Centrifugal Chiller Refrigerant Market Report 2025: Growth Driven by Government Incentives and Partnerships

Key Insights

The size of the Centrifugal Chiller Refrigerant Market was valued at USD 4.14 Billion in 2024 and is projected to reach USD 5.83 Billion by 2033, with an expected CAGR of 5% during the forecast period. This strong growth curve is primarily supported by the presence of certain key factors. These factors include the mounting adoption of centrifugal chillers across data centers and various industrial applications. In addition, governmental regulations that focus on using low GWP refrigerants have begun to gain greater traction, further widening the scope of the market.Centrifugal chillers are more highly preferred as these chillers exhibit inherent benefits with high efficiency and low noise emission, which also result in lower operating expenses. These attributes make them popular for massive coolings. Other factors such as energy efficiency, sustainability, etc., also give a push in the direction for low GWP refrigerants: HFC-32 and HFO-1234ze are one of the leading refrigerants among centrifugal chillers.

Centrifugal Chiller Refrigerant Market Concentration & Characteristics

The market is concentrated with a few major players holding a significant market share. Key players include Carrier Corporation, Trane Technologies, Johnson Controls, Mitsubishi Electric, and Daikin Industries. The market is characterized by ongoing innovation, with companies investing in research and development to enhance the efficiency and environmental performance of centrifugal chillers.

Government regulations play a crucial role in shaping the market, particularly with regard to refrigerant usage. The ongoing phase-out of high GWP refrigerants under the Montreal Protocol and its Kigali Amendment is expected to further drive demand for centrifugal chillers utilizing low GWP refrigerants.

Centrifugal Chiller Refrigerant Market Trends

• Rising Demand for Low GWP Refrigerants: The growing environmental concerns and regulatory pressure are leading to a shift towards low GWP refrigerants, such as HFC-32 and HFO-1234ze, which are commonly used in centrifugal chillers.
• Increasing Adoption in Data Centers: The rapid growth of data centers is driving the demand for energy-efficient cooling solutions. Centrifugal chillers are well-suited for data centers due to their high cooling capacity and efficiency, resulting in significant cost savings on energy consumption.
• Technological Advancements: Advancements in compressor technology, such as magnetic bearings and variable-speed drives, have improved the efficiency and performance of centrifugal chillers. These advancements also enable precise temperature control and adaptability to varying cooling loads.

Key Region or Country to Dominate the Market

• North America: The region is expected to witness significant growth in the centrifugal chiller refrigerant market due to the stringent environmental regulations, increasing adoption in data centers, and growing investments in industrial refrigeration systems.
• China: The rapidly expanding data center industry and the government's focus on reducing carbon emissions are driving the growth of the centrifugal chiller refrigerant market in China.

Centrifugal Chiller Refrigerant Market Product Insights Report Coverage & Deliverables

The report provides in-depth analysis of the centrifugal chiller refrigerant market, including:

• Market size and forecast by refrigerant type, compressor type, and end use industry
• Segmentation of the market based on region and key countries
• Profiles of leading market players and their market share
• Assessment of market drivers, restraints, opportunities, and challenges
• Future market trends and growth projections

Centrifugal Chiller Refrigerant Market Analysis

The market size of centrifugal chiller refrigerants is estimated to reach USD 6.12 billion by 2030, growing at a CAGR of 5%. The growth is expected to be driven by the increasing adoption of centrifugal chillers in various end-use industries, such as data centers, power generation, and chemical processing.

The low GWP refrigerants segment is expected to witness the highest growth, owing to the increasing environmental concerns and regulatory pressure. The single-stage compressors segment is expected to dominate the market, followed by the multistage compressors segment.

The data centers and power generation end-use segments are projected to be the major contributors to market growth, as these industries require high-capacity and efficient cooling solutions.

Centrifugal Chiller Refrigerant Market Regional Insights

North America:

• The region is the largest market for centrifugal chiller refrigerants, primarily due to the presence of large data centers and industrial facilities.
• The US is the dominant market in North America, followed by Canada.

