Analysis of Absorption Chiller Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Global absorption chiller market revenue is projected to reach US$ 1.69 billion in 2024. The market has been forecasted to increase to a value of US$ 2.64 billion by the end of 2034, expanding at a CAGR of 4.6% over the next ten years (2024 to 2034).
The market for absorption chillers is being driven by rising industrialization and urbanization, especially in developing countries. Reliability and efficiency in cooling systems are in high demand as cities are expanding and industrial activities are rising. To guarantee operational effectiveness and product quality, the chemical, pharmaceutical, and food and beverages industries as well as large commercial buildings all need dependable cooling systems. In these industries, absorption chillers are particularly desirable because they provide reliable cooling even in locations with erratic electrical supplies.
Key Market Growth Drivers
| Report Attribute | Detail |
|---|---|
| Absorption Chiller Market Size (2024E) | US$ 1.69 Billion |
| Projected Market Value (2034F) | US$ 2.64 Billion |
| Global Market Growth Rate (2024 to 2034) | 4.6% CAGR |
| East Asia Market Share (2024E) | 26.9% |
| North America Market Share (2024E) | 32.4% |
| Sales of Hot Water Heated Absorption Chillers (2034F) | US$ 552.6 Million |
| Commercial Usage Segment Value (2034F) | US$ 1.48 Billion |
| Key Companies Profiled | Robur Corporation; Trane, Inc.; Carrier Corporation; LG Electronics, Inc.; Thermax Limited; Shuangliang Eco-Energy Systems Co. Ltd.; Kawasaki Thermal Engineering Co., Ltd.; Hyundai Climate Control Co. Ltd; Yazaki Corporation; World Energy; BROAD Group; EAW Energieanlagenbau GmbH; Colibri BV; Johnson Controls; Hitachi Air Conditioning; Helioclim; MultiChill Technologies Inc.; Kirloskar Pneumatic Company Ltd.; Century Corporation. |
“Extensive Use in Food & Beverages, Pharmaceuticals, Power Plants, and Petrochemicals”
Industries such as food and beverages, pharmaceuticals, power plants, petrochemicals, and metal fabrication extensively use absorption chillers. In power plants and petrochemical industries, high-temperature processes utilize steam, hot water, and other energy sources ideal for absorption chillers. Furthermore, the excessive heat generated by industrial machinery during these processes requires cooling to ensure the machinery's longevity, thus driving the demand for industrial chillers, including absorption chillers.
“High Installation Cost and Maintenance Complexities”
The popularity of absorption chillers has increased significantly over the years. However, their high installation costs and maintenance complexities previously limited their usage to large industrial facilities with waste heat sources. These expenses are a key challenge to market expansion. The high cost of these chillers makes it difficult for businesses, especially small ones, to invest in them.
Maintaining cooling solutions such as absorption chillers is complex and costly, requiring specialized skills and regular attention, which is particularly challenging for industries where downtime results in significant financial losses. The global absorption chiller industry is restricted by higher initial installation costs. Additionally, the development of the industry is hindered by two main factors: increasing electricity rates and power shortages.
North America is expected to hold a global absorption chiller market share of 32.4% in 2024. Given the significant growth in the use of absorption chillers in the food processing and petroleum industries, North America is a highly profitable region for absorption chiller manufacturers. Increasing use of environmentally friendly cooling equipment in a range of end-use industries, including plastics, rubber, chemicals & petrochemicals, and medical & pharmaceutical, is driving up demand for absorption chillers in North America. East Asia is expected to hold a market share of 26.9% in 2024. The steady demand from the frozen food industry is also projected to fuel the growth of the European absorption chiller market.
“Government Supporting Use of Absorption Chillers by Incentivizing Them”
| Attribute | United States |
|---|---|
| Market Value (2024E) | US$ 427.2 Million |
| Growth Rate (2024 to 2034) | 4.4% CAGR |
| Projected Value (2034F) | US$ 656 Million |
The United States is expected to account for 78.2% of the North American market in 2024. The country has a diverse industrial landscape, which includes manufacturing, technology, and services. This diversity creates demand for cooling solutions in various areas, such as non-industrial and industrial processes. Absorption chillers are a popular choice for these applications because they align with the energy efficiency and environmental sustainability goals that are highly valued in the United States market.
The government is providing incentives and regulations to promote energy-efficient cooling systems, which is a key absorption chiller market trend. Consequently, the United States is leading in the adoption of advanced and sustainable cooling technologies and has a decent market share in the absorption chillers industry.
