U.S. Modular Chillers Market Size, Share & Trends Analysis Report By Product (Water Cooled, Air Cooled), By End-use (Commercial, Industrial, Residential), By Application (Cooling, Simultaneous Heating & Cooling, Heat Pump), And Segment Forecasts, 2025 - 2035

U.S. Modular Chillers Market Size & Trends

The U.S. modular chillers market size was estimated at USD 386.6 million in 2024 and is projected to grow at a CAGR of 5.3% from 2025 to 2035. The market is primarily driven by the rising demand for energy-efficient and scalable cooling solutions across commercial, residential, and industrial sectors. Technological advancements such as the adoption of smart controls, variable-speed compressors, and seamless integration with building automation systems are further fueling demand by enhancing system performance, flexibility, and operational efficiency.

Technological advancements play a crucial role in shaping the market dynamics. The integration of smart controls, IoT capabilities, and automation enhances operational efficiency and facilitates real-time monitoring, predictive maintenance, and remote control. These innovations not only optimize performance but also align with the broader industry movement toward digital transformation. As industries adopt smarter systems, the ability to remotely control and monitor chiller performance becomes increasingly critical, enhancing operational efficiency and reducing downtime.

The U.S. modular chillers industry sees moderate trade activity, with imports mainly from countries such as China, Mexico, Germany, and South Korea, supplying components and high-efficiency units. Domestic manufacturing remains strong, supported by local demand and regulatory standards. Exports are modest, primarily serving Latin America and the Middle East. Trade dynamics are shaped by energy efficiency regulations, refrigerant policies, and ongoing efforts to localize supply chains.

Drivers, Opportunities & Restraints

The U.S. modular chillers industry is propelled by a growing emphasis on energy efficiency and sustainability. Technological advancements, such as the integration of IoT and AI, enable real-time monitoring and predictive maintenance, enhancing operational efficiency. In addition, stringent environmental regulations and a shift towards low-GWP refrigerants are encouraging industries to adopt eco-friendly cooling solutions. These factors collectively drive the demand for modular chillers across commercial, industrial, and residential sectors.

Despite their advantages, modular chillers face challenges due to high initial capital investment and installation costs. The complexity of integrating advanced systems into existing infrastructures and the need for specialized maintenance can deter potential adopters, especially in price-sensitive markets. These factors may impede the widespread adoption of modular chillers, particularly among small and medium-sized enterprises.

The increasing trend towards smart building technologies presents significant opportunities for modular chillers. By integrating with IoT-enabled systems, these chillers can offer enhanced energy management, real-time diagnostics, and remote monitoring capabilities. This synergy aligns with the growing demand for intelligent infrastructure and positions modular chillers as a key component in modern, sustainable building solutions.

Product Insights

The water-cooled modular chillers segment led the market and accounted for 56.8% of the total market share in 2024. The market is experiencing gradual growth as industries and commercial facilities seek efficient, scalable cooling solutions. These systems utilize water, often mixed with glycol, to cool refrigerant via a condenser and cooling tower setup. Because they rely on the ambient wet-bulb temperature, which is typically lower than the dry-bulb temperature used by air-cooled systems, water-cooled modular chillers operate more efficiently with lower condensing temperatures and pressures.

The demand for modular chillers, particularly air-cooled models, is projected to rise globally during the forecast period, driven by their ability to operate efficiently at extremely low temperatures. Unlike water-cooled chillers, air-cooled modular chillers do not rely on cooling towers, eliminating the operational challenges often encountered during the winter season. In addition, the growing concern over water scarcity is expected to boost the adoption of air-cooled modular chillers further, as they do not require water for cooling.

End-use Insights

The commercial end use segment led the market and accounted for 49.3% of the total market share in 2024. Modular chillers are increasingly being adopted in commercial applications due to their flexibility, energy efficiency, and ability to meet diverse cooling demands. In office buildings, shopping malls, and hotels, modular chillers provide a scalable solution for centralized cooling, allowing for gradual expansion or adjustment based on changing needs.

In industrial applications, modular chillers are essential for maintaining precise temperature control across a wide range of processes and equipment. These systems are widely adopted in manufacturing facilities, chemical plants, and heavy industrial settings to cool machinery, regulate ambient conditions, and support consistent production quality. Unlike traditional centralized systems, modular chillers offer the advantage of scalability and flexibility, allowing industrial operators to expand or adjust capacity in response to changing operational needs.

Application Insights

The cooling application segment held a 65.3% market share in 2024. Modular chillers are increasingly being used for a variety of cooling applications across industries, owing to their flexibility, energy efficiency, and scalability. These systems are ideal for cooling large spaces in commercial, industrial, and residential environments, providing a reliable solution for temperature regulation without the need for extensive cooling infrastructure. For instance, in large data centers, modular chillers are used to maintain optimal operating temperatures for servers and electronic equipment, preventing overheating that could lead to equipment failure.

Modular chillers designed for simultaneous heating and cooling applications are increasingly being adopted in environments that require precise temperature control across different zones. These systems, often referred to as "simultaneous heating and cooling" (SHC) units, are highly efficient for facilities like hospitals, hotels, and large commercial buildings where different areas may have different temperature needs at the same time.

