With an improving global economy, much needed growth for the total global chiller market came in 2013 increasing from US$ 8.2 billion to US$8.5 billion which represents around 3% growth. The two biggest markets: Asia Pacific and Americas both showed around 5% growth each by value in 2013. Whilst the European, Middle East, India and Africa regions both declined by 1% and 2% respectively in the same year.
China and USA dominate the market for chillers; accounting for 32% and 12% respectively of the world market by value.
Although growth was visible across most segments of chillers, centrifugal chillers were by far the most successful compressors in 2013. The growth in the Chinese market was the major contributor to the overall global numbers, other major markets are; US, India, Saudi Arabia, Indonesia, Thailand, UK, Mexico, Germany and Brazil, in order of contribution.
A reduction in the number of large government and industrial projects in China is having a downward trend for large size chillers. In the Western China Development, demands from hospitals, energy plants , schools and telecommunications continues to support the centrifugal and absorption chillers.
In the US oil free centrifugal (Turbocor) continue to gain market share. The main driver in India is energy efficiency: where oil free centrifugal is also being preferred. In Indonesia large shopping malls and airports are the main markets of these products. In the UK the market was driven by high rise office buildings, airports and replacement of R22 refrigerants, which were traditional centrifugal chillers.
The growth in the chiller market was 5% by value reaching, US$4.1billion in 2013. The growth is expected to continue for the forecast period at a CAGR of 5%.
The top performing countries in 2013 were in order of growth Vietnam, Thailand and China.
In Vietnam the market was supported by a small number of very large projects, which were mainly supplied by centrifugal chillers. In Thailand, most of the projects were overflow from 2012 and the central plant market slowed down quickly at the start of 2013 and worsened after the anti-government protest started in November 2013.
In China scroll chillers experienced the highest growth with its characteristics of high value for money and ease of installation. East China remains as the biggest market for chillers, followed by North and South China.
The worst performing countries were Australia, Taiwan and Malaysia. Late economic slowdown has caused the drop in overall chiller numbers in Australia especially in centrifugal market. Centrifugal chillers comprised around 54% of the market in 2013 in value terms. In Taiwan lower government investment and flat private investments were the main reason behind a contraction of the market. The election in 2012 caused many new projects to be put on hold, this meant that there were no new projects at a sufficiently advanced stage. The market is forecasted to pick-up in 2014 in Malaysia.