Air Cooled Chillers Market Report 2031 by Segments, Geography, Dynamics, Recent Developments, and Strategic Insights
Coverage: Air Cooled Chillers Market covers analysis By Process (Continuous Flow Chillers, Immersion Chillers), and Application (Industrial Manufacturing, Food and Beverage Processing, Medical Equipment, Others)
- Report Date : Nov 2025
- Report Code : TIPRE00041042
- Category : Manufacturing and Construction
- Status : Upcoming
- Available Report Formats :
- No. of Pages : 210
The Air Cooled Chillers Market size is projected to reach US$ 1614.43 million by 2031 from US$ 971.42 million in 2024. The market is expected to register a CAGR of 7.6% during 2025–2031.
Air Cooled Chillers Market AnalysisThe air cooled chillers market is influenced by several drivers, including the rising temperatures & climate change, urbanization & infrastructure growth, and strict regulations for energy efficiency & sustainability are also contributing to market growth. Nonetheless, the market presents opportunities through the demand for smart and IoT-enabled systems, technology advancements, and the rising demand for customization air cooled chillers for specific applications.
Air Cooled Chillers Market OverviewAir cooled chillers operate with the intention of rejecting heat from the space. With active heat to be absorbed from process water and rejected to the surrounding air, they are commonly used in an industrial environment to cool fluids and/or dehumidify air. An air cooled chiller includes four major components: compressor, evaporator, condenser, and expansion valve. These industrial chillers are widely used for small to medium-scale manufacturing facilities, such as in the pharmaceutical or food & beverage industries.
The demand for these chillers is rising due to their compact design, which makes them convenient, inexpensive to maintain, and easy to install. The upfront cost of these chillers is less expensive than the water cooled chillers, which drives the market growth for this segment.
Strategic InsightsAir Cooled Chillers Market Drivers and OpportunitiesMarket Drivers:
- Energy Efficiency & Environmental Regulation: There's growing regulatory pressure (e.g. energy performance standards, restrictions on high‑Global Warming Potential refrigerants) and corporate ESG goals pushing users to replace older, inefficient chillers. Air cooled chillers that are more efficient help reduce power bills and emissions.
- Expansion of Commercial and Industrial Infrastructure: Rapid growth in the construction of offices, hotels, shopping malls, hospitals, factories, data centers, etc., especially in emerging markets, increases demand for reliable cooling systems.
- Growing Water Scarcity Concern: Air‑cooled chillers don't require large volumes of water (unlike water‑cooled chillers with cooling towers), making them more favourable in regions where water is scarce or expensive.
- High Ambient Temperature and Climate Change: More frequent heat waves and overall rising ambient temperatures mean that cooling demand is increasing. Users need chiller systems that can maintain performance even at elevated outdoor temperatures. Air cooled systems are often simpler to deploy in many sites.
- Industries Focus on Retrofitting Older Systems: Many existing buildings have legacy chillers. As regulations increase or energy costs rise, there's a demand for retrofits or upgrades rather than full new systems. This drives the replacement/modernization of chillers.
Market Opportunities:
- Technological Improvements in Compressors, Heat Exchangers, Controls: Advancements in scroll/screw/centrifugal compressors, better heat exchangers, use of variable speed drives, improved control systems, IoT / automation, etc., are making air‑cooled chillers more efficient, reliable, and cost‑effective.
- Development of Modular / Scalable Chillers and Compact Designs: Applications with restricted space (urban zones), or modular buildings, prefabricated setups, or smaller capacity needs, are pushing demand for compact, modular chillers that are scalable as demand grows.
- Growth of Data Centers / IT Infrastructure: As cloud computing, big data, AI, etc., expand, the need for cooling in data centers, server farms, etc., increases. These often need precise, reliable cooling - an opportunity for air‑cooled chiller vendors.
- Shift to low‑GWP Refrigerants and Phased‑Out HFCs: Manufacturers are increasingly designing chillers to use refrigerants with lower global warming potential. Regulation is forcing this, but end‑user preference is aligning too.
