Absorption Chiller Market By Type (Single Stage Absorption Chillers, Double Stage Absorption Chillers), Application (Commercial Buildings, Industrial Processes, District Cooling), End User (Commercial Sector, Industrial Sector, Residential Sector), & Region for 2024-2031

Absorption Chiller Market Valuation – 2024-2031

The absorption chiller market is experiencing a significant increase in demand owing mostly to the global emphasis on energy efficiency and sustainable cooling solutions. Absorption chillers which use heat rather than energy to power the refrigeration cycle are considered a greener alternative to traditional electric chillers. This trend is mostly driven by growing environmental concerns and tough laws aimed at lowering greenhouse gas emissions by enabling the market to surpass a revenue of USD 1.49 Billion valued in 2023 and reach a valuation of around USD 2.05 Billion by 2031.

Growing urbanization and industrialization in developing regions are driving the absorption chiller market. As cities grow and industrial activity increases, so does the demand for dependable and effective cooling systems. The chemical industry, pharmaceuticals, food and beverage processing, and major commercial buildings all require reliable cooling systems to ensure operating efficiency and product quality. Absorption chillers are especially appealing in these industries because they can deliver consistent cooling even in areas with unpredictable electrical supply by enabling the market to grow at a CAGR of 4.04 % from 2024 to 2031. 

Absorption Chiller MarketDefinition/ Overview

An absorption chiller is a device that provides cooling in a variety of applications including air conditioning and industrial operations by using heat rather than electricity. Unlike classic vapor-compression chillers which use electric-driven mechanical compressors, absorption chillers operate on a thermodynamic cycle involving a refrigerant and an absorbent.

Another important application for absorption chillers is in large commercial buildings and district cooling systems. Commercial locations such as hotels, hospitals, office complexes, and shopping malls might have a high demand for air conditioning. Absorption chillers can offer cooling using heat from renewable sources such as solar thermal energy or geothermal energy, hence lowering the building’s carbon footprint. In district cooling systems, which service several buildings from a centralized plant, absorption chillers may efficiently distribute cooling over a large area, frequently utilizing waste heat from nearby industrial sites or combined heat and power (CHP) plants.

The future utilization of absorption chillers is also influenced by economic factors. As energy prices vary and regulatory pressures to decrease carbon emissions grow, industries and commercial businesses are looking for cost-effective strategies to manage their cooling needs. Absorption chillers with their ability to use low-cost or even free waste heat are a financially attractive solution.

Will the Increasing Deployment of Engines and Turbines Drive the Absorption Chiller Market?

The growing use of engines and turbines is projected to be a major driver of the absorption chiller industry in the coming years. This tendency is closely related to the increasing demand for energy-efficient cooling solutions and the use of waste heat from industrial activities. According to the US Department of Energy, combined heat and power (CHP) systems which frequently include engines or turbines, can reach up to 80% efficiency, compared to 50% for conventional technologies. This increase in efficiency opens up the possibility of using absorption chillers to provide cooling using the waste heat from these systems.

The need for sustainable energy solutions has accelerated the introduction of technologies that can collect waste heat making absorption chillers an appealing alternative. According to the United States Environmental Protection Agency (EPA), the industrial sector consumes around 32% of total energy in the United States with a large percentage of this energy lost as waste heat. Absorption chillers can take advantage of this underutilized resource providing cooling without increasing electricity consumption. A study published in the journal “Energy” discovered that absorption chillers combined with CHP systems can cut primary energy usage by up to 30% when compared to conventional cooling systems. As governments throughout the world implement stronger emissions laws and energy efficiency standards industries are increasingly turning to solutions such as absorption chillers to meet these needs.

Will Lack of Skilled Professionals for Maintenance Work Hamper the Absorption Chiller Market?

The absorption chiller market may experience difficulty due to a lack of competent workers for maintenance operations. This issue is part of a larger trend in the HVAC business where the demand for qualified personnel frequently exceeds the available manpower. Heating, air conditioning, and refrigeration mechanics and installers are expected to see a 5% increase in employment from 2021 to 2031, roughly in line with the national average. However, this increase may not be adequate to fulfill rising demand, particularly in specialist areas such as absorption chillers.

