Absorption Chiller Market

Absorption Chiller Market Outlook (2024 to 2034)

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

• Absorption chillers are deployed in industries such as chemicals, food & beverages, petroleum, power, and pulp & paper, as well as data centers and commercial buildings to regulate temperature and ensure efficiency in operations.
• Demand for affordable cooling options is growing, which is contributing to the expansion of the absorption chiller market size. Absorption chillers are preferred for their low maintenance and operating costs, silent and vibration-free operation, and other beneficial features.
• Use of absorption chillers in the petrochemical industry, in particular, is rising fast.
• Since absorption chillers are more ecologically friendly than traditional vapor compressors due to fewer pollutant and hazardous gas emissions, rigorous regulations governing cooling solutions are another key driver for absorption chiller market growth.
• Absorption chiller manufacturers are looking to invest in developing countries as they present a wealth of opportunities for the manufacturing sector.

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.

Which Industries Extensively Use Absorption Chillers?

“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.

• Governments worldwide, particularly in developing countries, provide financial assistance and policy support to establish and expand the domestic industrial sector. For example, in October 2022, Argentina launched the Argentine Credit Program, a US$ 3.2 billion scheme to help SMEs and large industrial and agro-industrial companies grow, attract investments, and replace imports. This support increases the number of industrial facilities, creating market opportunities for absorption chillers.

What are the Challenges Faced by Manufacturers of Absorption Chillers?

“High Installation Cost and Maintenance Complexities”

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.

Country-wise Insights

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.

Why is There Significant Demand for Absorption Chillers in the United States?

“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.

Why is China an Attractive Market for Absorption Chiller Manufacturers?

“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.

Category-wise Insights

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.

Which Type of Absorption Chiller is Most Widely Preferred for Use?

“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).

Why are Manufacturers Focusing More on Industrial Absorption Chillers?

“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.

Competitive Landscape

Key players in the absorption chiller market 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.

• Johnson Controls, Inc. creates and manufactures standard and customized air-handling systems, rooftop systems, and sustainable environments, as well as lead-acid and lithium-ion batteries, building efficiency and technology solutions, and HVAC equipment like absorption chillers. They also provide training, maintenance, leasing, and repairs.
• Carrier Corporation manufactures commercial refrigeration systems. Refrigeration systems consist of air-cooled condensing units, absorption chillers, air-cooled gas coolers, compressor racks, multi-rack compressors, heating systems, and heat exchangers. Their applications include cash and carry, supermarkets, hypermarkets, discount stores, persuade stores, small merchants, and distribution centers.

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.

Segmentation of Absorption Chiller Market Research

• By Power Source :

  • Direct Fired
  • Hot Water Heated
  • Steam Heated
  • Gaseous Fuel Powered

• By Absorber Type :

  • Lithium Bromide
  • Ammonia

• By Technology :

  • Single Stage
  • Double Stage

• By End Use :

  • Residential
  • Commercial
  • Industrial

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Middle East & Africa