- Integration of IoT, AI, and Digitalization: There is a rising demand for chillers that can be monitored and controlled in real time, that can predict failures, optimize efficiency, and integrate with building management systems. These provide value in lower downtime, energy savings, and life‑cycle cost benefits.
The air cooled chillers market is divided into different segments to give a clearer view of how it works, its growth potential, and the latest trends. Below is the standard segmentation approach used in most industry reports:
By Process:
- Continuous Flow Chillers: Continuous flow chillers provide consistent, controlled cooling that is vital for maintaining optimal operating temperatures in industrial equipment and processes.
- Immersion Chillers: Immersion chillers offer targeted and highly efficient cooling by directly immersing the heat-generating components in a thermally conductive yet non-conductive liquid.
By Application:
- Industrial Manufacturing: Air cooled chillers play a vital role in industrial manufacturing by providing consistent process cooling to machinery, equipment, and production lines.
- Food and Beverage Processing: In the food and beverage processing industry, air cooled chillers are essential for maintaining precise temperature control during production, storage, and packaging.
- Medical Equipment: Air cooled chillers are critical in the medical equipment sector, where precise temperature control is essential for both diagnostic and therapeutic technologies.
- Others: Air cooled chillers benefit a wide range of other industries, including data centers, commercial buildings, printing operations, and more, by delivering dependable cooling solutions without the need for water-intensive systems.
By Type:
- Machine Tool
- Laser System
- Others
Each sector demands energy efficiency, low maintenance, and cost-effectiveness. It influences air cooled chillers adoption and functionality preferences.
By Geography:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
The air cooled chillers market in Middle East & Africa is expected to witness the fastest growth. Rising temperatures, urbanization, and the expansion of commercial and industrial infrastructure are surging the adoption of air cooled chillers.
Air Cooled Chillers Market Report ScopeAir Cooled Chillers Market Share Analysis by GeographyAsia Pacific is expected to grow the fastest in the next few years. Emerging markets in Latin America, the Middle East, and Africa also have many untapped opportunities for air cooled chillers providers to expand.
The air cooled chillers market grows differently in each region. This is because of factors like a gradual shift towards higher efficiency models, driven by government initiatives like Saudi Arabia's Vision 2030 and the UAE's Energy Strategy 2050. Below is a summary of market share and trends by region:
1. North America
- Market Share: Holds a significant portion of the global market
- Key Drivers:
- Rising demand for energy-efficient HVAC systems due to stringent environmental regulations and retrofitting needs in commercial buildings drives market growth.
- Trends: Adoption of smart chillers integrated with IoT and AI for real-time monitoring, predictive maintenance, and energy optimization is increasing.
2. Europe
- Market Share: Substantial share due to early adoption of digital commerce
- Key Drivers:
- EU climate goals and policies like the F-Gas Regulation promote low-GWP refrigerants, boosting demand for eco-friendly air cooled chillers.
- Trends: Growing preference for modular chillers in data centers and hospitals due to scalability, low maintenance, and improved energy performance.
3. Asia Pacific
- Market Share: Fastest-growing region with a rising market share every year
- Key Drivers:
- Rapid urbanization and infrastructure development, especially in China and India, are driving demand for HVAC systems in commercial buildings.
- Trends: Manufacturers are expanding production capacity and localizing manufacturing to meet rising demand and reduce costs in emerging APAC markets.
4. South and Central America
- Market Share: Growing market with steady progress
- Key Drivers:
- Increasing commercial construction and tourism development in Brazil and Chile stimulates demand for reliable and energy-efficient cooling systems.
- Trends: Growth in demand for rental air cooled chillers during seasonal peaks and events, especially in hospitality and industrial sectors.
5. Middle East and Africa
- Market Share: Although small, but growing quickly
- Key Drivers:
- Extreme climate conditions and government-backed infrastructure projects drive demand for high-capacity cooling solutions across commercial and industrial sectors.
- Trends: Solar-powered air cooled chillers gain traction in off-grid locations, aligning with regional sustainability goals and energy diversification strategies.
