Modular chillers are a small packaged chiller that is supported by HVAC system that intends to combine with other chillers modules to make a single larger machine within HVAC system. Currently, modular chillers have gained a prominent pace in the market owing to its cost-effectiveness, mass production, and customized chillers in HVAC system. Further, modular chillers offer a wide range of benefits to commercial or industrial HVAC system. With small size than standard chillers it adjusts as a retrofit model for air conditioning requirement. Moreover, other benefits involve design specialized for energy efficiency and reduction of harmful emollients in environmental impact.

Modular chillers can be adapted for heat pumps so that they can offer heating capacity as well as cooling capacity. As chillers expand HVAC system cooling capacity a modular chiller utilize two or more modules to expand system’s cooling capacity more than a standard chiller could do it alone. When modules work together they create a platform for larger capacity as compare to one standard chiller alone.

Key Market Trends

Growth in construction activities allied with rising demand for energy efficient buildings drives the modular chillers market. At industrial level, a chiller cools the water or brine used to cool and dehumidify air in buildings or industrial processes. A typical modular chillers unit model possesses fixed-speed compressors that offer some part-load capability for the modular system. These units share the same water system to provide cooled or heated water to the building. In addition, low installation cost of the product as compared to conventional cooling equipment coupled with easy expandability foster the growth of global modular chiller market.

Low cost reduction can be easily achieved as fewer components are required that integrate multiple-fixed speed compressors, relays, and pressure switches. Therefore, amount of piping required will also be less.

Further, variable speed chillers coupled with innovations and differentiated solutions that can improve product and brand image instead of units utilized in traditional on-off compressor technology.

Besides that, shutdown of numerous manufacturing facilities worldwide during COVID-19 has reduced supply of raw materials and components required for manufacturing of modular chillers. Moreover, closure of end-user facilities such as drilling, welding facilities, milling, and among others had a serious impact on the demand for modular chillers globally.

In addition, stringent regulations for reduction of carbon-di-oxide and greenhouse gas emissions result in driving the demand for modular chillers market.

In Australia, it was implemented that from December 2012, chillers with capacities greater than 350 kW sold in Australia must comply with the minimum energy performance standards (MEPS) regulations. Chillers having capacities less than 350 kW are covered by National Construction Code (formerly building code of Australia). The criteria for water cooled chillers are minimum COP should be 4.2 and minimum IPLV is 5.2. Similarly for air cooled chillers the minimum COP is 2.5 and IPLV is 3.4.     

COVID-19 Impact on Modular Chillers Market

COVID-19 outbreak had a serious impact on the modular chillers market. Shutdown of numerous manufacturing facilities due to stringent lockdown has reduced supply of raw materials and components required for manufacturing of modular chillers. During the pandemic phase, existing supply chain used to replenish stocks and re-establish the flow of raw materials. Also, organizations were likely to diverse at least some of their procurement across suppliers and locations. In the long run, government has a vital part to play.

To address supply chain challenges, Indian government has formed an empowered group of offices to trouble shoot emerging issues during lockdown related to supply chain blockages. Government has also adopted procurement strategies to speed up innovation. Supply chain dislocation is one of the most visible impacts of COVID-19 crisis. Government worldwide played a prominent role in development of strategies to protect supply chain of raw materials in the future with integration of robust disaster recovery plans, involving relevant stockpiles that resemble resilient outcomes.

Segmental Analysis

Modular chillers market is segmented by type and application. By type, the market is bifurcated into water-cooled modular chillers and air-cooled modular chillers. By application, market is segmented into commercial, residential, and industrial.

Water-cooled modular chillers have grabbed 57.5% of the market share in 2019

Water-cooled chillers have gained a high prominence over the years due to its functionalities and wide-spread application. Functionalities involve adaptable high performance, flexible installation, high-precision temperature control, energy-efficient operations, and others.

Apart from that, water-cooled chillers require high water supply that replaces the evaporated volume of water. For records, in 2014, the US data centers required 626 billion liters of water that comprises of water utilize to generate electricity to power the data centers and quantity of water directly to consume on the sites.

The water-cooled modular chillers is anticipated to witness 57.5% of the market share owing to smooth operations at extremely low temperatures to eliminate the problems associated with the activity of cooling towers in winter. Further, increasing water scarcity worldwide is expected to boost the demand for air-cooled chillers as they do not require water.

Regional Landscape

Based on regions, the market for modular chillers market covers North America, Asia Pacific, the Middle East & Africa, Latin America, and Europe.

Asia Pacific will dominate the Market by Registering 43.75% of the Market Revenue

Ongoing investments in the commercial and residential sector respective to commercial and residential construction industry worldwide have fuelled the market growth of modular chillers. Growing construction and residential activities in this region allied with demand for HVAC and refrigeration foster the growth of market in APAC region.

On the other hand, France is anticipated to register a CAGR of 4.87% in the forecast period owing to revenue growth. Surge in environmental concerns and implementation of stringent laws by the French government may be responsible for the regional growth of modular chillers market in France.

Competitive Landscape

Key companies profiled in this report involve Mitsubishi Electric Corporation, McQuay Air-Conditioning, Johnson Controls- Hitachi Air Conditioning, Midea Group, Ingersoll Rand, Gree Electric Appliances, Carrier Corporation, Frigel Firenze, Multistack, Haier Group and others.

Market Segmentation

Market By Type

Water-cooled modular chillers

Air-cooled modular chillers

Market By Application

Commercial

Residential

Industrial

Market By Geography

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC
• South Africa
• Rest of Middle East & Africa