Industrial Chillers Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

The industrial chillers market size was valued at US$ 2.77 billion in 2024 and is expected to reach US$ 4.30 billion by 2031; it is estimated to record a CAGR of 6.6% from 2025 to 2031. The integration of advanced technologies with industrial chillers and a rise in energy transition goals are likely to bring new trends to the market in the coming years.

Industrial Chillers Market Analysis

The industrial chillers market is being driven by the expansion of the metalworking industry and the launch of new recycled plastic plants, which are increasing demand for efficient cooling solutions. Additionally, the growing adoption of industrial chillers for energy-efficient operations across various sectors is fueling market growth. Opportunities in the market are bolstered by significant government investments aimed at supporting manufacturing growth, encouraging modernization and technological upgrades. Furthermore, key strategic developments such as partnerships, mergers, and product innovations by leading companies are enhancing the market’s competitive landscape. These factors combined present a robust environment for industrial chillers, enabling businesses to optimize production processes while reducing energy consumption and operational costs, thus supporting sustainable industrial growth worldwide.

Industrial Chillers Market Overview

Industrial chillers act as a chiller system that removes heat from industrial processes. These chillers cool viscous liquids, such as chemicals and water, used in various industries such as pharmaceuticals, food & beverages, and industrial manufacturing. The industrial process generates heat from activities such as friction, burning, or the operation of equipment. Industrial chillers are used to avoid any fire breakout and increase the longevity of the equipment. These conventional systems differ from HVAC chillers in most ways, including water circuitry and component integration. Pharmaceuticals, food production, petrochemicals, plastic production, and metal plating are among the industries that use industrial chillers for their manufacturing process. For example, in food processing plants, to chill food or beverage storage units, industrial chillers are used to circulate chilled propylene glycol through cooling coils. Wineries and breweries widely use these chillers to maintain the ideal temperature for their products. Food manufacturers use them to cool ice cream makers and dough mixers. In recent years, the demand for industrial chillers has been growing at an impressive pace, owing to the rising adoption of these cooling systems in diverse end-use industries to overcome various heating issues associated with machinery in processing operations, as well as to offer enhanced overall industrial production.

Customize This Report To Suit Your Requirement

You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities

Get FREE CUSTOMIZATION

Industrial Chillers Market: Strategic Insights

• Get Top Key Market Trends of this report.
  This FREE sample will include data analysis, ranging from market trends to estimates and forecasts.

Free Sample PDF

Industrial Chillers Market Drivers and Opportunities

Expansion of Metalworking Industry

Metalworking is the process of forming and shaping metals to create required structures, tools, equipment, and objects for automotive, food & beverages, oil & gas, and other industries. Large-scale projects involving oil rigs, ships, and bridges, as well as small components, including engines, require metalworking. Various techniques, such as cutting, welding, casting, and molding, are used to develop the desired structure of the metal. These techniques or processes can be carried out efficiently at a constant required temperature. Industrial chillers are used to enhance product quality during metalworking processes. If the heat is not dissipated properly, the quality of the finished products gets adversely affected. For example, for spot welding, resistance electrodes are used for welding a joint, where an industrial chiller prevents the electrodes from undergoing premature burnout. In the die-casting process, an industrial chiller is used to cool the basin/mold into which the molten metal can be poured by extracting the heat from the liquid.

Owing to growing industrialization globally, manufacturers across various industries, such as automotive, aerospace, and food & beverages, use metalworking machines. For example, according to the China Machine Tool & Tool Builders’ Association (CMTBA), new orders for metalworking machines grew by 3.9% year over year from January 2024 to May 2024. The rise in sales of metalworking machines indicates the use of equipment such as industrial chillers that maintain the optimal machine temperature and performance and dissipate the heat generated during various metalworking techniques, including casting, grinding, and welding. In addition, Asia Pacific is focused on establishing manufacturing plants that require metalworking machines. For example, in November 2022, Kennametal India Limited (KIL), a subsidiary of Kennametal Inc., launched its new metal cutting insert manufacturing facility on its Bengaluru site. Overall, the rise in sales of metalworking machines and the new launch of manufacturing plants indicate the growth in the metalworking industry. Thus, the expansion of the metalworking industry fuels the global industrial chillers market growth.

