Modular Chiller Market Size, Share & Industry Analysis, By Type (Air-cooled modular chiller, Water-cooled modular chiller), By Application (Industrial, Commercial, Residential) and Regional Forecasts, 2019-2032

The global modular chillers market size was valued at USD 3.82 billion in 2018 and is projected to reach USD 9.12 billion by 2032, exhibiting a CAGR of 6% during the forecast period. Asia Pacific dominated the modular chillers market with a market share of 39.79% in 2018.

The market is growing with the increasing demand for energy-efficient cooling solutions, advancements in HVAC technology, and a focus on sustainability. Also, infrastructure development and environmental considerations to boost market growth.

Modular chillers are growing in trend for the building services in commercial as well as residential applications. This is occurring because of their ability to cool as well as recover heat from the cooling module to increase the overall efficiency of a cooling system. Modular chiller refers to the number of small modules connected to provide output, similar to a single chiller to end-users.

In addition to it, key manufacturers are evaluating the energy and sustainability aspects of buildings under the leadership in energy and environmental design (LEED) certification introduced by the U.S. green building council (USGBC). Additionally, the energy performance certificate (EPC) related to carbon emission is mandatory for commercial buildings, primarily in the U.K.

MARKET TREND

“Growing Demand for HVAC Solutions to Boost the Market Growth”

Increasing demand for heating, ventilation, and air conditioning (HVAC) energy-efficient solutions to meet the indoor air quality is fueling the modular chiller market growth. Growing demand for easy-to-install and lightweight modular chiller system would also propel the demand in HVAC applications. Moreover, the primary application of modular chiller is into the commercial buildings as they can be easily installed or removed when required. The new module can be easily brought in with less downtime. For instance, in September 2018, Aermec (U.K.) introduced a high-efficiency modular chiller that enables the refrigerant circuit to be oil-free, using 50% less refrigerant than other products.

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MARKET DRIVER

“Simultaneous Heating and Cooling Ability of Modular Chillers to Aid Growth”

In modular chillers, no idle time in HVAC applications is required as it offers modularity, i.e., the capacity can be increased by adding a parallel module. Ultimately, it will provide cooling capacity with no substantial downtime. If in case, one unit fails, the operator can switch on the additional parallel unit in case of cooling requirements. Also, the module design and aggregate system size are taken into consideration while adding the parallel modules. Manufacturers are also implementing the same to offer sufficient cooling capacity. For instance, Mitsubishi Electric Corporation expanded its E-series modular chillers with 150kw and 180kw modules to provide its ‘off-the-shelf’ offering in the United Kingdom market. Furthermore, LG Electronics’s centrifugal chiller offers module by module operation through different combinations to maximize the partial load efficiency.

SEGMENTATION

By Type Analysis

“Water-cooled Modular Chillers Segment to Grow Rapidly Stoked by Their Possession of Several Features”

Based on type, the market is divided into the water-cooled modular chiller and air-cooled modular chiller. The water-cooled modular chiller segment is expected to grow exponentially over the anticipated period, owing to their high energy efficiency and superior performance as compared to the air-cooled modular chiller. Moreover, the water-cooled modular chiller is mostly used in buildings where the cooling load is large enough for increasing efficiency. For instance, in March 2018, Aermec (U.K.) launched a stackable water-cooled modular chiller that enables cooling capacities to increase over time to suit changing requirements.

By Application Analysis

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“Commercial Segment to Exhibit High CAGR Backed by Rising Demand for HVAC Systems”

Based on the application, the market is divided into industrial, commercial, and residential. The commercial application segment is expected to grow with substantial CAGR during the forecast period. It would also showcase a high modular chiller market share. The growth is attributable to the rise in demand for HVAC systems in infrastructures, including commercial offices, institutions, shopping mall, and others. Industrial and residential segments are expected to experience steady and moderate growth, respectively. For instance, Arctic Chiller Group, Ltd. manufactured modular chillers with variable speed compressors, variable speed condenser fans for industrial processes and commercial HVAC applications. Moreover, Daikin’s UAL-D R410A series air-cooled modular chiller offers high capacity, low sound level, and flexible system management.

REGIONAL ANALYSIS

Revenue generated from the sales of modular chillers across the Asia Pacific, Europe, North America, the Middle East, and Africa, and Latin America is considerably increasing the market value.

