Water-Cooled Chillers Market

Water-Cooled Chillers Market Report, By Type (Centrifugal Chillers, Screw Chillers, Absorption Chillers, Reciprocating Chillers, Scroll Chillers), Capacity (Small, Medium, Large), End-Use Industry (Manufacturing, Commercial Buildings, Data Centers, Healthcare, Hospitality, Others), Application (Air Conditioning, Process Cooling) and Regions 2024-2032

Market Overview:

"The global water-cooled chillers market size reached US$ 4.8 billion in 2023. Looking forward, Reports and Insights expects the market to reach US$ 5.6 billion in 2032, exhibiting a growth rate (CAGR) of 3.2% during 2024-2032."

Water-cooled chillers are cooling systems that utilize water as a coolant to remove heat from a space or equipment. These products find extensive use in various industries, including manufacturing plants, data centers, hospitals, and commercial buildings. Water-cooled chillers offer several benefits, such as high energy efficiency, precise temperature control, and quieter operation compared to air-cooled alternatives. Water-cooled chillers also provide scalability, enabling them to handle heavy cooling loads effectively.

Various types of water-cooled chillers available include centrifugal chillers, screw chillers, and absorption chillers. Each type has its unique features and applications, catering to diverse cooling requirements.

The global water-cooled chillers market is registering significant revenue growth as a result of increasing demand for cooling solutions across various industries. Factors such as rising consumption in sectors including manufacturing, healthcare, and data centers are contributing to market revenue growth.

Technological advancements have led to the development of more efficient and environmentally friendly chillers. Also, initiatives focused on energy efficiency and sustainability also play a vital role in driving adoption. Compliance with regulations and standards related to refrigerants and emissions is a key consideration. Analysis and insights indicate a positive outlook for the global water-cooled chillers market, with rising emphasis on energy-efficient and sustainable cooling solutions.

Water-Cooled Chillers Market Report Overview:

The global water cooled chillers market  research report provides comprehensive insights into driving factors, restraints, opportunities, and trends, with provision of in-depth supporting information, data, and statistics and actionable insights. Though covered and provided extensively across the report, the data and information format are simple, yet dynamic in order to ensure ease of reading and understanding, as well as presenting and maximizing leverage and use.

Revenues and market share are provided in detail for previous years in order to showcase the evidence upon which our estimations and forecasts are based. Revenue growth rates and differences, as well as comparisons and relatable data are provided to further support all findings. Data points are provided for each year – from historical to end of forecast period – and this format is followed for each segment region and respective countries, as well as sub-segments and others. Vital details of major companies in the market are provided in the company profile section of the report. Cover includes financials, recent developments, research & development, strategies, product launches, agreements, expansion, mergers & acquisitions, and others. 

The report is segmented according to Product Type, Capacity, End-Use Industry, Application, Compressor Type, Refrigerant Type, Power Source, Component, Sales Channel, Service Type and Region. Regional segmentation includes North America (United States and Canada); Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Poland, BENELUX, NORDIC, and Rest of Europe); Asia Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand, & Rest of Asia Pacific); Latin America (Brazil, Mexico, Argentina, & Rest of Latin America); Middle East & Africa (Saudi Arabia, South Africa, United Arab Emirates, Egypt, Israel, and Rest of MEA).

Water-Cooled Chillers Market Trends and Drivers:

Increasing demand for cooling solutions: Rising need for cooling in various sectors such as manufacturing, healthcare, and data centers is a primary factor driving revenue growth of the global water-cooled chillers market. Demand for efficient and reliable cooling systems continues to increase as these industries expand globally. Positive changes in Horizontal Freezer market trends are expected to propel market growth.

Technological advancements: Advancements in chiller technology have led to more energy-efficient and environmentally friendly solutions. These advancements include the use of advanced compressors, smart controls, and optimized heat transfer surfaces, which improve the overall performance of water-cooled chillers and contribute to market revenue growth.

Focus on energy efficiency: With rising energy costs and increasing environmental concerns, there is rising emphasis on energy-efficient cooling solutions. Water-cooled chillers offer higher energy efficiency compared to air-cooled alternatives, resulting in reduced operating costs for end-users. This focus on energy efficiency drives the adoption of water-cooled chillers and positively impacts revenue growth.

Shift towards sustainable practices: Companies across industries are increasingly adopting sustainable practices to reduce their carbon footprint. Water-cooled chillers are considered more environmentally friendly due to their lower refrigerant emissions and improved energy efficiency. The growing focus on sustainability and green initiatives has a positive impact on revenue growth of the global water-cooled chillers market.

Regulatory compliance: Governments and regulatory bodies have implemented regulations and standards to reduce Greenhouse Gas (GHG) emissions and promote the use of energy-efficient cooling systems. Compliance with these regulations and standards is driving adoption of water-cooled chillers, further supporting revenue growth of the market.

What Factors Are Restraining Growth of Water-Cooled Chillers Market?

Despite the various positive factors and growth prospects in the global market, some restraints and factors are having negative impacts on revenue growth. Some key factors include:

High initial costs: Water-cooled chillers typically have higher initial costs compared to air-cooled alternatives. This can act as a restraint on market growth, particularly for budget-constrained buyers or in price-sensitive markets.

