Global HVAC Chillers Market By Product Type (Screw chillers, Scroll chillers, Centrifugal chillers and Others), By End-User (Industrial sector and Commercial Sector), By Company, By Region, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 12.58 Billion
CAGR (2026-2031)	5.13%
Fastest Growing Segment	Commercial Sector
Largest Market	Asia Pacific
Market Size (2031)	USD 16.98 Billion

Market Overview

The Global HVAC Chillers Market will grow from USD 12.58 Billion in 2025 to USD 16.98 Billion by 2031 at a 5.13% CAGR. HVAC chillers are thermal management systems that utilize vapor-compression or absorption cycles to remove heat from a liquid coolant, which is then circulated to lower temperatures in buildings or industrial processes. The market is primarily driven by the robust expansion of commercial infrastructure and the escalating cooling requirements of the data center industry to manage server thermal loads. Furthermore, the enforcement of rigorous energy performance standards is compelling facility managers to replace aging infrastructure with compliant units, ensuring sustained demand independent of temporary trends.

A significant impediment to market expansion involves the operational and regulatory pressures associated with high energy consumption and the transition to sustainable refrigerants. Manufacturers must contend with the phase-down of high-global-warming-potential hydrofluorocarbons while striving to lower the substantial carbon footprint of these systems. According to the International Institute of Refrigeration (IIR), in 2024, the refrigeration and air-conditioning sector, which encompasses the chiller market, consumed approximately 20% of the overall electricity used worldwide, underscoring the critical challenge of balancing performance with energy sustainability.

Key Market Drivers

Surging demand for cooling solutions in data centers is fundamentally reshaping the Global HVAC Chillers Market. As hyperscale operators and colocation providers densify server racks to support artificial intelligence and cloud computing, the resulting thermal output requires advanced heat rejection systems to prevent equipment failure. Conventional air cooling is increasingly insufficient for these high-density loads, necessitating the deployment of high-capacity liquid chillers and water-side economizers to maintain operational stability and energy efficiency. This trend is creating a specialized vertical for manufacturers, who must deliver units capable of precise temperature control and extreme reliability under continuous heavy loads. According to JLL, August 2024, in the 'U.S. Data Center Report – Midyear 2024', data center absorption in the United States reached a record of nearly 2.8 gigawatts in the first half of the year, signaling an unprecedented requirement for thermal management infrastructure.

Simultaneously, the rapid expansion of the construction and infrastructure sectors is providing a broad base of demand for central cooling systems. The development of commercial office spaces, healthcare facilities, and mixed-use complexes necessitates robust chiller installations to meet modern ventilation and comfort standards, particularly in urbanization hubs. This driver is further amplified by new infrastructure projects that mandate energy-efficient HVAC implementations from the outset to comply with green building codes. According to Dodge Construction Network, January 2025, in the 'Construction Starts - December 2024' report, total construction starts grew approximately 6% in 2024, sustaining the installation pipeline for building services equipment. This momentum is part of a wider trend; according to the International Energy Agency, in 2024, space cooling was identified as the fastest-growing source of energy demand in buildings, with usage projected to rise by almost 4% annually.

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Key Market Challenges

The operational and regulatory pressures regarding high energy consumption and the transition to sustainable refrigerants constitute a substantial barrier to the Global HVAC Chillers Market. Manufacturers are compelled to divert significant capital toward redesigning product portfolios to accommodate low-global-warming-potential refrigerants while simultaneously meeting increasingly rigorous efficiency codes. This dual compliance burden complicates the manufacturing process and elevates production costs, which must often be passed on to the consumer. Consequently, the higher upfront price of compliant units discourages facility managers from replacing aging infrastructure, leading to deferred maintenance cycles and slowing the rate of new equipment adoption across the commercial and industrial sectors.

This challenging environment is further intensified by the rapid escalation of energy demand within the sector, which invites continuous regulatory tightening that disrupts long-term production planning. According to the International Energy Agency, in 2024, space cooling was identified as the fastest-growing source of energy demand in the buildings sector, with consumption projected to rise by nearly 4% annually through 2035. This trajectory forces regulatory bodies to implement even stricter performance standards to mitigate grid strain, creating a persistent cycle of redesign and certification that hampers market flexibility and restricts the swift expansion of the chiller industry.

Key Market Trends

The Increased Utilization of Heat Recovery and Heat Pump Chillers is rapidly gaining traction as facility managers seek to decarbonize heating through electrification. Unlike traditional boiler systems that rely on fossil fuels, modern heat pump chillers leverage waste heat recycling to provide simultaneous heating and cooling, thereby significantly enhancing thermal efficiency. This transition is being accelerated by the operational cost benefits associated with reduced fuel consumption and the ability to meet net-zero targets without sacrificing performance. According to RefIndustry, June 2025, in the 'Johnson Controls launches new commercial heat pumps' report, the company's heat pump solutions helped customers reduce emissions by 60% and cut heating expenses by 53% in 2024 compared to conventional natural gas boilers.