Asia Pacific is anticipated to exhibit the highest CAGR in the near future, owing to the expansion of the industrial sector. Factors such as increased awareness about energy-efficient end-use products, rise in economically developing countries, and rapid industrialization are fueling the market growth. In addition to this, key manufacturers are focusing on enhancing their businesses in this region, owing to the multiple ongoing industrial projects. Countries, including China and India, have the highest modular chiller market revenue, owing to the rise in demand for high output products with less downtime.

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Europe is anticipated to witness significant growth in the market, because of the energy-efficient modular chillers and technological development of the product line. Also, the presence of prominent manufacturers, such as Carrier Corporation, Daikin Industries, Ltd., and Trane in countries such as Italy, Germany, the U.K., France, and others, are aiding the progress in the region. Moreover, increased demand in manufacturing and processing operations is also fueling the demand in the European market. For instance, in January 2018, Ingersoll Rand acquired ICS Cool Energy Limited (a brand of ICS Group Holdings Limited) to expand its business of temporary rental of energy-efficient chillers for industrial and commercial buildings across Europe. 

North America is expected to showcase stagnant growth in the forecast period, owing to the adoption of modular chillers for industrial applications where several infrastructural projects have begun. Manufacturers are expanding the business line across region by focusing on mergers and acquisitions. For instance, in September 2019, Trane (a business of Ingersoll Rand) acquired Arctic Chillers Group, Ltd. (Headquartered in Canada) for expanding the process cooling and commercial HVAC applications.  

The Middle East and Africa and Latin America are expected to grow steadily over the forecast period. Countries such as U.A.E., Saudi Arabia, Brazil, and Argentina are adopting chiller products primarily for cooling in commercial offices. For instance, in November 2019, in the United Republic of Tanzania, Daikin Industries, Ltd. with Wassha Inc. took the initiative for the social implementation of new value through collaboration with venture companies. Moreover, in December 2019, Daikin Industries, Ltd. MEA introduced a modular chiller plant that combines cooling tower, chiller system, piping, and pump in a factory assembled platform.

LIST OF KEY COMPANIES PROFILED: 

• Mitsubishi Electric Corporation (Tokyo, Japan)


• Trane (Dublin, Ireland)


• Carrier Corporation (Florida, U.S.)


• LG Electronics (Seoul, Korea)


• Daikin Industries, Ltd. (Osaka, Japan)


• Nanjing tica climate solutions co., ltd (Nanjing, China)


• Midea Group (Guangdong, China)


• Gree Electric Appliances, Inc. of Zhuhai (Guangdong, China)


• Haier Group (Shandong, China)


• Frigel Firenze S.p.A. (Tuscany, Italy)

KEY INDUSTRY DEVELOPMENTS:

Players such as, Carrier Corporation, Trane (a brand of Ingersoll Rand), Daikin Industries, Ltd., Gree Electric Appliances, Inc., Midea Group, Haier Group, Frigel Firenze S.p.A., Nanjing tica climate solutions Co., Ltd., and LG Electronics are dominating the modular chiller market. This growth is attributable to their strong regional presence. Approximately, these modular chiller manufacturers accumulate 60% market share around the globe. Moreover, companies, including ClimaCool Corp, initiated startup and service training programs for OEM controls and software loading applications for heating and cooling solutions of modular chillers. 

Companies are heavily investing in several strategies such as mergers and acquisitions to expand the distribution network across the globe. For instance,

• September 2019 - Trane (a business brand of Ingersoll Rand), acquired Arctic Chiller Group to expand the product portfolio of high-efficiency water-cooled and air-cooled modular chillers and magnetic bearing chillers for process cooling applications and commercial HVAC applications.


• November 2017 - Carrier Corporation introduced the latest version of AquaSnap 30 MP, a water-cooled and condenserless modular chiller. 30 MP features an enhanced HVAC system to resolve difficult chilled-water systems.    

FUTURE OUTLOOK

The global modular chiller market is growing over the time period, owing to the reliable performance, serviceability, and optimized capacity. The growth is attributed to technologies including micro-computer control, an aggregate system for module size design, high adaptability to applications with requirements on technology, and ease of use. In the near future, modular chillers can be an ideal solution for high-rise residential areas, the healthcare sector, and others. Moreover, modular chiller manufacturers are focused on enhancing the energy efficiency of buildings and lowering greenhouse gas (GHG) emission, which will result in their growing adoption over the substitutes.

REPORT COVERAGE

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The report offers qualitative and quantitative insights on modular chiller solutions and services and the detailed analysis of market size & growth rate for all possible segments in the market.

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Along with this, the modular chiller market report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption trends of modular chiller solutions by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

Report Scope &Segmentation Table