Centrifugal Chiller Market: Industry Insights, 2024-2034
Allied Market Research published a report on the centrifugal chiller sector, which offers industry dynamics, including growth drivers, opportunities, and challenges. This report provides a competitive landscape of the sector. The global industry was valued at $3.4 billion in 2024, and is projected to reach $6 billion by 2034, growing at a CAGR of 6% from 2025 to 2034.
data-contrast="auto">Centrifugal chillers are large-capacity cooling systems that provide chilled water for air conditioning and industrial processes. These chillers operate on the basis of a centrifugal compressor that uses dynamic compression to accelerate and pressurize refrigerant vapor.
Rise in demand for energy-efficient HVAC solutions, increased construction activity, as well as expanding use in process cooling applications drive the growth of the centrifugal chiller industry. In addition, stringent environmental regulations fuel the adoption of eco-friendly refrigerants. As governments worldwide are enforcing stricter standards to curb energy consumption and greenhouse gas emissions, businesses are increasingly investing in advanced HVAC technologies. Centrifugal chillers comprise superior efficiency and significantly reduce the environmental impact as compared to traditional cooling systems, thus are they are preferred in both new installations and retrofit projects.
Furthermore, rise in reliance on data centers and IT infrastructure is creating a strong demand for precision cooling solutions. Thus, owing to their efficiency and capacity to handle large heat loads, centrifugal chillers are increasingly used in such applications to ensure uninterrupted operations and protect sensitive equipment.
Technological advancements are transforming the centrifugal chiller market. Modern centrifugal chillers are increasingly equipped with smart features such as real-time monitoring, remote diagnostics, and energy optimization tools. The adoption of IoT sensors, real-time monitoring, and predictive maintenance tools facilitates more efficient operation and proactive fault detection to avoid downtime and extend equipment life.
As traditional refrigerants are phased out due to their high global warming potential, manufacturers are introducing new models that are compatible with low-impact alternatives. Manufacturers are transitioning to refrigerants such as R1234ze, CO₂, and other low-global-warming-potential alternatives to align with environmental regulations. This shift ensures compliance with environmental standards as well as attracts environmentally conscious buyers. Systems are increasingly designed to sync with renewable sources such as solar and wind, thereby adjusting operations to match the power availability and reduce fossil fuel usage. In addition, modular designs that are able to operate together or individually have been introduced, which increase the scalability of operations as well as provide simple and rapid installation. Furthermore, dual-mode designs offer flexibility and integration with both cooling and heating infrastructure, which significantly improve energy usage and reduce the dependency on boilers or fossil fuel-based heating systems.
Important questions
What are the major growth drivers in the centrifugal chiller sector?
What is expected to be the projected industry size of this sector in 2034?
What would be the forecast period in the industry report?
Which is the largest country-wise industry for centrifugal chiller?
Leading industry players
Johnson Controls
Trane Technologies plc
Daikin
Haier
Midea
Smardt Chiller Group, Inc.
Carrier
Mitsubishi Heavy Industries, Ltd.
LG Electronics
TopChiller
Recent Developments in the Centrifugal Chiller Market
Daikin’s WMED series delivers up to 40% better performance as compared to conventional fixed speed models. These centrifugal chillers offer both cooling (250–450 tons) and heating (up to 5,300 MBH), and thus, reduce the need of installing separate heating systems.
Smardt introduced the AeroPure™, an oil free, magnetic-bearing, air-cooled centrifugal chiller (60–710 tons) that is compatible with refrigerants such as R1234ze, R515B, and R513A.
Leading companies such as Johnson Controls, Trane, Carrier, Daikin, and Mitsubishi Electric, are innovating and introducing energy-efficient chillers with smart controls, and low-GWP refrigerants.
Conclusion
The AMR report delivers a detailed study of the industry, including a comprehensive competitive landscape. It further highlights emerging trends, key growth drivers, and potential opportunities that empower industry leaders and stakeholders to make informed strategic decisions. The report serves as a valuable resource for understanding changes in the domain, mitigating risks, and supporting long-term business growth in an increasingly competitive environment by offering in-depth insights.