The Asia-Pacific (APAC) chiller market was valued at $3.6 billion in 2018, and it is expected to reach $4.9 billion by 2024, progressing at a CAGR of 5.4% during the forecast period (2019–2024). This growth can be attributed to the expanding construction sector on account of the rising infrastructure expenditure and rapidly growing food and beverage industry. Moreover, the soaring number of information technology (IT) hubs in APAC countries will stimulate the market growth in the future.
The rising infrastructure expenditure in APAC nations, such as India and China, is a key factor supporting the market growth. India has several infrastructure development plans for metro networks, airports, and railway stations in the pipeline. For example, 413 miles of metro lines are being constructed in 15 Indian cities. Additionally, the Indian government is planning to establish nearly 100 airports in the next 15 years, among which 70 will be constructed at new locations. Considering India’s hot and humid weather, chillers are vital to provide cooling in such large spaces.
Additionally, the large-scale adoption of absorption chillers in the region has become a prime trend in the APAC chiller market, owing to the surging demand for cost-effective cooling systems. The cooling process in absorption chillers depends on the condensation and evaporation of water, which leads to low electricity consumption. The energy in these chillers is derived from waste heat, such as the heat generated from solar panels and steam from industrial processes. Additionally, absorption chillers are vibration-free, low- maintenance, and operationally cost-effective, while also leading to lower emission of toxic gases.
Furthermore, the APAC chiller market growth is facilitated by the growing hospitality sector in the region. The hospitality industry is flourishing due to the growing tourism sector in Vietnam, India, Thailand, Indonesia, Japan, and China. Additionally, the expansion of the food and beverage industry due to the booming population is boosting the market growth. China and India are emerging as the largest consumer bases for food and beverage companies, both domestic and international. Chillers are used here to keep not only the factory cool, but also the ingredients and final products.