Modular Chillers: $2.8B in 2025 to $5.3B by 2035

Meticulous Research®-a leading global market research company, published a research report titled Modular Chillers Market Size, Share & Growth Forecast 2025-2035 | Air-Cooled & Water-Cooled Chillers Analysis

According to this latest publication from Meticulous Research®, the The Modular Chillers Market was valued at USD 2.64 billion in 2024 and is estimated to grow at a CAGR of 6.6% from 2025 to 2035, reaching USD 5.27 billion by 2035. The global modular chillers market is growing rapidly. Valuations are rising from $2.64 billion in 2024 to a projected $5.27 billion by 2035. This represents a compound annual growth rate (CAGR) of 6.6%. The demand for energy-efficient and scalable cooling solutions in commercial and industrial sectors is increasing. This growth is driven by sustainability concerns and changing building requirements.

Market Drivers and Technological Evolution:

1. Growing Focus on Energy Efficiency and Sustainability

The modular chillers market is driven by increased awareness among building owners, facility managers, and HVAC contractors about the benefits of energy-efficient systems. More than 40% of commercial buildings are looking to upgrade their HVAC systems to meet sustainability goals. As a result, the demand for energy-efficient cooling solutions is rising. Modern air-cooled modular chillers have shown remarkable performance improvements, using 20-25% less energy than traditional packaged systems.

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2. Technological Innovation Reshaping the Industry:

The modular chillers industry is undergoing significant changes due to heat recovery systems, variable speed drive (VSD) technology, and IoT-enabled smart controls. Leading manufacturers are investing heavily in environmentally friendly refrigerants with low global warming potential (GWP) to meet environmental regulations while boosting system performance.

An important example of this innovation occurred in 2024 when Daikin Industries launched next-generation modular chillers that used the low-GWP R-32 refrigerant and featured advanced heat recovery capabilities. These innovations show the industry's commitment to sustainable cooling technology while greatly reducing energy use compared to conventional systems.

Segment Analysis and Growth Patterns:

1. Air-Cooled Systems Leading Market Expansion:

Air-cooled modular chillers are expected to show the fastest growth during the forecast period. These systems have advanced heat rejection capabilities, variable speed drives, and integrated controls designed for optimal performance. Their popularity arises from eliminating the need for cooling towers or water treatment systems, making them suitable for areas with strict water conservation needs or limited water supplies.

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Industry leaders like Carrier, Johnson Controls, and Mitsubishi Electric have recently expanded their air-cooled modular chiller lines. They have launched new models equipped with smart IoT-enabled controls, variable-speed or magnetic-bearing compressors, and low-GWP refrigerants. These systems support predictive maintenance, which enhances system lifespan while lowering operating costs and maximizing efficiency.

2. Regional Growth Leadership in Asia-Pacific:

The Asia-Pacific region is anticipated to experience the fastest growth during the forecast period, fueled by rapid urbanization, infrastructure development, and rising demand for energy-efficient cooling solutions. Countries such as China, India, and those in Southeast Asia are seeing unprecedented demand for modular chillers as commercial construction, manufacturing, and data center growth surge across the region.

China leads the way with major investments in commercial real estate and industrial infrastructure, creating a heightened need for scalable cooling systems. India is closely following, with notable growth in the manufacturing, pharmaceutical, and IT service sectors that demand precise temperature control. The region's growth is bolstered by significant manufacturing expansions, including Midea's Chongqing factory, which became the first fully AI-enabled lighthouse factory in the central A/C chiller sector in 2025. This factory features AI-driven order customization that shortened the chiller selection cycle by 81% and reduced the design cycle by 45%.

Market Challenges and Opportunities:

Even with strong growth potential, the industry faces challenges. Fluctuations in raw material prices, especially steel and copper, affect pricing and manufacturing costs. There is also a significant shortage of skilled technicians in specialized HVAC trades, which leads to operational hurdles in installation and maintenance services. Additionally, changing regulatory compliance standards across various regions and ongoing shifts to new refrigerant regulations complicate product development and market strategies.

Nonetheless, there are great opportunities in IoT-enabled monitoring systems, smart building integration, and expansion into new markets. The increasing use of artificial intelligence and machine learning for predictive maintenance helps facility managers enhance chiller performance while reducing energy use and maintenance costs.

Competitive Landscape:

The modular chillers market is very competitive. Major players include Trane Technologies plc, Daikin Industries Ltd., Carrier Global Corporation, Johnson Controls International plc, Mitsubishi Electric Corporation, Gree Electric Appliances Inc., Midea Group Co. Ltd., LG Electronics Inc., and Lennox International Inc.

These companies focus on innovation, energy efficiency, and strategic partnerships to strengthen their market positions and expand globally. They invest significantly in research and development, grow manufacturing capabilities, and build service networks as demand for sustainable cooling solutions rises across commercial, industrial, and institutional sectors. Leading manufacturers are partnering with building automation firms, energy service providers, and construction contractors to create integrated cooling solutions. These collaborations enhance system integration, energy efficiency, and service offerings.

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Key Questions Answered in the Report:

How big is the Modular Chillers Market?
What is the current Modular Chillers Market size?
Who are the key players in the Modular Chillers Market?

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