Closed Loop Chillers Market Size, Share, Forecast & Trends by Type (Small, Medium, Large), Configuration (Packaged, Modular, Split), End-Use (Pharmaceuticals, Food, Data Centers) - Global Forecast to 2035

Closed Loop Chillers Market Size

The global closed loop chillers market was valued at USD 4.3 billion in 2024.  The market is expected to reach USD 9.9 billion by 2035 from USD 4.6 billion in 2025, at a CAGR of 7.9%. This sustained growth is due to the rising demand for efficient and reliable cooling solutions, driven by regulatory emphasis on energy efficiency, the expansion of data centres, and increased adoption across pharmaceuticals, manufacturing, and other temperature-sensitive industries.

Other key growth drivers of the overall closed loop chillers market include stringent environmental regulations, rising adoption of IoT-enabled monitoring systems, and expansion of pharmaceuticals, biotechnology, and data center industries requiring contamination-free cooling operations. The industry outlook indicates steady growth, while the long-term forecast signals accelerated adoption as organizations prioritize sustainability and operational resilience.

Recent Developments in the Closed Loop Chillers Market and Insights

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Daikin Launches Glycol-Free Closed Loop System in TZ D Chiller Range

In October 2024, Daikin launched a zoned cooling system that no longer requires the use of glycol, improving operational effectiveness and serviceability. The system belongs to the TZ D air-cooled free-cooling line of chillers and potentially spans capacities as small as around 180 kW and up to 2,150 kW, depending on models, thus being suitable for large-scale installations with substantial heat load requirements.

Carrier India Introduces 30RB Air-Cooled Modular Scroll Chiller for Local Market

In May 2024, Carrier India has launched the 30RB Air-Cooled Modular Scroll Chiller, which is specifically designed for the Indian market. This chiller is highly efficient and reliable, supporting a wide range of industrial processes and contributing to the Indian government's "Vocal for Local" initiative.

Closed Loop Chillers Market Drivers

1. Increasing Demand for Energy-Efficient Cooling Solution: The global shift toward sustainability and cost optimization is accelerating demand for energy-efficient cooling solutions, particularly closed-loop chillers. Organizations across sectors such as data centres, pharmaceuticals, and advanced manufacturing are prioritizing systems that reduce energy consumption while ensuring precise thermal management. Regulatory frameworks on carbon emissions and operational efficiency targets are further compelling industries to replace traditional cooling technologies with advanced, eco-friendly alternatives. This transition not only supports environmental compliance but also delivers measurable cost savings through reduced power usage and lower lifecycle operating expenses, positioning energy-efficient cooling as both a strategic investment and a competitive differentiator in modern industrial infrastructure.
2. The expansion of Automation in Industry: The rapid expansion of automation across industries is transforming operational frameworks and driving the need for advanced cooling infrastructure, such as closed-loop chillers. Automated manufacturing lines, robotics, and smart factories operate with high-precision equipment that generates continuous heat, requiring reliable and energy-efficient thermal management systems. As industries adopt Industry 4.0 technologies, including AI-driven production, IoT-enabled monitoring, and advanced robotics, the dependency on uninterrupted cooling solutions intensifies to maintain equipment performance, reduce downtime, and extend asset lifecycles. This shift reinforces the integration of closed-loop chillers into the backbone of modern industrial operations.
3. Strict Environmental Laws: The tightening of environmental regulations worldwide is a key driver reshaping industrial cooling strategies, compelling businesses to adopt eco-friendly and energy-efficient solutions such as closed-loop chillers. Governments are enforcing stricter standards on greenhouse gas emissions, water usage, and energy efficiency, placing pressure on industries to phase out traditional open-loop or high-emission cooling systems. Closed-loop chillers align with these mandates by minimizing water waste, reducing refrigerant leakage, and lowering carbon footprints, making them a preferred choice for companies aiming to meet ESG commitments while safeguarding competitiveness.

Table: Key Factors Impacting Growth of Closed Loop Chillers Market (2025–2035)

Base CAGR: 7.9%

Closed Loop Chillers Market Analysis

North America Leads the Closed Loop Chillers Market

North America closed loop chillers market is growing at a CAGR of 6.8% CAGR through 2035. This growth is primarily attributed to its advanced industrial infrastructure, particularly in high-tech sectors like data centres and pharmaceuticals, which require highly reliable and precise cooling.

