Process Chillers Market

Process Chillers Market Outlook (2025 to 2035)

According to MR analysis, the global process chillers market was valued at USD 7.33 billion in 2025. The industry is expected to grow at a CAGR of 4.52% and reach USD 11.40 billion by 2035.

In 2024, the process chillers industry advanced steadily despite external challenges, primarily driven by regional manufacturing expansions and targeted technological upgrades. In Southeast Asia, small- and medium-sized companies have invested heavily in thermal systems for industries such as plastic extrusion and food packaging, where temperature control plays a direct role in productivity.

Pharmaceutical corporations implemented high-precision air-cooled units within GMP-accredited zones to adhere to the higher international standards of cold chain in high-compliance environments.

In the U.S., a significant wave of retrofitting occurred, where manufacturers replaced existing systems with scroll compressor-based chillers to keep pace with their internal decarbonization plans. Further industry changes were also brought about by refrigerant regulations, with the phase-out of high-GWP compounds leading manufacturers to shift towards green refrigerants, such as R-513A and R-454B.

Though these changes had a temporary disrupting effect on supply chains, they ultimately encourage innovation. Equipment providers did respond quickly by reconfiguring their portfolios to meet environmental regulations, as well as growing client demand for green compliance and operational dependability.

Fact.MR research has determined that the industry will continue to grow steadily for the next decade. Industrial automation, reshoring activity, and demand for energy-efficient infrastructure are some of the factors identified by Fact.MR that are driving further adoption.

Modular systems, integrated digitally to minimize lifecycle costs, will be an emerging trend with industrials. Advanced thermal solutions will be primary to future-proofing production environments as industries across the world espouse sustainable manufacturing practices.

Key Metrics

Metric	Value
Estimated Global Size in 2025	USD 7.33 Billion
Projected Global Size in 2035	USD 11.40 Billion
CAGR (2025 to 2035)	4.52%

Fact.MR Survey Results for Industry Dynamics Based on Stakeholder Perspectives

(Surveyed Q4 2024, n=500 stakeholder participants evenly distributed across manufacturers, distributors, end-users in the U.S., Western Europe, Japan, and South Korea)

A recent Fact.MR survey of process chillers industry stakeholders across four major regions reveals both global consensus and regional differentiation in purchasing drivers, technology adoption, and investment priorities. In all regions, energy efficiency (81%) and long-term durability (73%) were key considerations.

The U.S. respondents ranked retrofit-compatible, IoT-enabled chillers (69%), consistent with the growing need for digital controls in large-scale applications. Western Europe, at 84% mentioning sustainability objectives, is at the forefront of low-GWP refrigerant adoption and recyclable designs. In contrast, 61% of Japanese and Korean stakeholders preferred compact, space-efficient systems because of land and layout limitations.

Material of choice indicates steel continues to rule the world (67%), although aluminum is favored in Europe (51%) for mobility and environmental reasons. Hybrid steel-aluminum constructions are gaining popularity in East Asia (43%) based on corrosion control and cost savings.

Though 86% are pointing to increasing prices of compressors and components, North American and European players are more inclined to spend on intelligent, integrated systems. Asian purchasers continue to be cost-conscious, with more than 70% opting for entry models under tight capex restrictions.

Regional key operational issues differ: U.S. companies refer to talent labor shortages, Europe experiences certification holdups, and Asia struggles with last-mile shipping. Future investment plans vary by region. U.S. companies prioritize modular effectiveness, while Europe prioritizes green manufacturing, and Asia prioritizes vertical, space-saving systems. Regulatory power is strongest in Europe, most average in the U.S., and least in Asia.

Impact of Government Regulation

Country/Region	Regulatory Impact & Mandatory Certifications
United States	The U.S. Department of Energy (DOE) enforces minimum efficiency standards for chillers under the Energy Policy and Conservation Act . California’s Title 24 building standards mandate high-efficiency systems for commercial installations. ASHRAE 90.1 compliance and certifications from AHRI and UL are industry requirements.
Western Europe	The EU's F-Gas Regulation (517/2014) restricts the use of high-GWP refrigerants, encouraging the adoption of alternatives like R-1234ze and CO₂. The Ecodesign Directive (2009/125/EC) mandates energy efficiency labeling for industrial cooling equipment. CE marking and Eurovent certification are mandatory across member states.
Japan	Under Japan’s Energy Conservation Act, the Top Runner Program sets energy performance targets for industrial equipment. The Act on Rational Use of Energy mandates energy-saving measures in factories and large buildings. PSE certification is required for electrical components.
South Korea	South Korea’s Energy Efficiency Labeling and Standard Program governs performance thresholds for chillers. The KC Mark is required for safety and electromagnetic compatibility across all industrial electrical products. The Korean government incentivizes smart and low-emission industrial systems.

