North America HVAC Chillers Market is expected to reach US$ 3.48 Billion by 2031

Growing Use of HVAC Chillers in Data Centers Boosts North America HVAC Chillers Market Growth

According to our latest market study on "North America HVAC Chillers Market Size and Forecast (2021–2031) Trend, and Growth Opportunity Analysis – by Technology, Type, and Application," the market was valued at US$ 2.52 billion in 2023 and is anticipated to reach US$ 3.48 billion by 2031; it is estimated to record a CAGR of 4.1% from 2023 to 2031. The report includes growth prospects in light of current North America HVAC chillers market trends and driving factors influencing the market growth.

The growing number of data centers is a significant driver for the North America HVAC chillers market. Data centers need a lot of energy, and design engineers must offer reliable, energy-efficient, and cost-effective HVAC systems. The commercial chiller equipment offers proven reliability, competitive energy performance, and integral controls in a modular package that does not require water. Efficiency is a crucial factor when selecting the chiller for the data center. Hence, when it comes to finalizing the chiller for this application, selecting a unit with a suitable compressor is a primary task. In data centers, free cooling does not always require an extremely cold climate. Whenever the outdoor temperature is sufficiently cold, these chillers turn off the compressors and take advantage of the favorable outdoor temperature. Nowadays, many companies are outsourcing their data operations to third-party providers that have expertise in data center operations. Colocation data centers are particularly famous because they offer power, physical space, and cooling systems for local communication systems.

North America HVAC Chillers Market Analysis – by Geography, 2023

Source: The Insight Partners Analysis

Texas is one of the growing data center hubs in the US, owing to notable activities from the hyperscale operators. The Western US region positions itself as a developed market for data centers, hosting all the major companies such as Meta (formerly Facebook), Google, and Microsoft in major locations such as Idaho, Oregon, California, and Utah. Northern Virginia is progressing into a multi-state market for HVAC chillers owing to high data center developments. Georgia is also actively supporting the growing development of the data center industry by employing tax exemptions on high-technology-driven data center equipment till 2033. This initiative attracts substantial attention to Atlanta, where several data center projects are in development or planning stages.

In March 2024, Carrier introduced AquaForce 30XF air-cooled screw chillers with a combined hydronic free-cooling system and variable-speed inverter drives, designed to deliver energy efficiency of up to ~50% specifically for data centers. The growing development of energy-efficient HVAC chillers is driving the use of HVAC chillers in data centers and boosting the market growth.

The scope of the North America HVAC chillers market report focuses on the US, Canada, and Mexico. The US held the largest North America HVAC chillers market share in 2023. Growth in the construction sector is a significant factor influencing the US HVAC chillers market growth. The key sectors in the US construction market are industrial construction, energy and utilities construction, commercial construction, infrastructure construction, and residential and institutional construction. Hudson Yards – New York, Second Avenue Subway, Chicago airport expansion, and JFK Airport Expansion are among the major construction projects in the US.

The US has witnessed rapid development in the industrial sector, including manufacturing facilities, contributing to the demand for HVAC systems and the application of HVAC chillers in the US. As per the report by the US Census Bureau, till June 2022, the US Department of Housing and Urban Development sanctioned ~1,800,000 permissions for new residential constructions across the US, which is likely to boost the demand for HVAC systems, including HVAC chillers. The government bodies in the US, such as the Department of Energy (DoE), have enforced the use of energy-efficient systems. DoE is adopting more stringent energy conservation standards for HVAC chillers. Also, the Energy Policy and Conservation Act of 1975 (EPCA) has been amended, prescribing energy conservation standards for various consumer products and specific commercial and industrial equipment, which include HVAC chillers. EPCA also requires the DoE to periodically determine whether more stringent standards would be technologically feasible, economically justified, and save significant energy. Thus, the growing development of centrifugal and absorption chillers, which are much more energy efficient than any other electric chillers, is anticipated to drive North America HVAC chillers market growth in the US over the forecast period.

Technological advancements have led to a competitive market in the US as the population is attracted to technological developments owing to high spending power. With the increasing adoption of air conditioning, heating, and ventilation systems in commercial buildings in North America, the HVAC industry is constantly growing in the US. Moreover, rapid urbanization, varying environmental conditions, and increasing disposable income of individuals are anticipated to fuel the market growth during the forecast period.

In North America, Canada held the second-largest North America HVAC chillers market share in 2023. Canada is one of the key countries operating in the North America HVAC chillers market. The growing number of commercial hubs, medical and care centers, and infrastructure development activities drives the demand for HVAC chillers in Canada. The increasing consumer awareness about cooling systems and extensive research and development activities carried out by market players are anticipated to fuel market growth. Moreover, the Government of Canada has set a target to reduce its carbon emissions by ~45% by the end of 2030, as compared to records in 2005, and attain carbon neutrality by 2050. The use of HVAC systems in residential and commercial applications is anticipated to offer solutions to improve energy efficiency and lower carbon footprint. With the growing focus on sustainable solutions, the government is emphasizing on reducing carbon footprints from the commercial and industrial sectors. This will increase the demand for energy-efficient HVAC chillers for residential and commercial applications. In 2023, the construction sector in Canada witnessed a slow growth in terms of nonresidential construction and civil engineering sectors. The nonresidential construction sector reported a growth of more than 15%, whereas new engineering projects witnessed a growth of ~16% in 2023. This propelled the demand for HVAC chillers in the commercial and industrial sectors in Canada in 2023. However, in the coming years, residential construction is expected to witness growth due to the surging population across the country and the increasing number of migrants to Canada. This will further drive the demand for HVAC chillers in the country's residential sector.

Airedale International Air Conditioning Ltd.; Carrier Global Corp.; DAIKIN INDUSTRIES, Ltd.; Drake Refrigeration, Inc.; GEA Group AG; Johnson Controls Inc.; Mitsubishi Electric Corporation; LG Electronics; Thermal Care, Inc.; Trane Technologies; Kaltra; and BROADU.S.A. INC. are among the key players profiled in the North America HVAC chillers market report. Several other major players were also studied and analyzed in the market report to get a holistic view of the market and its ecosystem. The market analysis provides detailed market insights, which help the key players strategize their growth.

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