Industry: Industrial Automation
Published Date: December-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 188
Report ID: PMRREP3537
The global absorption chillers market is estimated to reach a size of US$ 1.76 Bn in 2025. It is predicted to rise at a CAGR of 4.5% during the forecast period to reach a value of US$ 2.46 Bn by 2032.
The growing need for energy-efficient cooling solutions across a range of sectors is driving considerable development in the absorption refrigeration sector. The use of green cooling solutions has been accelerated by the worldwide focus on lowering carbon emissions, which is highlighted by programs like the EU Green Deal and the U.S. Inflation Reduction Act (2022).
Data centers, hospitals, and large commercial buildings, which collectively represent 40% of global cooling demand, are increasingly implementing absorption chillers for consistent and efficient operation.
Developing countries, including India and Brazil, have seen a surge in investments in advanced cooling technologies due to expanding industrial infrastructure. Based on the studies, the waste heat recovery systems, utilizing absorption chillers, are gaining popularity with a projected 12.5% annual growth in global market penetration through 2028. Since 2020, renewable energy integration, such as solar-powered chillers, has significantly reduced operational costs, largely due to their environmental and economic benefits.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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Absorption Chillers Market Size (2025E) |
US$ 1.76 Bn |
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Projected Market Value (2032F) |
US$ 2.46 Bn |
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Global Market Growth Rate (CAGR 2025 to 2032) |
4.5% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
4.9% |
The adoption of energy-efficient and renewable cooling solutions, especially in the United States, and federal incentives like the U.S. Inflation Reduction Act are expected to propel North America to take a 34.1% lead in the global market in 2024. The demand for absorption chillers in North America is estimated to exhibit a CAGR of 3.6% by 2032.
North America experiences significant market share due to the growing adoption of renewable energy systems, such as solar and geothermal, and the reduction of operational costs by up to 25%, supported by Canada's Clean Energy Incentive Program.
Asia Pacific is predicted to attain a market share of 29.6% in 2024, driven by rapid industrialization and cost-effective manufacturing, with China and India leading the way due to expanding industrial infrastructure.
The region benefits from cost-effective manufacturing, with local production reducing equipment costs by up to 20% compared to other regions. Asia Pacific is now a major center for absorption chiller research and deployment because of Japan's Smart Cities Initiative, which was introduced in April 2023 and has incorporated hybrid absorption chillers.
The industrial absorption chiller is anticipated to have a dominant market share of 82.8% in 2024, mainly in the commercial real estate, petroleum refining, and food and beverage processing industries. Technological innovations such as PLC and remote-controlled systems contributed to a 10% rise in the adoption of absorption cooling systems in global food and beverage industry in 2023, increasing operational efficiency by 15 to 20%. For instance,
Double stage absorption chillers are anticipated to dominate the technology segment with a market share of 86% in 2024, reflecting their superior efficiency and cost-effectiveness. Double stage systems, offering up to 35% higher efficiency than single-stage units, are increasingly preferred for high-efficiency cooling solutions in industries focusing on operational cost reduction and sustainability.
The global energy-efficient cooling market experienced an 11% growth in 2023, primarily due to the adoption of double-stage systems in sectors like pharmaceuticals, petrochemicals, and data centers. For example,
In February 2023, Trane Technologies introduced a double-stage absorption chiller reducing energy consumption by 20% and integrating waste heat recovery technologies, highlighting their importance in energy sustainability and operational excellence.
Absorption chillers are pivotal in industries like petroleum and food and beverage. They provide precise temperature control and promote energy efficiency. They utilize waste heat, significantly reducing operational costs and reliance on electricity, thereby offering a sustainable cooling solution.
Modern absorption chillers with programmable logic control (PLC) integration allow for automated operations, enhancing reliability and performance. Remote-controlled systems are increasingly adopted, reflecting industry automation trends.
Manufacturers are focusing on transitioning from single-stage to double-stage units, which offer great efficiency, and introducing dynamic-stage units to meet evolving industrial demands.
The possibility for waste heat recovery and lower carbon emissions make absorption chillers appealing to the maritime industry in 2024. They support environmental sustainability and are in line with global energy rules, making them essential for accomplishing both industrial and environmental objectives.
The global absorption chillers market held a CAGR of 4.9% during the period between 2019 to 2023. The sector grew steadily before the global pandemic because of industrialization and environmentally acceptable cooling technology.
Precise temperature control was essential in industries such as pharmaceuticals, and food and beverage. However, progress was slowed by limitations and lockdowns in Europe and the Asia Pacific.
The need for absorption chillers has grown in the pharmaceutical and healthcare sectors despite obstacles because of post-pandemic government incentives for energy-efficient solutions, industrial restarts, and a focus on sustainability. Demand for absorption chillers is estimated to record a considerable CAGR of 4.5% during the forecast period from 2024 to 2032.
Focus on Decarbonization Promotes Adoption of Sustainable Chillers
Absorption refrigeration technology, which uses waste heat from food processing for cooling, is used by the food and beverage industries to help with decarbonization. Absorption chillers using a water-lithium bromide refrigerant cycle are safe and efficient than conventional systems.
By integrating with combined heat and power systems and reaching temperatures as low as 23°F, they can improve energy efficiency and lower operating costs, therefore achieving industrial decarbonization targets. Green solutions are becoming a popular trend in the food industry, because of their advantages for the environment and financial incentives.
Regulations are being tightened by governments, which is speeding up the adoption of green technologies in sectors like food processing. Growing consumer desire for ecological practices is predicted to fuel a rapid expansion of the absorption refrigeration trend.
Trend of Solar-based Chillers Upholds the Sustainability in Commercial Sector
The absorption chiller market is experiencing significant growth due to the growing adoption of solar-powered systems in industries like commercial buildings, manufacturing, and healthcare. The chillers use solar thermal energy, aligning with global sustainability efforts and renewable energy demand. They reduce operational costs and reliance on traditional power sources, making them attractive for businesses.
Johnson Controls' installation of solar-powered absorption chillers at Greenfield Industrial Park in California exemplifies the green energy trend. Research shows that integrating solar thermal energy into refrigeration systems offers cost savings and reduced environmental impact. Government incentives for renewable energy are driving innovation and industry expansion.
Hefty Initial Investment Creates Hurdles in Growth
The high initial capital expenditure is major obstacle for the global absorption chillers market. Compared to conventional vapor compression chillers, these systems come with hefty upfront expenditures for purchase, installation, and infrastructure upgrades. These hefty expenses are a result of the absorption chiller technology's intricate engineering and unique materials.
Potential customers may be turned off by this, particularly in smaller-scale applications or price-sensitive sectors. Because absorption chillers are specialist, installation and maintenance need for qualified technical staff, which raises project costs and complexity even more. This financial limitation may delay market penetration and adoption rates in a number of different sectors.
Manufacturers Offer Product Maintenance along with Consultancy
Manufacturers in the absorption refrigeration units are providing consultancy and support services to handle the higher maintenance requirements in comparison to electric chillers. Routine maintenance, operator instruction, and troubleshooting assistance are some of these services. With factory-trained staff, countrywide aftermarket service is provided with improving operational dependability and customer satisfaction.
Predictive maintenance is made possible by emerging technology like remote diagnostic tools, which improve firms' market positioning and foster enduring ties with customers.
Innovative Developments in Technology Presents Opportunities
The demand for absorption chillers offers a strong chance for technical advancement with cutting-edge hybrid cooling systems. Manufacturers may create complex and adaptable cooling technologies by combining absorption chiller technology with additional cooling techniques including heat pumps, solar thermal systems, and thermal storage solutions.
The hybrid systems provide flexibility and energy economy while meeting a variety of cooling needs in a wide range of commercial and industrial applications. There are many chances for study and development in this field, including the creation of scalable, modular cooling systems that can be adjusted to various operating environments, energy sources, and temperature needs.
By putting producers at the forefront of sustainable cooling technology innovation and improving the value proposition of absorption chillers, this strategy may open up new market niches and draw in eco-aware customers.
Market players in the absorption chillers industry are enhancing their presence and competitiveness by incorporating unique technologies like variable-speed compressors and intelligent controls. They are integrating renewable energy sources to improve energy efficiency and environmental sustainability.
Manufacturers are introducing new products and investing significantly in research and development to improve chiller technologies. These innovations will give companies a competitive edge in the market. They are diversifying their product portfolios and offering industrial chillers with varying capacities and configurations.
Businesses are targeting specific industries to cater to specialized cooling requirements. Consumers prefer companies that offer comprehensive solutions, including installation, maintenance, and support services. Market reach and distribution networks are crucial. Maintaining customer loyalty and trust is vital as customer relationships shape the competitive landscape.
Recent Industry Developments
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Attributes |
Details |
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Forecast Period |
2025 to 2032 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
By Power Source
By Application
By Absorber Type
By Technology
By Region
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The market size is set to reach US$ 2.46 Bn by 2032.
Absorption chillers are efficient cooling systems that can maintain temperatures as low as 38°F, thereby reducing air flow, duct size, and pump requirements.
North America is estimated to attain a market share of 34.1% in 2024.
The market is estimated to be valued at US$ 1.76 Bn in 2024.
Robur Corporation, Trane Inc., Carrier Corporation, LG Electronics, Inc., and Thermax Limited, are some of the key players operating in the market.
