India Chillers Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 501.14 Million |
| Market Size (2029) | USD 775.32 Million |
| CAGR (2024 - 2029) | 9.12 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Chillers Market Analysis
The India Chillers Market size is estimated at USD 501.14 million in 2024, and is expected to reach USD 775.32 million by 2029, growing at a CAGR of 9.12% during the forecast period (2024-2029).
- Chiller systems transfer heat from an air-conditioned space to the outside environment, ensuring internal temperatures remain more relaxed than outside. Cooling is crucial in various sectors, including automotive, transportation, residential and commercial spaces, and cold chains. As temperatures rise in the country, the demand for cooling solutions has surged, propelling the growth of the Indian chillers market.
- The India Cooling Action Plan (ICAP) projects that by 2037-38, chiller systems will account for 11% of the energy consumed for space cooling. Furthermore, India's chiller installations are anticipated to hit a capacity of 38.1 million tons of refrigeration (TR) by the same year.
- India's surging cooling demands propel rapid growth in the cooling technologies market. Riding this wave, the Bureau of Energy Efficiency (BEE) aims to bolster the market penetration of energy-efficient chillers through its Chiller S&L program. Furthermore, as the market expands, India stands to gain significant energy savings and reduce its carbon footprint by phasing out inefficient chillers under the mandated S&L program. The government's Energy Conservation Building Code (ECBC) mandates using energy-efficient chillers in commercial buildings.
- The thriving food and beverage industry in the country is propelling the growth of the market studied. The rising preference for frozen and ready-to-eat foods, particularly among consumers, further boosts this market's expansion. Moreover, easy installation, affordability, efficiency, and durability of chillers drive the market's momentum. In recent years, India's demand for energy-efficient chillers has steadily risen. This surge can be attributed to escalating government mandates, electricity prices, and heightened public awareness of eco-friendly systems.
- Proper maintenance is essential to ensure chillers operate efficiently. Without it, chillers risk corrosion, clogging, reduced efficiency, and other potential issues. Servicing these units can be both costly and time-consuming. Consequently, the high maintenance expenses pose a significant challenge for the Indian chillers market. In addition, despite advancements, chillers are still energy-sensitive systems. Rising energy costs and increasing emphasis on energy efficieny can lead to reluctance in its adoption, especially in cost-effective markets like India.
- Macroeconomic factors like changes in government policies, such as import tariffs, taxation on cooling equipment, or subsidies for renewable energy systems, can impact the affordability and attractiveness of chillers. In addition, inadequate infrastructure, particularly in power supply, can make operating energy-intensive equipment like chillers easier, reducing its appeal in the country. Moreover, uncertain or frequently changing regulations, especially regarding environmental standards and energy efficiency, can create hesitancy among buyers and manufacturers, slowing market growth.
India Chillers Market Trends
Screw Chillers is Expected to Witness a Significant Growth
- Screw chillers are known for their high-energy efficiency, especially in applications requiring variable load management. As energy costs rise and companies seek to reduce operational expenses, the demand for energy-efficient cooling solutions like screw chillers increases. Reynold India Private Limited, a prominent company (India) in Gujarat, delivers top-notch equipment and services. The esteemed company specializes in new and advanced air-cooled screw chillers, catering to the varied cooling demands of local industries in the region.
- As data centers in India expand to accommodate growing digital demands, there is a need for scalable and flexible cooling solutions. Screw chillers are well-suited for this purpose as these chillers can handle variable loads, allowing data centers to scale their cooling capacity in line with its growth. In April 2024, Carrier Corporation introduced its latest AquaForce 30XF air-cooled screw chillers, specifically engineered for data centers. These chillers aim to reduce energy consumption and carbon emissions while lowering user operational costs.
- The expanding industries such as pharmaceuticals, chemicals, and textiles in India drive the demand for reliable and efficient cooling solutions. Screw chillers are favoured in these sectors for their ability to handle large cooling loads consistently. In addition, screw chillers are known for their low-maintenance requirements and reliability compared to other types of chillers. This drives the demand for chillers in industries, looking for durable, long-term cooling solutions.
