The global modular chiller market size was valued at USD 4,170.7 million in 2021. It is expected to reach USD 7,351.15 million by 2030, growing at a CAGR of 6.5% during the forecast period (2022–2030). Modular chillers are smaller than traditional chillers, and they are intended to be combined with other modular chillers in a series or parallel configuration to create a single larger chiller. Each modular chiller comprises one or two autonomous components, including compressors, regulators, and circuits. The modular chiller offers improved capacity controls, serviceability, redundancy, flexibility, and energy efficiency. The increase in people's awareness of climate change and greenhouse gas emissions leads to a rise in the demand for energy-efficient products and technologies, which is expected to drive the growth of the modular chiller market.
A further factor contributing to the expansion of the modular chiller market is the spending of governments around the world on various infrastructure construction projects. The growth of the modular chiller market is expected to be driven by an increase in demand for heating, air conditioning, and ventilation systems that are flexible, lightweight, and energy-efficient to meet indoor air quality requirements. In addition, a surge in demand for modular chillers from the food and beverage industry is propelling the growth of the modular chiller market. This demand surge is due to the adoption of modular chillers in various applications, including breweries, distillers, food and dairy processing units, wineries, and vineyards.
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Growing Consciousness Regarding Emissions of Greenhouse Gases
Due to the global increase in the greenhouse effect and global warming, there has been a rise in awareness regarding the significance of installing heating, ventilation, and air conditioning (HVAC) systems in residential and commercial areas. A global warming effect is produced by an increase in the impact of greenhouse gases, and one solution to this problem is the installation of modular chillers.
In addition, it is installing modular chiller assists in the regulation or control of the cool temperature. It also enhances the air quality by eliminating nitrous acid, carbon dioxide, and sulfur dioxide. In addition to this, the government places a strong emphasis on the implementation of stringent regulations relating to the reduction of emissions of carbon gas and greenhouse gases. The Indian Ministry of Power developed an energy efficiency policy for chillers. The primary focus of the policy is to eliminate greenhouse gas emissions and energy consumption. Thus, it is anticipated that a rise in the global greenhouse effect will spur the modular chiller market's expansion.
Rising Demand for HVAC Solutions to Drive Market
The market expansion is fueled by the rising demand for energy-efficient solutions and HVAC (heating, ventilation, and air conditioning) systems to improve indoor environment quality. In addition, the expansion of the market is being driven by an increase in demand for modular chiller systems that are lightweight and easy to install. The fact that modular chillers are particularly well suited for use in commercial and industrial settings also contributes to the expansion of the market. Major players are focusing on the newly developed modular chiller to enhance the application of HVAC systems in commercial settings. In addition, heating, ventilation, and air conditioning (HVAC) systems are frequently utilized in residential, commercial, and industrial settings. The expansion of the market is being driven by an uptick in demand for modular chillers from the food and beverage industry. This demand is caused by an increase in the number of establishments adopting modular chillers, including breweries, distilleries, food and dairy processing units, vineyards, and wineries. The expansion of the modular chiller market is expected to be fueled by such occurrences.
High Initial Investment and Setup Costs
The modular chiller is not priced in an economically feasible manner. In addition to this, there is a high cost associated with the installation. The cost of installing a modular chiller is broken down according to whether the environment will be cooled by air or water. The structure of a one-ton air conditioning unit can cost approximately one thousand dollars. Installing a five-ton air conditioning unit will cost about three thousand and two hundred dollars. The installation cost of an air-cooled chiller is around USD 700 per person for capacities of less than 150 tonnes and approximately USD 450 per tonne for capacities of more than 150 tonnes. Additionally, the cost of installation for chillers that are cooled by water ranges from roughly USD 300 to USD 400 per tonne. As a result, the expansion of the market for modular chiller is likely to experience resistance from such factors.
Stringent Regulations Imposed by the Government to Boost Market Opportunities
It is anticipated that an increase in environmental concerns, in conjunction with stringent government regulations toward energy-efficiency requirement regulations, will provide lucrative opportunities for expanding the modular chiller market. For example, the French government has mandated strict norms for installing energy-efficient regulations such as RT2020 and RT2012 for installing modular chillers in residential and non-residential construction. These regulations aim to reduce energy consumption. The thermal regulation known as RT2012 and RT2020 requires a maximum of 40 to 65 kWh/m2/pa to be installed. In addition, industrialists aim to design machines and technologies that will facilitate production, lower maintenance, and production costs, provide greater production flexibility, and cut down on wastage and lead times. To enhance the quality of their products, they are exerting a great deal of effort to cut the costs associated with running the modular chiller and manufacturing it. In addition, countries like the United States, Germany, and Japan have technological businesses at the cutting edge of their respective industries, developed processing facilities, highly skilled workforces, and increased research and development initiatives. Therefore, an increase in the number of applications and competition motivates businesses to focus on technological advancements to satisfy the rise in consumer demands. It is anticipated that this will provide lucrative opportunities for developing the market for modular chiller.