• The rapid growth of cloud computing and AI is leading to a surge in data centre construction, further bolstering the demand for liquid cooling solutions. Furthermore, strict government regulations and efficiency standards in the U.S. and Canada, such as those from the Department of Energy, compel industries to invest in modern, high-efficiency chiller systems.
• Moreover, the region benefits from extensive industrial infrastructure and increasing focus on energy conservation amid rising operational costs, prompting widespread adoption of energy-efficient cooling technologies.
• Government initiatives aimed at reducing water consumption and carbon emissions accelerate the transition from conventional open-loop systems to environmentally controlled closed-loop alternatives.
• The pharmaceutical sector also represents one of the key demand drivers, requiring precise temperature control for drug production and research activities.
• Federal incentives for green buildings and smart HVAC installations also encourage early adoption of advanced cooling systems.

This combination of a mature industrial base, supportive regulations, and technological developments solidifies North America's position in closed-loop chillers market.

Advanced Manufacturing Excellence and Energy Efficiency Leadership Drive Closed Loop Chillers Market in Japan

Japan's closed loop chillers market is expected to grow at a steady CAGR of 7.6% through 2035, owing to the country's advanced manufacturing ecosystem and technological leadership in precision industries.

• The Japanese closed loop chillers market benefits from its investments in energy efficiency and environmental sustainability, reflected in government initiatives promoting carbon footprint reduction and adoption of next-generation cooling technologies.
• Japanese manufacturers including Daikin Industries, Mitsubishi Electric Corporation, and Hitachi lead in developing energy-efficient solutions featuring advanced refrigerants, IoT-enabled monitoring, and predictive maintenance capabilities.
• The pharmaceutical and biotechnology industries represent growing market segments, with Japan's aging population driving increased demand for drug manufacturing requiring precise temperature control.

Thus, the market forecasts project that the country is expected to witness sustained growth, supported by smart manufacturing initiatives, sustainability regulations, and increasing investments in precision manufacturing technologies across multiple sectors.

Closed Loop Chillers Market Segmental Analysis

By Configuration, the Packaged Segment Dominates the Overall Closed Loop Chillers Market with a 40-45% Share in 2025

The packaged segment holds the largest share of 40-45% of the overall closed loop chillers market in 2025. This dominance mainly comes from its compact design, quick installation, and minimal on-site assembly needs. A key trend in the packaged chillers segment is the growing integration of smart technologies. Industry leaders are adding IoT-powered monitoring solutions and AI-based predictive maintenance features to improve performance and operational efficiency. For example, Factech offers facility maintenance software that uses IoT and AI to optimize chiller plant operations. This system provides real-time performance data and allows operators to adjust settings remotely, leading to significant energy savings and less maintenance time.

By End-Use Industry, the Pharmaceuticals Segment Holds 25-30% Share of the Closed Loop Chillers Market

The pharmaceuticals end user segment is expected to account for 25-30% of the overall closed loop chillers market in 2025. This substantial share comes mainly from the strict environmental standards in pharmaceutical manufacturing. These standards require careful control of temperature, humidity, and contamination-free conditions. Pharmaceutical facilities prefer closed loop chillers because they offer stable and consistent temperature control, high energy efficiency, and low maintenance needs. These features are vital for following Good Manufacturing Practices (GMP) and ensuring product quality. Keeping controlled environments with temperatures around 15°C to 25°C and tightly controlled humidity levels is crucial. This helps preserve the integrity and effectiveness of pharmaceutical products, prevents microbial contamination, and meets regulatory requirements.

New technological developments, such as IoT-based real-time condition monitoring and predictive maintenance using artificial intelligence, have sped up the adoption of closed loop chillers. For example, Johnson Controls’ OpenBlue Connected Chillers have shown energy consumption cuts of up to 10% and maintenance cost savings of 67% in corporate pharmaceutical facilities. This digital platform uses AI-driven analytics to provide insights that improve chiller performance, reduce downtime, and cut operational costs.

Similarly, AI-powered platforms from Carnot Innovations have achieved steady annual energy savings of about 10% in various industrial and commercial facilities. This demonstrates how intelligent systems can promote sustainability and save money.

Report Specifications:

Market Segmentation

• By Capacity
  • Small (20 tons)
  • Medium (20-100 tons)
  • Large (>100 tons)
• By Configuration
  • Packaged
  • Modular
  • Split system
• By End-Use Industry
  • Food & beverages
  • Plastics
  • Pharmaceuticals
  • Data centers
  • Industrial manufacturing
  • Chemicals & petrochemicals
  • Other End-Use Industries

Key Questions Answered in the Report: