Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 627.79 Million
|
CAGR (2025-2030)
|
8.35%
|
Fastest Growing Segment
|
Scroll
|
Largest Market
|
North
|
Market Size (2030)
|
USD 1,015.14 Million
|
Market Overview
India Chiller Market was valued at USD 627.79 Million in 2024 and is expected
to reach USD 1,015.14 Million by 2030 with a CAGR of 8.35% during the forecast
period. The India Chiller market is primarily driven by rapid
industrialization, urbanization, and increasing demand for cooling solutions
across various sectors, including manufacturing, HVAC, and healthcare. The
growing need for temperature-controlled environments in industries such as pharmaceuticals,
food processing, and chemicals further fuels the market. Also, the rise in
construction activities, particularly in commercial and residential buildings,
boosts demand for chillers in HVAC systems. With India experiencing higher
temperatures and more extreme weather patterns due to climate change, the
demand for energy-efficient and reliable cooling systems continues to grow.
Government initiatives promoting energy efficiency and sustainability also
contribute to the market’s expansion.
Key Market Drivers
Growing
Commercial Sector Across the Region
The growing commercial sector across India is a key
driver for the expansion of the Chiller market. As a part of this, according
to a recent study, as of October 2024, India’s office space market is on track
to exceed 70 million sq. ft. in absorption this year, with major cities like
Bengaluru, Delhi-NCR, and Mumbai leading the surge, driven by high demand in
tech, flexible workspaces, and BFSI sectors. As urbanization accelerates
and cities become more developed, there is a rising demand for commercial
spaces such as office buildings, shopping malls, hotels, and hospitals, all of
which require efficient cooling systems. Chillers, being a crucial part of HVAC
systems, are increasingly being adopted to meet the cooling needs of these
commercial establishments.
With the commercial real estate sector booming,
especially in metropolitan cities like Delhi, Mumbai, and Bengaluru, there is a
substantial rise in demand for energy-efficient cooling solutions that can
handle large-scale requirements. Also, the need for temperature control in
industries like pharmaceuticals, food processing, and electronics—where precise
cooling is vital—further drives the demand for chillers. Government
initiatives and green building certifications are also pushing for more
energy-efficient solutions in commercial buildings. As a result, commercial
builders and businesses are opting for advanced, sustainable chiller systems to
comply with environmental regulations while reducing operational costs. This
trend is expected to continue as India's commercial sector expands, making it a
significant driver for the growth of the Chiller market in the region, and
further accelerating the adoption of energy-efficient, reliable cooling
solutions.
Product
Upgradation by Key Players
Product upgradation by key players is a significant
driver in the India Chiller market. As the demand for energy-efficient and
high-performance cooling solutions increases, leading manufacturers are
continuously innovating and improving their products to meet the evolving needs
of industries and commercial sectors. As a part of this, as of May 2024,
Carrier Airconditioning & Refrigeration Limited launched 30 RB
Air-Cooled Modular Scroll Chiller. This product is precisely created to meet
the changing needs of the Indian market, setting new standards for cooling
efficiency and reliability while delivering value to areas such as railways,
MES, metro, and others. Carrier India is part of Carrier Global Corporation, a
global pioneer in intelligent climate and energy solutions. Upgrades focus
on enhancing energy efficiency, reducing operational costs, and improving the
overall environmental impact of chillers.
Key players in the market are incorporating advanced
technologies such as variable speed drives, smart controls, and eco-friendly
refrigerants into their chiller systems. These innovations help optimize energy
consumption, lower carbon emissions, and extend the lifespan of the equipment.
Manufacturers are also introducing compact, modular, and customized solutions
that cater to diverse customer needs, from small businesses to large industrial
applications. The emphasis on sustainability is driving the upgradation of chillers to
meet stricter environmental standards. As a result, more companies are adopting
chillers with reduced global warming potential (GWP) refrigerants and higher
efficiency ratings, aligning with global and national environmental regulations.
