The World Meteorological Organization (WMO) states that the temperature of the year 2020 was 1.2 °C above the pre-industrial average. The WMO forecasts that there is a 20% chance that average global temperature will temporarily rise by 1.5 °C by 2024. This can be attributed to the emission of greenhouse gases (GHGs), such as carbon dioxide (CO2), methane (CH4), and nitrous oxides (NOx) owing to the combustion of fossil fuels, such as coal, natural gas, and petroleum. The soaring global temperature is, therefore, encouraging the adoption of chillers worldwide.

Moreover, the flourishing construction sector will drive the chiller market at a CAGR of 5.0% during the forecast period (2020–2030). According to P&S Intelligence, the sales revenue is expected to rise from $7,330.7 million in 2019 to $10,880.3 million by 2030. In this regard, the increasing number of airports, office buildings, residential units, and metro rail construction projects is creating a huge requirement for these cooling systems worldwide. For example, China plans to build 136 airports by 2050, whereas India shall construct 100 in the next 15 years.

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In recent years, manufacturing units have also increasingly deployed chillers to cool the machinery and manufactured products. These devices are used in the industrial sector for chemical processing, welding, X-ray diffraction systems, paper and cement processing, and food and beverage processing. For instance, Borealis AG and INEOS Holdings Limited plan to construct a 750,000-ton-per-year propane dehydrogenation (PDH) plant each in Europe. Thus, the expanding industrial segment will propel the installation of chillers across the world.

The type segment of the chiller market is classified into absorption, centrifugal, reciprocating, scroll, and screw. Among these, the scroll category generated the highest revenue in 2019 due to the burgeoning demand for low-cooling-capacity chillers from the hospitality sector and commercial buildings, including offices. This category is further bifurcated into air-cooled and water-cooled. Of these, the air-cooled category accounted for the larger market share during the historical period (2014–2019) because it is not feasible to use water to cool low-capacity scroll chillers.

These machines are used in the automotive, pharmaceutical, textile, electronics, food and beverage, chemical and cement, and energy and utilities industries. Furthermore, the hospitality, transportation, healthcare, residential, and government sectors procure them in large numbers. Other users of chillers include offices and buildings, department stores, supermarkets/hypermarkets, convenience stores, data centers, and banks. In recent years, most of them have shifted from R410A and R22 refrigerants to the R32 refrigerant due to the lower Global Warming Potential (GWP) and higher cooling capacity of R32.

Geographically, Asia-Pacific (APAC) accounted for the largest share in the chiller market during the historical period (2014–2019), with China the largest contributor to regional sales. The dominance of China can be ascribed to its flourishing construction sector and surging number of airports and office complexes here. Additionally, the APAC market is expected to exhibit the fastest growth throughout the forecast period owing to the increasing number of data centers and the booming IT sector in the region, especially in India.

Therefore, the rising temperatures and flourishing industrial sector will augment the adoption of chillers globally.