Modular Chillers Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Water-cooled, Air-cooled), By Application (Commercial, Residential, Industrial), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.19 Billion
CAGR (2026-2031)	6.94%
Fastest Growing Segment	Water-cooled
Largest Market	North America
Market Size (2031)	USD 4.77 Billion

Market Overview

The Global Modular Chillers Market is projected to grow from USD 3.19 Billion in 2025 to USD 4.77 Billion by 2031 at a 6.94% CAGR. Modular chillers are liquid cooling systems composed of several individual units that function collectively to manage thermal loads while offering inherent redundancy and the flexibility to scale capacity by adding modules. The primary drivers propelling market growth include the increasing demand for energy efficient HVAC solutions that optimize part load performance and the necessity for scalable systems in retrofitting projects where space is constrained. These systems allow facility managers to align cooling output strictly with demand and thereby reduce operational costs compared to oversized conventional units.

Despite these advantages, the market faces a significant challenge regarding the high initial capital investment required for these complex multi unit configurations compared to traditional packaged systems. Furthermore, market expansion is sensitive to construction sector volatility which can delay installation projects. According to the China Refrigeration and Air Conditioning Industry Association, in 2024, the sales volume of modular chiller units in the Chinese market declined by 12.2 percent during the first half of the year amidst a broader slowdown in real estate development. This contraction highlights the market vulnerability to fluctuations in commercial infrastructure investment.

Key Market Drivers

The rapid expansion of the data center and telecommunications sectors serves as a critical catalyst for the adoption of modular chillers. Modern data centers generate immense thermal loads requiring cooling systems that offer both high redundancy and the ability to scale capacity incrementally as server racks are added. Modular configurations are uniquely suited for this environment, allowing operators to expand cooling infrastructure in phases without significant downtime or upfront over-provisioning. This sectoral surge is evident in the recent financial performances of major industry players. According to Johnson Controls, November 2024, in the 'Fiscal Q4 2024 Earnings Results', the company reported that its data center business revenue doubled year-over-year, underscoring the intense velocity of infrastructure investment requiring advanced cooling support.

Simultaneously, the increasing demand for energy-efficient and sustainable cooling solutions is fundamentally driving product innovation and market uptake. Stricter government regulations and green building standards are compelling facility managers to replace aging equipment with systems that maximize part-load efficiency, a core strength of modular designs which can deactivate specific units to match precise cooling needs. This shift toward sustainability is significantly influencing market economics. According to Carrier Global Corporation, October 2024, in the 'Third Quarter 2024 Earnings Release', HVAC segment sales increased by 26 percent, heavily bolstered by the acquisition of Viessmann Climate Solutions, a strategic move centered on sustainable technologies. Reflecting this broader market momentum, according to Trane Technologies, October 2024, the company secured continued strong bookings of $5.2 billion in the third quarter, driven largely by commercial HVAC demand.

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Key Market Challenges

The Global Modular Chillers Market is acutely sensitive to volatility within the commercial construction and real estate sectors. These cooling systems are predominantly capital-intensive installations intended for new commercial infrastructures, data centers, and industrial facilities. Consequently, market expansion is inextricably linked to the pace of architectural development and the availability of capital for infrastructure projects. When economic conditions tighten, causing delays in project commencements or halts in ongoing construction, the order intake for modular cooling units contracts immediately, as these systems are often among the final components installed.

This dependency creates substantial vulnerability during periods of economic downturns or real estate stagnation, effectively acting as a bottleneck for market revenue. The severity of this impact is evident in key regions facing infrastructure slowdowns. According to the China Refrigeration and Air Conditioning Industry Association, in the first half of 2024, the sales volume of screw chiller units declined by 20.4 percent. This sharp contraction in a primary chiller category reflects the broader dampening effect of the real estate development slowdown, demonstrating how fluctuations in construction activity directly impede the growth trajectory of the chiller market.

Key Market Trends

The Transition to Low-Global Warming Potential (GWP) Refrigerants is reshaping the market as manufacturers aggressively re-engineer systems to comply with tightening environmental regulations like the EU F-Gas Regulation and PFAS restrictions. This shift necessitates the redesign of compressors and heat exchangers to accommodate mildly flammable or non-flammable alternatives such as R-1234ze and R-32, which significantly reduce direct greenhouse gas emissions compared to legacy hydrofluorocarbons. This industry-wide overhaul is evident in recent product development strategies. According to Trane Technologies, May 2025, in the '2024 Annual Report', the company launched 190 new products in 2024, including a significant portfolio refresh specifically designed with lower global warming potential refrigerants to meet escalating regulatory and sustainability demands.

