Absorption Cooling System Market Size - By Product Type (Ammonia-water Absorption Systems, Lithium Bromide-water Absorption Systems, Others), By Heat Source (Natural Gas, Steam, Hot Water, Waste Heat, Solar Energy), By Cooling Capacity & Forecast 2024 – 2032

Absorption Cooling System Market Size - By Product Type (Ammonia-water Absorption Systems, Lithium Bromide-water Absorption Systems, Others), By Heat Source (Natural Gas, Steam, Hot Water, Waste Heat, Solar Energy), By Cooling Capacity & Forecast 2024 – 2032

Absorption Cooling System Market Size

Absorption Cooling System Market was valued at USD 2.58 billion in 2023 and is anticipated to register a CAGR of 4.5% between 2024 and 2032, attributed to the integration of renewable energy, increasing green building initiatives & regulations, growing urbanization & infrastructure development, and the rising demand for district cooling. Moreover, various sectors including commercial buildings, industrial facilities, and agricultural operations are increasingly adopting absorption cooling systems integrated with renewable energy.

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The global Refrigeration & Air Conditioning (RAC) industry is booming as the growing population and global warming have increased the demand for RAC equipment. This equipment leads to a rise in Greenhouse Gas (GHG) emissions, which only worsens the situation. This trend can be significantly mitigated by moving away from highly climate damaging HCFC and HFC refrigerants and using low Global Warming Potential (GWP) alternatives such as natural refrigerants.
 

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According to the UN, the global population is expected to reach 9.7 billion in 2050, an increase of 2 billion over the next 30 years. This significant growth is facilitated by the improvement in people's living standards, increased life expectancy, decreased mortality rates, and the continuous development of medical technology and drugs. As a result, new housing projects are being launched all over the world. This is expected to positively impact market growth. Rapid urbanization, along with the increasing demand for energy-efficient products, is fueling the demand for residential heat pumps. Favorable government initiatives and tax incentives for the installation of energy-efficient products are expected to increase market demand.

Absorption Cooling System Market Trends

Technological innovations in HVAC systems are being introduced to ensure better and optimal performance. A new generation of automated heating and cooling solutions based on Artificial Intelligence (AI) is likely to have a promising future. The market is characterized by competition for highly intelligent, fully automated, and environmentally sustainable HVAC systems. Installing Internet of Things (IoT) sensors in HVAC systems enables real-time data recording and efficient operation of HVAC systems. Smart HVAC incorporates IoT technology, which plays an important role in improving the operation and the overall performance of these systems.

Absorption Cooling System Market Analysis

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Based on product type, the ammonia-water absorption systems segment was worth USD 1.09 billion in 2023 and is expected to reach USD 1.6 billion by 2032. Ammonia-water absorption systems are gaining traction due to their environment-friendly nature. Stringent regulations and phasing out of high-GWP refrigerants, such as Hydrochlorofluorocarbons (HCFCs) and Hydrofluorocarbons (HFCs), are boosting the adoption of alternative cooling technologies including ammonia-water absorption systems. Regulations, such as the Kigali Amendment to the Montreal Protocol, and regional policies, such as the EU’s F-Gas Regulation, are accelerating the transition toward more sustainable cooling solutions.

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Based on end use, the chemicals & petrochemicals segment held approximately 24.7% share of the absorption cooling system market in 2023 and is projected to surpass USD 961.6 million by 2032. Stringent regulations and sustainability initiatives are encouraging the adoption of energy-efficient technologies in the chemicals & petrochemicals industry. Absorption cooling systems, which can utilize waste heat or renewable energy sources for operation, align well with these regulatory requirements and offer potential energy savings compared to conventional cooling technologies. Chemical & petrochemical processes often generate significant amounts of waste heat, which can be repurposed for absorption cooling. By integrating absorption cooling systems with waste heat recovery systems, plants can improve overall energy efficiency, reduce operating costs, and lower GHG emissions.

Furthermore, environmental sustainability is a growing priority for the chemicals & petrochemicals industry, driven by regulatory pressure, corporate sustainability goals, and stakeholder expectations. Absorption cooling systems, particularly those utilizing natural refrigerants, such as water and ammonia, offer a more environment-friendly alternative to conventional cooling technologies that rely on synthetic refrigerants with high GWP.

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Absorption cooling systems are widely used in industrial processes and commercial buildings across North America. Industries, such as food processing, pharmaceuticals, data centers, and hospitality, benefit from the reliable and efficient cooling provided by absorption chillers, especially in areas where electricity costs are high or grid reliability is a concern.

Ongoing advancements in absorption cooling technology are fostering market growth in the U.S. Improvements in efficiency, reliability, and scalability make absorption chillers more attractive to a wider range of applications and industries, spurring adoption in both new construction and retrofit projects.

The Asia Pacific region holds 15.7% share of the absorption cooling system market and is expected to reach USD 1.01 billion by 2032. Governments across the region are implementing stringent regulations to reduce GHG emissions and promote energy-efficient technologies. Policies, such as energy efficiency standards, and incentives for renewable energy adoption are boosting the adoption of absorption cooling systems in various sectors including commercial buildings, industrial processes, and hospitality.

