhance the Asia Pacific chillers market scope in the forthcoming years.

Technological advancements, coupled with the rising investments in R&D across Asian countries, are likely to bolster market growth. For instance, in 2016, China spent USD 369 billion, wherein Japan spent USD 166 billion for the advancements in chillers and freezers.

China to Hold Highest Market Share Owing to Fastest Developing Country and Several Government Initiatives

In Asia Pacific (APAC), China registered the highest consumption of chillers in 2018. The Chinese government strictly focuses on minimizing the HCFC refrigerants while developing the R-134a refrigerant-based chillers. Medical, Food and Beverage, and Chemical sectors are expanding rapidly with a higher population and the increasing demand for varied consumable products. This is expected to drive the market growth in the country.

KEY INDUSTRY PLAYERS

Johnson Controls International, Trane, and Mitsubishi Electric Corporation Focus over Market Expansion and Operational Strategies

Key manufacturers are aggressively investing in R&D, as well as a highly automated central production process for the enhanced volume of production. The companies invest in smaller and local production units to cater to the local demand and reduce transportation, thereby achieving enhanced sustainability. Major players are adopting a purchasing strategy by maintaining long-standing relations with the suppliers to reduce the cost involved during the procurement process. This enables them to purchase essential raw materials such as steel and other raw materials directly from the manufacturers, rather than the intermediaries.

To sustain the market, key players are strengthening the profit structure by implementing Industry 4.0, enabling them to manage the flow of information to increase efficiency.

LIST OF KEY COMPANIES PROFILED: 

• Johnson Controls International (‎Cork, Ireland‎)


• Trane (‎Dublin, Ireland‎)


• Carrier (Florida, United States)


• Mitsubishi Electric Corporation (Tokyo, Japan‎)


• Daikin Airconditioning India Pvt. Ltd. (Osaka, Japan)


• Smardt Chiller Group (Quebec, Canada)


• Multistack LLC (Wisconsin, United States)


• Thermax Limited (Maharashtra, India)


• Thermal Care Inc. (Illinois, United States)


• Midea Group (Foshan, China)

KEY INDUSTRY DEVELOPMENTS:

• December 2020: Carrier announced expanding its AquaEdge 19DV water-cooled centrifugal chiller line from 150 tons to 350 tons.


• August 2020: Trane technologies launched Sintesis Balance CMAF, a fully electric single-unit heating and cooling systems for buildings, eliminating the need for a separate boiler and chiller system.


• April 2020: Mitsubishi Electric Corporation announced that its European subsidiary Mitsubishi Electric Europe B.V. acquired all AQS PRODUKTER AB shares that offer commercial cooling and heating systems.

REPORT COVERAGE

The report provides a detailed analysis of the chillers market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation