The global modular chillers market size was estimated at USD 3,247.5 million in 2024 and is projected to reach USD 5,280.8 million by 2033, registering a CAGR of 5.5% from 2025 to 2033. The market growth is strongly linked to the rising need for energy-efficient buildings, driven by higher environmental awareness and the implementation of stringent government regulations aimed at reducing carbon emissions and energy consumption. As businesses and consumers increasingly prioritize sustainable infrastructure, the demand for modular chillers is expected to expand considerably over the forecast period.

Growing acknowledgment of benefits associated with energy-efficient cooling systems, along with concerns regarding the negative environmental effects of traditional fossil fuel-based systems, is further propelling market adoption. Continuous technological advancements in energy-saving components, smart control systems, and optimized cooling modules are also enhancing product reliability and performance. Additionally, the rise of privately-owned construction companies in UAE, India, and China is anticipated to accelerate construction investments, thereby supporting modular chiller installations. As per IBEF, India’s real estate industry is expected to reach USD 1 trillion by 2030, up from USD 200 billion in 2021, and contribute around 13% to India’s GDP, mainly fueled by rapid urbanization, large-scale infrastructure projects, and the growing need for commercial and residential spaces.

The global modular chillers market is moderately fragmented, indicating the presence of numerous international and regional manufacturers competing within the space. Well-established players maintain a strong foothold due to their extensive product offerings, widespread distribution networks, and strong brand value. However, mid-sized and local companies contribute notably by supplying customized designs, cost-effective solutions, and specialized energy-efficient variants, intensifying market competition. This diversified vendor landscape stimulates innovation and healthy price differentiation, while also preventing any single manufacturer from capturing a dominant share. Fragmentation is further influenced by variations in regional building standards, industrial demands, climatic conditions, and regulatory frameworks, shaping market opportunities across commercial, industrial, and institutional applications.

The modular chillers industry is characterized by a high level of innovation, particularly in areas like energy efficiency, smart digital controls, low-GWP refrigerants, and compact modular configurations. Manufacturers are increasingly integrating IoT-enabled monitoring systems, variable-frequency compressor technology, and scalable module arrangements to improve operational flexibility and reduce energy consumption. Environmental sustainability targets set by governments and industries are also encouraging R&D efforts, driving the development of solutions that support green building initiatives and next-generation energy benchmarks.

Key Market Trends & Insights:

  • Asia Pacific accounted for the largest revenue share of 45.9% in 2024, supported by robust industrialization, urban expansion, and rising adoption of energy-efficient cooling systems. Within the region, China remains the leading market, propelled by rapid infrastructure development and a growing industrial base.
  • Middle East & Africa is expected to witness steady growth, fueled by significant investments in commercial buildings and a growing preference for energy-saving cooling solutions suitable for harsh climatic conditions. In particular, Saudi Arabia is projected to experience strong demand over the forecast period, driven by major infrastructure projects such as commercial complexes, medical facilities, and industrial units.
  • By modular capacity, the air-cooled segment is projected to grow at a CAGR of 6.0% from 2025 to 2033 in revenue terms, owing to its easier installation and lower maintenance requirements. Water-cooled chillers dominated the market in 2024 with a 58.0% revenue share, attributed to their higher operational efficiency and suitability for large commercial and industrial installations requiring continuous cooling.
  • By application, the commercial segment is expected to grow at a CAGR of 5.8% from 2025 to 2033 in revenue terms, driven by increasing deployment across offices, malls, hospitality, and healthcare facilities. The commercial sector led the market in 2024 with a revenue share of 44.9%, reflecting increased infrastructure development, tourism-driven hotel construction, and expansion of corporate spaces.

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Market Size & Forecast:

  • 2024 Market Size: USD 3,247.5 Million
  • 2033 Projected Market Size: USD 5,280.8 Million
  • CAGR (2025-2033): 5.5%
  • Asia Pacific: Largest market in 2024
  • Middle East & Africa: Fastest Growing Region

Key Companies & Market Share Insights:

Prominent companies in the modular chillers market include Trane Technologies plc, GREE ELECTRIC APPLIANCES INC., Carrier, and FRIGEL FIRENZE S.p.A.

  • Trane Technologies plc is a major global climate solutions provider headquartered in Ireland. The company operates under well-known brands including Trane and Thermo King, offering a diverse range of energy-efficient cooling and HVAC technologies. Its portfolio includes modular chillers, smart building solutions, and advanced control systems designed to enhance building sustainability and energy optimization.
  • GREE Electric Appliances Inc., located in Zhuhai, China, is a leading manufacturer specializing in both residential and commercial air conditioning products. The company produces modular chillers, VRF systems, and smart building management technologies, supported by in-house R&D capabilities and multiple manufacturing facilities. This integrated approach allows GREE to maintain strong control over innovation, production quality, and product performance.

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Conclusion:

The global modular chillers market is poised for steady long-term growth, supported by rising construction activities, increasing focus on energy efficiency, and strong sustainability targets across industries. Advancements in smart controls, energy-saving technologies, and low-GWP refrigerants will continue to enhance product performance and adoption. Regions such as Asia Pacific and the Middle East are expected to remain key contributors, driven by rapid urban development and expanding commercial infrastructure. Growing competition among established players and regional manufacturers will further stimulate innovation and product diversification. Overall, the market outlook remains positive, with increasing demand from commercial and industrial applications strengthening revenue potential through 2033.