Government Investments to Support Growth in Manufacturing Industry

Government investments in manufacturing are set to play a key role in providing growth opportunities in the industrial chillers market. As nations prioritize domestic production, energy efficiency, and sustainable industrial development, funding and incentives for modernizing facilities are increasing. These initiatives often include support for advanced cooling technologies, such as high-efficiency chillers, which are essential for temperature-sensitive manufacturing processes. This trend is expected to significantly boost the demand for industrial chillers across various sectors, including food processing, pharmaceuticals, and high-tech manufacturing. In Asia Pacific, there are many developing nations, such as China, India, Myanmar, Nepal, Fiji, Hong Kong, the Maldives, Malaysia, and Sri Lanka, which hold vast potential for growth in the manufacturing industry. The government authorities in the region are engaged in introducing several initiatives, investments, strategies, and policies that can drive the manufacturing industry. A few of these initiatives include the Chinese government’s Made in China 2025, Malaysia’s Industry4wrd National Policy On Industry 4.0, and India's initiatives, such as the National Manufacturing Policy. As per the India Brand Equity Foundation (IBEF), in July 2024, the Government of India’s initiative, National Manufacturing Policy, aimed to boost the share of the manufacturing industry in the country’s GDP to 25% by 2025. The government is planning to offer incentives of up to US$ 2.2 billion to spur local manufacturing in six new sectors, including chemicals and shipping containers. The New Industrial Master Plan (NIMP) 2030, introduced by the Malaysian government in September 2023, proposed changes to investment incentives for foreign companies that create opportunities for domestic companies. According to UNCTAD, the provincial Government of Guangdong announced a new policy to attract FDI, offering rewards of up to US$ 21 million to eligible foreign investment enterprises. This will benefit the manufacturing and high-tech service enterprises in the country. Manufacturing plants produce heat in several processes that require a cooling agent to achieve efficient manufacturing operations.

Industrial Chillers Market Report Segmentation Analysis

Key segments that contributed to the derivation of the industrial chillers market analysis are chiller type, process, and application.

• In terms of chiller type, the industrial chillers market is bifurcated into water cooled chillers and air cooled chillers. The water cooled chillers segment dominated the market in 2024.
• Based on process, the industrial chillers market is divided into continuous flow chillers and immersion chillers. The continuous flow chillers segment held a larger share of the market in 2024.
• In terms of application, the industrial chillers market is segmented into food & beverage processing, medical equipment, industrial manufacturing, and others. The industrial manufacturing segment dominated the market in 2024.

Industrial Chillers Market Share Analysis by Geography

• The industrial chillers market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South & Central America. Asia Pacific dominated the market in 2024, followed by North America and Europe.
• The industrial chillers market in Asia Pacific is experiencing growth due to robust GDP growth and expansion in key sectors such as chemicals, transportation, food, and ICT. The surge in chemical production creates a strong demand for industrial chillers, which are essential for heat dissipation in chemical processing. Additionally, the construction of new chemical plants across the region further fuels this demand, supporting continued growth in the industrial chillers market. Moreover, a rise in the construction of semiconductor chipmaking plants and demand for integrated energy-efficient solutions in large-scale facilities drive the Asia Pacific industrial chillers market.
• The industrial chillers market in North America is growing due to a revival in the manufacturing sector, driven by strong consumer demand and government incentives. Key legislations, such as the Inflation Reduction Act, CHIPS and Science Act, and the Bipartisan Infrastructure Law, are promoting domestic production of semiconductors, batteries, and clean energy technologies. These manufacturing processes generate significant heat, increasing the demand for industrial chillers to manage cooling during production. The food and beverages industry is experiencing growth due to changing consumer preferences, population growth, and increasing demand for high-quality products. Trade agreements such as NAFTA have boosted food production and exports, especially between the US, Mexico, and Canada. As a result, new food processing plants are being built, creating a greater need for industrial chillers to manage temperature control during food production and processing.

Industrial Chillers Market Regional Insights

The regional trends and factors influencing the Industrial Chillers Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Industrial Chillers Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Industrial Chillers Market Report Scope

Industrial Chillers Market Players Density: Understanding Its Impact on Business Dynamics

The Industrial Chillers Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Industrial Chillers Market are:

1. Stulz SpA
2. Mitsubishi Heavy Industries Ltd
3. Daikin Industries Ltd
4. Johnson Controls International Plc
5. Panasonic Holdings Corp
6. HYDAC International GmbH

Disclaimer: The companies listed above are not ranked in any particular order.

Industrial Chillers Market News and Recent Developments

The industrial chillers market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the industrial chillers market are listed below:

• Trane has introduced two new air-cooled chillers designed for chilled water cooling in facilities: the Magnetic Bearing chillers and the Ascend chillers. The Magnetic Bearing chiller is engineered to meet the growing cooling demands of data center thermal management systems. Meanwhile, the Ascend chiller platform is optimized to deliver enhanced efficiency, particularly in high ambient temperature environments.

(Source: Trane, Press Release, March 2025) 

• Mitsubishi Heavy Industries Thermal Systems, Ltd. (MHI Thermal Systems), a part of Mitsubishi Heavy Industries (MHI) Group, announces the launch of a new model of its "Ene-Conductor" Heat Source Control System for integrated control of centrifugal chillers and peripheral equipment such as chilled water pumps, cooling water pumps, and cooling towers. The new EC-8 model, to be added to the lineup this spring, allows for control of up to 8 centrifugal chiller units. With these features, the new model can be more widely used and installed in overseas large-scale facilities, as well as enhancing energy conservation for the whole facility.

(Source: Mitsubishi Heavy Industries Thermal Systems, Ltd., Press Release, February 2025)

Industrial Chillers Market Report Coverage and Deliverables

The "Industrial Chillers Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Industrial chillers market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Industrial chillers market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Industrial chillers market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the industrial chillers market
• Detailed company profiles