Absorption Chillers Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Absorption Chillers Market Size 2024-2028

The absorption chillers market size is forecast to increase by USD 727.6 million, at a CAGR of 4.1% between 2024 and 2028. The market growth analysis hinges on several pivotal factors, including the increasing utilization of absorption chillers across diverse industries, the expanding embrace of district heating and cooling infrastructure, and the enforcement of stringent regulations governing refrigerant usage. The escalating integration of absorption chillers in various industries underscores a shift towards more energy-efficient cooling solutions, driven by environmental concerns and cost-effectiveness. Additionally, the growing adoption of district heating and cooling infrastructure reflects a broader trend towards centralized systems for thermal comfort, offering both economic and environmental advantages. Furthermore, the imposition of stringent regulations on refrigerant usage emphasizes the imperative for eco-friendly alternatives, fostering innovation and investment in sustainable refrigeration technologies. As these factors converge, they collectively shape the market landscape, presenting opportunities for companies to capitalize on the demand for efficient and environmentally responsible cooling solutions across different sectors. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.

Furthermore, absorption chillers have gained significant traction in various industries, including Power Plants and Petrochemical Industries, due to their energy-efficient cooling solutions. The energy source for absorption chillers can be steam, hot water, or natural gas, making them versatile in different applications.  Additionally, Carrier Global Corp. company offers absorption chillers such as Single effect steam-fired absorption chiller 16TJ, Single-effect hot water-fired absorption chiller 16LJ. Also, Century Corp. company offers absorption chillers such as Water absorption chiller.

Market Forecasting and Size

Market Forecast 2024-2028

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Market Dynamics

In the market, natural gas, steam, and hot water are common heat sources used in absorption chillers. In contrast, liquid refrigerants like ozone-depleting chlorofluorocarbons (CFCs) are being replaced with eco-friendly alternatives to reduce greenhouse gas emissions. Electricity rates and availability are significant factors influencing the adoption of absorption chillers in various applications. Wastewater treatment plants and the food and beverages industry are other sectors where absorption chillers are gaining popularity due to their energy efficiency and cost-effectiveness. Overall, the market is expected to grow significantly in the coming years, offering opportunities for manufacturers and investors alike. The market landscape depends on Direct Fired Absorption Chillers, Coefficient of Performance (COP), Liquid refrigerant. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver- Growing use across various industries

The market plays a significant role in the refrigeration systems sector, particularly in heating, ventilation, air conditioning, and refrigeration (HVAC and R) systems. These systems utilize a heat source to initiate the cooling process, employing mechanical energy to generate refrigerant vapor. In absorption refrigeration, water functions as the refrigerant, while lithium bromide serves as the absorbent. Absorption Chillers offer several advantages over conventional vapor compression chillers. They can be integrated with combined heat and power (CHP) generation and district cooling infrastructure, leading to energy savings and improved efficiency. Absorption Chillers produce low noise levels, making them suitable for commercial buildings and industrial facilities. 

Further, the market is driven by energy efficiency regulations, sustainability initiatives, and the growing demand for cooling in various industries, including pharmaceuticals. Developing Nations and urbanization are also significant factors, as they grapple with climate change and the need for sustainable cooling solutions. Absorption Chillers offer environmental benefits by using non-ozone-depleting refrigerants and reducing greenhouse gases emission. Renewable energy sources, such as ammonia and lithium bromide, are increasingly being used in absorption refrigeration systems to further enhance their sustainability. The market is expected to grow, as energy efficiency regulations become more stringent and industries seek to reduce their environmental impact. The market is also being influenced by the increasing availability of renewable energy sources and the shift towards sustainable cooling solutions. Hence, such factors are driving the market during the forecast period.

