Absorption Chiller Market
Absorption Chiller Market Analysis by Direct-fired, Non-industrial, and Water-driven Power for Non-industrial and Industrial Use from 2023 to 2033
Analysis of Absorption Chiller Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Absorption Chiller Market Outlook (2023 to 2033)
Fact.MR has released a new study that places the global absorption chiller market size is valued at US$ 1.51 Billion in 2023, and is estimated to reach US$ 2.39 Billion by 2033, with a projected compound annual growth rate (CAGR) of 4.7% during the forecast period from 2023 to 2033.
Absorption chillers work differently from regular refrigeration systems. They use a process called absorption to produce cooling. Instead of mechanical compression, they rely on a power source, such as directly fired or water-driven, to evaporate a refrigerant in a liquid absorbent like lithium bromide or ammonia.
Absorption chillers are widely used in various industries such as chemicals, food & beverages, petroleum, power, and pulp & paper, as well as data centers and commercial buildings, to regulate temperature and ensure efficient operation, creating a burgeoning demand for the product.
| Report Attributes | Details |
|---|---|
| Absorption Chiller Market Size (2022A) | US$ 1.47 Billion |
| Estimated Market Value (2023E) | US$ 1.51 Billion |
| Forecasted Market Value (2033F) | US$ 2.39 Billion |
| Global Market Growth Rate (2023 to 2033) | 4.7% CAGR |
| China Market Growth Rate (2023 to 2033) | 6.1% CAGR |
| Lithium Bromide Segment Share (2023) | 86% |
| Key Companies Profiled |
|
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Sales Analysis of Absorption Chillers (2018 to 2022) vs. Market Projections (2023 to 2033)
Revenue from the sales of absorption chillers increased at a CAGR of 3% between 2018 and 2023. Popularity of absorption chillers has increased significantly over the years. In the past, their high installation costs and maintenance complexities limited their usage to large industrial facilities with waste heat sources.
Due to the rise of environmental concerns and strict regulations, absorption chillers have become more attractive as they operate in an eco-friendly manner, consume less electricity, and work well with renewable energy sources. This has led to their use in various industries and non-industries applications. The future looks promising for the market, with advancements in technology and cost-effective manufacturing techniques, which are expected to make these chillers more accessible to a wider range of customers.
- Short Term (2023 to 2026): All industries seek cost-effective and environmentally friendly chillers, making absorption chillers highly sought-after in the market. These chillers utilize natural sources and produce non-toxic absorbers.
- Medium Term (2026 to 2029): North America and Asia generate significant demand for absorption chillers due to their well-developed industrial sectors and high population density. These chillers utilize heat and water sources to produce cooling, contribute to pollution reduction, and mitigate the greenhouse effect.
- Long Term (2029 to 2033): Advanced lithium bromide and ammonia chillers facilitate efficient and durable cooling in various industries and are expected to drive long-term demand. Utilization of upgraded technology and incorporation of effective power sources like direct-fired and water-driven helps save energy and reduce costs.
The market is predicted to advance at a CAGR of 4.7% during the forecast period (2023 to 2033), as per this new report by Fact.MR, a market research and competitive intelligence provider.
Market Dynamics
What are the Main Absorption Chiller Market Trends?
“Low Power Consumption of Absorption Chillers Leading to Cost Savings”
Absorption chillers are becoming increasingly popular in various industries due to their low power consumption. They use natural power sources like direct-fired and water-driven to produce cooling, which saves businesses a lot of money. They are particularly useful for industries that require significant cooling, such as manufacturing plants, data centers, commercial buildings, hospitals and chemicals, food & beverages, and other industries.
“Ability of Absorption Chillers to Use Waste Heat”
Absorption chillers are becoming more popular due to their eco-friendly nature. Absorption chillers use waste heat, which reduces industrial waste. This feature is especially appealing to industries committed to sustainability and waste reduction. Absorption chillers usually use water as a refrigerant, eliminating the need for harmful chemicals found in conventional refrigeration systems. These systems are in high demand as a solution for businesses looking to reduce their environmental impact and contribute to a more sustainable future.
What are the Challenges Absorption Chillers Manufacturers Need to Tackle?
“High Installation and Maintenance Costs”
Installation and maintenance expenses of absorption chillers are seen as a key challenge to the expansion of the market. The high cost of these chillers makes it difficult for businesses, especially small ones, to invest in them. The maintenance of cooling solutions such as absorption chillers is very complex and costly, requiring specialized skills and regular attention. This is a challenging task, especially for industries where downtime results in significant financial losses.
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Country-Wise Insights
Why Does the United States Lead in Adopting Advanced and Sustainable Cooling Systems?
“Government Incentives and Regulations Promoting Use of Energy-Efficient Cooling Systems”
The United States accounts for 13.8% of global absorption chiller market share in 2023. The country has a diverse industrial landscape, which includes manufacturing, technology, and services. This diversity creates a high 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 provides incentives and regulations to promote the use of energy-efficient cooling systems, including absorption chillers. Consequently, the United States leads in adopting advanced and sustainable cooling technologies and has a significant market share in the absorption chillers industry.
How is Demand for Absorption Chillers Progressing in China and India?
“High Demand for Absorption Chillers Due to Increasing Environmental Challenges”
The India and China markets are projected to expand at 5.7% and 6.1% CAGRs, respectively, through 2033.
Industrial growth in India and China has led to a higher 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.
Need for energy-efficient cooling solutions is a significant contributor to absorption chiller market growth. With rapid urbanization and infrastructure development in both countries, the need for air conditioning and refrigeration systems in commercial and residential buildings is growing.
Category-wise Insights
How Do Lithium Bromide Absorption Chillers Contribute to Sustainability Goals?
“Recyclability of Lithium Bromide Prompting Its Widespread Use in Absorption Chiller Production”
The lithium bromide segment is expected to reach US$ 2.03 billion by the end of 2033. Lithium bromide is a highly hygroscopic salt that is used as an absorbent and has a strong affinity to water vapor because of its low vapor pressure.
Lithium bromide plays a pivotal role in providing a sustainable cooling solution. The sustainability aspect arises from the recyclability of lithium bromide. The cycle of regeneration and reuse within the chiller system makes it a long-lasting and eco-friendly option.
Why Should Manufacturers Target Industrial Absorption Chillers?
“Extensive Industrial Application of Absorption Chillers Due to Their Energy-efficiency”
The industrial chillers segment occupies 80% of the absorption chiller market share in 2023 and is predicted to expand at a CAGR of 4.9% between 2023 and 2033.
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.
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Competition Analysis
Leading manufacturers of absorption chillers are 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, Johnson Controls-Hitachi Air Conditioning, Helioclim, MultiChill Technologies Inc., Kirloskar Pneumatic Company Ltd, and Century Corporation.
Manufacturers in the absorption refrigeration business 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 expert engineers to improve the quality of their products.
Segmentation of Absorption Chiller Market Research
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By Power Source :
- Direct-fired
- Non-industrial
- Water-driven
-
By Application :
- Non-industrial
- Industrial
- Chemicals
- Food & Beverages
- Petroleum
- Power
- Pulp & Paper
- Other Industries
-
By Absorber Type :
- Lithium Bromide
- Ammonia
-
By Technology :
- Single Stage
- Double Stage
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By Region :
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Western Europe
- Eastern Europe
- Middle East & Africa
- FAQs -
What was the size of the absorption chiller market in 2022?
The global absorption chiller market was valued at US$ 1.47 billion in 2022.
At what rate did the sales of absorption chillers rise from 2018 to 2022?
Worldwide sales of absorption chillers increased at a CAGR of 3% from 2018 to 2022.
Who are the leading players operating in the absorption chiller market?
Key absorption chiller manufacturers are Robur Corporation, Trane, Inc., Carrier Corporation, LG Electronics, Inc., and Thermax Limited.
What is the estimated valuation of the global market for 2033?
The market for absorption chillers is projected to reach a valuation of US$ 2.39 billion by 2033-end.
Absorption Chiller Market
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