South Korea Chiller Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

South Korea Chiller Market Growth

The market growth of chillers can be attributed to the increasing demand for efficient HVAC systems, a rise in environmental awareness, increasing frozen food consumption, urbanization, and advancements in technology. Additionally, inverter chillers and energy-efficient chillers are gaining traction and propelling the demand of South Korea chiller market.

Prominent market players are introducing innovative chiller systems integrated with building management systems (BMS) designed for the country’s flourishing industrial, residential, and commercial facilities, to gain an edge in the market. For instance, In May 2024, LG Corp- a leader in HVAC systems launched the brand-new LG inverter scroller. It offers user-friendly features, and easy maintenance, monitoring, and analysis tools coupled with an R32 refrigerant with a relatively low global warming potential.

Moreover, ongoing research and development to achieve energy efficiency has enabled the creation of sustainable and environment-friendly alternatives to existing chiller technology and has fueled chiller demand. For instance, the Turbo-Brayton cooling system developed by Korean researchers at the Department of Energy Storage Systems in KIMM functions at ultra-low temperatures with zero GWP refrigerant, reducing greenhouse emissions. It will be further developed in the next three years for usage in different industries including semiconductors.

Key Trends and Recent Developments

Growing popularity of HVAC systems, increased frozen food consumption, extreme climate conditions, and rising transport sales are accelerating the South Korea chiller market value.

August 2024

South Korea-based LG Corp. launched its new oil-free chiller, the first of its kind, in South Korea. The chiller system is made of no-contact magnetic bearings which eliminate the need for oil lubrication. Further, another standout feature of the chiller system is the reduced noise it generates, estimated at 73 decibels only. It is known for its lightweight and compact structure, an in-built inverter that converts the current to the required voltage and frequency, as well as a refrigerant that has extremely low global warming potential (GWP). 

March 2024

Daikin Applied, a subsidiary of the Daikin Group, one of the major suppliers of chillers in South Korea launched the improved Navigator WWV water-cooled screw chiller with low-global warming potential (GWP) R-513A refrigerant. The chiller system can be paired with an optional Templifier TWV water heater for an energy and cost-efficient heat recovery solution as well. 

February 2024

The Korean Institute of Machinery and Materials (KIMM) successfully conducted the cooling test for a large-capacity, ultra-low temperature Turbo-Brayton chiller system using a zero global warming potential (GWP) refrigerant. Researchers from the institute developed the first-of-its-kind chiller system with a cooling capacity of over 10kW at -100 ^oC.

June 2022

Carrier China supplied 17 AquaEdge 19XR centrifugal chillers to South Korea’s SK Innovation Group for its new EV manufacturing plant. The chillers provide constant cooling for EV batteries, especially during the EV production process and work with reduced power consumption during the transitional periods.

The Popularity of HVAC Systems Driving Chiller Market Growth

HVAC (Heating, Ventilation, and Air Conditioning) systems are gaining popularity in South Korea owing to growth in the industrial and residential sectors. These systems provide complete temperature regulation and primarily operate on efficient chiller technologies. Key market players are increasingly investing in the development and sale of HVACs, driving the growth of the South Korea chiller market. For instance, leading South Korean electronics brand LG, announced its plan to more than double the sales volume of its residential and commercial HVAC business by 2030.

Increased Frozen Food Consumption Creating New Market Opportunities

The demand for instant frozen food is increasing in the country owing to the busy lifestyle of the South Korean population. Supermarkets and grocery stores are employing the best quality chillers to enhance the shelf life of processed frozen food for a long time. This coupled with the rise of the food processing sector is driving the chiller market demand growth in the country. According to the US Department of Agriculture, over 31,000 food processing companies were operating in South Korea in 2023, generating a total revenue of USD 63.3 billion. This value is expected to rise in the coming years, thereby propelling the chiller market growth.

Extreme Climate Conditions Boosting the Chiller Market Share in South Korea

South Korea, being a tropical nation, records a hot and humid climate throughout the year, increasing the requirement for chillers across industrial, residential, and commercial sectors. With the increasing effects of climate change making the weather conditions more extreme and unprecedented, chillers are expected to become a necessity in the coming years, thereby propelling market growth.

Growing Transport Sales Positively Impacting Market Revenue

Chillers have a high demand in the automobile industry as they serve several applications including acting as a coolant for battery liquids and operating air conditioner units. Therefore, growth in the transportation sector is expected to have a positive impact on the South Korea chiller market revenue. According to Statistics Korea, a government organization, the annual sales recorded in the “Transportation and Storage” industry were 232.5 trillion in 2022. The value is expected to rise further considering the increasing urbanization in the country.

South Korea Chiller Industry Segmentation

“South Korea Chiller Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type of Cooling

• Water Cooled 
• Air Cooled

Market Breakup by Compressor Type

• Screw Chillers 
• Scroll Chillers
• Reciprocating Chillers
• Centrifugal Chillers
• Absorption Chillers

Market Breakup by End Use

• Food and Beverage
• Chemicals and Petrochemicals
• Medical and Pharmaceutical
• Plastics
• Others 

South Korea Chiller Market Share

Based on end-use, the market is mainly divided into food and beverage, chemicals and petrochemicals, medical and pharmaceutical, and plastics. The chemicals and petrochemicals sector holds a dominant position in the market and is expected to grow at a CAGR of 5.4% in the forecast period. Industrial chillers are deployed on a large scale in this sector to reduce extreme heat exposure, protect equipment, minimize production downtime, provide cooling, and facilitate transportation.

The need for refrigeration and cooling systems is rapidly growing in other sectors such as food and beverage, medical, and pharmaceutical as well, driving demands for chillers and other alternatives. The food production industry has been increasingly implementing chilling machines due to the rising consumption of frozen and packaged foods. Thus, the food and beverage industry is expected to grow at a CAGR of 5.7% between 2024-2032.

Leading Companies in South Korea Chiller Market

Market players are constantly developing technology to meet industrial standards for chiller systems.

• Daikin Industries Ltd.
• Carrier Global Corp.
• LG Corp
• Daeil Co. Ltd.
• Trane Technologies Plc
• Mitsubishi Electric Corporation
• Others

South Korea Chiller Market Report Snapshots

South Korea Chiller Market Size

South Korea Chiller Market Growth

South Korea Chiller Market Share

South Korea Chiller Companies