Also, advancements in IoT integration and real-time monitoring systems enable
businesses to track performance, predict maintenance needs, and optimize energy
usage. As key players continue to innovate and upgrade their products, the
India Chiller market sees an ongoing shift toward smarter, greener, and more
cost-effective cooling solutions.
Expansion
of Hospitality Sector Across the Region
The expansion of the hospitality sector across India
is a significant driver for the growth of the Chiller market. As a part of
this, according to the Confederation of Indian Industry (CII) and EY, as of
December 2024, India's tourism and hospitality sectors are on track to create
over 6.1 million new employment by 2036-37.By 2036-37, spending in this sector
is expected to increase by 1.2 times, necessitating the hiring of an extra 6.1
million workers, including 4.6 million males and 1.5 million women. This rise
demonstrates the sector's ability to drive gender inclusion and workforce
expansion. With an increasing influx of domestic and international
tourists, the demand for hotels, resorts, and other hospitality services is
rapidly rising. The hospitality industry requires reliable, energy-efficient,
and large-scale cooling systems to provide comfort and maintain the temperature
of their establishments, from guest rooms to common areas like conference
halls, restaurants, and swimming pools. This creates a growing demand for
high-performance chillers capable of managing the cooling needs of these large
spaces. As India continues to emerge as a global travel destination, both the
luxury and budget segments of the hospitality sector are expanding. New hotel
projects and resorts are adopting advanced chiller systems that offer greater
efficiency and sustainability, ensuring they meet the rising energy demands
while adhering to environmental regulations. Also, eco-conscious consumers and
businesses are increasingly prioritizing green technologies, prompting hotels
and resorts to invest in energy-efficient chillers that reduce their carbon
footprint and operational costs. As the hospitality sector expands, the demand for
chillers will continue to grow, making it a crucial driver in the India Chiller
market.

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Key Market Challenges
Stringent
Government Regulation
Stringent government regulations pose a significant
challenge to the India Chiller market, particularly as the country works toward
reducing carbon emissions and improving energy efficiency. As a part of
this, as of September 2023, The Department for Promotion of Industry and
Internal Trade of India's Ministry of Trade and Industry stressed the need for
BIS certification for self-contained drinking water coolers. The Self-Contained
Drinking Water Cooler Quality Control Order intends to improve the quality of
water chillers in the Indian market. The guideline stipulates that all
self-contained drinking water coolers must meet Indian Standard 1475 (Part 1):
2001, which focuses on energy consumption and performance. Manufacturers must
get BIS-ISI certification by March 25, 2024, to import or sell products in this
category in India after that date. The Indian government has implemented
various environmental policies aimed at reducing the carbon footprint of
industrial and commercial operations. These include stringent energy
consumption standards, refrigerant regulations, and environmental guidelines,
all of which require manufacturers to upgrade their chiller systems to comply
with evolving norms.
Chillers, being energy-intensive equipment, are
heavily affected by these regulations. Manufacturers must invest in research
and development to produce systems that are energy-efficient and use
environmentally friendly refrigerants, such as low Global Warming Potential
(GWP) alternatives. This upgradation can be costly, which can hinder the
ability of small and mid-sized companies to comply with new regulations. Also,
the growing focus on reducing hydrofluorocarbon (HFC) emissions adds
complexity, as many traditional chillers use HFC-based refrigerants that are
being phased out under international agreements like the Kigali Amendment to
the Montreal Protocol. Businesses may face challenges in replacing old systems
or retrofitting them with new refrigerants that meet compliance standards.
While these regulations aim to protect the environment, they create a challenge
for the India Chiller market by increasing the operational and investment costs
for both manufacturers and End Uses, slowing market growth in the short term.
Intense
Competition Among Key Players
Intense competition among key players presents a
notable challenge in the India Chiller market. With the rapid growth of
industries such as manufacturing, hospitality, and pharmaceuticals, the demand
for cooling solutions has surged, attracting numerous local and international
players. As the market becomes increasingly saturated, companies are facing
heightened pressure to differentiate themselves through product innovation,
pricing strategies, and service offerings. This competition results in thinner
profit margins for manufacturers, as they are compelled to offer competitive
prices while maintaining the quality and efficiency of their products.
