According to the latest market research study published by P&S Intelligence, the U.S. chiller market is valued at USD 1,015.5 million in 2024 and is projected to grow at a CAGR of 3.1% from 2025 to 2032, reaching USD 1,284.5 million by 2032. This steady growth is driven by rising urbanisation and infrastructure development, particularly in commercial buildings and data centres that require efficient cooling systems. IoT-enabled chillers offering real-time monitoring and automation are gaining traction, improving energy efficiency and reducing operational costs.
The market remains highly fragmented, with both global and
regional players competing aggressively. Regulatory pressures from EPA and the
Kigali Amendment are prompting a shift away from high-GWP refrigerants, pushing
manufacturers toward eco-friendly alternatives.
Key Insights
- In 2024,
water‑cooled chillers hold the largest share (~60%) due to superior
thermal performance and capacity for large-scale commercial and industrial
use. However, air‑cooled chillers are growing at the fastest pace thanks
to easier installation and suitability for smaller retrofitting projects.
- Among
compressor types, screw chillers dominate (~35% share) in 2024 because of
their cost‑effective maintenance and operation in mid‑to‑large facilities.
Absorption chillers are forecasted to achieve the fastest CAGR over the
projection period.
- Segmentation
by application highlights the commercial sector (offices, malls, hotels)
as the largest market contributor, while industrial and residential
segments are gaining momentum due to growing demand for dedicated and
energy-efficient cooling.
- Regionally,
the Southern U.S. leads in market size and growth rate owing to rapid
urbanisation, infrastructure investments, and increasing data‑centre
development.
- Technological
innovations—including IoT integration—enable predictive maintenance,
remote diagnostics, and smart energy management, driving efficiency and
lowering downtime. Notably, Johnson Controls’ YORK smart chillers
exemplify this trend.
- The
sector is responding to environmental regulations, particularly the EPA's
SNAP program and Kigali requirements, by transitioning to low‑GWP
refrigerants and designing sustainable chiller systems.
- Competitive
dynamics show a fragmented landscape with key players—including Daikin,
Carrier, Trane, Mitsubishi Electric, Johnson Controls, LG, Midea, Smardt,
Danfoss, and GREE—focusing on collaboration, innovation, and expansion.
- Strategic
moves include the October 2024 launch of METUS’ s‑MEXT indoor unit
(Mitsubishi/Trane JV) targeting computer-room applications, and Carrier’s
partnership with Thermal Labs for data‑centre cooling in November 2024.
- Opportunity
hotspots exist in district cooling systems for smart buildings and data
centres with centralized, high‑capacity, low‑carbon solutions.
- Retrofit
potential is strong as existing commercial buildings in major metro areas
(NYC, LA, Chicago, Miami) upgrade outdated systems with smart, energy‑efficient
chillers.
