Turbo Chillers Market Size, Share & Industry Analysis, By Type (Water Cooled and Air Cooled), By Cooling Capacity (Small Capacity, Medium Capacity, and Large Capacity), By Application (Chemical, Food & Beverages, Pharmaceuticals, Marine Industry, and Others) and Regional Forecast, 2024-2032

The global turbo chillers market size was valued at USD 1.72 billion in 2023 and is projected to grow from USD 1.75 billion in 2024 to USD 2.17 billion by 2032, exhibiting a CAGR of 2.7% during the forecast period.

Turbo chillers, also referred to as centrifugal air compressors, are designed to enhance engine performance and efficiency by pushing additional air into the combustion chamber of an internal combustion engine. Its primary applications span across automotive and industrial sectors, providing considerable benefits such as high flow rates and enhanced energy efficiency. Their versatility extends to several large-scale and high-energy industries, including glass processing, food processing, steel manufacturing, and petrochemicals. With numerous advantages, turbo compressors play a crucial role in optimizing operations and productivity across these diverse sectors. Turbo chillers make use of low Global Warming Potential (GWP) refrigerants such as R134a, R123, R410A, and R513A to minimize carbon emissions during heating and cooling processes.

Turbo chillers are widely employed in process cooling applications across diverse industries, such as food processing units, chemical plants, plastic production, and pharmaceuticals. The demand for substantial cooling capacity in these applications considerably impacts market growth. Various sectors, such as chemical plants, are adopting these chillers to effectively manage and mitigate heat generated during processes, ensuring smooth operations. The upward trend in the adoption of advanced cooling technologies and the introduction of innovative products for process cooling can be attributed to evolving regulatory policies and market dynamics. Several benefits, such as high efficiency, a compact design, reduced noise levels, environmental friendliness, and rapid cooling and heating capabilities, are all anticipated to boost market share over the coming years.

End-users are increasingly favoring energy-efficient cooling equipment due to evolving industry standards and regulations. Consequently, numerous Original Equipment Manufacturers (OEMs) are offering turbo chillers that prioritize enhanced energy savings, compact designs, and compatibility with low Global Warming Potential (GWP) refrigerants, all while ensuring quieter operations compared to other cooling options such as air conditioning equipment. Manufacturing companies are actively introducing pertinent and innovative solutions to align with the dynamic requirements of the industry. For instance, Kaltra GmbH rolled out its new range of turbocor compressor chillers, the Powerstream Turbo II range, for process cooling applications with an extended capacity of up to 4.5 MW and low GWP refrigerant compatibility in 2023.

Overall, the demand for turbo chillers in the market remained low as a result of reduced investment in production facilities, financial impact on end-users, and closure of production and warehouse facilities across diverse geographies during the COVID-19 pandemic. The pandemic raised awareness about optimal energy consumption and the effects of global warming among end users, influencing the demand for sustainable and environment-friendly cooling solutions.

Turbo Chillers Market Trends

Rising Focus on Energy-Efficient Solutions and Growing Industrial Capacities are the Latest Industry Trends 

Industrial facilities such as chemicals, plastics, food and beverages, and other manufacturing facilities are expanding their production capacities. Due to high energy consumption in HVAC systems and chillers, there is a growing demand for energy-efficient and high-performance chillers for large facilities. Manufacturers are largely focusing on developing a new range of turbo chillers with an extended capacity of up to 4.5 MW. Key players in the market have made significant investments in diversifying their product portfolio through collaborations and acquisitions. Furthermore, add-on features such as faster service offerings, including repair and maintenance services from authorized service centers, are boosting market sales. For instance, Airedale expanded its DCS range of turbo chillers for unique data center applications with enhanced free-cooling technology in February 2022.

Turbo Chillers Market Growth Factors

Increasing Infrastructure and Urbanization to Boost the Growth of Market 

The adoption of Industry 4.0 is transforming traditional industrial plants and modern projects, emphasizing the need for compact machinery and equipment for cooling applications. Substantial investments are in the pipeline for upcoming industrial plants, driving the demand for turbo chiller systems. Urbanization and population growth are propelling the expansion of large buildings and skyscrapers worldwide. These structures, equipped with significant load handling capacities, necessitate chiller systems with large cooling capacity, modular designs, low noise levels, and high reliability and durability. For example, Cadila Pharmaceuticals invested approximately USD 12.0 million in establishing a manufacturing facility in Odisha, India, in 2022. The turbo chillers market share is expected to benefit from increasing infrastructure investments, the expansion of manufacturing facilities, and evolving regulatory policies.

