Page 37 - Climate Control News September 2021

Chillers
State of the market, emerging trends
THE GLOBAL CHILLER market is expected to reach $US12.67 billion by 2028, according to Al- lied Market Research (AMR).
The biggest segment of the market is water cooled chillers while North America accounted for the highest share in terms of revenue.
Growth is being driven by the construction industry, rising demand for chillers in the medi- cal sector, and a surge in the consumption of fro- zen foods.
In 2019, AMR said the chiller market was val- ued at $10.04 billion. From 2021 to 2028 the mar- ket will grow at a Compound Annual Growth Rate (CAGR) of 3.7 per cent.
Factors that have contained growth in the chiller market include high initial investment and set-up costs as well as a growing interest in VRF systems.
AMR said the outbreak of COVID-19 led to de- lays in production and manufacturing of chillers across the world, thereby impacting the global market negatively.
Based on type, the screw chiller segment ac- counted for nearly half of the total market share in 2019, and this growth will continue through to 2028.
The centrifugal chiller segment, on the other hand, is set to register the fastest CAGR of 6.9 per cent throughout the forecast period.
“Based on product type, the water cooled chill- er segment garnered nearly three-fifths of the to- tal market revenue in 2019, and is expected to dominate by 2028,” the report said.
“The air cooled chiller segment will grow at a CAGR of 4.0 per cent during the forecast period.” While North America has the largest share of the market, the Asia Pacific will garner the fast-
est CAGR of 4.8 per cent from 2021 to 2028. Meanwhile, the hyperscale data centre
VRF production was severely hit by COVID-19.
market by investment is expected to grow at a CAGR of 4.02 per cent during the period 2021-2026. According to ResearchAndMarkets.com the on- going COVID-19 pandemic is creating high de- mand for hyperscale data centres across all regions. As the global workforce shifts to remote work- ing, hyperscale facilities are gaining traction in the data centre market. Mergers and acquisition
are also fuelling growth.
Moreover, UPS systems have been widely
adopted to provide backup power for cooling systems with the use of lithium-ion batteries set to increase during the forecast period.
In data centres cooling systems account for 15 to 20 per cent of overall cost.
The facilities in Southeast Asia, China, India, Australia, the Middle East and Africa prefer air- cooled chillers or chilled water systems or a combination of both air and water-based cool- ing techniques.
Interest in free cooling chillers that facilitate partial cooling using outside air are also growing. Most of the facilities that operate in warm cli- matic conditions are expected to implement free cooling chillers with smart technologies since they enable operations based on outside
temperatures.
The adoption of chiller units is expected to be
higher in the Asia Pacific region and Middle East more than anywhere else.
APAC LEADS VRF ADOPTION
A local VRF installation.
The Asia Pacific region continues to dominate the global VRF systems market and is expected to maintain this position in coming years.
In 2019, the region held the largest share of the global VRF systems market and this is likely to continue.
North America acquires the second position in the global VRF systems market in terms of revenue.
According to Market Research Future (MRFR), the global VRF systems market is poised to reach $US29,478.1 million by 2026,
registering an 11 per cent CAGR during the forecast period (2020–2026).
The COVID-19 outbreak severely hit the
VRF systems industry, delaying new installations and causing huge revenue loss.
Strict lockdown mandates forced
many manufacturers to cut down on their production output, bringing the production facilities to a halt.
The coronavirus-driven lockdown put a brake on the component and device production, which spiked product prices, lowering the market demand.
CLIMATE CONTROL NEWS SEPTEMBER 2021
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