Market Analysis

The process chillers industry is moving toward sustainable, high-efficiency systems as global regulations tighten around energy use and refrigerant emissions. Automation-led manufacturing and climate-conscious sectors are driving demand for modular, low-maintenance cooling solutions. Equipment manufacturers and OEMs offering eco-friendly, smart-enabled chillers stand to gain, while legacy system providers risk obsolescence.

Top Strategic Imperatives, Risk Assessment and Watchlist for Stakeholders

To maintain a competitive advantage in the evolving industrial cooling landscape, executives must act on three core strategic imperatives. First, they should prioritize innovation in sustainable technologies by investing in systems compatible with low-GWP refrigerants and advanced compressor architectures to stay compliant with tightening environmental norms.

Second, aligning product development with Industry 4.0 trends is critical- embedding IoT capabilities, predictive maintenance, and smart diagnostics will meet the growing demand for automation and precision in sectors such as pharmaceuticals and manufacturing. Third, companies must strengthen distribution through localized OEM partnerships and channel expansion to enhance industry reach and deliver value-added lifecycle services.

The top risks to monitor include regulatory transitions toward low-GWP refrigerants, which pose a high probability and high-impact threat to legacy product lines. Supply chain disruption, particularly due to geopolitical instability and raw material shortages, remains another high-probability, high-impact challenge. Additionally, growing competition from modular battery-based cooling technologies presents a medium probability but medium impact risk as industries explore decentralized energy solutions.

Over the next year, immediate priorities include conducting feasibility studies on alternative refrigerant and component sourcing to ensure continuity, initiating feedback loops with OEMs to anticipate design demands, and launching aftermarket incentive programs targeting Tier 2 and Tier 3 channel partners. These actions will strengthen resilience, align with industry trends, and enhance leadership in sustainable thermal infrastructure.

For the Boardroom

To stay ahead, companies must immediately recalibrate their roadmap to accelerate the development of modular, IoT-enabled chillers that align with decarbonization goals and refrigerant phase-down timelines. This intelligence highlights a clear pivot in end-user expectations-toward plug-and-play systems that are smart, sustainable, and regulation-ready.

To stay ahead, the client must fast-track partnerships with OEMs and refrigerant innovators, localize key component sourcing to reduce geopolitical risk and build out aftermarket engagement models that drive service revenue. This forward-looking strategy not only future-proofs the product portfolio but positions the client as a preferred partner in energy-efficient industrial transformation.

Segment-wise Analysis

By Capacity

The 150 - 300 tons segment is expected to be most profitable in this category, growing at a CAGR of 4.6% during the forecast period. This segment is widely adopted in high-load industrial environments such as beverage bottling plants, specialty chemicals, and large-scale food processing facilities. These chillers offer an optimal balance between cooling performance and operational efficiency, making them highly suitable for installations requiring consistent thermal regulation under variable loads.

Their compatibility with modular automation and smart controls enhances flexibility across a broad range of industries. Additionally, OEMs are increasingly optimizing chillers in this capacity range for energy savings and faster commissioning. As industrial operators aim to improve uptime and reduce lifecycle costs, the 150-300 ton capacity range is emerging as the strategic sweet spot in thermal applications.

By Compressor Type

The screw compressor segment is expected to be most profitable in this category, growing at a CAGR of 4.7% from 2025 to 2035. Screw compressors are engineered for long-hour, high-capacity operations, making them indispensable in continuous process industries such as pharmaceuticals, chemicals, and automotive manufacturing. These compressors deliver superior energy efficiency, flexible load handling, and reduced maintenance requirements compared to reciprocating models.

Their ability to modulate performance using inverter drives and real-time monitoring systems makes them ideal for smart factory setups. The increasing demand for systems with predictive maintenance and energy optimization features has led to a surge in adoption.

Manufacturers are also innovating screw-based designs with eco-friendly refrigerants, ensuring alignment with global GWP reduction mandates. These advantages solidify screw compressors as the core of high-performance chiller applications.

By End Use Industry

The pharmaceutical segment is expected to be the most profitable in this category, growing at a CAGR of 4.9% during the forecast period. Pharmaceutical operations require strict temperature stability to ensure product integrity, particularly during vaccine production, fermentation, and packaging.