RESTRAINING FACTORS

Rise of Alternative Solutions and Shift to Cost-Effective Alternatives to Hinder Market Growth

Certain industries are introducing alternative solutions tailored to their specific cooling needs, aiming to reduce infrastructure costs and space requirements, ultimately lowering both operational and initial expenses compared to turbo chiller systems. As an example, immersion cooling liquids represent an innovative solution for data centers, offering scalability and energy efficiency with enhanced processing capabilities, distinguishing them from traditional chillers. The International Energy Agency (IEA) reports that data centers and transmission networks account for 2-3% of global energy consumption, emphasizing the need for optimal cooling solutions. Furthermore, regular maintenance is crucial for electronic leak detection systems to prevent oil leakage in turbo chillers, potentially leading to increased overall operating costs over the system's lifecycle.

Turbo Chillers Market Segmentation Analysis

By Type Analysis

Air Cooled Turbo Chillers to Attain Strong Market Revenue as a Result of Rising Demand for Manufacturing Sector

Based on type, the market is categorized into water cooled and air cooled. 

Air cooled segment is anticipated to dominate the market, holding the largest share in terms of revenue and experiencing the highest growth rate throughout the forecast period. This is attributed to the increasing demand for air-cooled chillers within manufacturing sectors, including chemicals, pharmaceuticals, and healthcare, among others.

By Cooling Capacity Analysis

Medium Capacity Chillers Captures the Highest Market Share Owing to Wide Array of Process Cooling Application

Based on cooling capacity, the market is divided into small capacity, medium capacity, and large capacity.

Small capacity chillers include chillers with a cooling capacity of less than 300 kW, medium capacity chillers with a cooling capacity between 301- 2,000 kW, and large capacity chillers with a cooling capacity of more than 2,000 kW.

The medium capacity segment dominates the market and is projected to secure the highest market share throughout the forecast period. This is due to the rising industrialization and growth in the medical and pharmaceutical sectors, which boosts the demand for turbo chillers to maintain temperature.

Small capacity segment is likely to showcase a strong growth rate owing to application in several sectors such as healthcare, pharmaceutical, marine, and rubber industries.

Furthermore, large capacity chillers are experiencing steady growth as they are generally adopted in large-space industrial applications.

By Application Analysis

Rising Demand for Processed and Packaged Foods to Generate Growth Prospects for Cooling Solutions in Food and Beverages Sector

Based on application, the market is classified into chemical, food and beverages, pharmaceuticals, marine, and others. Others include the rubber and plastics sector.

The food and beverages sector leads the market in terms of revenue market share as a result of growing industrialization, growth in industrial sectors, infrastructure investment, and increasing awareness of energy conservation systems.

The chemical sector is projected to witness the highest growth rate during the forecast period, owing to rising demand from the food and beverages sectors.

The pharmaceutical, marine, and others segment is set to witness a moderate growth rate during the forecast period, owing to growing demand for cooling solutions for specific temperature conditions during production and storage.

REGIONAL INSIGHTS

Based on geography, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific has been predominantly generating strong market revenue in comparison to other regions by catering to more than 45% of the market revenue share. The region is expected to witness a growing demand for space cooling, driven by favorable government policies and evolving industry needs related to diverse control and pressure levels.

In response to growing environmental concerns, sustainability and energy efficiency have become paramount in the turbo chillers market. Manufacturers are incorporating advanced technologies and materials to develop energy-efficient products that meet stringent environmental regulations. Major manufacturers are planning to introduce low-energy refrigerant compressors owing to rising growth in industrial sectors across the region, which subsequently drives the demand for these chillers to maintain cool temperatures. Furthermore, the presence of several registered and local market participants, rapid industrialization, and increasing demand from industries including automotive, petrochemical, and oil & gas refineries are all subjected to the turbo chillers market growth. Increasing awareness of environmental sustainability across numerous industrial sectors has resulted in the highest growth rate for these chillers in the region.

In the market, sustainability and energy efficiency have taken priority across industries. Manufacturers are integrating advanced technologies and materials into their products to create energy-efficient solutions that adhere to stringent environmental regulations. Leading manufacturers are strategizing the introduction of low-energy refrigerant compressors for turbo chillers. Additionally, the Asia Pacific, characterized by the presence of numerous international and domestic market players, rapid industrialization, and rising demand for industrial cooling solutions in sectors such as automotive, petrochemicals, and oil & gas refineries, is experiencing the highest growth rate. The heightened awareness of environmental sustainability across various industrial domains contributes to this growth.