- With the rapid development of commercial infrastructure, including office buildings, malls, and hotels, there is an increasing need for energy-efficient cooling systems. Its ability to provide stable cooling performance is singly adopted in these projects. In addition, the continuous advancements in screw chillers, including better control systems, quieter operation, and enhanced performance, are making the chillers more practical for a broader range of applications.
Food and Beverages Industry is Expected to Hold a Significant Market Share
- The Indian government's focus on boosting the food processing sector through initiatives like Pradhan Mantri Kisan Sampada Yojana has led to the establishment of more processing units. These units require chillers for various applications, including cooling, freezing, and storage. In addition, as consumer preferences shift toward packaged and ready-to-eat foods, there is a growing need for chillers to maintain the quality and extend the shelf life of these products during production and storage.
- With the expansion of India's cold chain infrastructure, driven by the growing demand for perishable foods, there is an increasing need for chillers. Chillers are vital for maintaining the cold storage conditions required to preserve fresh produce, dairy, meat, and other perishable items.
- In December 2023, the Indian government is launching nationwide schemes to set up cold storage facilities for perishable horticultural products, providing financial assistance. As part of this initiative, the Ministry of Food Processing Industries (MOFPI) offers financial support: 50% for value addition and 75% for processing infrastructure. Each project, with a ceiling of INR 10 crore, aims to establish integrated cold chain projects, inclusive of an irradiation facility.
- The production of beverages, including soft drinks, alcoholic beverages, and bottled water, requires chillers to maintain specific temperatures during production, ensuring the consistency and quality of the final product. During the bottling and packaging stages, beverages often need to be cooled to specific temperatures to ensure proper sealing, reduce foaming, and maintain carbonation levels. Chillers are crucial in this phase to achieve the necessary cooling efficiently.
- The food and beverages industry in India is increasingly subject to stringent quality and safety standards. Chillers help meet these standards by maintaining controlled environments that prevent contamination and spoilage. In India, food safety is bolstered by three key entities, with the Bureau of Indian Standards being the third. The FSSAI takes the lead in formulating food standards, ensuring adherence, and overseeing food safety practices and testing. Furthermore, the FSSAI enhances expertise in these domains through specialized training programs and workshops.
India Chillers Industry Overview
The Indian chillers market is fragmented, with the presence of significant players like Carrier Corporation, Johnson Controls International PLC, Midea Group, Daikin Industries Limited, LG Electronics, Mitsubishi Electric Corporation, Kirloskar Chillers Private Limited, Bluestar Limited, Schneider Electric, Thermax Limited, and Reynold India Private Limited. Significant players in the market are adopting strategies such as partnerships, mergers, innovations, expansions, investments, and acquisitions to enhance product offerings and gain sustainable competitive advantage.
- March 2024: Schneider Electric launched a new cooling factory in Bangalore to address India's surging demand for data center solutions. The factory focuses on producing high-efficiency chillers, which provide reliable cooling for data centers of all sizes. The newly established factory boasts advanced technology and produces cooling products and solutions designed for data centers, telecom, commercial, and industrial applications, catering to domestic and international markets. Notably, 85% of the factory's output will be exported, serving the data center segment and catering to buildings, industry, and infrastructure needs.
- March 2024: Johnson Controls planned to deepen its commitment to India and its net zero ambitions through strategic moves. Following the Net Zero Buildings Initiative launch in partnership with the Mahindra Group, the company unveiled plans to expand its third manufacturing facility in Pune. The Pune plant of Johnson Controls is expected to manufacture both air-cooled and water-cooled chillers, catering to diverse applications, including data centers. With a planned 50% increase in floor space, the expansion would significantly enable the company to enhance its production of locally-made parts and products, aligning with India's push toward digital technology growth. Additionally, Johnson Controls prioritizes local sourcing to bolster the plant's expansion.