To stand out, companies are focusing on improving the
energy efficiency of their chillers, incorporating advanced technologies, and
meeting stringent environmental regulations. However, this often requires
significant investment in research and development, which can be a challenge
for smaller players who may lack the resources to keep up with the
technological advancements introduced by larger competitors. Also, the focus on
providing after-sales service, including maintenance and energy optimization,
is intensifying competition. Customers increasingly expect not only reliable
products but also comprehensive service packages. As the competition grows
fiercer, companies must balance innovation, cost control, and customer service
to maintain their market share, making it a challenging environment for
businesses in the India Chiller market.
Key Market Trends
Rising
Adoption of Smart Chiller
The rising adoption of smart chillers is a prominent
trend in the India Chiller market. As industries and businesses in India seek
more efficient, cost-effective, and environmentally friendly solutions, the
demand for smart chillers has grown significantly. Smart chillers incorporate
advanced technologies, such as IoT (Internet of Things) integration,
automation, and real-time monitoring, enabling users to remotely manage and
optimize their cooling systems. These features allow businesses to reduce energy
consumption, improve system performance, and enhance operational efficiency.
Smart chillers also offer predictive maintenance
capabilities, which can detect potential issues before they lead to system
failures, minimizing downtime and reducing maintenance costs. Also, by
continuously monitoring and adjusting the cooling output based on actual
demand, these systems help businesses maintain consistent temperatures while
minimizing energy waste. This adaptability is particularly valuable in energy-intensive
sectors like manufacturing, data centers, and commercial buildings. The Indian
government’s push toward energy efficiency and sustainability is another factor
driving the adoption of smart chillers, as businesses seek to comply with
regulations and reduce their environmental impact. As energy costs rise and the
need for operational efficiency becomes more critical, the trend toward smart
chillers is expected to continue. This shift is positioning smart chiller
systems as an increasingly essential component of modern cooling infrastructure
in India.
Green
Technology Integration
Green technology integration is a significant trend in
the India Chiller market, driven by the need to comply with stringent
environmental standards and reduce carbon footprints. As India focuses on
sustainable development, there is a growing emphasis on using eco-friendly
refrigerants in chiller systems. Traditional refrigerants, such as
hydrofluorocarbons (HFCs), have high global warming potential (GWP),
contributing to environmental harm. To address this, the market is shifting
towards low-GWP alternatives like hydrofluoroolefins (HFOs) and natural
refrigerants such as ammonia and carbon dioxide.
This transition is aligned with international
agreements like the Kigali Amendment to the Montreal Protocol, which mandates
the phase-out of high-GWP refrigerants. In response, manufacturers are
developing chillers that incorporate these greener refrigerants without
compromising on efficiency or performance. Also, energy-efficient chillers that
reduce power consumption while maintaining effective cooling are becoming more
popular. The push for green technology is also supported by government policies
encouraging sustainable practices. Energy-efficient certifications and green
building standards, such as LEED, are influencing businesses to invest in
eco-friendly chiller systems. As a result, the integration of green technology
in chillers is not only helping businesses meet regulatory requirements but
also reducing their environmental impact, ultimately driving growth in the
Indian chiller market.
Growing
Demand for Modular & Compact System
The growing demand for modular and compact chiller
systems is a notable trend in the India Chiller market. As space constraints
and the need for scalable solutions become more prominent in both commercial
and residential sectors, modular chillers are gaining traction. These systems
are designed to be flexible, allowing users to install and expand the system as
needed, without requiring a large footprint. This adaptability makes them ideal
for a wide range of applications, from small offices to large industrial
plants.