Limited applicability in certain environments: Water-cooled chillers require access to a reliable water source and sufficient space for installation, which may not be feasible in certain locations or building structures. This limitation can restrain adoption and negatively impact market revenue growth.

Maintenance and operational challenges: Water-cooled chillers require regular maintenance, including water treatment, to prevent issues such as scaling and fouling. Additionally, their operation involves complex water circulation systems, which can lead to operational challenges and potential downtime if not managed efficiently.

Environmental concerns: Although water-cooled chillers are generally more energy-efficient than air-cooled alternatives, they still consume a significant amount of water during operation. In regions facing water scarcity or stringent environmental regulations, the water consumption aspect may pose a challenge and impact market growth negatively.

Competing technologies: Competition from alternative cooling technologies, such as air-cooled chillers, evaporative cooling systems, and heat pumps is a constraint to be considered. These technologies offer advantages such as lower water consumption, easier installation, and lower maintenance requirements. Their availability and attractiveness can limit adoption of water-cooled chillers in certain applications and affect revenue growth.

What are the Opportunities for Leading Water-Cooled Chillers Manufacturers?

Companies operating in the global water cooled chillers market  can leverage various opportunities and revenue streams to drive growth and profitability. Below are some avenues and insights:

Growing demand for energy-efficient solutions: Increasing emphasis on energy efficiency and sustainability presents an opportunity for companies in the water-cooled chillers market. By offering highly efficient chillers that consume less energy and have reduced environmental impact, companies can cater to rising demand for energy-efficient solutions and account for a larger market share.

Retrofit and replacement projects: Many existing cooling systems are outdated and inefficient. Companies can leverage this opportunity by offering water-cooled chiller solutions for retrofit and replacement projects. By providing cost-effective and energy-efficient options, companies can tap into a significant revenue stream in the market.

Expansion in emerging markets: Emerging markets, especially in developing countries, are witnessing rapid industrialization and infrastructure development. These markets present significant opportunities for companies to expand their presence and offer water-cooled chillers for various applications. By understanding the specific needs and requirements of these markets, companies can tap into new revenue streams.

Service and maintenance contracts: Along with chiller sales, companies can generate recurring revenue streams by offering comprehensive service and maintenance contracts. Regular maintenance, water treatment, and troubleshooting services can provide a steady and reliable source of revenue for companies operating in the water-cooled chillers market.

Customization and value-added services: Companies can differentiate themselves and create additional revenue streams by offering customization options and value-added services. This can include tailored chiller designs, integration with smart building systems, remote monitoring capabilities, and energy optimization solutions. By providing unique and value-added offerings, companies can command premium prices and increase their revenue opportunities in the market.

What are the factors driving the water-cooled chillers demand in North America region?

High demand for water-cooled chillers in North America is driven by significant usage across industries such as manufacturing and data centers. Market share increase is supported by stringent energy efficiency regulations, consumer preference for sustainable solutions, and government initiatives promoting green buildings. In the United States, programs such as ENERGY STAR and LEED (Leadership in Energy and Environmental Design) provide incentives and certifications for energy-efficient building practices. These initiatives encourage the adoption of water-cooled chillers due to their high energy efficiency and reduced environmental impact. Government regulations and building codes also prioritize energy efficiency, leading to a greater demand for sustainable cooling solutions like water-cooled chillers. These initiatives create a favorable market environment, stimulate market growth, and drive the adoption of water-cooled chillers in North America.

The United States and Canada are key revenue share contributors to the North America market and the trend is expected to continue.

Does Europe account for a prominent water-cooled chillers market share?

Europe is a major market for water-cooled chillers, with countries such as Germany, UK, and France leading in terms of share revenue and demand. High emphasis on energy efficiency and sustainability, with a strong focus on reducing carbon emissions, coupled with government initiatives, such as the EU's Ecodesign Directive, are driving industry growth and consumer preference for eco-friendly cooling solutions. Initiatives often include regulations and incentives aimed at reducing energy consumption and carbon emissions in the building sector. Water-cooled chillers, known for their high energy efficiency and lower environmental impact compared to air-cooled alternatives, align with the objectives of these initiatives. By incentivizing or mandating the use of energy-efficient cooling systems like water-cooled chillers, governments encourage their adoption in green building projects.

What are the factors driving the growth in water-cooled chillers sales in Asia Pacific region?

Asia Pacific holds significant growth potential for players in the water-cooled chillers market due to rapid industrialization and infrastructure development. Countries such as China, India, and Japan are major contributors to Asia Pacific market share expansion. Increasing demand for cooling solutions in commercial buildings, data centers, and manufacturing sectors, coupled with government initiatives promoting energy efficiency, fuel market expansion. Government initiatives in Asia Pacific promoting green buildings are driving growth of the water-cooled chillers market in the region. Governments in China, India, and Japan have implemented various programs and policies to encourage sustainable building practices. These initiatives include green building certifications, energy efficiency standards, and financial incentives for adopting eco-friendly technologies. Water-cooled chillers, known for their energy efficiency and reduced environmental impact, align with the objectives of these initiatives. The focus on energy-efficient and sustainable cooling solutions in green buildings has resulted in increased demand for water-cooled chillers, thereby driving revenue growth of the Asia Pacific market.

