The Asia Pacific industrial chillers market size is expected to reach US$ 2.16 billion by 2031 from US$ 1.22 billion in 2023. The market is estimated to record a CAGR of 7.4% during 2023–2031. The integration of advanced technologies with industrial chillers is likely to bring new key market trends in the coming years.
The expansion of the metalworking industry, the launch of new recycled plastic plants, and the surge in demand for industrial chillers in the growing chemical industry are acting as the drivers of the Asia Pacific industrial chillers market. Also, supply chain disruption restrains the growth of the market. Further, government investment to support the manufacturing industry’s growth and government focus on energy-efficient technologies are likely to create opportunities for the expansion of the market during the forecast period. Moreover, the integration of advanced technologies with industrial chillers is likely to set a future trend for the market.
Industrial chillers are used to dissipate the heat generated from several industrial processes that can cause fire and affect the machine and equipment due to friction. These chillers cool viscous liquids such as chemicals and water used in various industries, including pharmaceuticals, food & beverages, industrial manufacturing, automotive, metalworking, plastic production, food production, and petrochemicals, among others. These conventional systems differ from HVAC chillers on various factors, including water circuitry and component integration. For example, plastic processing and recycled plastic processing plants conduct several processes, such as grinding, casting, and molding, that generate excessive heat. Industrial chillers help remove heat from these processes and increase the longevity of the types of machinery used.
The metalworking industry is the process of forming and shaping the 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 in Asia Pacific, manufacturers across various industries—such as automotive, aerospace, food & beverages, etc.—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 the various metalworking techniques such as casting, grinding, welding, and others. 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 indicates the growth in the metalworking industry in Asia Pacific. Thus, the expansion of the metalworking industry fuels the Asia Pacific industrial chillers market growth.
In Asia Pacific, there are many developing nations, such as China, India, Myanmar, Nepal, Fiji, Hong Kong, 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 authorities include the Chinese government’s Made in China 2025, Malaysia’s Industry4wrd National Policy On Industry 4.0, India's initiatives such as the National Manufacturing Policy, and several other measures taken by governments of different countries in the region. Similarly, as per the India Brand Equity Foundation (IBEF), in July 2024, the Government of India’s initiative National Manufacturing Policy aims 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, among others. 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. Therefore, government investments to support growth in the manufacturing industry, including automotive, medical equipment, food & beverages, aerospace, and shipbuilding, among others, are likely to create a huge opportunity for the Asia Pacific industrial chillers market during the forecast period.
Key segments that contributed to the derivation of the Asia Pacific industrial chillers market analysis are chiller type, process, and application.
The Asia Pacific industrial chillers market is segmented into China, Japan, South Korea, Australia, Indonesia, and the Rest of Asia Pacific.
According to Atradius, in April 2024, the GDP growth of Asia Pacific is expected to exceed 2.4% worldwide. Major sectors, including transportation, food, ICT, and chemicals, are expected to witness growth in the coming years. Asia Pacific’s chemical output is likely to increase by 5.2% in 2024, compared to 3% worldwide. Furthermore, the chemical output is expected to increase by 6.2% in China, 5.8% in Thailand, 4.8% in Indonesia, and 4.2% in India. Thus, the presence of a robust chemical sector in the region is one of the major factors driving the demand for industrial chillers for efficient chemical production and processing. In addition, various market players are constructing new chemical plants in the region, further generating the demand for industrial chillers to dissipate the heat from chemical processing.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 1.22 Billion |
| Market Size by 2031 | US$ 2.16 Billion |
| Global CAGR (2023 - 2031) | 7.4% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Chiller Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Asia Pacific 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 Asia Pacific industrial chillers market are listed below:
The "Asia Pacific Industrial Chillers Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Asia Pacific Industrial Chillers Market
The rise in sales of metalworking machines and the new launch of manufacturing plants indicates the growth in the metalworking industry in Asia Pacific. Thus, the expansion of the metalworking industry fuels the Asia Pacific industrial chillers market growth.
The APAC industrial chillers market was estimated to be valued at US$ 1.22 billion in 2023 and is anticipated to grow at a CAGR of 7.4% over the forecast period.
The key players operating in the APAC industrial chillers market include Dimplex Thermal Solutions; Blue Star Ltd; Panasonic Holdings Corp; Johnson Controls International Plc; Mitsubishi Heavy Industries Ltd; Sanhe Tongfei Refrigeration Co., Ltd.; Guangzhou Teyu Electromechanical Co., Ltd; Shenzhen Envicool Technology Co., Ltd.; Wuhan Hanli Refrigeration Technology Co.,Ltd.; WERNER FINLEY PRIVATE LIMITED; Advance Cooling Systems Pvt. Ltd.; Prasad GWK Cooltech Pvt. Ltd.; Reynold India Private Limited; and Nu-Vu Conair Pvt. Ltd.
China is anticipated to grow at the fastest CAGR over the forecast period.
The APAC industrial chillers market is expected to reach US$ 2.16 billion by 2031.
Integration of advanced technologies with industrial chillers is expected to drive the growth of the APAC industrial chillers market in the coming years.