India Chillers Market Leaders
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Carrier Corporation
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Johnson Controls International Plc
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Midea Group
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Daikin Industries Limited
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LG Electronics
*Disclaimer: Major Players sorted in no particular order
India Chillers Market News
- May 2024: Carrier Airconditioning & Refrigeration Limited (Carrier India) unveiled the Made in India – 30 RB Air-Cooled Modular Scroll Chiller. Designed specifically for the evolving demands of the Indian market, this chiller sets new cooling efficiency and reliability standards. It brings added value to sectors, including railways, MES, and metro. This chiller significantly bolsters the Government of India's Vocal for Local Initiatives by prioritizing the diverse requirements of various industrial processes.
- March 2024: Daikin Industries launched an upgraded Navigator WWV water-cooled screw chiller, utilizing the low-global warming potential (GWP) R-513A refrigerant. This new chiller boasts industry-leading performance and can be paired with the optional Templifier TWV water heater, offering an energy-efficient and cost-effective heat recovery solution. Building owners and operators can reduce utility expenses and expedite their sustainability and decarbonization initiatives by integrating a low-GWP refrigerant with a heat recovery setup.
India Chillers Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs
5.1.2 Growing Demand for Energy-efficient Chillers
5.2 Market Restraint
5.2.1 High Initial Costs
6. MARKET SEGMENTATION
6.1 By Type of Cooling
6.1.1 Water Cooled
6.1.2 Air Cooled
6.2 By Compressor Type
6.2.1 Screw Chillers
6.2.2 Scroll Chillers
6.2.3 Reciprocating Chillers
6.2.4 Centrifugal Chillers
6.2.5 Absorption Chillers
6.3 By End-user Industry
6.3.1 Chemicals and Petrochemicals
6.3.2 Food and Beverages
6.3.3 Medical
6.3.4 Plastic
6.3.5 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Carrier Corporation
7.1.2 Johnson Controls International PLC
7.1.3 Midea Group
7.1.4 Daikin Industries Limited
7.1.5 LG Electronics
7.1.6 Mitsubishi Electric Corporation
7.1.7 Kirloskar Chillers Private Limited
7.1.8 Bluestar Limited
7.1.9 Schneider Electric
7.1.10 Thermax Limited
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
India Chillers Industry Segmentation
A chiller is large-capacity cooling equipment used in commercial and industrial applications. It removes heat from a liquid, such as water or another refrigerant, through a vapor-compression or absorption refrigeration cycle. As required, the liquid can be circulated through a heat exchanger to cool air, materials, or equipment. Most of today’s industrial chillers are designed to cool the refrigerant with water from a cooling tower rather than ambient air. Chillers function similarly to conventional split systems or package units by removing heat from a space that necessitates climate control.
The study tracks the revenue accrued through the sale of types of chillers by various players in India. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, supporting the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report's scope encompasses market sizing and forecasts for the various market segments.
The Indian chillers market is segmented by rejection method or type of cooling (water cooled and air cooled), compressor type (screw chillers, scroll chillers, reciprocating chillers, centrifugal chillers, and absorption chillers), and end-user industry (chemicals and petrochemicals, food and beverages, medical, plastic, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type of Cooling | |
| Water Cooled | |
| Air Cooled |
| By Compressor Type | |
| Screw Chillers | |
| Scroll Chillers | |
| Reciprocating Chillers | |
| Centrifugal Chillers | |
| Absorption Chillers |
| By End-user Industry | |
| Chemicals and Petrochemicals | |
| Food and Beverages | |
| Medical | |
| Plastic | |
| Other End-user Industries |
India Chillers Market Research FAQs
How big is the India Chillers Market?
The India Chillers Market size is expected to reach USD 501.14 million in 2024 and grow at a CAGR of 9.12% to reach USD 775.32 million by 2029.
What is the current India Chillers Market size?
In 2024, the India Chillers Market size is expected to reach USD 501.14 million.
Who are the key players in India Chillers Market?
Carrier Corporation, Johnson Controls International Plc, Midea Group, Daikin Industries Limited and LG Electronics are the major companies operating in the India Chillers Market.
What years does this India Chillers Market cover, and what was the market size in 2023?
In 2023, the India Chillers Market size was estimated at USD 455.44 million. The report covers the India Chillers Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Chillers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Chillers Industry Report
Statistics for the 2024 India Chillers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Chillers analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