Significant Market Trends - Demand for reducing energy consumption and operating costs

The market plays a pivotal role in the refrigeration systems sector, particularly in buildings and industrial facilities, where thermal comfort and indoor air quality are essential. These systems utilize a heat source to initiate the cooling process, converting mechanical energy into refrigerant vapor, which then absorbs liquid to produce cooling. Absorption refrigeration, a technology employed in these chillers, is an efficient alternative to traditional vapor-compression refrigeration systems, as it uses waste heat or low-grade heat sources for energy. 

Moreover, absorption chillers employ non-ozone-depleting refrigerants, aligning with environmental standards and sustainability initiatives. The European Union (EU) accounts for approximately half of its energy consumption in heating and cooling applications. Absorption chillers can help minimize energy consumption in these areas, contributing to substantial cost savings. In the context of climate change and urbanization in Developing Nations, the demand for sustainable cooling solutions is increasing. Absorption chillers, with their energy efficiency and minimal environmental impact, are becoming a preferred choice for industries, including the pharmaceuticals sector, and HVAC systems. Energy efficiency regulations and sustainability initiatives are driving the growth of the market. Hence, such factors are driving the market during the forecast period.

Major Market Challenge- High capital and maintenance costs

The market represents a substantial growth potential in the realm of refrigeration systems, as numerous industries strive to enhance energy efficiency, minimize energy expenses, and decrease emissions. Absorption refrigeration, a technology employed in absorption chillers, facilitates the cooling process by utilizing mechanical energy, heat source, and refrigerant vapor, converting it into liquid form. This process is particularly effective in utilizing low-grade heat sources, such as waste heat from industrial processes, cogeneration systems, solar thermal energy, and natural gas combustion. 

Moreover, the market is further propelled by the adoption of non-ozone-depleting refrigerants and renewable energy sources. The pharmaceuticals industry, in particular, is anticipated to contribute significantly to the market's growth due to the stringent temperature control requirements in their production processes. Urbanization and the increasing demand for cooling solutions in both commercial and residential sectors further bolster the market's prospects. Despite the initial investment hurdles, absorption chillers offer long-term benefits, including reduced electricity consumption and lower greenhouse gas emissions. As the world transitions towards sustainable cooling solutions, the market is poised to play a pivotal role in this transformation. Key players in the market include Ammonia and Lithium Bromide-based absorption chiller manufacturers. Hence, such factors are hindering the market during the forecast period.

Market Segmentation by Application, Type, and Geography

Application Segment Analysis:

The market share growth by the industrial segment is significant during the forecast period. Industrial Absorption chillers are deployed in the industrial sector to maintain the temperature of process equipment and refrigeration of chemicals, food, beverages, and other materials that need to be maintained at a low temperature. Industries such as plastic, chemical, pharmaceutical, oil and gas, food and beverages, and printing are some of the major industrial consumers that use absorption chillers. These chillers can be directly integrated with the processes and can utilize the waste heat generated by the equipment. For instance, heat from flue gases, wastewater, reflux condensers, compressor interstage, and expander plants can be used to run the chiller equipment. 

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The industrial segment was the largest segment and valued at USD 2.15 billion in 2018. Further, the market's significance lies in its energy efficiency, making it a preferred choice for commercial buildings and industrial facilities. Absorption chillers contribute to district cooling systems, heat recovery, and electricity consumption reduction. The HVAC sector's transition towards sustainable cooling solutions has also contributed to the market's expansion. Absorption chillers employ various refrigerants, such as Ammonia and Lithium Bromide, to facilitate the cooling process. Energy efficiency regulations and environmental standards continue to shape the market landscape, with a focus on reducing greenhouse gas emissions. The market's future growth is expected to be influenced by advancements in technology and the increasing adoption of absorption chillers in various industries. Hence, such factors are fuelling the growth of this segment during the forecast period.