The Indian government has been actively promoting energy efficiency and sustainability through various policies and initiatives. Programs, such as the National Mission for Enhanced Energy Efficiency (NMEEE) and the Energy Conservation Building Code (ECBC), incentivize the adoption of energy-efficient cooling technologies including absorption cooling systems in commercial and industrial applications. India's rapidly growing population, urbanization, and expanding middle class increase the demand for cooling solutions, particularly in sectors such as commercial buildings, hospitality, and food processing. Absorption cooling systems, with their ability to utilize waste heat or renewable energy sources for cooling, are well-suited to meet this growing demand while reducing reliance on grid electricity.

China's rapid urbanization, rising disposable incomes, and expanding middle class have led to a surge in the demand for air conditioning and cooling solutions across various sectors such as commercial buildings, manufacturing, and data centers. Absorption cooling systems, with their ability to provide efficient cooling using waste heat or renewable energy sources, are increasingly being deployed to meet this growing demand while reducing reliance on traditional electricity-based cooling systems.

The MEA region has abundant solar resources, making it particularly suitable for solar energy applications. Absorption cooling systems can be integrated with solar thermal energy storage systems to provide sustainable and decentralized cooling solutions. Governments in countries, such as the UAE, Saudi Arabia, and South Africa, are promoting renewable energy adoption through incentives, subsidies, and regulatory support, driving the adoption of solar-based absorption cooling systems.

The hot climate in Saudi Arabia results in a high demand for cooling solutions, especially during the scorching summer months. With temperatures often exceeding 40°C (104°F), air conditioning is essential for residential, commercial, and industrial buildings. Absorption cooling systems, which can utilize waste heat or solar energy for cooling, offer an efficient and sustainable alternative to traditional air conditioning systems.

The Saudi government has been actively promoting energy efficiency and renewable energy adoption through various policies and initiatives. The National Renewable Energy Program (NREP) aims to increase the share of renewable energy in the Kingdom's energy mix, with a focus on solar power. Incentives, such as subsidies, feed-in tariffs, and regulatory support for renewable energy projects, support the adoption of absorption cooling systems integrated with solar thermal energy.

Absorption Cooling System Market Share

The key players operating in the market are Thermax Limited, Kirloskar Pneumatic Company Ltd, Trane Technologies plc, Johnson Controls, Inc., and Carrier Global Corporation. Together, they held a market share of 15 - 20% in 2023. The market is highly fragmented owing to a large number of companies competing for a share, with no single player dominating the landscape. These market players offer various absorption chillers catering to different needs and budgets, opening the door for specialization among manufacturers.

Absorption Cooling System Market Companies

Major players operating in the absorption cooling system industry include

• Thermax Limited
• Kirloskar Pneumatic Company Ltd
• Trane Technologies plc
• Johnson Controls, Inc.
• Carrier Global Corporation
• Robur Corporation
• LG Electronics, Inc.
• Shuangliang Eco-Energy Systems Co. Ltd.
• Kawasaki Thermal Engineering Co., Ltd.,
• Hyundai Climate Control Co.
• Steyn Group
• EBARA THERMAL SYSTEMS (THAILAND) CO., LTD.
• Bry-Air (Asia) Pvt. Ltd.
• Thermo Fisher Scientific Inc.
• Midea Group

Absorption Cooling System Market News

• In March 2022, Carrier Global Corporation launched the AquaForce Vision 30KAV with PUREtec refrigerant, a compact process cooling chiller with ultra-low GWP refrigerant R-1234ze. The absorption chiller was designed and optimized for industrial processing for chemicals, plastics, pharmaceuticals, food manufacturing, and metal industries and applications. The chiller is available in four sizes spanning capacities from 280kW to 800 kW with a temperature range from -4 degrees Celsius to -8 degrees Celsius for medium-temperature process cooling and from 530 kW to 1,300 kW for 12/7degC high-temperature process cooling or comfort cooling.
   
• In November 2021, Trane Technologies delivered fully electric and zero direct emission Thermo King refrigeration solutions for every industry of the cold chain in Europe and the Middle East & Africa. The solutions include a fully electric & emission-free system with AxlePower energy generation technology.

This absorption cooling system market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) and volume (Thousand units) from 2021 to 2032, for the following segments

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Market, By Product Type

• Ammonia-water absorption systems
• Lithium bromide-water absorption systems
• Others

Market, By Heat Source

• Natural gas
• Steam
• Hot water
• Waste heat
• Solar energy

Market, By Cooling Capacity

• Small (below 100 tons)
• Medium (100-500 tons)
• Large (above 500 tons)

Market, By End Use

• Food & beverages
• Pharmaceuticals
• Chemical & petrochemicals
• Power plants
• Data centers
• Waste water treatment
• Others

Market, By Distribution channel

• Direct sales
• Indirect sales

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA