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Feature
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INDUSTRIAL CHILLERS : FORECAST AND ANALYSIS 2023-2027 The following is an extract from a report by Technavia , Industrial Chillers Market Growth by End-user , Type and Geography - Forecast and Analysis 2023-2027 published in March 2023 .
The report estimates that the industrial chillers market will grow at a compound annual growth rate ( CAGR ) of 4.35 % between 2022 and 2027 , while the size of the market is forecast to increase by R23-billion . The report lists several factors on which this growth will depend , such as the growing adoption of district heating and cooling infrastructure in mostly developed economies , stringent regulations on refrigerant use and the growing use of industrial chillers across various industries .
The report covers market segmentation by end-user ( chemical and petrochemical , plastics , food and beverage , pharmaceuticals and biotechnology , and others ), type ( water chillers and air chillers ) and geography ( APAC , North America , Europe , Middle East and Africa and South America ). It also includes an in-depth analysis of drivers , trends and challenges .
Those drivers include the growing adoption of district heating and cooling infrastructure as the key factor driving the industrial chillers market growth . A district cooling system is an economical option when compared to running compressors for refrigeration – which require more energy . The system requires a central refrigeration plant , pumping stations and a piping network . District cooling replaces traditional air cooling because it offers many advantages , such as energy savings , less environmental impact and less maintenance requirements . Industrial chillers are often used in district cooling systems that can process and cool large volumes of water . Operating these large systems can result in significant power savings .
District cooling systems have been adopted in many developed countries such as European countries , North America and Japan , to reduce power consumption and lower the environmental impact of large cities and in high-density industries . In addition , some Middle Eastern countries - such as the UAE , Qatar and Kuwait - have adopted this technology to cope with hot climatic conditions . However , in developing countries , the concept of district cooling is relatively new as these systems are mostly used in industrial parks . The development of smart cities and the increasing urban population could lead to more adoption of these systems .
SMART CONNECTED CHILLERS Another factor fuelling the industrial chillers market ’ s growth is the advent of smart chillers connected with sensors . This trend is derived from the requirement to improve reliability and performance , minimise equipment downtime and contain lifecycle maintenance costs for chillers used in HVAC & R applications . Some of the key features of smart connected chillers are critical alarm systems , cloud data storage , and remote monitoring and diagnostics functionality . The advent of intelligently connected chillers is revolutionising the way chillers are serviced and maintained . Smart chillers stream data directly from the device to the cloud for use by technicians for the purpose of advanced analytics and remote monitoring . It enables machine operators to predict when a chiller will fail or operate at below peak capacity , and thereby perform early or predictive maintenance . The result is fewer operational disruptions , less downtime and longer equipment life .
HIGH ACQUISITION AND MAINTENANCE COSTS A CHALLENGE Industry is focusing on improving the energy efficiency of their facilities , reducing energy costs and reducing emissions , which in turn is expected to drive growth of the global industrial chillers market . However , high acquisition and maintenance costs are major challenges that may threaten those expectations during the forecast period . Most energyefficient HVAC & R technologies , including industrial chillers , are considerably more expensive than their traditional counterparts , significantly lengthening the break-even point of equipment .
This impact will be most visible for budget-conscious customers , especially in emerging markets such as South Africa , India and China , where business is price sensitive . South Africa is notoriously more concerned about initial acquisition costs . Furthermore , annual maintenance costs for industrial chillers are 20 % to 35 % higher than traditional chillers and can add up to a significant amount over the years . Therefore , the relatively high cost of industrial chillers is one of the main reasons expected to affect the market growth during the forecast period .
“ One key difference between VRF and chilled water systems lies in their primary purpose . VRF systems are primarily focused on providing comfort cooling and heating for people in an environment .”
www . refrigerationandaircon . co . za RACA Journal I November 2023 25