Simultaneously, the Rise of Modular Heat Pump Systems for Electrification is accelerating as industrial and commercial facilities seek to decarbonize heating processes by replacing fossil-fuel boilers with scalable, electric alternatives. Modular heat pumps offer a unique advantage in this transition, allowing sites to incrementally add heating capacity to match specific process loads while recovering waste heat for superior thermal efficiency. This capability is driving substantial operational savings and adoption. According to Johnson Controls, June 2025, in the article 'Johnson Controls Heat Pumps: Boosting Customer Success by Driving Down Costs and Carbon Emissions', the company's heat pump deployments in 2024 cut customers' annual heating costs by 53 percent and reduced carbon emissions by 60 percent compared to conventional natural gas boilers.

Segmental Insights

The Water-cooled segment is projected to be the fastest-growing category in the Global Modular Chillers Market, driven by its superior energy efficiency and effective heat transfer capabilities. Unlike air-cooled counterparts, these systems utilize the high thermal capacity of water to lower condensing temperatures, resulting in reduced electrical consumption. This operational advantage is increasingly critical as businesses strive to comply with rigorous energy mandates, such as those established by ASHRAE Standard 90.1. Consequently, large commercial facilities and industrial plants are prioritizing water-cooled units to ensure regulatory compliance and achieve long-term operational cost savings.

Regional Insights

North America currently commands the leading position in the Global Modular Chillers Market, primarily driven by a mature industrial sector and stringent regulatory frameworks. The United States Department of Energy enforces rigorous efficiency standards that compel facility managers to replace aging infrastructure with flexible, energy-saving modular solutions. This dominance is further sustained by robust demand from commercial construction and data centers, where the scalability and redundancy of modular systems are critical for operations. Consequently, the region’s focus on sustainable building practices ensures continuous market expansion without relying on traditional, less efficient central cooling units.

Recent Developments

• In August 2025, Carrier introduced the AquaSnap 30RQM Modular Air-Sourced Reversible Heat Pump, a high-efficiency system designed to help building operators meet sustainability and electrification goals. The unit featured a compact footprint and a scalable design that allowed up to 16 modules to be linked, providing a total capacity of 320 tons for cooling or substantial heating output. Operating with the lower-global warming potential refrigerant R-454B, the system was engineered to perform reliably in low ambient temperatures, reducing the reliance on traditional boiler systems. The modular configuration offered increased redundancy and flexibility, enabling the system to switch between cooling and heating modes based on seasonal demands.
• In March 2025, Daikin introduced the EWYK-QZ, a new modular air-to-water heat pump, during the ISH trade fair in Frankfurt. The system was distinguished by its use of R-290 (propane), a natural refrigerant with a low environmental impact, aligning with stringent European sustainability regulations. Designed for scalability, the product offered heating and cooling capacities ranging from 100 kW to 2,000 kW when configured in multi-module arrays. The unit was developed to replace conventional boilers in commercial settings, capable of supplying high-temperature hot water up to 75°C. This development highlighted the company's strategic focus on expanding its lineup of eco-friendly, modular hydronic solutions.
• In July 2024, Trane launched the Thermafit Air-Source Modular Multi-pipe Model MAS, a versatile heat pump designed to deliver simultaneous heating and cooling for commercial and industrial buildings. The system utilized advanced logic to independently control each module's operating mode, enabling it to function as a chiller, a heat pump, or a heat recovery unit depending on building needs. Featuring R-454B, a low-global warming potential refrigerant, the Model MAS was engineered to support decarbonization efforts by replacing traditional fossil fuel boilers. Its modular architecture allowed for the banking of up to ten 30-ton modules, ensuring operational redundancy and scalability for large projects.
• In January 2024, LG Electronics unveiled its new Air-cooled Inverter Scroll Chiller at the AHR Expo in Chicago, expanding its commercial HVAC portfolio with a versatile, high-efficiency solution. The system featured a modular design that allowed for the interconnection of multiple units to meet varying cooling load requirements, offering significant flexibility for facility managers. Engineered for superior energy performance, the chiller utilized advanced inverter technology to optimize operation and reduce power consumption under partial loads. This launch aimed to provide a compact, quiet, and scalable cooling option suitable for a wide range of commercial applications, reinforcing the company's position in the competitive modular chiller sector.

Key Market Players

• Trane Technologies plc
• GREE ELECTRIC APPLIANCES, INC.
• FRIGEL FIRENZE S.p.A.
• Midea Group
• Multistack International Limited.
• Johnson Controls
• Haier Group
• Mitsubishi Electric Corporation

By Product Type	By Application	By Region
Water-cooled Air-cooled	Commercial Residential Industrial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Modular Chillers Market, By Product Type:

• Water-cooled
• Air-cooled

• Modular Chillers Market, By Application:

• Commercial
• Residential
• Industrial

• Modular 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