Modular chillers offer several advantages, including
ease of installation, reduced downtime during setup, and the ability to scale
cooling capacity based on demand. They are also easier to maintain and upgrade,
as individual modules can be serviced or replaced without disrupting the entire
system. The trend towards compact chiller systems is also driven by the
increasing demand for energy-efficient solutions. Smaller, more efficient units
are easier to integrate into existing infrastructure, providing cost-effective
cooling without sacrificing performance. As industries and commercial
establishments continue to focus on sustainability, modular and compact
chillers are becoming an essential part of the India Chiller market, offering a
flexible, scalable, and environmentally friendly option to meet evolving
cooling needs.
Segmental Insights
Product
Type Insights
Screw dominated the India Chiller
market, due to their high efficiency, reliability, and capacity for handling
large cooling loads. These systems are particularly favored in industrial and
commercial applications, such as manufacturing, pharmaceuticals, and HVAC
systems in large buildings. Screw chillers are known for their ability to
provide consistent cooling even under fluctuating demand, making them suitable
for a variety of environments. Their durability, lower maintenance costs, and
energy efficiency contribute to their popularity. Also, the growing emphasis on
energy-efficient solutions and sustainable practices has further boosted the
adoption of screw chillers in the market.

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Regional Insights
The North region dominated the India Chiller market, due
to its rapidly growing industrial, commercial, and hospitality sectors. Major
cities like Delhi, Chandigarh, and Gurgaon are witnessing significant
infrastructure development, leading to a higher demand for efficient cooling
solutions in commercial buildings, manufacturing units, and data centers. The
region’s industrial growth, particularly in pharmaceuticals, food processing,
and IT sectors, further drives the need for large-scale cooling systems like
chillers. Also, the focus on energy-efficient and eco-friendly solutions, along
with government incentives, is accelerating the adoption of chillers in North
India, reinforcing its dominance in the market.
Recent Developments
- In November 2024, Climaveneta Climate
Technologies, a Bangalore-based subsidiary of Japanese giant Mitsubishi
Electric, is investing more than INR 400 crore in a cutting-edge plant in
Narsapura, Kolar district, a vital industrial region about 50 kilometers from
Bengaluru. Climaveneta is a major manufacturer of high-efficiency cooling
equipment, accuracy, and data center cooling solutions. The company currently
has an order booking of more than INR 500 crore and plans to increase its
annual order intake over the next five years.
- In September 2024, Daikin Industries
Ltd., the world's largest manufacturer of air conditioners, plans to grow in
India in response to consumer demand for what has become a necessity as
temperatures rise. The Japanese corporation has signed a memorandum of
understanding to acquire an extra 33 acres (13.4 hectares) to develop a new
plant near its existing factory in southern India.
- In February 2024, Voltas
launched its new commercial AC product lineup for commercial spaces at
ACREX India 2024 in Noida. The new Inverter Scroll Chillers have chilling
capacities ranging from 12-72 TR and use eco-friendly refrigerants. The product
is IoT enabled, BMS compliant, silent in operation, and user-friendly, since it
can be controlled via a smartphone app. Through this new range of Inverter
Scroll Chillers, the firm hopes to further enhance its goal of encouraging
commercial spaces to adopt cutting-edge technology and incorporate
energy-efficient solutions into their operations.
Key Market Players
- Daikin Air Conditioning India Pvt Ltd
- Blue Star Limited
- Voltas Limited
- Carrier Airconditioning &
Refrigeration Ltd
- Johnson Controls-Hitachi Air
Conditioning India Limited
- Kirloskar Chillers Pvt Ltd
- LG Electronics India Pvt. Ltd.
- Mitsubishi Electric India Pvt. Ltd.
(Climaveneta)
- Flamingo Chillers
- Thermax Limited
By Product Type
|
By End Use
|
By Region
|
- Screw
- Centrifugal
- Scroll
- Absorption
|
|
|
Report Scope:
In this report, the India Chiller Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- India Chiller Market, By Product
Type:
o Screw
o Centrifugal
o Scroll
o Absorption
- India Chiller Market, By End
Use:
o Industrial
o Commercial
- India Chiller Market, By
Region:
o North
o South
o East
o West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the India Chiller Market.
Available Customizations:
India Chiller Market report with the given market
data, TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Chiller Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]