The global chiller market is expected to reach $US12.67 billion by 2028, according to Allied Market Research (AMR).
The biggest segment of the market is water cooled chillers while North America accounted for the highest share in terms of revenue.
Growth is being driven by the construction industry, rising demand for chillers in the medical sector, and a surge in the consumption of frozen foods.
In 2019, AMR said the chiller market was valued at $10.04 billion. From 2021 to 2028 the market will grow at a Compound Annual Growth Rate (CAGR) of 3.7 per cent.
Factors that have contained growth in the chiller market include high initial investment and set-up costs as well as a growing interest in VRF systems.
AMR said the outbreak of covid-19 led to delays in production and manufacturing of chillers across the world, thereby impacting the global market negatively.
Based on type, the screw chiller segment accounted for nearly half of the total market share in 2019, and this growth will continue through to 2028.
The centrifugal chiller segment, on the other hand, is set to register the fastest CAGR of 6.9 per cent throughout the forecast period.
“Based on product type, the water cooled chiller segment garnered nearly three-fifths of the total market revenue in 2019, and is expected to dominate by 2028,” the report said.
"The air cooled chiller segment will grow at a CAGR of 4.0 per cent during the forecast period.”
While North America has the largest share of the market, the Asia Pacific will garner the fastest CAGR of 4.8 per cent from 2021 to 2028.
Meanwhile, the hyperscale data centre market by investment is expected to grow at a CAGR of 4.02 per cent during the period 2021-2026.
According to ResearchAndMarkets.com the ongoing COVID-19 pandemic is creating high demand for hyperscale data centres across all regions.
As the global workforce shifts to remote working, hyperscale facilities are gaining traction in the data centre market. Mergers and acquisition are also fuelling growth.
Moreover, UPS systems have been widely adopted to provide backup power for cooling systems with the use of ithium-ion batteries set to increase during the forecast period.
In data centres cooling systems account for 15 to 20 per cent of overall cost.
The facilities in Southeast Asia, China, India, Australia, the Middle East, and Africa prefer air-cooled chillers or chilled water systems or a combination of both air and water-based cooling techniques.
Interest in free cooling chillers that facilitate partial cooling using outside air are also growing.
Most of the facilities that operate in warm climatic conditions are expected to implement free cooling chillers with smart technologies since they enable operations based on outside temperatures.
The adoption of chiller units is expected to be higher in the Asia Pacific region and Middle East more than anywhere else.