Chillers are a critical component in maintaining compliance with Good Manufacturing Practices (GMP) and ISO-certified cleanroom environments. With growing investments in healthcare infrastructure and biologics R&D, especially in emerging economies, demand for smart, redundant, and energy-efficient chiller systems is accelerating.

Moreover, regulatory scrutiny on pharmaceutical cold chains has increased, pushing manufacturers to adopt precision-controlled, digitally managed chillers. As biopharmaceutical firms seek scalable and low-downtime solutions, OEMs are customizing systems specifically for cleanroom operability and low-vibration performance. This segment will remain a key driver in the decade ahead.

Country-wise Insights

U.S.

In the U.S., the industry is likely to grow at a CAGR of 4.8% during the forecast period. Growth in this region is anchored by strong momentum in industrial retrofitting and factory digitization. As food processing, pharmaceuticals, and petrochemical operations scale up, the demand for energy-efficient, low-maintenance chiller systems is surging. The adoption of smart-enabled chillers is particularly strong in large facilities.

These chillers feature predictive diagnostics and IoT connectivity. This technology helps reduce operational downtime and supports the achievement of carbon-reduction targets. Federal incentives under the Inflation Reduction Act and state-level mandates such as California Title 24 are accelerating the shift toward low-GWP refrigerants and high-efficiency scroll and screw compressor models.

Replacement of legacy infrastructure is another key growth driver. OEMs and engineering firms are offering modular, plug-and-play chiller systems to cater to varying load demands across aging manufacturing hubs. With labor shortages persisting, industries are increasingly turning to remotely monitored and service-light solutions that can maintain thermal consistency with minimal on-site intervention. These trends are expected to sustain the country’s leading role in process chiller innovation.

UK

UK’s sales are expected to register a CAGR of 4.2% during the assessment period. The UK is witnessing a steady transformation across its industrial cooling sector, driven by national net-zero targets and compliance with post-Brexit environmental legislation. Industries such as chemicals, pharmaceuticals, and craft beverage production are actively replacing outdated chillers with low-GWP, Ecodesign-compliant systems.

Government-led decarbonization policies and energy-efficiency grant programs are also stimulating demand for modular rooftop units and hybrid air-water chillers. Urban constraints are fueling the popularity of space-saving chiller configurations, especially in London’s industrial estates.

Meanwhile, service contracts and “cooling-as-a-service” models are gaining traction among mid-size manufacturers looking to reduce capex. Local OEMs are integrating advanced control systems to meet strict carbon audit requirements. As a result, digitally monitored, high-efficiency chillers are becoming the norm, positioning the UK as a key industry focused on low-carbon, compliant thermal systems.

France

The industry is predicted to grow at a rate of 4.5% CAGR in France in the assessment period. France is emerging as a leading European adopter of sustainable cooling systems, largely influenced by the “France Relance” recovery initiative and the EU’s broader climate goals. Food and beverage processors, especially in regions like Normandy and Rhône-Alpes, are aggressively pursuing automation and energy optimization through modern equipment installations.

Regional incentive programs and strict enforcement of the Ecodesign Directive are accelerating the adoption of Eurovent-certified and digitally managed solutions. There is also a national push to promote European-made systems that align with carbon-neutral production goals. Manufacturers are deploying hybrid-cooled and scroll compressor models that suit France’s diverse climate zones.

Additionally, the growing trend of energy performance contracting (EPC) has made industrial clients more willing to adopt premium, performance-guaranteed technologies. Retrofit demand is especially strong in SMEs seeking long-term cost reductions and regulatory compliance.

Germany

In Germany, the landscape is anticipated to achieve a CAGR of 4.7% from 2025 to 2035. Germany is leveraging its industrial strength and precision engineering ecosystem to lead Europe in next-generation thermal solutions.

Automotive, chemical, and pharmaceutical giants are rapidly integrating AI-powered systems with condition-based monitoring and fault diagnostics, aligning with national climate mandates under the Energy Efficiency Act and Climate Action Programme 2030.

Industrial zones are increasingly connected to centralized district cooling networks, boosting demand for scalable units. CE and EN 378 certification remain key compliance standards, and German manufacturers are innovating in both technology and system integration.

Screw and scroll compressor-based systems dominate installations in high-load environments. Meanwhile, early-stage experimentation with hydrogen-integrated cooling reflects Germany’s long-term commitment to the energy transition. With high automation maturity and rising labor costs, demand is shifting toward predictive maintenance and digitally integrated ecosystems.