The global market for modular chiller has been divided into distinct submarkets based on the product type, capacity, and application.
Based on the product type, the global market has been categorized into air-cooled and water-cooled modular chillers.
The water-cooled modular chillers segment is the highest contributor to the market, growing at a CAGR of 6.2% during the forecast period. Water-cooled chillers operate at low condensing temperatures because the wet-bulb temperature is lower than the dry-bulb temperature, which increases the demand for water-cooled modular chillers. Using a water-cooled modular chiller is more efficient than an air-cooled modular chiller. Modular chillers cooled by water, such as water-cooled chillers and low-condensing chillers, are expected to grow in popularity.
The second-largest segment is the air-cooled modular chillers segment. Because of their ability to operate at extremely low temperatures, air-cooled modular chillers are in high demand in many industries. Air-cooled modular chillers are expected to see an increase in demand across various industries due to the growing global problem of water scarcity. The market for district cooling systems is growing due to an increasing number of businesses and commercial buildings using them.
Based on the Capacity, the global market has been categorized below 300 tons and more than 300 tons.
The more than 300 tons segment is the highest contributor to the market, growing at a CAGR of 6.1% during the forecast period. Industrial and manufacturing sectors such as food and beverage, die-casting, and others increasingly rely on modular chillers with more than 300 tonnes of capacity. Chemical, pharmaceutical and other industries benefit significantly from modular chillers with capacities greater than 300 tonnes because they are highly durable, dependable, and energy-efficient. In addition, increasing global spending on infrastructure building is expected to boost the market's growth in the coming years.
Modular chillers weighing less than 300 tonnes are most commonly used in residential, educational, and commercial settings. Aside from that, small projects are the most common application for them. As a result of government regulations requiring HVAC systems to be installed with great care, market players can expect lucrative opportunities in the future.
Based on the application, the global market has been categorized into residential, commercial, and industrial.
The commercial segment is the highest contributor, growing at a CAGR of 6.8% during the forecast period. The growth of the market is fuelled by an increase in commercial construction activities and an increase in awareness regarding the installation of high-efficient and compact HVAC systems.
The market is expected to grow due to an increase in the use of modular chillers in the industrial sector due to the advantages these units offer, including cost-effectiveness, energy efficiency, and low operating costs. In addition, an increase in the number of industrial construction projects is anticipated to drive the expansion of the market.
By region, the global modular chiller market has been studied across North America, Europe, Asia-Pacific, and LAMEA.
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Asia-Pacific is the highest revenue contributor, growing at a CAGR of 7.1% during the forecast period. The growth of the modular chiller market in the Asia-Pacific region is driven by an increase in the rate of urbanization and industrialization in developing countries. Modular chillers find widespread application throughout the Asian economy, including the food and beverage industry, corporate offices, airports, and metro stations, among other places. It is anticipated that the development of the market will be brought about by the expansion of the electronics and aviation industries. It is expected that investments made by the government in constructing infrastructure buildings will cater to the market's growth.
Europe is the second-largest contributor to the market and is estimated to reach around USD 925.72 million at a CAGR of 5.6% during the forecast period. The demand for heating and cooling products is anticipated to increase due to government regulations concerning energy efficiency and the utilization of modular chillers that are friendly to the environment. As a consequence of this, the market for modular chillers is expanding at a rapid rate. In addition, major players in the modular chiller market in Europe are increasingly emphasizing the importance of acquisition as a critical component of their overall development strategy to expand their product offerings.
The market for modular chillers in North America is saturated due to developed economies having such sophisticated industrial infrastructure. The increase in the region's overall energy consumption and stricter government regulations regarding the installation of heating and air conditioning systems are predicted to fuel the growth of the modular chiller market. It is anticipated that there will be an increase in construction-related activities and a rise in housing for single- and multi-unit dwellings, both of which are expected to increase demand for the product and support the expansion of the modular chiller market.
The demand for the modular chiller is driven by an increase in the greenhouse effect and global warming effects in countries such as Latin America and Africa, which is anticipated to fuel the growth of the modular chiller market.