India Chiller Market Overview, 2029

The history of chillers in India is not well documented, but their use has increased in tandem with the growth of the air conditioning sector. Previously, the market was dominated by big, inefficient centrifugal chillers. However, a noticeable trend toward scroll and screw chillers, which provide greater efficiency, is emerging. The India Cooling Action Plan (ICAP) is a key program aimed at reducing India's cooling energy demand by 25% by fiscal year 2037-38. At its core, the plan intentionally promotes and encourages the use of energy-efficient chillers. To achieve this goal, ICAP has launched a number of critical tactics, most notably the implementation of Mandatory Standards and Labelling in 2018. This program created minimum efficiency benchmarks for chillers, requiring manufacturers to meet severe efficiency standards. Furthermore, there is a determined push to emphasise the use of low-GWP refrigerants, which is consistent with global environmental goals aimed at mitigating the negative effects of climate change. The plan intends to reduce the ecological footprint associated with cooling systems by encouraging the use of refrigerants with lower Global Warming Potential (GWP), promoting sustainability and environmental stewardship.

According to the research report “India Chiller Market Overview, 2029," published by Bonafide Research, the India Chiller market is projected to grow with more than 8% CAGR from 2024 to 2029. Several reasons are driving the Indian chiller market forward. For starters, rising temperatures in the country, fueled by population growth and urbanisation, are driving up demand for effective cooling solutions in the residential, commercial, and industrial sectors. Furthermore, expanding industries like construction, healthcare, and information technology rely significantly on air cooling, which drives up demand for chillers. Furthermore, there is a strong emphasis on energy efficiency, with government initiatives supporting energy-efficient chillers and legislation such as the obligatory Standards and Labelling program influencing the market landscape. Despite these driving drivers, obstacles remain in the Indian chiller market. One such difficulty is the high initial costs associated with energy-efficient chillers, which sometimes deter potential customers, particularly when compared to older, less expensive models. Another difficulty is a lack of awareness among end users about the advantages of energy-efficient chillers, despite regulatory measures to encourage efficiency. Furthermore, there is a shortage of experienced people who can properly install, maintain, and operate modern chiller systems, indicating a gap in India's workforce growth.

In terms of product types, there are two main categories of chillers: air-cooled and water-cooled chillers. Air-cooled chillers work by transferring heat from a process fluid to the surrounding air using fans and heat exchangers, while water-cooled chillers use water as a cooling medium, circulating it through a closed loop system to absorb and dissipate heat. Within these categories, various types of chillers exist, such as screw chillers, scroll chillers, and centrifugal chillers. Screw chillers utilise rotary screw compressors, scroll chillers employ scroll compressor technology, and centrifugal chillers use centrifugal force to compress refrigerant and remove heat. These different types of chillers cater to diverse cooling requirements in applications ranging from commercial buildings to industrial processes. Additionally, the end-users of chillers can be categorised into commercial and industrial sectors, where commercial users may include businesses, offices, and retail spaces, while industrial users encompass manufacturing plants, factories, and other industrial facilities. By understanding the nuances of these product types and end-user segments, chiller manufacturers can tailor their offerings to meet the specific needs of various industries and applications, thereby optimising efficiency and performance while addressing cooling requirements effectively.

The Indian chiller market offers numerous potential for both manufacturers and service providers. Propelled by high demand across multiple sectors, the market is positioned for exponential expansion This growth trajectory is supported by a number of factors, including consistent government funding emerging from projects such as ICAP. Because the strategy prioritises energy efficiency, it creates a favourable environment for incentives and support mechanisms designed to encourage the development and implementation of improved chillers. Furthermore, the developing cold chain industry, driven by rising demand for perishables, emphasises the importance of efficient chillers in strengthening cold chain infrastructure. This growing demand for efficient cooling systems not only represents a profitable business opportunity, but it also emphasises the important function of chillers in maintaining critical supply chains and ensuring food safety. Manufacturers in the Indian chiller industry are increasingly focused on the use of low-GWP refrigerants, such as R-32 and R-290, to comply with regulations and meet the demands of environmentally aware consumers. Absorption chillers, which use waste heat, are also becoming increasingly popular among enterprises looking for sustainable cooling options.
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India has a highly developed domestic manufacturing base for chiller components such as compressors and condensers. While the majority of components are sourced domestically, some specialist parts may be imported to satisfy specific needs. Although India's chiller industry is smaller than China's, its quick growth offers different advantages. Unlike China's mature and saturated market, India provides sufficient opportunity for new entrants to expand and penetrate the market. This discrepancy in market maturity highlights India's potential as a desirable location for investment and expansion in the global chiller sector. While the Covid-19 outbreak initially presented hurdles to the Indian chiller business, including supply chain disruptions and project delays, the industry has shown remarkable resilience in the face of adversity. Looking ahead, increased awareness of air quality and the need for effective cooling solutions in healthcare facilities and commercial buildings are likely to fuel long-term demand, preparing the industry for continued growth and innovation in the post-pandemic period.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Chillers market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation



By Product Type
• Air Cooled Chiller
• Water Cooled Chiller

By Type
• Screw Chiller
• Scroll Chiller
• Centrifugal Chiller
• Others

By End User
• Commercial
• Industrial

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Chillers industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.