RACA Journal January 2020 | Page 19

International News GLOBAL CHILLER DEMAND TO GROW G lobal sales of process chillers reached over 320 000 units in 2018, according to a new research study by Fact MR. The process-chillers market is expected to grow by 4.5% year-on-year in 2019, primarily influenced by the demand in process cooling in the plastics and food and beverages industry globally. According to a study conducted by market-intelligence company Fact.MR, growing emphasis on better price-to- performance ratio, even for the higher capacity applications in various end-use sectors, is expected to contribute to the pace-up of the process-chillers market by the end of 2029. Growth in plastics and food and beverages industry, along with product innovations from the manufacturers side, is expected to boost the demand for process chillers. OPENING DOORS The present development trend of the process chillers market has conspicuously affected the rising number of various end-use industries such as plastics and processed food and the rising demand for efficient industrial process cooling across the globe, the study states. End users of process chillers are under constant pressure to reduce operational costs, maintain quality and increase productivity. This pressure reaches up to the value chain, wherein manufacturers of process chillers are constantly engaged in research and development to accommodate consumer demand. Increasing demands for efficient industrial chillers of process cooling technology brings advancement and innovation in various end-use applications. Likewise, process-chillers applications by product types are expected to grow significantly during the forecast period attributed to the expanding preferences for customised cooling solutions among various end-use industries. Rising demand for superior process chillers for large scale industrial cooling applications over conventional cooling processes across the industries has made lucrative opportunities for process chillers in the past couple of years. ASIAN MARKET SHARE The study also found that the East Asian region had grasped more than 32% market share in the global process chillers market in 2018, and this share is expected to grow by a considerable rate, affecting the East Asia market to create an incremental opportunity of over USD2.5-billion (R37-trillion) by www.hvacronline.co.za the end of 2029. On the other hand, South Asia is anticipated to showcase above average opportunities for the growth of the process chillers market in 2019 and beyond. The process chillers market in the region is expected to benefit from various factors, such as rapid urbanisation and industrialisation, leading to increasing process manufacturing activities and manufacturers in these countries. This is expected to bolster the demand for process cooling, which in turn increases the demand for process chillers for various end-use industries. Asian markets have seen (and will continue to see) positive results in the process chiller market. INVESTING IN ASIA Increasing demand for efficient process chillers in emerging end-use industries and across countries in East Asia and South Asia regions, respectively, is driving prominent manufacturers to tactically enter the emerging market with an aim to target untapped opportunities in these regions. Manufacturers in mature markets, such as North America and Europe, are targeting emerging markets in order to gain more profitability by increasing their sales. Key market players in the process chillers market are focusing on product development and collaboration. Vendors in the process chillers market are focusing on cost-effective production of process chillers and bringing innovation to industrial cooling methods to meet the changing industrial requirements. This study underlines the key prospects in the process chillers market and finds that the market would grow by witnessing a value compound annual growth rate (CAGR) of 5.2% over the forecast duration. RACA RACA Journal I January 2020 17