Water Cooled Chillers Market Size, Share, Growth and Industry analysis, By Type (Centrifugal Chillers, Scroll Chillers, Screw Chillers), By Application (Commercial, Industrial) and Regional Forecast to 2034

Last Updated: 28 July 2025
SKU ID: 29640475

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WATER COOLED CHILLERS MARKET OVERVIEW

The global water cooled chillers market size was valued at USD 4.64 billion in 2025 and is expected to reach USD 7.02 billion by 2034, growing at a compound annual growth rate (CAGR) of about 4.71% from 2025 to 2034.

The United States Water Cooled Chillers Market size is projected at USD 1.565 Billion in 2025, the Europe Water Cooled Chillers Market size is projected at USD 1.25 Billion in 2025, and the China Water Cooled Chillers Market size is projected at USD 1.204 Billion in 2025.

A device that regulates temperature by circulating a liquid, such as water or a heat medium as a cooling liquid, whose temperature is controlled by the coolant cycle, is referred to as a chiller. It is used to regulate the temperature of various industrial devices, laboratory gear, and  air conditioner  in buildings and factories. Since it is usually used to chill, it is referred to as a "chiller." It is frequently employed as a suitable device to maintain the temperature of heat-generating parts of air-conditioning systems, such as laser processing devices and high-frequency heating devices, thereby resolving various cooling problems and improving energy efficiency.

The expansion of the chillers market is anticipated to be fueled by the increase in new commercial development structures. Chillers are used in commercial buildings to cool the air and aid in maintaining a consistent temperature. Occupancy sensors, smart thermostats, HVAC and lighting controls, among other smart technology, are being incorporated into smart commercial buildings to assist save energy consumption in vacant offices, conference rooms, and other places.

KEY FINDINGS

  • Market Size and Growth: Valued at USD 4.64 billion in 2025, expected to reach USD 7.02 billion by 2034, growing at a CAGR 4.71%
  • Key Market Driver: Energy‑efficiency regulations and low‑GWP refrigerants spurred 7.5% growth; water‑cooled share at 59.5% underscores >45% APAC demand concentration. 
  • Major Market Restraint: Water‑cooled segment growth restricted to 2.5%, amid >45% Asia Pacific concentration; screw dominance at 45–48% limits differentiation and price flexibility. 
  • Emerging Trends: Scroll chillers fastest growing; centrifugal segment advancing 4.6%; screw units retain 45–48% share; chemicals & petrochemicals contribute 42% industry demand. 
  • Regional Leadership: Asia Pacific leads with over 45% share; water‑cooled systems command 45.2% regionally; North American screw compressors capture 35% share. 
  • Competitive Landscape: Screw chillers hold 45–48% share; water‑cooled accounts 59.5%; Asia Pacific vendors capture over 40% revenue, price competition tightening 5–7%. 
  • Market Segmentation (Centrifugal | Scroll | Screw): Centrifugal chillers advancing 4.6%; Scroll chillers expanding above 6%; Screw chillers commanding 45–48% share; water‑cooled overall retaining 59.5% demand. 
  • Recent Development: APAC water‑cooled central chillers exceeded 40% share; low‑GWP refrigerant systems projected 7.5% growth; centrifugal segment targeting 4.6% acceleration.

COVID-19 IMPACT

Pandemic Caused Disruptions to Impede Market Growth 

The infrastructure and consumer products industries are suffering greatly as a result of COVID-19. One of the most important factors that led to setbacks and compelled to stay at home was the lockdown. The market will likely go through a brief period of high revenue development.

LATEST TRENDS

Increasing Demand from Various Industries to Propel Market Advancements

The market is expanding as a result of an increase in demand for chillers from a variety of industry verticals, including food & beverage, petrochemicals, rubber, plastic, and medical. The expansion of the aviation sector and the rise in the number of new commercial buildings are predicted to fuel the growth of the worldwide chillers market. In addition, the government programs "National Infrastructure Program" and "Nation Program on Strategies for Sustainable Smart Cities," among others, are anticipated to spur an increase in industrial and residential development activities.

  • According to U.S. Department of Energy statistics, HVAC systems (including water‑cooled chillers) account for nearly 30 % of commercial building energy consumption, driving increased adoption of more efficient water‑cooled systems
  • As per global industry data, approximately 40 % of new chiller installations incorporate smart IoT‑enabled controls for precise monitoring and predictive maintenance.
Global-Water-Cooled-Chillers-Market-By-Application

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WATER COOLED CHILLERS MARKET SEGMENTATION

By Type

Based on type; the market is divided into Centrifugal Chillers, Scroll Chillers, Screw Chillers and Others.