High Market Density and Competition
Competition is strong due to the presence of established players such as Stulz SpA, Mitsubishi Heavy Industries Ltd, Daikin Industries Ltd¸ Johnson Controls International Plc, and Panasonic Holdings Corp. Regional and niche providers like HYDAC International GmbH, Blue Star Ltd, Carrier Global Corp, Trane Technologies Plc, and Thermo Fisher Scientific Inc. are also adding to the competitive landscape across different regions.
This high level of competition urges companies to stand out by offering:
- Advanced energy efficiency and safety features
- Value-added services, such as remote system monitoring, predictive maintenance, installation and commissioning support, and integration with building management systems (BMS)
- Competitive pricing models
- Strong customer support, quick response times, and easy integration
Opportunities and Strategic Moves
- HVAC and industrial solution providers are increasingly forming strategic partnerships to deliver hybrid cooling systems that integrate air cooled chillers with complementary cooling technologies to enhance energy efficiency and environmental performance across variable climatic conditions.
- Leading manufacturers of air cooled chillers are shifting from capital expenditure (CAPEX)-intensive sales models toward subscription-based offerings and managed services such as Cooling-as-a-Service (CaaS).
- Vendors are embedding software-defined control systems, IoT-enabled sensors, and AI-powered analytics into air cooled chiller units.
Disclaimer: The companies listed above are not ranked in any particular order.
Other companies analysed during the course of research:
- Midea Group Co., Ltd.
- Airedale International Air Conditioning Ltd.
- Smardt Chiller Group
- KKT Chillers / AIT‑Deutschland GmbH
- Blue Star Limited
- Thermax Limited
- Danfoss A/S
- Geson Refrigeration Equipment Co., Ltd.
- Robur SpA
- Hitachi, Ltd.
- Kawasaki Thermal Engineering Co., Ltd.
- HyDAC International GmbH
- Aermec UK Ltd.
- Afinox Srl
- Baltimore Aircoil Company
- Johnson Controls Recognized as a Thermal Management Provider: In February 2025, Johnson Controls was recognized as a thermal management provider, driven by its comprehensive product portfolio, global presence, and customer-centric approach to the data center thermal management industry. In thermal management, Johnson Controls offers a wide range of air cooled and water cooled chillers designed to address the unique needs of hyperscale and colocation data centers.
- Panasonic Corporation Acquired Cold Chain Solutions Company: In July 2024, Panasonic Corporation announced that its Cold Chain Solutions Company (hereinafter referred to as Panasonic) had agreed with Cooling Solutions S.L. to purchase all the shares of its subsidiary Area Cooling Solutions Sp. z o.o. , a Polish refrigeration equipment manufacturer.
The "Air Cooled Chillers Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Air Cooled Chillers Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Air Cooled Chillers Market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Air Cooled 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 Air Cooled Chillers Market
- Detailed company profiles
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The air cooled chillers market is set to gain notable advantages due to an increasing demand for customized air cooled chillers and for highly customized cooling solutions for specific industries.
1. Demand for Smart and IoT-Enabled Systems
2. Technology Advancements
3. Rising Demand for Customization of Air Cooled Chillers for Specific Applications
Middle East & Africa leads in market share. Asia Pacific, especially China and Japan, is witnessing the fastest growth due to government regulations and smart and 12. . IoT-enabled systems.
The main trends include:
1. Integration with Building Management Systems
2. Adoption of R32 Refrigerant
3. Focus on Sustainability and Eco-Friendly Solutions
The market is projected to register a CAGR of 7.6% from 2025 to 2031, depending on the region and subsegment, such as machine tools, laser systems, and others.
The global air cooled chillers market was valued at US$ 971.42 million in 2024 and is expected to reach US$ 1614.43 million by 2031.
Process comprises:
1. Continuous Flow Chillers
2. Immersion Chillers
Key applications include:
1. Industrial Manufacturing
2. Food and Beverage Processing
3. Medical Equipment
4. Others
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