Modular Chiller Market Size, Share & Trends Analysis Report By Product Type (Air Cooled Modular Chiller, Water Cooled Modular Chiller), By Capacity (Below 300 Tons, More than 300 Tons), By Application (Residential, Commercial, Industrial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Modular Chiller Market Size

The global Modular Chiller Market Size was valued at USD 2.64 billion in 2024 and is projected to reach from USD 2.81 billion in 2025 to USD 4.61 billion by 2033, growing at a CAGR of 6.4% during the forecast period (2025-2033).

The modular chiller markets in Europe and Southeast Asia are expanding rapidly, supported by developments in technology, favorable regulations, and rising public awareness of energy savings. Stakeholders from a variety of industries stand to gain from the numerous opportunities that the growing modular chiller business presents as these markets continue to change. 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. New product launches, licensing agreements, and mergers and acquisitions are just a few of the techniques used by market participants to improve their positions in the industry.

Additionally, the market has a huge opportunity thanks to the growing demand for modular chillers from numerous sectors, including the food and beverage, medical, and mining industries. High installation and electricity usage expenses, however, may limit market expansion. High-quality engineering is included in modular chillers to integrate efficient components into a highly efficient chiller. However, this demands sophisticated engineering work, which raises the initial installation cost and may have a negative impact on the market's expansion.

Modular Chiller Market Growth Factors

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, installing a 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 dioxide 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 environmental 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.

Modular Chiller Market Restraining Factors

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 tonne and approximately USD 450 per tonne for capacities of more than 150 tonne. 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 chillers is likely to experience resistance from such factors.

Modular Chiller Market Opportunities

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 requirements, 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 regulations known as RT2012 and RT2020 require 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 waste 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 chillers.

Regional Insights

North America: Dominant region with 7.1% market share

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: Fastest growing region with the 5.6% CAGR

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. Several initiatives to encourage and promote energy efficiency have been developed and implemented in Europe. The "European Portal for Energy Efficiency of Buildings" program of the European Commission, for instance, encourages research into, exchange of, and use of knowledge and best practices for buildings. The market for modular chillers is expected to increase throughout the projected period due to the increasing demand for energy-efficient buildings brought on by growing environmental awareness and strict governmental regulations.

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. The need for cooling equipment is anticipated to rise as Middle Eastern governments emphasize reducing their reliance on the energy sector and broaden their efforts to boost domestic manufacturing production in the petrochemical, chemical, and other industrial sectors.

It is anticipated that the country's rapid transportation infrastructure construction will boost neighborhood business and residential growth, which will favorably affect product demand during the projected period. Increased tourism, population growth, and urbanization are some of the reasons driving the building industry. Throughout the anticipated period, Saudi Arabia's demand for modular chillers is anticipated to be driven by the growth of the construction industry

Segmental Analysis

By Product Type

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 using 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 chiller 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.

By Capacity

The more than 300-ton 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 metric tons because they are highly durable, dependable, and energy-efficient. In addition, increasing global spending on 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.

By Application

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. It is anticipated that the global building industry will increase energy usage. Two of the most influential organizations working on green building principles and advising builders on energy-efficient designs are the World Green Building Council (World GBC) and the International Energy Agency (IEA). Throughout the forecast period, the modular chillers market is expected to be driven by supportive government policies and growing consumer awareness.

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.

Recent Developments

• In January 2023, Johnson Controls acquired Hybrid Energy to expand its line of industrial heat pumps.
• In November 2022, Daikin opened an air conditioner manufacturing facility in Indonesia.
• In January 2023, Mitsubishi Electric will construct a manufacturing facility in India for compressors and room air conditioners.
• In November 2022, LG Electronics (LG) recently made organizational adjustments to improve its future readiness.