- Summary
- Table Of Content
- Methodology
Chilled Water Storage System Market Size:
Chilled Water Storage System Market size is estimated to reach over USD 6,076.89 Million by 2032 from a value of USD 3,907.39 Million in 2024 and is projected to grow by USD 4,061.18 Million in 2025, growing at a CAGR of 6.1% from 2025 to 2032.
Chilled Water Storage System Market Scope & Overview:
Chilled water storage system or cool water storage system is a system that uses thermal energy storage (TES) to reduce peak power demand during high-cooling periods. Cool water storage systems allow chilled water to be pumped from the storage tanks and circulate through the cooling system which helps in providing the necessary cooling capacity. Further, the storage system results in smaller footprints of the chillers as the storage can provide a portion of the peak cooling load. Moreover, the rising adoption of chilled water systems in manufacturing processes to maintain precise temperature control is driving the market.
Chilled Water Storage System Market Dynamics - (DRO) :
Key Drivers:
Rising Utilization of Cool Water Storage System for District Cooling is Propelling the Chilled Water Storage System Market Growth
Cool water storage systems utilize larger tanks that require stronger and durable materials namely stainless steel, which has a higher upfront cost. Moreover, the pumps and pipes used to circulate the water from the storage can add up to the overall investments costs. Further, installation and labor charges can also add up to the initial investment costs which can act as a restraint.
Thus, high initial investment investments due to material costs and pumps and pipes installation cost act as a restraint to the chilled water storage system market expansion.
Key Restraints:
High Initial Investment Are Restraining the Chilled Water Storage System Market Growth
Cool water storage systems utilize larger tanks that require stronger and durable materials namely stainless steel, which has a higher upfront cost. Moreover, the pumps and pipes used to circulate the water from the storage can add up to the overall investments costs. Further, installation and labor charges can also add up to the initial investment costs which can act as a restraint.
Thus, high initial investment investments due to material costs and pumps and pipes installation cost act as a restraint to the chilled water storage system market expansion.
Future Opportunities :
Rising Utilization of Cool Water Storage System for Cooling of Data Centers is Expected to Drive the Chilled Water Storage System Market Opportunities
Water-cooled chillers are utilized in data centers to cool servers particularly during peak hours when electricity costs are higher. Further, the chillers utilize storage tanks namely buffer tanks to provide additional volume in closed water system. Moreover, the extra water capacity helps in reducing cycling of compressor units, which in turn improves temperature control in data centers.
- For instance, Wessels offers chilled water buffer tanks that provide buffer capacity for the chilled water system to maintain proper temperature control.
Thus, the rising utilization of cool water storage system in data centers due to efficient cooling of servers is projected to drive the chilled water storage system market opportunities during the forecast period.
Chilled Water Storage System Market Segmental Analysis :
By Storage Type:
Based on the storage type, the market is segmented into stratified storage, buffer tank, multi tank storage, ice on coil storage, and others.
Trends in the storage type:
- Increasing adoption of stratified storage for building cooling is driving the chilled water storage system market share.
- Rising utilization of buffer tank made of galvanized steel for protection against corrosion is driving the chilled water storage system market trends.
Stratified storage accounted for the largest revenue share of 55.80% in the year 2024.
- In stratified storage, there has been a rising trend of compact designed tanks to help with space constraints which has resulted in the chilled water storage system market expansion.
- Additionally, there has been a rising adoption of stratified storage tanks that are custom built for varying degree of operating temperatures which is driving the market.
- For instance, Sailer GmbH manufactures custom designed stratified tanks with operating temperatures of -50 °C to 110 °C and volume of 100 to 100,000 liters.
- According to the market analysis, the rising advancements related to stratified storage due to compact design and varying degree of operating temperatures is driving the chilled water storage system market trends.
Buffer tank is anticipated to register the fastest CAGR during the forecast period.
- Buffer tanks have experienced a rising adoption in HVAC systems to provide additional fluid volume in the systems which has driven the chilled water storage system market demand.
- Moreover, manufacturers have started offering buffer tanks that feature a vertical internal baffle to encourage proper mixing of fluid as per the market trends.
- For instance, AO Smith offers chilled water buffer tank with capacities ranging from 120 to 1,00 gallons vertical internal baffle.
- Thus, as per the analysis, rising adoption of buffer tank due to prevent freezing of water is driving the global chilled water storage system market.
By End User:
Based on the end user, the market is segmented into industrial, retail, power generation, healthcare, data centres, and others.
Trends in the end user:
- Increasing adoption of chilled water storage system in industrial sector for manufacturing of plastic is driving the market trends.
- Rising adoption of chilled water storage system in data centers due to reduced carbon footprint is driving the market growth.
Industrial accounted for the largest revenue share in the year 2024.
- Chilled water is extensively used in industrial applications namely cooling machinery and metal production, which has driven the global chilled water storage system market.
- Further, the increasing utilization of chilled water storage system for cooling fluids including chemicals and oils which can reach high temperatures, is driving the market.
- Moreover, there has been a rise in the industrial sector due to technological advancements and infrastructure development which is driving the chilled water storage system market demand.
- For instance, according to the National Bureau of Statistics of China, in April 2025, the Y-o-Y growth rate of industrial value added stood at 6.1%. The rising industrial sector is expected to boost the market as cool water storage systems are typically used for cooling of equipment.
- Therefore, the increasing demand for cool water storage system due to use in cooling of machinery and fluids is driving the chilled water storage system market size.
Data Centres is anticipated to register the fastest CAGR during the forecast period.
- Thermal energy storage is being increasingly utilized in data centres for cooling of servers and storage systems including HDDs and SSDs.
- Moreover, the growth in electricity consumption experienced by data centres for cooling systems is driving the market as thermal energy storage system, which can help reduce the electricity costs.
- For instance, according to a report by EPRI, cooling systems compose of about 30%-40% of data center energy consumption. The growth in data center energy consumption is expected to boost the market share as more businesses integrate thermal energy storage for reducing energy consumption.
- According to the chilled water storage system market analysis, the rising trend in the adoption of cool water storage system in data centres for cooling of servers and storage systems is propelling the chilled water storage system industry during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at 1,148.81 Million in 2024. Moreover, it is projected to grow by 1,197.07 Million in 2025 and reach over 1,841.30 Million by 2032. Out of this, China accounted for the maximum revenue share of 30.01%. As per the chilled water storage system market analysis, the growth in the Asia-Pacific region is primarily driven by the rising utilization of thermal energy storage system in the industrial sector.
- For instance, according to Ministry of Finance, the industrial sector in India experienced a growth of 9.5% in 2023-24. The rising industrial sector is expected to boost the overall market as water chillers and storage systems are used in factories to optimize energy usage.
North America is estimated to reach over USD 2,000.51 Million by 2032 from a value of USD 1,281.06 Million in 2024 and is projected to grow by USD 1,331.94 Million in 2025. In North America, the growth of chilled water storage system industry is driven by the increasing adoption of cool water storage system in food and beverage sector. Moreover, the increasing utilization of chilled water systems in hospitals has resulted in the rise of chilled water storage system market share.
- For instance, according to the American Hospital Association, in 2025, there are 6,093 hospitals in the U.S. The growing number of hospitals is expected to boost the market as the storage systems provide reliable cooling in hospital HVAC systems.
Additionally, the regional analysis depicts that the rising utilization of thermal energy storage in the healthcare sector to ensure proper cooling of medical samples is driving the market demand in Europe. Furthermore, as per the market analysis, the market demand in Latin America is expected to grow at a considerable rate due to rising retail sector. Middle East and African regions are expected to grow at a considerable rate due to factors such as growing utilization of the storage systems in data centers and rising economic growth among others.
Top Key Players and Market Share Insights:
The global chilled water storage system market is highly competitive with major players providing solutions to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the chilled water storage system market. Key players in the chilled water storage system industry include-
- Johnson Controls (U.S.)
- Araner (U.A.E.)
- Turbine Air Systems (U.S.)
- Sailer GmbH (Germany)
- Trane Technologies plc (Ireland)
- Daikin Industries, Ltd. (Japan)
- DN Tanks (U.S.)
- MCQUAY AIR-CONDITIONING LTD. (China)
- Ice Energy (U.S.)
- Baltimore Aircoil Company, Inc. (U.S.)
Recent Industry Developments :
Agreements:
- In July 2024, Johnson Controls, a leading provider of thermal energy storage system, announced that the company had reached an agreement to sell its residential and light commercial HVAC business to the Bosch Group. The total transaction was valued at USD 8.1 billion and was an all-cash transaction.
Business Expansion:
- In June 2024, Trane Technologies, a provider of chilled water systems and thermal energy storage systems, announced the opening of a new innovation centre in Germany. The center features heating and cooling solutions offered by Trane for industrial and commercial buildings and state-of-the-art equipment that allow for the heating and cooling units to be tested and maintained on site.
Chilled Water Storage System Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 6,076.89 Million |
| CAGR (2025-2032) | 6.1% |
| By Storage Type |
|
| By End User |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the chilled water storage system market? +
The chilled water storage system market was valued at USD 3,907.39 Million in 2024 and is projected to grow to USD 6,076.89 Million by 2032.
Which is the fastest-growing region in the chilled water storage system market? +
Asia-Pacific region is experiencing the most rapid growth in the chilled water storage system market.
What specific segmentation details are covered in the chilled water storage system market report? +
The chilled water storage system market report includes storage type, end user and region.
Who are the major players in the chilled water storage system market? +
The key participants in the chilled water storage system market are Johnson Controls (U.S.), Araner (U.A.E.), Daikin Industries, Ltd. (Japan), DN Tanks (U.S.), MCQUAY AIR-CONDITIONING LTD. (China), Ice Energy (U.S.), Baltimore Aircoil Company, Inc. (U.S.), Turbine Air Systems (U.S.), Sailer GmbH (Germany), Trane Technologies plc (Ireland), and Others.
