South Africa Chiller Market Overview, 2029

Industrial chillers have been a fixture in South Africa since the mid-twentieth century, meeting the refrigeration needs of both commercial and industrial sectors while keeping up with worldwide trends. Over time, there has been a clear shift toward energy efficiency in the South African chiller sector. This trend is mirrored in the increased use of R32 refrigerant, which has better environmental performance and efficiency than traditional choices like R22. Furthermore, there is an increasing need for water-cooled chillers, especially in urban areas where district cooling systems are becoming increasingly common. Cultural and market trends in South Africa's chiller business demonstrate a strong emphasis on energy efficiency. This trend toward sustainability is reflected in the growing use of R32 refrigerant due to its lower environmental effect and improved efficiency. Furthermore, the growing demand for water-cooled chillers, particularly in urban areas, reflects a larger trend toward the use of district cooling systems. These systems provide a more effective and sustainable way to address the cooling demands of highly inhabited areas. Although the South African chiller market is lower in size than those of North Africa and the Middle East, it exhibits comparable growth patterns driven by factors such as urbanisation and rising demand for sustainable cooling technology. These cross-regional trends point to a broader move toward environmentally friendly cooling technologies in the face of growing urbanisation. Despite disparities in market size, the South African chiller market is on track with regional equivalents in adopting sustainable cooling practices to address the issues of urbanisation and climate change. According to the research report “South Africa Chiller Market Overview, 2029," published by Bonafide Research, the South Africa Chiller market is forecasted to add more than USD 50 Million from 2024 to 2029. The South African chiller market is primarily driven by infrastructure development, government measures supporting sustainable cooling methods, and rising demand from major sectors such as hospitality and transport. However, the market confronts some constraints, such as limited local production capacity and a dearth of experienced workforce for chiller maintenance and repair. Addressing these difficulties will be critical for the chiller market in South Africa to continue growing and become more efficient. In South Africa, the Department of Trade and Industry (DTI) enforces compliance with international chiller safety and performance requirements. In order to promote sustainability in the chiller business, the government has also developed laws governing refrigerant usage and energy efficiencies. Certifications like Green Star SA for sustainable buildings have a considerable impact on chiller selection, driving the adoption of energy-efficient and ecologically friendly cooling technologies. There is a clear movement towards the use of R32 refrigerants, which are preferred over traditional alternatives due to their greater environmental performance. Furthermore, there is a growing emphasis on energy efficiency in the chiller industry as firms look to save operational costs and lessen their environmental impact. These developments are anticipated to influence product development and marketing tactics in the South African market, as businesses adapt to changing client needs and regulatory restrictions.

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. Chillers in the South African market range between tens of thousands and millions of ZAR. This variation reflects the variety of chiller types, with smaller units catering to smaller-scale applications and bigger industrial chillers commanding greater pricing due to their size and complexity. The market is divided primarily into two segments: air-cooled and water-cooled choices. Air-cooled chillers are popular due to their simplicity and inexpensive installation costs, whereas water-cooled chillers are more efficient and suitable for larger-scale applications. Chiller capacities in the market typically range from a few tons of refrigeration (TR) to several hundred TR, meeting a wide range of cooling requirements across diverse sectors. Several established firms dominate the South African chiller market, including both local enterprises and worldwide giants. These organisations have established themselves through strong brand awareness and deep technological knowledge, providing major difficulties to prospective entrants. To compete with established brands, it is necessary to invest heavily in both product development and marketing. Furthermore, the technological intricacy of chiller systems needs a high level of specialist knowledge, creating further obstacles to entry for novices. While the market may appear overwhelming to new entrants, opportunities may emerge in narrow areas or through product differentiation, such as novel technologies or excellent customer service. Information on chiller component production in South Africa is limited, indicating a potential dependency on imports in addition to local assembly and distribution by domestic enterprises. While the information about the local industrial landscape remain unknown, it is possible that key components are purchased outside to meet demand. Local enterprises are anticipated to engage in assembly processes and distribution networks to meet the cooling solution needs of the South African market. This hybrid approach to production involves a combination of imported components and local assembly, reflecting the intricacies of the country's manufacturing supply chain. The exact impact of the Covid-19 pandemic on the South African chiller market is unknown, but worldwide supply chain interruptions and project delays are likely to have had an influence. Pandemic-induced interruptions may have had an impact on raw material procurement, manufacturing processes, and project timeframes in the chiller sector. However, the market's long-term outlook remains optimistic, boosted by continuous infrastructure development projects and persistent demand for cooling solutions amid urbanisation and climate change concerns. Despite short-term obstacles, the South African chiller industry is expected to recover and continue its upward trend in the following years. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029

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Prashant Tiwari

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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

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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.