Italy

In Italy, the industry is projected to grow at a 4.4% CAGR during the forecast period. Italy is modernizing its industrial base in response to EU regulatory pressures and energy sustainability mandates.

The adoption of low-GWP refrigerants has gained momentum since 2023, driven by rising carbon taxes and incentives under Italy’s National Recovery and Resilience Plan (PNRR). The food, wine, and pharmaceutical processing industries are leading the way in upgrades, particularly in high-demand hubs such as Emilia-Romagna and Lombardy.

Domestic OEMs are deploying remote diagnostics, touchscreen-enabled controls, and mobile-compatible interfaces for mid-sized facilities. Tailored solutions are also emerging, addressing regional climatic diversity with air-cooled systems in the south and hybrid-cooled models in the north.

Italy is gradually shifting toward pay-per-use and leasing models, especially among SMEs, where capital budgeting remains tight. The overall regulatory alignment and funding availability position Italy for stable, mid-level growth in the decade ahead.

South Korea

In South Korea, the sector is estimated to expand by a CAGR of 4.1% between 2025 and 2035. The Korean industrial cooling landscape is growing steadily, supported by its robust electronics, semiconductor, and chemical manufacturing base, all of which require high-performance solutions. The country’s focus on industrial automation and precision production is driving demand for advanced systems with real-time monitoring, load control, and fault prediction capabilities.

Government regulations under the Korean Energy Efficiency Labeling and Standard Program are enforcing strict performance benchmarks, accelerating the shift toward inverter-driven and high-COP units. Urban space limitations in Seoul and industrial hubs like Gyeonggi-do are spurring the adoption of ceiling-mounted and modular equipment that can be integrated into tight factory layouts.

While initial uptake of low-GWP refrigerants remains moderate due to cost concerns, the government is rolling out subsidies to fast-track adoption. As electricity prices rise and labor costs remain high, the appeal of smart, low-maintenance systems continues to grow among Korean manufacturers seeking maximum operational efficiency.

Japan

Japan’s sales are expected to grow at a CAGR of 3.9% from 2025 to 2035. The Japanese segment shows modest growth, influenced by a combination of legacy infrastructure, demographic constraints, and cost-consciousness in industrial sectors. Demand is largely concentrated in the pharma, food packaging, and microelectronics industries that prioritize compact, high-precision thermal control.

The Top Runner Program and Energy Conservation Act continue to shape energy efficiency standards. Still, the adoption of premium systems remains limited to high-value applications due to ROI scrutiny among plant operators. Urban industrial zones in the Kanto and Kansai regions are favoring hybrid and space-efficient cooling technologies with inverter integration.

Despite Japan’s technical capabilities, the uptake of IoT and automation remains comparatively slower, as buyers remain wary of over-specification. Electrical safety remains tightly regulated through PSE certification. Small-batch solutions, rooftop-mounted units, and solar-assisted systems are increasingly being tested in compact production facilities. As public infrastructure and research institutions invest in green cooling, downstream demand is expected to grow steadily.

China

China's process chiller sector is projected to grow at a CAGR of 5.3% from 2025 to 2035, driven by rapid industrialization, stringent environmental policies, and technological advancements in cooling systems. The nation's commitment to reducing carbon emissions and enhancing energy efficiency aligns with the global shift towards sustainable industrial practices.​

Key sectors such as semiconductors, pharmaceuticals, food processing, and electric vehicle battery manufacturing are increasingly adopting advanced process chillers. These industries require precise temperature control to maintain product quality and optimize production processes.

The government's "Made in China 2025" initiative and dual-carbon goals are accelerating the transition to eco-efficient thermal technologies, including the adoption of low-GWP refrigerants such as R-290 and R-32. Provincial incentives in regions like Zhejiang, Guangdong, and Jiangsu are further promoting the phase-out of HFC-based systems in favor of these alternatives.​

The rise of smart, modular chiller systems equipped with IoT connectivity and predictive diagnostics is enhancing operational efficiency and reducing downtime. These innovations are particularly beneficial in energy-intensive sectors, contributing to substantial energy savings and supporting compliance with green building codes and industrial automation standards.

Australia-New Zealand

In New Zealand and Australia, the sector is forecasted to grow at a CAGR of 4.3% within the assessment period. The ANZ region is actively phasing out energy-intensive legacy chillers in favor of systems that meet stringent regulatory standards.