Why Middle East & Africa region is characterized by a diverse market landscape?

Middle East & Africa market share continues to expand, driven by rising demand for water-cooled chillers. Demand from sectors such as construction, healthcare, and hospitality is rising in countries such as UAE, Saudi Arabia, and South Africa and these markets present major opportunities for overall market growth. Government initiatives supporting sustainable building practices and rising infrastructure investments are also expected to continue to contribute to revenue growth.

What is the outlook on water-cooled chillers sales in Latin America?

Latin America is a growing market for water-cooled chillers, with countries such as Brazil, Mexico, and Argentina leading in terms of demand. Factors such as industrial expansion, commercial construction, and the need for cooling in the food and beverage sector are driving market growth. High preference for energy-efficient and environmentally friendly solutions influences demand and revenue growth.

Leading Water-Cooled Chillers Manufacturers & Competitive Landscape:

The global water-cooled chillers market landscape is highly competitive due to the presence of several major players focusing in leveraging opportunities and demand. These companies compete based on factors such as product innovation, energy efficiency, reliability, and customer service. Market players also focus on strategic collaborations, partnerships, and acquisitions to enhance their market position and expand their customer base.

Company List:

  • Daikin Industries Ltd.
  • Johnson Controls International plc
  • Trane Technologies plc
  • Carrier Global Corporation
  • Mitsubishi Electric Corporation
  • York (Johnson Controls)
  • LG Electronics Inc.
  • Schneider Electric SE
  • Climaveneta (Mitsubishi Electric)
  • Smardt Chiller Group Inc.
  • McQuay International (Daikin)
  • Thermax Limited
  • Multistack International Limited
  • Frigel Firenze S.p.A.
  • Broad Air Conditioning Co. Ltd.

Research Scope

Report Metric

Report Details

Market size available for the years   


Base Year


Forecast Period       


Compound Annual Growth Rate (CAGR)


Segment covered 

Product Type, Capacity, End-Use Industry, Application, Compressor Type, Refrigerant Type, Power Source, Component, Sales Channel, Service Type and Region

Regions Covered

North America:  The U.S. & Canada

Latin America: Brazil, Mexico, Argentina, & Rest of Latin America

Asia Pacific: China, India, Japan, South Korea, Australia & New Zealand, ASEAN, & Rest of Asia Pacific

Europe: Germany, The U.K., France, Spain, Italy, Russia, Poland, BENELUX, NORDIC, & Rest of Europe

The Middle East & Africa:  Saudi Arabia, United Arab Emirates, South Africa, Egypt, Israel, and Rest of MEA 

Fastest Growing Country in Asia-pacific


Largest Market in Europe


Key Players

Daikin Industries Ltd., Johnson Controls International plc, Trane Technologies plc, Carrier Global Corporation, Mitsubishi Electric Corporation, York (Johnson Controls), LG Electronics Inc., Schneider Electric SE, Climaveneta (Mitsubishi Electric), Smardt Chiller Group Inc., McQuay International (Daikin), Thermax Limited, Multistack International Limited, Frigel Firenze S.p.A., Broad Air Conditioning Co., Ltd.

Market Segmentation:

By Type:

  • Centrifugal Chillers
  • Screw Chillers
  • Absorption Chillers
  • Reciprocating Chillers
  • Scroll Chillers


  • Small Capacity Chillers
  • Medium Capacity Chillers
  • Large Capacity Chillers

End-Use Industry

  • Manufacturing
  • Commercial Buildings
  • Data Centers
  • Healthcare
  • Hospitality
  • Others


  • Air Conditioning
  • Process Cooling

Compressor Type

  • Scroll Compressors
  • Screw Compressors
  • Centrifugal Compressors
  • Reciprocating Compressors

Refrigerant Type

  • Hydrochlorofluorocarbon (HCFC)
  • Hydrofluorocarbon (HFC)
  • Ammonia
  • Others

Power Source

  • Electric Chillers
  • Absorption Chillers
  • Engine-Driven Chillers


  • Compressors
  • Condensers
  • Evaporators
  • Control Systems
  • Others

Sales Channel

  • Direct Sales
  • Distributor/Wholesaler

Service Type

  • Installation and Commissioning
  • Maintenance and Repair
  • Consulting and Training

Segmentation By Region:

North America:

  • United States
  • Canada


  • Germany
  • The U.K.
  • France
  • Spain
  • Italy
  • Russia
  • Poland
  • Rest of Europe

Asia Pacific:

  • China
  • India
  • Japan
  • South Korea
  • Australia
  • New Zealand
  • Rest of Asia Pacific

Latin America:

  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America

Middle East & Africa:

  • Saudi Arabia
  • United Arab Emirates
  • South Africa
  • Egypt
  • Israel
  • Rest of MEA.

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