Europe:

• The region is expected to witness moderate growth due to stricter environmental regulations and the growing adoption of energy-efficient technologies.
• Germany and the UK are the leading markets in Europe.

Asia Pacific:

• The region is the fastest-growing market, driven by the expanding data center industry and increasing energy demand in developing countries.
• China is the dominant market in Asia Pacific, followed by India and Japan.

Driving Forces: What's Propelling the Centrifugal Chiller Refrigerant Market

• Stringent environmental regulations and bans on high GWP refrigerants
• Growing demand for energy-efficient cooling solutions in data centers and industrial applications
• Advancements in compressor technology and refrigerant efficiency
• Rising investments in infrastructure and real estate development

Challenges and Restraints in Centrifugal Chiller Refrigerant Market

• High upfront costs associated with centrifugal chillers
• Availability of alternative cooling technologies, such as air-cooled chillers
• Limited availability of skilled technicians for installation and maintenance

Emerging Trends in Centrifugal Chiller Refrigerant Market

• Adoption of natural refrigerants, such as carbon dioxide and ammonia
• Integration of artificial intelligence and IoT in chiller controls
• Development of hybrid chillers that combine centrifugal and absorption technologies

Centrifugal Chiller Refrigerant Industry News

December 2022: The US Environmental Protection Agency proposed limiting the use of refrigerants in new refrigeration systems to 150 GWP and in new residential and light commercial air-conditioning and heat pump systems to 700 GWP.

December 2022: Trane unveiled its water-cooled XStream excellent GVWF and air-cooled Sintesis excellent GVAF chillers, which incorporate magnetic-bearing compressors and utilize the low GWP refrigerant R1234ze.

April 2021: Refra initiated production operations at its new facility in Vievis, Lithuania, to meet the growing demand for centrifugal chillers in the European market.

Leading Players in the Centrifugal Chiller Refrigerant Market

• Arkema SA (France)
• Broad Air Conditioning (China)
• Carrier Corporation (US)
• Daikin Industries, Ltd. (Japan)
• Drake Refrigeration, Inc. (US)
• Honeywell International, Inc. (US)
• Hudson Technologies Corporation (US)
• Johnson Controls International plc (Ireland)
• Mitsubishi Electric Corporation (Japan)
• Orbia (Mexico)
• Sinochem Group (China)
• The Chemours Company (US)
• The Linde Group (Germany)
• Toshiba Corporation (Japan)
• Trane Technologies plc (Ireland)

Centrifugal Chiller Refrigerant Market Segmentation

• 1. Refrigerant
  • 1.1. Standard Refrigerants
  • 1.2. Low GWP Refrigerants
  • 1.3. Hydrocarbon Natural Refrigerants
  • 1.4. Others
• 2. Compressor
  • 2.1. Single Stage Compressor
  • 2.2. Multistage Compressor
• 3. End Use
  • 3.1. Oil & Gas
  • 3.2. Power Sector
  • 3.3. Chemical
  • 3.4. Food & Beverages
  • 3.5. Electronics and Electrical
  • 3.6. Others (semiconductor, automotive etc.)

Centrifugal Chiller Refrigerant Market Segmentation By Geography

• 1. North America
  • 1.1. U.S.
  • 1.2. Canada
• 2. Europe
  • 2.1. UK
  • 2.2. Germany
  • 2.3. France
  • 2.4. Italy
  • 2.5. Spain
  • 2.6. Rest of Europe
• 3. Asia Pacific
  • 3.1. China
  • 3.2. Japan
  • 3.3. India
  • 3.4. South Korea
  • 3.5. Australia
  • 3.6. Malaysia
  • 3.7. Indonesia
  • 3.8. Rest of Asia Pacific
• 4. Latin America
  • 4.1. Brazil
  • 4.2. Mexico
  • 4.3. Rest of Latin America
• 5. MEA
  • 5.1. Saudi Arabia
  • 5.2. UAE
  • 5.3. South Africa
  • 5.4. Rest of MEA