Industrial Chillers Market - Forecast and Analysis 2023-2027

Wed Aug 02 08:55:36 CST 2023 Source: www.refindustry.com

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The Industrial Chillers Market size is estimated to grow at a CAGR of 4.35% between 2022 and 2027 and the size of the market is forecast to increase by USD 1,230.32 million. The growth of the market depends on several factors such as the growing adoption of district heating and cooling infrastructure, stringent regulations on refrigerant use, and the growing use of industrial chillers across various industries.

This industrial chillers market report extensively covers market segmentation by end-user (chemical and petrochemical, plastics, food and beverage, pharmaceuticals and biotechnology, and others), type (water chillers and air chillers), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Key Driver

The growing adoption of district heating and cooling infrastructure is the key factor driving the industrial chillers market growth. A district cooling system is an economical option compared to running compressors for refrigeration, which require more energy. The system requires a central refrigeration plant, pumping stations, and a piping network. District cooling replaces traditional air cooling because it offers many advantages, such as energy savings, less environmental impact, and less maintenance requirements. Industrial chillers are often used in district cooling systems that can process and cool large volumes of water. Operating these large systems can result in significant power savings.

District cooling systems are highly adopted in many developed countries such as the United States, Canada, Japan, and European countries to reduce power consumption and environmental impact in large cities and high-density industries. Some Middle Eastern countries with hot climatic conditions, such as the UAE, Qatar, and Kuwait, use this technology because the energy consumption for cooling is very high. In developing countries, district cooling systems are relatively new as these systems are mostly used in industrial parks. The development of smart cities and the increasing urban population in these regions could lead to higher adoption of these systems. The global industrial chillers market is expected to grow during the forecast period owing to the increasing adoption of district heating and cooling infrastructure.

Significant Trends

The advent of smart connected chillers will fuel the industrial chillers market growth. Growing need to improve reliability and performance, minimize equipment downtime, and reduce overall maintenance costs for chillers used in HVAC and R applications. This drives manufacturers to implement sensors and connectivity technologies into chillers. The advent of intelligently connected chillers is revolutionizing the way chillers are serviced and maintained. These chillers can be accessed and controlled remotely through a local network or internet cloud.

Intelligently connected chillers stream data directly from the device to the cloud for further use by technicians for advanced analytics and remote monitoring. With the advent of intelligently connected chillers, machine operators can predict when a chiller will fail or operate below peak capacity. This enables operators to perform early or predictive maintenance, promising fewer disruptions, less downtime, and longer equipment life. Some of the key features of smart connected chillers are critical alarm systems, cloud data storage, and remote monitoring and diagnostics functionality.

Major Challenge

The high capital and maintenance costs can majorly impede the growth of the market. Various industries are focusing on improving the energy efficiency of their facilities, reducing energy costs, and reducing emissions, which is expected to create significant opportunities for the growth of the global industrial chillers market. However, high acquisition and maintenance costs are major challenges that may hinder market growth during the forecast period. Most energy-efficient HVAC and R technologies, including industrial chillers, are significantly more expensive than their traditional counterparts. These offer significant energy savings but can significantly lengthen the break-even point of your return on investment.

The high cost of industrial chillers can be a major challenge for budget-conscious customers, especially in emerging markets. Most industries and trading companies in developing countries such as India and China are very price sensitive. Therefore, they are more concerned about initial acquisition costs. Annual maintenance costs for industrial chillers are 20% to 35% higher than traditional chillers and can add up to a significant amount over the years. Therefore, the relatively high cost of industrial chillers is one of the main reasons expected to affect the market growth during the forecast period.