Modular Chillers Market size is estimated to grow significantly through 2027 driven by rising awareness of climatic changes and greenhouse gas emissions. Modular chillers are gaining popularity among enterprises due to their high reliability, i.e., failure of a single module does not disrupt the whole chiller system. Growing demand for energy-efficient buildings coupled with a rise in construction activities is proliferating the industry growth.
The Federal Energy Management Program (FEMP), launched in 2008, has outlined a set of guidelines owing to rising energy consumption across the North America region. Federal laws and requirements have mandated that agencies need to purchase the Energy Star ratings for all FEMP mentioned products in Canada and the U.S. The standard also encourages commercial & industrial enterprises to implement intelligent & centralized modular chillers systems to minimize energy consumption levels cost-effectively without hampering the functionality.
The coronavirus pandemic is negatively impacting the modular chillers market. The manufacturing sector is currently in distress impelled by the pandemic. Government administrations in North America have imposed stringent lockdowns, resulting in factory shutdowns. China which plays a crucial role in electronics manufacturing is witnessing declining revenues of modular chiller manufacturers. The unavailability of components and reduction of labor have negatively impacted companies’ operations.
In 2020, air-cooled chillers held a significant market share and the segment is forecast to propel over 2021-2027. Air-cooled chillers do not require condenser pumps and cooling towers for maintenance & service, allowing easier service and maintenance. Chillers have high applications in large industrial & commercial facilities. With the increasing adoption of sustainable business techniques, companies are shifting toward providing smart & energy-efficient cooling solutions.
Based on the application segment, the industrial sector is likely to hold a substantial market share during the forecast period. The manufacturing sector is revolutionizing due to the rising number of factories focusing on the automation of their industrial processes, driving demand for energy-efficient modular chillers with low footprints in the plant area. Growing market demand to modernize and renovate commercial & manufacturing plant areas to enhance energy efficiency and reduce operational costs in the long-run is driving the modular chillers market revenue.
North America is anticipated to capture the highest market share in 2019 on account of the presence of key industry players and highest technological adoption in the region. Europe is set to follow North America, in terms of market share in 2019. The increasing number of data centers coupled with rising investments by various business entities across North America is poised to fuel the modular chillers market growth. International companies, such as IBM, Microsoft, and Google, are increasingly focusing on market expansion owing to significant growth opportunities across the region.
Data center operators in the region are making huge investments in outsourcing services to meet the ever-increasing IT capacity requirements. Furthermore, the growing demand for virtualization by companies using cloud technology will further boost market demand across the region. Asia Pacific is expected to witness significant growth through 2027 driven by extreme weather conditions and rapid industrialization in the region. Predominantly, the commercial and industrial sectors in the region are adopting modular chillers to increase operational efficiency.
The modular chillers market is dominated by prominent market players. New entrants are disrupting the market by offering low-cost modular chillers with high cooling efficiency. Some of the key players operating in the market include Gree Electric Appliances, Inc., Haier Group, Mitsubishi Electric Corporation, Midea Group, Carrier Corporation, and Frigel Firenze S.p.A. Market players are focusing on strategic alliances and product innovation to increase their global market share. For instance, in August 2019, Frigel Firenze S.p.A. launched 3FR Modular Air-Cooled Chillers. The chiller provides efficient cooling at a low-cost by reducing the footprint inside the organization.
This market research report on modular chiller includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:
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