The global chillers market was valued at USD 10.72 billion in 2025 and is projected to reach USD 11.19 billion in 2026 and USD 15.79 billion by 2034, growing at a CAGR of 4.4% during the forecast period 2026–2034, according to Polaris Market Research. Key players include Carrier; ClimaCool Corp.; Cold Shot Chillers; Daikin Industries, Ltd.; Drake Refrigeration, Inc.; Fluid Chillers, Inc.; FRIGEL FIRENZE S.p.A.; General Air Products; Honeywell International, Inc.; Johnson Controls; Midea; Multistack International Limited; Rite-Temp; Tandem Chillers; and Trane.

Data Center Cooling Drives the Chillers Market

The exponential rise in global data traffic and cloud computing is increasing demand for chillers that provide thermal management for high-density servers, supporting energy-efficient systems in hyperscale and enterprise facilities. Data center cooling requirements are expanding with cloud computing, artificial intelligence workloads, and video streaming. In January 2025, AWS announced a strategic investment of about USD 11 billion to expand its infrastructure in Georgia. The U.S. Department of Energy reported in December 2024 that data center energy loads had tripled over the past decade and are projected to double or triple by 2028. Innovations in liquid cooling and modular chillers further support data center cooling deployments.

Panasonic announced in March 2026 the launch of its liquid cooling systems business for generative AI data centers across Europe, accepting orders for two free-cooling chiller models of 800kW and 1,200kW.

Water-Cooled and Air-Cooled Chillers Compared

By product, water-cooled chillers dominated with a 47.50% revenue share in 2025, owing to high energy efficiency, superior heat rejection, and long operational lifespan. They are preferred in large-scale commercial and industrial facilities, and their low noise and higher cooling capacity suit hospitals, data centers, and high-rise buildings. Air-cooled chillers are expected to register the highest CAGR of 4.38%, driven by demand for compact, easy-to-install systems in small to mid-sized buildings and retrofit projects. They eliminate the need for cooling towers, reducing water usage and maintenance complexity, which helps in regions facing water scarcity. Rising investment in modular buildings and portable HVAC units also fuels deployment of air-cooled chillers.

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Compressor Types: Screw Chillers Lead

By compressor type, the market covers screw, centrifugal, absorption, scroll, and reciprocating chillers. Screw chillers held the largest revenue share of 31.20% in 2025, owing to robust performance in medium- to large-capacity applications requiring continuous operation. They offer superior energy efficiency, reduced maintenance, and excellent partial-load performance, and are widely adopted in manufacturing and large commercial buildings. Variable speed drives and smart control systems have improved operational flexibility and reduced lifecycle costs.

Regulation and Low-GWP Refrigerants

Stringent global regulations on refrigerants and energy efficiency are accelerating the shift toward low-GWP refrigerants and high-performance chiller technologies. Energy conservation policies are prompting end users to replace legacy systems with high-efficiency chillers that comply with green building codes. Innovation in variable-speed drives, magnetic bearing compressors, and low-GWP refrigerants is improving performance and sustainability. In Germany, nationwide regulations promoting low-GWP refrigerants and the phase-out of older systems are encouraging upgrades. High upfront costs and the complexity of retrofitting legacy systems limit faster adoption, especially in price-sensitive and developing markets.

Regional Outlook

Asia Pacific held the largest share at 29.80% in 2025, supported by rapid industrialization in China, India, and Southeast Asia, with China capturing 28.4% of the regional market and governments supporting green building standards and eco-friendly cooling technologies. Europe held a 24.60% share, with Germany accounting for 22% of European revenue. North America is projected to grow at a CAGR of 4.98% from 2026 to 2034, fueled by infrastructure upgrades in commercial buildings, hospitals, and data centers, while the U.S. is expected to register a 5.0% CAGR, driven by urban redevelopment and strict federal and state energy efficiency mandates.

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