The global chilled beam system market is anticipated at US$ 330 million in 2022. Demand is likely to remain high for chilled beam systems during the assessment period. This is due to the cost-effectiveness and energy efficiency of these systems garnering US$ 607.1 million in 2033, recording a CAGR of 5.7% from 2023 to 2033. The market is likely to secure US$ 348.8 million in 2023.

Key Factors Shaping the Demand Outlook of the Chilled Beam System Industry

·         Rising technological advances in industrial sectors to augment the growth of the chilled beam system market

·         Increasing industrialization and the emergence of smart cities in developing nations elevate the demand

·         Widening application of chilled beam system in the healthcare sector is expected to spur the growth

·         Growing advances in technology are expected to create new growth prospects for chilled beam system manufacturers.

Key Factors Shaping the Chilled Beam System Market

Demand for Energy-Efficient Solutions Impacting Chilled Beam System Sales

Rapid urbanization and industrialization in various developed and emerging economies are drastically increasing the rates of energy consumption across numerous diverse sectors. These sectors include residential, commercial, healthcare, education, hospitality, and industrial.

As per the United States Energy Information Administration, the electric power sector in the United States accounted for 96% of the total utility-scale electricity generation in 2022.

Various sectors have shown interest in the usage of chilled beam systems to facilitate overall cooling and heating in buildings without using separate air-conditioning equipment for each room or area as environmental pollution continues to rise.

Chilled beam systems can significantly improve energy efficiency in HVAC systems, and reduce excess consumption of energy and maintenance costs. These systems can be upgraded and designed around the existing cooling systems and are able to potentially reduce the reheat and fan energy required.

The energy efficiency and cost-effectiveness, of chilled beam systems prove space-saving benefits by reducing the surface area used by 50% in supply and return chases. It also reduces carbon footprint by 30 to 40% and increases the usability of floor space in buildings.

These factors are indicative of high demand for chilled beam systems in the forthcoming years, finds FMI in this report.

Increasing Applications of Chilled Beam Systems in Corporate Offices

In recent years, applications of chilled beam systems in corporate offices have increased significantly, and the trend is anticipated to prevail throughout the forecast period.

Growth is attributed to the growing need for replacing traditional cooling and heating systems such as fans and ventilators with advanced, cost-effective solutions that facilitate hassle-free ventilation.

The chilled beam systems reduce sounds and provide constant cooling and heating, which is imperative in corporate offices. These factors make chilled beam systems an ideal ventilation solution for offices, further driving their adoption in various old and new buildings.

What Are the Key Challenges Faced by Chilled Beam System Market?

Applications of chilled beam systems are rising at a considerable pace, however, a lack of awareness regarding the advantages of chilled beam systems in emerging economies may act as a restraining factor for market growth.

High initial costs pertaining to the installation and maintenance of chilled beam systems are restricting their adoption. Chilled beam systems save costs in terms of ductwork, fans, and additional controls, but the charges of pipe insulation, pumps, beams, and piping may fall on the expensive side.

There is a prevailing risk of water leakage through piping and valves, which might cause damage to ceilings and beam systems as chilled beams are water-based systems. The chilled beam systems lack air filters that are present in traditional HVAC systems which increases the chances of dust and particle deposits in valves and piping, leading to water contamination and foul odor.

What is Driving Chilled Beam Systems Market in the United States?

The adoption of chilled beam systems in the United States is relatively new as compared to European countries. Numerous end-users are expressing their interest in chilled beam systems owing to numerous benefits offered by chilled beam systems such as space-saving and highly sophisticated cooling distribution systems.

As per FMI's in-depth regional analysis, North American chilled beam systems market is projected to grow at a steady 5.6% CAGR, with a favorable demand outlook in the United States

The rapid development of commercial and residential projects will continue driving the adoption of chilled beam systems in the United States Rapid industrialization and government-backed initiatives to promote green buildings in the United States

Chilled beam systems effectively facilitate energy conservation, which in turn is driving its applications in healthcare facilities, research centers, laboratories, airports, shopping malls, and corporate offices.

Competitive Landscape

As per FMI’s market analysis, top 5 players operating in the chilled beam systems market comprise SAS International Limited, Lindab International AB, Halton Group, Trox GmbH, and Caverion Corporation, holding 58.5% of the total market share.

In August 2021, Johnson Controls, a global leader in smart and sustainable building solutions, announced a strategic collaboration with Apollo Global Management, a leading global asset manager, to provide sustainable and energy-efficient solutions in various sectors to address decarbonization and high operational costs in buildings.

In July 2021, Caverion Corporation acquired GTS Immobilien GmBH, a leading building automation service provider in Austria. Through this acquisition, Caverion is aiming to strengthen its market position in smart technologies and building automation solutions for diverse end-uses.