China is expected to lead revenue by increasing the demand for turbo chillers, with India following closely. This is attributed to various factors, including supportive policies and a growing investment trend in sustainable and energy-efficient cooling solutions.

The market has been under transformation due to advancements in cooling technologies, marked by the adoption of energy-efficient systems and environmentally friendly refrigerants.

In Europe, a robust growth rate is evident, driven by the influence of regulations and environmental considerations, which often prompt the adoption of innovative cooling solutions. Additionally, government spending on the industrial sector is expected to generate demand for products, ensuring temperature control and the supply of chilled water to the manufacturing sector.

Companies in North America enhance their development potential through significant investments in research and development and a primary focus on technological advancements. Key developmental strategies such as collaborations, product development, and business expansion play a crucial role in driving growth. The region's diverse climate conditions, ranging from extreme cold in northern regions to hot and humid climates, necessitate the adoption of advanced cooling systems. This includes the use of turbo chillers and centrifugal chillers to ensure effective temperature and humidity control.

Rising awareness about energy-efficient cooling solutions and increasing investment in the infrastructure development of new manufacturing sector, pharmaceutical, and marine sectors is subjected to fuel the market growth for South America, and the Middle East & Africa

List of Key Companies in Turbo Chillers Market

Energy Efficient Product Launch and Digital Strategy by Market Participants to Drive Chillers Demand

Companies in the industry are emphasizing the creation of technology-enabled solutions for industrial facilities, leading to increased sales of such solutions across various sectors. Market players are working on the development of turbo chillers that are compatible with low Global Warming Potential (GWP) refrigerants such as R1234ze and R513a, featuring enhanced cooling capacities of up to 4.5 MW. Major players are predominantly concentrating on providing after-sales services, pursuing partnership and acquisition strategies to broaden their geographical reach. Additionally, market competitors are making efforts to expand their product portfolios to cater to a diverse range of applications.

TICA Strategizes Acquisition of Local Players to Penetrate and Expand its Product Presence

• TICA, an HVAC and energy products manufacturer, has acquired Smardt Chiller Group to expand its product portfolio to a wide range of customers such as Healthcare, Electronics, and Data centers in May 2022

LIST OF KEY COMPANIES PROFILED:

• Aermec (Italy)


• Modine Manufacturing (U.S.)


• Carrier (U.S.)


• Daikin Industries Ltd. (Japan)


• EBARA Corporation (Japan)


• Heinen & Hopman (Netherlands)


• Kaltra (Germany)


• Mitsubishi Heavy Industries Ltd. (Japan)


• Trane Technologies (U.S.)


• Nanjing TICA Climate Solutions Co. Ltd. (China)

KEY INDUSTRY DEVELOPMENTS:

• September 2022: Engie Refrigeration introduced SPECTRUM, a turbo compressor-based water chiller. This extended model in the product portfolio has a cooling capacity range of 170 to 1,100 kW.


• March 2021: Kaltra introduced the Lightstream Turbo II HL range for cooling in hot climates. The advanced model of Kaltra operates at a maximum discharge temperature of up to 70 degrees Celsius. The Turbo II HL range spans up to 4 Turbocor TTH/TGH series compressors, along with magnetic bearing technology and enhanced efficiency.


• April 2020: Kaltra transformed its compressor-based chillers with air-cooled condensers designed for variable-load cooling and lower GWP- refrigerants such as R1234ze and R513a.


• March 2020: Vertiv, in partnership with Geoclima, launched Vertiv Liebert OFC, an advanced model of oil-free turbocor compressor chillers with efficient heat thermal management technologies and compatibility with low GWP refrigerants.


• June 2019: Kaltra distributed its turbo chillers to ArcelorMittal's hot strip rolling mill in Belgium, featuring customized chillers with refrigerant leak detectors and an energy monitoring system for the cooling plant.

REPORT COVERAGE

The report provides comprehensive insights into the market, covering aspects such as drivers, restraints, competitive landscape, regional analysis, and challenges. It offers an analytical depiction of the market, current trends, and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2023 to 2032 to provide the financial competency of the market. The information gathered in this report has been taken from several primary and secondary sources.

Report Scope & Segmentation