The Implementation of IoT-Enabled Smart Monitoring and Control is fundamentally altering chiller operations by shifting maintenance strategies from reactive to predictive models. By integrating advanced sensors and cloud-based analytics, operators can now visualize real-time performance data to identify inefficiencies and prevent equipment failures before they occur. This digital transformation allows for the precise modulation of system outputs based on immediate environmental demands, ensuring optimal energy usage across diverse building portfolios. According to Cooling Best Practices, September 2025, in the 'Carrier Abound Wins 2025 Sustainability Leadership Award' report, the AI-powered Abound platform enabled retailers to save over 667 million kWh of energy globally in the preceding 12 months through enhanced operational intelligence.

Segmental Insights

The Commercial Sector is the fastest-growing segment in the Global HVAC Chillers Market, driven by the expanding construction of office complexes, hotels, and retail centers. This growth is fueled by rapid urbanization and increased investments in public infrastructure which necessitate extensive indoor climate control. Furthermore, strict energy efficiency mandates established by organizations like the American Society of Heating, Refrigerating and Air-Conditioning Engineers compel facility managers to adopt compliant technologies. Consequently, the sector prioritizes cooling solutions that lower energy expenditure and ensure adherence to evolving environmental regulations regarding building operations.

Regional Insights

Asia Pacific maintains a dominant position in the global HVAC chillers market due to extensive urbanization and industrial expansion in key economies like China and India. The rising number of commercial and residential construction projects creates sustained demand for large-scale cooling systems. Furthermore, regulatory frameworks aimed at energy conservation, such as standards set by the Bureau of Energy Efficiency in India, encourage the adoption of efficient technologies. This convergence of infrastructure growth and government initiatives regarding energy management solidifies the region's market leadership.

Recent Developments

• In March 2025, Trane Technologies introduced two new air-cooled chiller solutions designed specifically for the intense cooling demands of data centers and mission-critical operations. The launch included a high-capacity Magnetic Bearing Chiller capable of delivering up to 850 tons of cooling on a single frame, which allows for a reduced physical footprint and lower installation costs. The company also expanded its Ascend chiller platform to support higher ambient temperature operations, addressing the thermal management needs created by next-generation microprocessors. These systems utilize lower global warming potential refrigerants to support sustainability goals while ensuring operational efficiency in high-density computing environments.
• In December 2024, Johnson Controls launched the YORK YK-CP Centrifugal Chiller, a high-capacity cooling system optimized for the ultra-low global warming potential refrigerant R-1234ze(E). Ranging from 2,000 to 3,000 tons, this new model was engineered to meet the decarbonization requirements of large commercial buildings without increasing the equipment's physical footprint. The system features a falling film evaporator design and an optional variable-speed drive, achieving performance levels up to 30% more efficient than conventional chillers. This development enables facility owners to significantly reduce annual carbon emissions while maintaining reliable operation in diverse ambient conditions.
• In October 2024, Daikin Applied released the Magnitude WME-D, a next-generation water-cooled centrifugal chiller that utilizes a two-stage, oil-free magnetic bearing compressor. This system was designed to operate with R-515B, a refrigerant with a low global warming potential, to align with tightening environmental regulations. The unit delivers up to 40% greater energy savings compared to traditional fixed-speed options by optimizing the compressor-refrigerant combination. Engineered for flexibility, the chiller features a compact footprint suitable for both new construction and retrofit projects in schools, healthcare facilities, and data centers, offering enhanced reliability through its oil-free mechanical design.
• In April 2024, Carrier Global Corporation updated its AquaSnap 30MP water-cooled scroll chiller to incorporate R-32, a refrigerant with a lower environmental impact and high energy efficiency. This modernization effort included the integration of advanced PIC6 intelligent controls, which provide users with enhanced connectivity options such as BACnet MS/TP or IP. The modular design of the system allows for the interconnection of up to eight chillers, providing a total capacity of up to 640 tons. These upgrades were implemented to assist building owners in reducing greenhouse gas emissions while maintaining a compact unit size ideal for replacement and retrofit applications.

Key Market Players

• Carrier Global Corporation
• Trane Technologies plc
• Johnson Controls International plc
• Daikin Industries, Ltd.
• Mitsubishi Electric Corporation
• LG Electronics Inc.
• Danfoss A/S
• Gree Electric Appliances Inc.
• Hitachi, Ltd.
• Blue Star Limited

By Product Type	By End-User	By Region
Screw chillers Scroll chillers Centrifugal chillers and Others	Industrial sector and Commercial Sector	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global HVAC Chillers Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• HVAC Chillers Market, By Product Type:

• Screw chillers
• Scroll chillers
• Centrifugal chillers and Others

• HVAC Chillers Market, By End-User:

• Industrial sector and Commercial Sector

• HVAC Chillers Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE