Centrifugal Chiller Refrigerant Market Size - By Refrigerant (Standard Refrigerants, Low GWP Refrigerants, Hydrocarbon Natural Refrigerants), By End Use (Oil & Gas, Power Sector, Chemical, Food & Beverages, Electronics and Electrical), By Compressor & Forecast, 2024 – 2032

Centrifugal Chiller Refrigerant Market Size

Centrifugal Chiller Refrigerant Market was valued at USD 4.14 billion in 2023 and is anticipated to register a CAGR of 5% during 2024 to 2032. As energy efficiency becomes a more critical concern for both commercial and residential buildings, the demand for efficient cooling solutions like centrifugal chillers increases, thereby driving the market growth. Centrifugal chillers can be designed to use refrigerants with lower GWP and ODP values, such as hydrofluorocarbons (HFCs) with low GWP or natural refrigerants like ammonia or hydrocarbons. This trend towards environmentally friendly refrigerants contributes to the overall growth of the refrigerant market.
 

Additionally, governments around the world are implementing stricter regulations to phase out ozone-depleting substances and high-GWP refrigerants in HVAC systems. Centrifugal chillers offer a solution that aligns with these regulations by using refrigerants that comply with current and future environmental standards. Continuous innovation in centrifugal chiller technology leads to improvements in efficiency, performance, and reliability. Manufacturers are constantly developing new features and enhancements to make centrifugal chillers more attractive to consumers. These advancements, such as variable speed drives, advanced controls, and optimized designs, make centrifugal chillers a preferred choice for HVAC applications, further contributing to market growth.
 

Stringent regulations aimed at reducing greenhouse gas emissions and phasing out ozone-depleting substances can restrict the use of certain refrigerants commonly employed in centrifugal chillers. Compliance with evolving environmental standards may necessitate the adoption of alternative refrigerants or the development of more environmentally friendly technologies, which could pose challenges for manufacturers and users. However, HCFCs are being phased out globally due to their ozone-depleting properties. This phase-out can create challenges for manufacturers and users who rely on existing systems, as they may need to retrofit or replace equipment to comply with regulations, leading to increased costs and operational disruptions.
 

Centrifugal Chiller Refrigerant Market Trends

With rising concerns regarding ozone depletion and global warming, there has been a significant shift towards environmentally friendly refrigerants such as HFOs (hydrofluoroolefins) and natural refrigerants like ammonia and CO2. This trend is driven by regulatory pressures to phase out ozone-depleting substances and high global warming potential (GWP) refrigerants like CFCs and HCFCs. Moreover, energy efficiency continues to be a major focus in the centrifugal chiller market. Manufacturers are investing in research and development to enhance the efficiency of chillers, thereby reducing energy consumption and operating costs for end-users. Variable speed drives, advanced compressor designs, and improved heat exchanger technologies are some of the innovations contributing to higher energy efficiency.
 

Additionally, integration of smart technologies and Internet of Things (IoT) capabilities are becoming increasingly common in centrifugal chillers. IoT-enabled chillers allow for remote monitoring, predictive maintenance, and optimization of chiller performance. These technologies enable real-time data analysis, leading to proactive troubleshooting and energy savings hance drives the overall market growth.
 

Centrifugal Chiller Refrigerant Market Analysis

Based on refrigerant, the standard refrigerants segment was worth USD 1.98 billion in 2023 and is expected to exceed USD 3.33 billion by 2032. Standard refrigerants, such as R-134a, R-410A, and R-123 comply with current regulations and standards set by organizations like the Environmental Protection Agency (EPA) and international agreements like the Montreal Protocol, which aim to phase out ozone-depleting substances and reduce greenhouse gas emissions. Standard refrigerants have been extensively tested and used in various cooling applications, demonstrating their reliability, efficiency, and safety over many years. This track record gives them credibility in the market. Additionally, standard refrigerants are widely available and accessible globally. This availability simplifies procurement and maintenance processes for end-users.
 

Based on end use, the oil & gas segment accounted for over 32% share of the centrifugal chiller refrigerant market in 2023 and is likely to capture more than 34% revenue by 2032. Centrifugal chillers are highly energy efficient cooling systems which used in various industries, including oil and gas. In oil & gas industry centrifugal chillers provide reliable cooling while consuming less energy compared to other cooling systems which makes them ideal for large-scale operations where energy efficiency is crucial. Additionally, in oil and gas operations, maintaining specific temperatures is critical for various processes, including refining, extraction, and storage. Thus, centrifugal chillers offer precise temperature control, ensuring optimal conditions for these processes to occur efficiently hence drives the segment growth.
 

Asia Pacific centrifugal chiller refrigerant market size surpassed USD 1.46 billion in 2023. Asia Pacific, particularly the China, Japan, India known for its strong emphasis on technological innovation. Therefore, rising industrial activities contribute to the region’s dominance in the market. Asia Pacific has a large industrial base sectors like, healthcare, semiconductor, chemical, food & beverage industry, electronics, automotive, and oil & gas where Centrifugal Chiller Refrigerant is extensively used in these industries for cooling solutions to maintain comfortable indoor environments in commercial buildings and industries. Rise in Asia Pacific manufacturing industry drives the high demand simultaneously for industrial equipment and the overall market. Thus, Asia Pacific companies have well established distribution network across the globe which allows them to reach a wide range customer base which drives the region market growth.
 

U.S. is likely to dominate in North America centrifugal chiller refrigerant market with a growing CAGR of 4.7% up to 2032. U.S. has strong industry base and well-established manufacturing capabilities to efficiently produce high quality Centrifugal Chiller Refrigerant with integrated technology at lower price. U.S. has diverse market and leader in research and development facilities including manufacturing technologies is expected to propel the market. U.S. has stringent government regulations regarding environmental protection and energy efficiency thus, drives the market growth.
 

Germany is likely to dominate in Europe centrifugal chiller refrigerant market with 4.9% growth rate from 2024 to 2032. Germany has strong industrial and manufacturing set ups ranging from automotive and aerospace to electronics and mining sectors. German companies have been developing environmentally friendly refrigeration technologies including centrifugal chiller with high energy efficiency rating. Germany has extensive global distribution networks and export their Centrifugal Chiller Refrigerant to markets around the world. This global presence contributes to their dominance in Europe and beyond.
 

China is likely to dominate in Asia Pacific Centrifugal Chiller Refrigerant market with a growing CAGR of 6.8% during the forecast period because of rapid industrialization across various sectors such as construction, manufacturing, automotive, aerospace, oil & gas, electronics, among others. China has established manufacturing powerhouse with capability of producing various industrial equipment including centrifugal chillers. Additionally, China manufacturers have lower labor cost advantage this enables them to offer competitive prices to buyers in the region.
 

Centrifugal Chiller Refrigerant Market Share

These prominent companies are proactively involved in strategic endeavors including mergers & acquisitions, facility expansion, and partnerships to diversify their product offerings, expand their customer reach, and solidify their market position. Together, the top five mentioned companies collectively occupied around 5% to 10% of the global market share in 2023. They consistently allocate resources to research & development, enhancing their products and integrating innovative technologies to maintain a competitive edge.
 

Centrifugal Chiller Refrigerant Market Companies

Major players operating in the centrifugal chiller refrigerant industry include:

• Arkema SA
• Broad Air Conditioning
• Carrier Corporation
• Daikin Industries, Ltd.
• Drake Refrigeration, Inc
• Honeywell International, Inc.
• Hudson Technologies
• Johnson Controls
• Mitsubishi Electric Corporation
• Orbia
• Sinochem Group
• The Chemours Company
• The Linde Group
• Toshiba Corporation
• Trane
   

Centrifugal Chiller Refrigerant Market News

• In December 2022, the US Environmental Protection Agency issued a proposal limiting the use of refrigerants in many new refrigeration systems to 150 GWP and refrigerants in new residential and light commercial air-conditioning and heat pump systems to 700 GWP, among other applications. Centrifugal chillers use lower GWP refrigerants such as R-123 and R-134a, which contributes to the rising demand for these refrigerants across American countries.
   
• In December 2022, Trane unveiled its latest offerings, the water-cooled XStream excellent GVWF and air-cooled Sintesis excellent GVAF chillers. These innovative chillers incorporate magnetic-bearing compressors and utilize the low global warming potential (GWP) refrigerant R1234ze. Equipped with high-speed centrifugal compressor technology, these chillers deliver larger capacities, wider operating maps to meet challenging European climate conditions, and enhanced seasonal efficiencies, all while maintaining a compact size.
   
• In April 2021, refrigeration equipment manufacturer Refra initiated production operations at its newly established facility in Vievis, located near the capital city, Vilnius, Lithuania. Spanning an area of 12,000 square meters, the factory is situated approximately 40 kilometers northwest of Refra's headquarters in Vilnius. The expansion has resulted in the creation of employment opportunities for an additional 100 individuals.
   

This centrifugal chiller refrigerant market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) and volume (Thousand Units) from 2021 to 2032, for the following segments:

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Market, By Refrigerant

• Standard Refrigerants
• Low GWP Refrigerants
• Hydrocarbon Natural Refrigerants
• Others

Market, By Compressor

• Single Stage Compressor
• Multistage Compressor

Market, By End Use

• Oil & Gas
• Power Sector
• Chemical
• Food & Beverages
• Electronics and Electrical
• Others (semiconductor, automotive etc.)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Malaysia     
  • Indonesia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA