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The absorption chillers market is estimated to grow at a CAGR of 4.32% between 2022 and 2027. The size of the market is forecast to increase by USD 741.07 million. The growth of the market depends on several factors, including the growing use of absorption chillers across various industries, the growing adoption of district heating and cooling infrastructure, and the stringent regulations on refrigerant use.
This report extensively covers market segmentation by application (industrial and HVAC), type (lithium bromide and ammonia), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global absorption chillers market as a part of the global industrial machinery market. The parent, the global industrial machinery market, covers companies engaged in manufacturing industrial machinery and components covering presses, machine tools, compressors, pollution control equipment, elevators, escalators, insulators, pumps, roller bearings, and other metal fabrications. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The growing use of absorption chillers across various industries is notably driving the market growth, although factors such as high capital and maintenance costs may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Absorption Chillers Market Driver
The growing use of absorption chillers across various industries is the key factor driving the global absorption chillers market growth. These chillers lodge a vital position in a heating, ventilation, air conditioning, and refrigeration (HVAC and R) system. It offers numerous benefits over conventional chillers, which majorly include the ability to integrate with combined heat and power (CHP) generation and district cooling infrastructure, low noise levels, and improved efficiency.
These advantages have accelerated the adoption of these chillers among various industrial end-users. They help them to reduce their overall costs and enable them to meet their environmental targets. These factors make these chillers an appealing option in the industrial sector and allow many industrial users to meet their environmental and regulatory targets.
Significant Absorption Chillers Market Trend
The availability of substitute chiller technologies is the primary trend in the global absorption chillers market growth. The competition from alternative chiller technologies will remain the biggest challenge for the market during the forecast period. Although conventional chiller technologies are not much energy efficient as these chillers which are used in conjunction with CHP, cogeneration, or waste heat, they have several other advantages, which are encouraging their adoption over these chillers.
Chiller manufacturers are also investing in the development of new chiller technologies, which enhance efficiency and reduce the environmental footprint of conventional chillers, to boost product adoption. The introduction of chillers, which can meet stringent environmental regulations, is expected to impact the market negatively during the forecast period.
Major Absorption Chillers Market Challenge
High capital and maintenance costs are a major challenge to the global absorption chillers market growth. Most of the energy-efficient HVAC and R technologies, including these chillers, are considerably more expensive than their conventional counterparts. Although they provide significant energy savings, the breakeven period for the return on initial investment can be significantly longer. The high cost of absorption chillers may be a major challenge for price-sensitive customers, especially in emerging economies.
Most of the industries and commercial businesses in developing countries, such as India and China, are extremely price-sensitive; therefore, they are more concerned about the initial cost of purchase. The annual cost of maintenance of these chillers is 20%-35% higher than the conventional chillers, which can add up to a significant amount over many years. Therefore, the relatively higher cost of these chillers is one of the key reasons that is expected to affect the market growth during the forecast period.
Key Absorption Chillers Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Absorption Chillers Market Customer Landscape
Vendors 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.com - The company offers absorption chillers such as BDH Model, BDE Model, BDS Model.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the industrial segment will be 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 chillers. These chillers can be directly integrated with the processes and can utilize the waste heat generated by the equipment.
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The industrial segment was valued at USD 2,089.41 million in 2017 and continue to grow by 2021. The food and beverages industry is also expected to be a significant contributor to the demand for industrial absorption chillers. Factors such as the growth in global population, rise in per capita income, and changing consumer habits have played a significant role in increasing the demand for processed and packaged food products such as frozen foods, carbonated drinks, packed juices, alcoholic beverages, and bottled water. Absorption chillers are used for flash freezing, cooling, and chilling of food, food additives, beverages, and other chemicals in the food and beverages industry. Therefore, the growing consumption of processed foods, especially in developing countries, will drive the demand for industrial absorption chillers.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is the largest market for absorption chillers due to huge demand from countries such as China, Japan, India, and several countries in Southeast Asia. Factors such as the rapid growth in population, rise in industrialization, growth in urbanization, and expansion in the number of large commercial establishments are driving the market growth in the region. The growth in commercial and residential constructions is a key driver for the demand for medium to large-scale heating, ventilation, air conditioning, and refrigeration (HVAC and R) systems in the region, which also drives the growth of the absorption chillers market. The adoption of green building initiatives in some countries, such as China and India, will be another factor that will drive the demand for absorption chillers in APAC.
In 2020, the market in the region witnessed certain challenges, owing to the outbreak of COVID-19. However, with the gradual control of the spread of the disease, coupled with the relaxation of lockdown restrictions, the market in the region started recovering in 2021. Owing to the removal of lockdown restrictions in the region, the end-user industries started manufacturing operations, which positively impacted the growth of the market. The end-user industries are looking for energy-efficient equipment and machines, which will boost the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by application (Industrial and HVAC), type (Lithium bromide and Ammonia), and geography (APAC, Europe, North America, Middle East and Africa, and South America).
Absorption Chillers Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.32% |
Market growth 2023-2027 |
USD 741.07 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.78 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
BROAD Group, Carrier Global Corp., Century Corp., 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., Yazaki Corp., and Berg Chilling Systems Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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