The global HVAC chillers market will grow at a CAGR of close to three per cent during the period 2017-2021, according to the latest research report from Technavio.
The research firm lists screw chillers, scroll chillers, and centrifugal chillers as the three major product segments, of which the screw chillers segment accounted for more than 35 per cent of the market share in 2016.
Technavio's lead analyst, Anju Ajaykumar, said there are three key market drivers contributing to the growth of the chillers market including growing demand for district cooling, replacement of old chillers and developing infrastructure in emerging countries.
He said emerging countries in the Middle East and Asia are experiencing increased demand for district cooling.
“District cooling is replacing the traditional air cooling methods because of increased advantages such as energy-saving, low environmental damage, and reduced maintenance needs. It uses up to 50 per cent less energy as compared to traditional cooling methods, which means big savings on electricity costs,” Ajaykumar said.
The tourism market, new hotels and public infrastructure, are looking to district cooling to meet their needs and HVAC chillers are one of the major facilities of district cooling.
“An increase in the district cooling market will fuel the HVAC chillers market,” he said.
The need to reduce operating costs, increase energy efficiency, and to take advantage of favourable government incentives has spurred the need to replace existing HVAC equipment right across the globe.
“In the US, steady economic development and advances in technology influence the replacement demand for HVAC, which is expected to contribute to 50 per cent of the HVAC chillers market in the US,” he said.
Technavio expects regulations pertaining to the use of refrigerants and energy efficiency to increase investments in the replacement of old HVAC chillers.
“For instance, the phase-out of R-22 units will be completed by 2020, encouraging HVAC system owners to replace their existing units before the phaseout,” he said.
For all the latest information see CCN's Chillers Feature in the September edition, available soon.