Type Analysis:

Based on type, the market has been segmented into lithium bromide and ammonia. The lithium bromide?segment will account for the largest share of this segment.? Absorption chillers have gained significant traction in various industries, including Power Plants and Petrochemical Industries, due to their energy-efficient cooling solutions. These industries rely heavily on large-scale cooling systems to operate effectively. Further, industrial absorption chillers are widely used in the Food processing sector, Petroleum sectors, and the Frozen food industry, to maintain optimal temperatures. Data centres and Commercial absorption chillers are other significant end-users of absorption chillers. The F-gas laws have imposed stringent regulations on the use of refrigerants, making absorption chillers an attractive alternative due to their use of natural refrigerants. The market for absorption chillers is expected to grow as industries continue to prioritize energy efficiency and sustainability. Hence, such factors are fuelling the growth of this segment during the forecast period.

Regional Analysis

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APAC is estimated to contribute 48% to the growth by 2028.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Further, sorbent solutions and liquid refrigerants are essential components in the functioning of absorption chillers. Ozone-depleting chlorofluorocarbons (CFCs) have been traditionally used as refrigerants in absorption chillers.  However, with the increasing awareness of environmental concerns, there is a shift towards the use of eco-friendly alternatives. The Petrochemical industry, Electricity rates, and Power shortages have driven the demand for absorption chillers in the energy sector. Hence, such factors are driving the market in APAC during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• BROAD Group: The company offers absorption chillers such as the BDH Model, BDE Model, and BDS Model

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Berg Chilling Systems Inc., CNIM SA, Daikin Industries Ltd., EAW Energieanlagenbau GmbH, Ebara Corp., Helioclim, Johnson Controls International Plc., Kirloskar Pneumatic Co. Ltd., LG Electronics Inc., Mitsubishi Heavy Industries Ltd., Robur Spa, Shuangliang Eco Energy Systems Co. Ltd., THE PAR GROUP, Thermax Ltd., Trane Technologies plc, World Energy Co. Ltd., and Yazaki Corp. 

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook 
  • Industrial
  • HVAC

• Type Outlook 
  • Lithium bromide
  • Ammonia

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview:

Absorption chillers are an essential component of HVAC systems, providing cooling solutions in various industries such as food and beverage, pharmaceuticals, and oil and gas. The market is driven by several factors, including the increasing demand for energy-efficient cooling systems and the growing need for sustainable and eco-friendly solutions. Key Players and Competitive Landscape The market is characterized by a diverse range of players, including established OEMs and emerging players. Some of the major players in the market are focusing on product innovation, strategic collaborations, and expansions to strengthen their market position. Market Segmentation and Growth Drivers The market can be segmented based on technology, application, and region. The market is expected to grow at a significant CAGR due to the increasing demand for energy-efficient cooling solutions, the growing adoption of absorption chillers in the food and beverage industry, and the rising focus on reducing carbon footprint. Technological Advancements and Future Outlook Technological advancements, such as the integration of IoT and AI in absorption chillers, are expected to drive market growth.

Furthermore, the increasing adoption of renewable energy sources and the development of advanced absorption chiller designs are expected to provide significant opportunities for market players in the coming years. Regional Analysis and Market Forecast The market is expected to witness significant growth in regions such as Asia Pacific and Europe, driven by the increasing demand for energy-efficient cooling solutions and the growing focus on sustainability. The market is expected to reach a significant value by 2027, with a steady growth rate during the forecast period. In conclusion, the market is expected to grow significantly in the coming years, driven by the increasing demand for energy-efficient cooling solutions, the growing adoption of absorption chillers in various industries, and the technological advancements in the field. The market is characterized by a diverse range of players, and the competition is expected to intensify in the coming years, with a focus on product innovation and strategic collaborations. Absorption chillers are essential components of refrigeration systems, particularly in Developing Nations undergoing urbanization, where the demand for cooling solutions is on the rise. These systems utilize waste heat as a heat source and convert it into mechanical energy, driving the cooling process. Absorption refrigeration, a technology employed in absorption chillers, uses a sorbent solution to absorb refrigerant vapor and convert it into a liquid state. The market for absorption chillers is expanding, driven by the need for sustainable cooling solutions in various industries, including the Petrochemical industry and Urban Infrastructure.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, Europe, North America, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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