Australia's GEMS (Greenhouse and Energy Minimum Standards) and MEPS policies are driving this shift, particularly in dairy, food processing, and mining sectors. In New Zealand, initiatives under the Carbon Neutral Government Programme are creating demand for high-efficiency chillers in both public and private infrastructures.

Manufacturers are increasingly adopting digitally managed, scroll compressor-based chillers that cater to energy audit requirements. Regions such as Victoria, New South Wales, and Canterbury are experiencing a strong uptake of rooftop and mobile chiller systems for industrial applications.

Importers must comply with AS/NZS certification for safety and performance. With growing interest in sustainability and decentralized energy use, Australia and New Zealand present expanding opportunities for manufacturers offering modular, low-emission process cooling systems built for long-term reliability.

Competitive Landscape

The industry is fragmented, with a diverse blend of global players and regional manufacturers competing for share. This fragmentation intensifies competition, compelling companies to focus on pricing strategies, innovation pipelines, partnerships, and region-specific expansions to gain competitive advantage.

Top companies are aggressively investing in energy-efficient and smart-enabled chillers, integrating IoT and predictive diagnostics to meet the rising demand for intelligent thermal systems. Product innovation remains a core strategy, with an emphasis on low-GWP refrigerant compatibility and modular designs that simplify deployment.

In May 2024, Carrier India launched the 30 RB Air-cooled Modular Scroll Chiller, designed specifically for transport infrastructure cooling needs, signaling a shift toward localized innovation for niche sectors. Similarly, Trane Technologies expanded its regional footprint by acquiring Damuth Services, Inc. in September 2024, thereby strengthening its service network in the southeastern United States.

Beyond new product development and acquisitions, leading players are prioritizing sustainable cooling solutions to align with net-zero industrial goals. Companies are also expanding aftermarket service offerings and digital performance contracts to secure recurring revenue and customer loyalty.

As the global regulatory environment tightens around emissions and energy consumption, the industry is poised for further consolidation and collaboration, particularly among players seeking technological synergies and geographic diversification.

Competition Analysis

In 2025, Johnson Controls (York) is expected to lead the industry with an estimated 18-20% share, driven by its robust legacy in industrial HVAC and strong penetration in mission-critical sectors such as pharmaceuticals and data centers.

With consistent innovation in centrifugal and modular chillers and a growing focus on smart energy platforms, the company is poised to expand further, potentially reaching a 22-25% share by 2035 through international contracts and digital lifecycle services.

Daikin Industries (15-17%) will remain a close contender, leveraging its extensive product portfolio and global distribution network. By focusing on low-GWP refrigerants and hybrid air-water chiller innovations, Daikin is expected to increase its market share to 18-21% by 2035, supported by growing demand across Asia and Europe, where sustainability mandates are tightening.

Trane Inc. (now Trane Technologies), which held 14-16% in 2025, is gaining ground through the implementation of advanced control systems and strategic acquisitions. Projected to hit 17-20% by 2035, Trane’s edge lies in high-efficiency systems and expansion into predictive maintenance services.

Carrier Global Corporation (12-14%) is strengthening its presence in transport and infrastructure cooling. GEA Group AG (8-10%) is building share in food and beverage process applications, while Motivair Corporation (5-7%) is targeting niche industrial zones with custom-built, modular chillers-expected to reach 7-9% by 2035.

Other Key Players

• United Technologies Corporation (Carrier)
• Johnson Controls International plc.
• Blue Star Ltd.
• Motivair Corporation
• Pfannenberg Inc.
• Cooling Technology, Inc.
• Drake Refrigeration Inc.
• Advantage Engineering, Inc.
• Aqua Cooling Solutions Ltd.
• Thermonics Corporation
• MTA USA
• Mitsubishi Electric Corporation
• Daikin Applied (McQuay)
• YORK (a Johnson Controls brand)
• Schneider Electric SE
• Climaveneta S.p.A. (a Mitsubishi Electric Company)
• Frigel Firenze S.p.A.
• Kaltra GmbH
• Airedale International Air Conditioning Ltd.
• ICS Cool Energy
• Glen Dimplex Thermal Solutions (GDTS)

Process Chillers Market Segmentation

• By Capacity :

  • Up to 20 Tons
  • 20 - 150 Tons
  • 150 - 300 Tons
  • Above 300 Tons

• By Compressor Type :

  • Positive Displacement
  • Centrifugal

• By End Use Industry :

  • Plastics
  • Food & Beverages
  • Pharmaceutical
  • Printing
  • Chemical
  • Energy
  • Engineering & Mechanical
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa