Low GWP Refrigerant Chillers Market
The market for Low GWP Refrigerant Chillers was estimated at $5.0 billion in 2024; it is anticipated to increase to $11.4 billion by 2030, with projections indicating growth to around $22.6 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Low GWP Refrigerant Chillers Market Outlook
Revenue, 2024
$5.0B
Forecast, 2034
$19.7B
CAGR, 2025 - 2034
14.7%
The Low GWP Refrigerant Chillers industry revenue is expected to be around $5.7 billion in 2025 and expected to showcase growth with 14.7% CAGR between 2025 and 2034. The Low GWP refrigerant chillers market experiences growth because of rising energy-efficient cooling requirements and worldwide environmental sustainability initiatives. The global adoption of Low GWP refrigerant chillers has been accelerated by rising regulations that focus on lowering greenhouse gas emissions. The market selects Low GWP refrigerant chillers because they offer low Global Warming Potential and serve as a preferred choice for various industries, including Commercial Greenhouse applications, to reduce carbon emissions. The market dynamics will continue to be influenced by Low GWP refrigerant chillers because of their ongoing importance.
The advanced cooling systems known as Low GWP refrigerant chillers operate with refrigerants that have minimal Global Warming Potential. The commercial and industrial sectors including data centers hospitals and manufacturing plants use these chillers because they offer high efficiency and environmentally friendly operation. The market shows a rising demand for smart technology integration in these chillers to enhance their performance and energy management capabilities.
Market Key Insights
- The Low GWP Refrigerant Chillers market is projected to grow from $5.0 billion in 2024 to $19.7 billion in 2034. This represents a CAGR of 14.7%, reflecting rising demand across Commercial Cooling Systems, Industrial Refrigeration and Data Center Cooling.
- Trane Technologies, Carrier Global Corporation, Daikin Industries Ltd are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the Low GWP Refrigerant Chillers market and are expected to observe the growth CAGR of 13.2% to 17.6% between 2024 and 2030.
- Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 10.3% to 15.4%.
- Transition like Embracing Green Cooling Technologies is expected to add $546 million to the Low Gwp Refrigerant Chillers market growth by 2030.
- The Low GWP Refrigerant Chillers market is set to add $14.7 billion between 2024 and 2034, with manufacturer targeting Industrial Manufacturing & Data Centers End-Users projected to gain a larger market share.
- With Increasing environmental awareness, and Regulatory compliance, Low GWP Refrigerant Chillers market to expand 294% between 2024 and 2034.
Opportunities in the Low GWP Refrigerant Chillers
Manufacturers of Low GWP Refrigerant Chillers can also gain strategic benefits through partnerships with local distributors and HVAC contractors. The partnerships enable manufacturers to reach more customers while improving service quality which leads to increased market penetration.
Growth Opportunities in North America and Asia-Pacific
The United States together with North America represent a major market for Low GWP Refrigerant Chillers. The United States and North America experience rising demand for environmentally friendly cooling solutions because of strict environmental regulations and growing public understanding about global warming. The market expansion benefits from both major manufacturers and quick adoption of advanced technologies in the region. The market faces intense competition from European and Asian manufacturers who lead with their innovative and cost-effective product offerings. The commercial sector expansion and industrial sector demand for energy-efficient cooling solutions drive the main market drivers.
The Asia-Pacific region experiences strong market growth in Low GWP Refrigerant Chillers because of China and Indias leadership. The combination of urban development and industrial growth and rising middle-class populations has created a substantial market demand for cooling solutions. The hot and humid climate of the region creates additional requirements for efficient and environmentally friendly chiller systems. The market faces competition from established Western brands and local manufacturers who provide cheaper alternatives. The main market drivers stem from China and Indias expanding construction industry and increasing recognition about traditional refrigeration system environmental effects.
Market Dynamics and Supply Chain
01
Driver: Increasing Environmental Awareness, and Technological Advancements
The increasing worldwide recognition of high Global Warming Potential refrigerants environmental effects leads to rising market demand for Low GWP Refrigerant Chillers. The chillers which serve air conditioning and refrigeration applications help decrease greenhouse gas emissions while supporting the worldwide transition to sustainable practices. The continuous technological advancements in the chiller industry are also another key.Newer models of Low GWP Refrigerant Chillers are also more energy-efficient, reliable, and have also a longer lifespan. They are also increasingly being used in data centers and industrial applications where precise temperature control is also critical.
The worldwide government bodies have also established strict rules to eliminate high GWP refrigerants from use. The growing need for Low GWP Refrigerant Chillers has also become more prominent because of commercial refrigeration and HVAC sectors. The chillers enable industries to meet regulatory requirements while simultaneously enhancing their energy efficiency.
02
Restraint: High Initial Investment
The high initial expense of Low GWP Refrigerant Chillers creates a major obstacle for small businesses and new companies. The high initial cost of these energy-efficient and environmentally friendly systems acts as a barrier to purchase because it exceeds what many potential buyers are willing to spend. Market growth could be limited because consumers who focus on cost might choose less efficient alternatives that cost less.
03
Opportunity: Technological Innovations and Emerging Markets
The HVAC industry has experienced major advancements in technology which create substantial opportunities for Low GWP Refrigerant Chillers. The integration of variable speed technology and heat recovery systems with these chillers leads to improved energy efficiency and performance. The growing need for energy-efficient solutions meets the worldwide initiative to decrease greenhouse gas emissions through this approach.
The fast industrial development and urban growth in emerging economies of India, China and Brazil is creating a growing market for HVAC systems. Low GWP Refrigerant Chillers, known for their environmental friendliness and energy efficiency, can exploit this unexplored market segment and drive significant growth.
04
Challenge: Technical Challenges
The use of Low GWP Refrigerant Chillers involves certain technical challenges, such as the need for specialized maintenance and servicing. The complexity of these systems requires skilled technicians for installation and regular maintenance, which can further increase the overall operational costs. This could potentially impact market demand, as businesses may be hesitant to invest in technology that requires specialized upkeep.
Supply Chain Landscape
1
Raw Material Procurement
Honeywell InternationalArkema Group
2
Component Manufacturing
Daikin IndustriesJohnson Controls
3
Chiller Assembly
Trane TechnologiesCarrier Global
4
End-User Industry
HVAC SystemsFood ProcessingPharmaceuticals
1
Raw Material Procurement
Honeywell InternationalArkema Group
2
Component Manufacturing
Daikin IndustriesJohnson Controls
3
Chiller Assembly
Trane TechnologiesCarrier Global
4
End-User Industry
HVAC SystemsFood ProcessingPharmaceuticals
Use Cases of Low GWP Refrigerant Chillers in Commercial Cooling Systems & Industrial Refrigeration
Commercial Cooling Systems : Low GWP Refrigerant Chillers are widely used in commercial cooling systems. These systems primarily utilize hydrofluoroolefins based chillers due to their low Global Warming Potential.The unique advantage of these chillers is their high energy efficiency and low environmental impact. Top players in this application include Johnson Controls and Daikin, known for their innovative and energy-efficient solutions.
Industrial Refrigeration : Industrial refrigeration is another significant application of Low GWP Refrigerant Chillers. Ammonia-based chillers are commonly used in this sector due to their zero GWP and excellent thermodynamic properties. This application benefits from the high cooling capacity and cost-effectiveness of these chillers. Key market players in this segment are Carrier and Trane, both recognized for their robust and reliable industrial refrigeration solutions.
Data Center Cooling : Data center cooling is a growing application for Low GWP Refrigerant Chillers. Here, chillers using natural refrigerants like CO2 are preferred due to their low GWP and non-ozone depleting properties. These chillers provide the advantage of precise temperature control, essential for data center operations. Top players in this application include Schneider Electric and Airedale, renowned for their advanced and sustainable data center cooling solutions.
Recent Developments
The market for Low GWP Refrigerant Chillers has witnessed significant advancements in recent years, primarily driven by the global shift towards sustainable and energy-efficient cooling solutions. This trend is primarily due to the increasing awareness of the environmental impact of high Global Warming Potential refrigerants, pushing both consumers and manufacturers towards low GWP alternatives. In response to this, manufacturers are investing heavily in research and development to produce more efficient and environmentally friendly chillers.
December 2024 : Carrier Global Corporation launched a new series of Low GWP Refrigerant Chillers with advanced energy efficiency features, setting a new benchmark in the industry
October 2024 : Trane Technologies unveiled their next-generation Low GWP Refrigerant Chillers, incorporating AI technology for predictive maintenance and enhanced performance
August 2024 : Daikin Industries expanded their production capacity for Low GWP Refrigerant Chillers to meet the growing global demand, reinforcing their market leadership position.
Impact of Industry Transitions on the Low GWP Refrigerant Chillers Market
As a core segment of the HVAC Systems & Components industry,
the Low GWP Refrigerant Chillers market develops in line with broader industry shifts.
Over recent years, transitions such as Embracing Green Cooling Technologies and Digitalization and IoT Integration have redefined priorities
across the HVAC Systems & Components sector,
influencing how the Low GWP Refrigerant Chillers market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Embracing Green Cooling Technologies
The refrigeration industry is undergoing a major transformation toward Low GWP Refrigerant Chillers. The growing environmental concerns about high GWP refrigerants together with regulatory requirements have led to this transition. The adoption of Low GWP Refrigerant Chillers with their environmentally friendly features is happening across food and beverage and pharmaceutical and data center industries. The transition has produced three main effects which include decreased carbon emissions and enhanced energy performance and strict environmental rule compliance.
02
Digitalization and IoT Integration
Another noteworthy transition in the industry is the integration of digital technologies and IOT in Low GWP Refrigerant Chillers. This transition is enhancing the operational efficiency, predictive maintenance, and overall performance of these chillers. Industries such as retail, logistics, and healthcare are leveraging this transition to achieve real-time monitoring, fault detection, and energy management. The result is improved operational efficiency, reduced downtime, and enhanced sustainability.