By Application

Based on the application; the market is divided into Commercial and Industrial.

DRIVING FACTORS

Increasing Adoption in Construction Sector to Bolster Product Demand

An increase in government spending on construction building activities, requires more chillers for temperature control. This in turn is anticipated to cater to the growth of the chillers market. The rise in global temperature also contributes to the adoption of heating, ventilation, and air conditioning (HVAC) systems, which in turn fuels the water cooled chillers market growth.

  • Industry‑level reports show that about 38 % of demand for water‑cooled chillers comes from commercial sectors such as data centers and offices.
  • Nearly 42 % of installations in 2024 were accounted for by industrial users seeking high‑precision cooling in manufacturing and pharmaceutical facilities 

Strict Government Regulations to Attract the Market Share

Over the projected period, the market is expected to develop due to the rising demand for energy-efficient buildings brought on by increased awareness of environmental degradation and strict government restrictions. Over the next few years, it is anticipated that consumer demand for these products will increase due to growing knowledge of energy-efficient systems and the negative effects of burning fossil fuels, as well as support for energy-efficient technology advancements.

RESTRAINING FACTORS

High Cost and Maintenance to Hold Back Market Growth

The rise in demand for variable refrigerant flow (VRF) systems, high setup and early investment costs, and fluctuating raw material prices are expected to impede the growth of the worldwide chiller industry. Furthermore, the global chillers market is anticipated to benefit financially from technological advancements in chillers.

  • Over 26% of potential buyers identify the complexity of installation and associated downtime as key deterrents to adopting water-cooled chillers.
  • Approximately 19% of users face challenges in securing skilled technicians for proper commissioning and ongoing maintenance of these systems.

WATER COOLED CHILLERS MARKET REGIONAL INSIGHTS

Rising Urbanization to Flourish Market in Asia Pacific

Asia Pacific is expected to have the largest water cooled chillers market share. Because of the region's expanding population, fast urbanization, and rising per capita income, the construction industry is expected to thrive throughout the region. Due to significant government investments in the construction of public infrastructure and the rise of the residential construction industry, the economies in the region are forecasted to prosper over the forecast period.

The demand for modular chillers is in the Middle East and Africa. The need for cooling equipment is anticipated to rise as Middle Eastern governments place more emphasis on reducing their reliance on the energy sector and broaden their efforts to boost domestic manufacturing production in the petrochemical, chemical, and other industrial sectors.

KEY INDUSTRY PLAYERS

Prominent Industry Players in the Industry to Promote Market Expansion

The market's expansion was significantly impacted by the techniques employed by market participants in recent years, such as extensions. The report covers details and information about the firms and their interactions with the market. The data is gathered and published through appropriate research, technological advancements, expansions, and expanding machinery and equipment. Other considerations taken into account for this market are the businesses that develop and provide new products, the geographic areas in which they function, mechanization, innovation strategies, generating the maximum revenue, and using their products to make a significant difference.

  • Kingair: Recognized in industry listings among top 20 chiller providers globally, contributing to the ~30 % share of manufacturers serving North America and Asia-Pacific sectors.
  • DunAn: Identified by market analysts as one of fewer than 15 firms offering both centrifugal and screw water‑cooled chiller lines globally.

List of Top Water Cooled Chillers Companies

  • Kingair
  • DunAn
  • Carrier
  • Trane (Ingersoll-Rand)
  • Lennox
  • Parker Hannifin
  • LG Electronics
  • Bosch
  • Smardt Chiller Group
  • TICA
  • Dunham-Bush
  • Tsing Hua Tongfang
  • Mitsubshi
  • Daikin
  • Johnson Controls - Hitachi

REPORT COVERAGE

This report covers a comprehensive backdrop analysis, an assessment of the parent market, intensive study in the market dynamics. Past historical, current, and projected size of the market from the point of both value and volume. Researching of recent industry developments, deep study on market shares and strategies of major players and the emerging niche segments and regional market areas are covered in the report.

Water Cooled Chillers Market Report Scope & Segmentation

Attributes Details

Market Size Value In

US$ 4.64 Billion in 2025

Market Size Value By

US$ 7.02 Billion by 2034

Growth Rate

CAGR of 4.71% from 2025 to 2034

Forecast Period

2025-2034

Base Year

2024

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

By Type

  • Centrifugal Chillers
  • Scroll Chillers
  • Screw Chillers
  • Other

By Application

  • Commercial
  • Industrial

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