Key U.S. Modular Chillers Company Insights

Some of the key players operating in the U.S. modular chillers industry include Trane (Trane Technologies plc), Carrier, and Daikin Industries, Ltd.

• Trane is a member of the Ingersoll Rand family of brands. The company operates its business in two segments, namely climate and industrial. The industrial segment offers products and services that enhance energy efficiency, operations, and productivity. It includes power tools, compressed air & gas systems, fluid management systems, material handling systems, and utility & low-speed consumer vehicles. The climate segment provides energy-efficient products and services, including heating, ventilation, and air conditioning (HVAC) systems. The company is engaged in the manufacturing of residential, industrial, and commercial HVAC systems. It offers products, such as HVAC accessories, thermostat controls, ductless systems, geothermal systems, packaged systems, heat pumps, coils, gas & oil furnaces, air handlers, and air conditioners.

• Carrier is a provider of healthy, safe, sustainable, intelligent building and cold chain solutions. The company was acquired by United Technologies Corporation in 1979, but it was spun off as an independent company in April 2020. Carrier provides heat pumps, air conditioners, boilers, furnaces, air purifiers, humidifiers, dehumidifiers, ventilators, air scrubbers, thermostats, UV lamps, energy services, and building controls to retail, commercial, transport, and foodservice sectors. The company is engaged in providing refrigeration; Heating, Ventilating &; Air Conditioning (HVAC); fire; security; and building automation technologies. Carrier markets its products through more than 75 brands, holds over 14,000 active and pending patents globally, and has customers in over 160 countries.

• DAIKIN INDUSTRIES Ltd. manufactures and sells air conditioning systems and chemical products. The company owns 313 consolidated subsidiaries worldwide and offers air-conditioning systems, room heating & heat pumps, hot water supply systems, room air conditioning systems, packaged air-conditioning systems, and air conditioning systems for plants, facilities, and office buildings. It also provides low & medium-sized air conditioning systems, water chillers, air purifiers, humidity-adjusting air processing units, marine-type container refrigeration systems, and air handling units. The company has more than 90 production bases worldwide, and its products are sold in over 150 countries.

The Climate Control Group, Inc. and WaterFurnace are some of the emerging market participants in the U.S. modular chillers industry.

• The Climate Control Group (CCG is a diverse HVAC manufacturer designing and producing energy-efficient climate control products for commercial and residential applications. The company encompasses four primary brands- ClimateMaster, International Environmental Corporation (IEC), ClimateCraft, and ClimaCool-each specializing in areas such as geothermal and water source heat pumps, custom air handling units, modular chillers, and fan coil systems. The company serves various industries, including healthcare, education, hospitality, and residential markets. It operates a large manufacturing facility in Oklahoma City and maintains a wide network of distributors and service professionals. The company was acquired by NIBE Industrier AB in 2016.

• WaterFurnace International is engaged in the manufacture of geothermal and water source heat pumps, among other products, for residential, commercial, and industrial applications. Its product portfolio includes a broad range of water-to-air and water-to-water heat pumps, chillers, and dedicated outdoor air systems, designed for energy efficiency, precise climate control, and integration with smart building technologies. Acquired by NIBE Industrier AB in 2014, WaterFurnace operates independently as the North American hub for NIBE’s energy business.

Recent Developments

• In March 2025, Daikin Applied, a part of DAIKIN INDUSTRIES Ltd, acquired Modular Comfort Systems, a New York-based company that specializes in modular HVAC solutions. This acquisition strengthens Daikin’s presence in the modular HVAC market and enhances its ability to deliver advanced, energy-efficient solutions to commercial customers in the region.

• In February 2025, Mechanical partnered with ChillMaster to expand its modular chiller offerings. This collaboration allows ACI Mechanical to provide a broader range of energy-efficient, scalable, and reliable modular chillers to its customers. By integrating ChillMaster’s advanced modular chiller technology, ACI Mechanical aimed to enhance its HVAC solutions for commercial and industrial projects, delivering flexible and sustainable cooling systems that meet diverse application needs. This partnership strengthens both companies’ market presence and supports growing demand for modular, efficient cooling solutions.

U.S. Modular Chillers Market Report Scope

U.S. Modular Chillers Market Report Segmentation

This report forecasts revenue growth at a country level and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2035. For this study, Grand View Research has segmented the U.S. modular chillers market report based on product, end-use, and application:

• Product Outlook (Revenue, USD Million, 2018 - 2035)

  • Water Cooled

    • <50kW

    • 51-100kW

    • 101-200kW

    • 201-300kW

    • >301kW

  • Air Cooled

    • <50kW

    • 51-100kW

    • 101-200kW

    • 201-300kW

    • >301kW

• End-use Outlook (Revenue, USD Million, 2018 - 2035)

  • Commercial

    • Corporate Offices

    • Data Centers

    • Public Buildings

    • Mercantile & Service

    • Healthcare

    • Others

  • Residential

  • Industrial

    • Chemical

    • Food & Beverage

    • Metal Manufacturing & Machining

    • Medical & Pharmaceutical

    • Plastics

    • Others

• Application Outlook (Revenue, USD Million, 2018 - 2035)

  • Cooling

  • Heat Recovery

  • Heat Pump

  • Simultaneous Heating And Cooling