“Rising Demand for Absorption Chillers in Pharmaceutical Industry”
| Attribute | China |
|---|---|
| Market Value (2024E) | US$ 211.8 Million |
| Growth Rate (2024 to 2034) | 4.6% CAGR |
| Projected Value (2034F) | US$ 332.2 Million |
Industrial growth in China is boosting demand for efficient cooling systems in various sectors. As these countries face environmental challenges, they are prioritizing energy efficiency and sustainability. Absorption chillers are a greener alternative. The need for energy-efficient cooling solutions is a significant contributor to absorption chiller market growth.
Due to supportive government policies and growing populations, pharmaceutical production has surged in China. Due to their susceptibility to bacterial and pathogen infestation, the products produced by these industries must be kept in cold storage. Absorption chillers are thus used in these industries for cold storage maintenance and, more crucially, for cooling machinery.
The market for absorption chillers is categorized into direct-fired, hot water heated, steam heated, and gaseous fuel-powered, of which the first one is estimated to account for 35.3% market share in 2024. Meanwhile, steam-heated absorption chillers are expected to hold 24.4% share in 2024. In terms of their end use, the market is segmented into residential, commercial, and industrial. Commercial absorption chillers come in two varieties: single-stage and double-stage models. A single generator and a condenser are used in a one-stage system. Double-stage technology is likely to be replaced, as absorption chillers with COP values as high as 1.8 are available in the market.
“Preference for Direct Fuel-Fired Double-Effect Machines”
| Attribute | Direct Fired Absorption Chillers |
|---|---|
| Segment Value (2024E) | US$ 595.2 Million |
| Growth Rate (2024 to 2034) | 4.5% CAGR |
| Projected Value (2034F) | US$ 928 Million |
Direct fuel-fired double-effect machines have a furnace as an integral part of the high-temperature generator, where a variety of liquid or gaseous fuels can be fired to drive the absorption machine. Natural gas, liquid petroleum gas (LPG), compressed natural gas (CNG), propane, kerosene, and biogas & high-speed diesel (HSD).
“Extensive Industrial Application of Absorption Chillers Due to Their Energy-efficiency Benefit”
| Attribute | Industrial Chillers |
|---|---|
| Segment Value (2024E) | US$ 467.1 Million |
| Growth Rate (2024 to 2034) | 4.7% CAGR |
| Projected Value (2034F) | US$ 737.6 Million |
Industrial chillers are set to occupy a market share of 27.7% in 2024. Demand for efficient cooling systems and industrial refrigeration equipment has been on the rise due to the expanding industrial sector. Absorption chillers have emerged as a popular choice among various industries because of their versatility and effectiveness in meeting the cooling needs of different industrial applications.
Not only do absorption chillers aid in energy efficiency and absorption cooling, but they also contribute to environmental responsibility. Absorption chillers operate using a process that involves the absorption of refrigerant vapor into a solution and circulated to a generator where heat is applied to release the refrigerant vapor. This process has proven to be highly efficient and reliable in a variety of commercial cooling applications and has numerous benefits.
Key players in the absorption chiller industry are focusing on developing better absorption chillers that save cost and time for industrial and non-industrial applications. They are using advanced raw materials and employing expert engineers to improve the quality of their products.
Fact.MR provides detailed information about the price points of leading manufacturers of absorption chillers positioned across the world, sales growth, production capacity, and technological advancements, in this updated market report.
How big is the absorption chiller market in 2024?
Worldwide sales of absorption chillers are estimated to reach US$ 1.69 billion in 2024.
What are the demand growth projections for absorption chillers?
The global absorption chiller market is forecasted to expand at a CAGR of 4.6% to reach US$ 2.64 billion by 2034.
At what rate is the market projected to expand in the United States?
The market in the United States is forecasted to advance at 4.4% CAGR between 2024 and 2034.
What is the projected market size for absorption chillers in Japan?
The market in Japan is forecasted to reach US$ 190.6 million by the end of 2034.
How much market share does the commercial end-use industry account for?
Commercial end users are expected to account for 55.9% of the global market share by 2034.
What is the share of East Asia in the global market?
East Asia is forecasted to hold a market share of 26.9% in 2024.
Who are the key manufacturers of absorption chillers?
Kawasaki Thermal Engineering Co., Ltd., Hyundai Climate Control Co. Ltd, and Yazaki Corporation are some of the leading manufacturers of absorption chillers.
Absorption Chiller Market