The intricacy of absorption chillers which use thermodynamic principles different from standard vapor compression systems necessitates specialist knowledge and skills for proper maintenance. This specialization significantly reduces the number of qualified technicians. According to the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), 75% of HVAC businesses report a shortage of competent job applicants. Because absorption chillers are less common than conventional cooling technologies, the situation may be even direr. This skills gap may hinder the acceptance and spread of absorption chiller technology, as facility managers and building owners are hesitant to invest in systems that may require maintenance. However, the industry is reacting to this challenge with additional training programs and alliances.

Category-Wise Acumens

Will Higher Efficiency and Superior Performance Drive the Type Segment?

Double-stage absorption chillers are widely regarded as the dominating form. The main reason for their supremacy is that they are more efficient and perform better than single-stage absorption chillers. Double-stage absorption chillers use two stages of absorption to achieve chilling, considerably increasing their efficiency. This procedure allows them to operate at lower temperatures and better utilize waste heat making them more appropriate for large-scale industrial and commercial applications. As businesses and commercial buildings seek more energy-efficient and cost-effective cooling solutions, demand for double-stage absorption chillers has increased. Their capacity to provide increased cooling capacities and enhanced performance metrics is ideally suited to the needs of large facilities which frequently require robust and dependable cooling systems.The increase in emphasis on sustainability and environmental concerns contributes to the popularity of double-stage absorption chillers. Double-stage chillers often employ water as a refrigerant and lithium bromide as an absorbent both of which are more environmentally friendly than the standard refrigerants used in compression chillers. The utilization of waste heat or low-grade heat sources such as solar energy or industrial waste heat increases their appeal while also helping to minimize greenhouse gas emissions and energy consumption. Furthermore, several regions are enacting stronger rules and standards to reduce carbon footprints and encourage the use of green technologies. This legislative drive pushes enterprises to use double-stage absorption chillers which provide a more environmentally friendly and efficient cooling option.

Will the Need for Air Conditioning And Cooling Drive the Application Segment?

Commercial buildings dominate the absorption chiller market due to the extensive demand for air conditioning and cooling in a variety of contexts such as office complexes, hotels, shopping malls, and educational institutions. To keep employees, customers, and students comfortable, these buildings need to be cooled thoroughly and consistently. This demand is being driven mostly by urbanization and the construction of commercial infrastructure. Absorption chillers which use heat instead of electricity to cool provide an energy-efficient alternative to typical electric chillers. This energy efficiency is particularly appealing in commercial buildings where running expenses are a major concern.

Furthermore, absorption chillers are valued for their ability to use waste heat or renewable energy sources which aligns with the growing emphasis on sustainability and lowering carbon footprints in urban contexts. These qualities combine to make absorption chillers the ideal choice for large-scale cooling solutions in commercial buildings. The industrial sector also contributes significantly to the absorption chiller market with applications ranging from manufacturing to food processing, pharmaceuticals, and chemicals. In these industries, process cooling, refrigeration, and temperature control are critical for preserving product quality, assuring safety, and increasing production efficiency. Absorption chillers are ideal for industrial applications because they may reuse low-grade waste heat from industrial operations that would otherwise be squandered.

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Country/Region-wise Acumens

Will the Adoption of Energy-Efficient Cooling Solutions Drive the Market in the North America?

 The demand for absorption chillers in North America is expected to develop the fastest owing to a strong push for energy-efficient cooling solutions. According to the US Department of Energy, cooling consumes about 15% of the electricity consumed in commercial buildings. In light of this, there has been a considerable push for more energy-efficient cooling options with absorption chillers gaining popularity. According to the United States Environmental Protection Agency (EPA), ENERGY STAR-certified chillers consume up to 25% less energy than normal ones. This potential for energy savings is a primary driving force behind the use of absorption chillers in North America.

Furthermore, the American Council for an Energy-Efficient Economy (ACEEE) states that the industrial and commercial sectors account for roughly half of total energy consumption in the United States emphasizing the enormous potential for energy-efficient cooling solutions in these sectors. The U.S. Green Construction Council’s LEED certification program which encourages the adoption of energy-efficient technologies such as absorption chillers, increasing by 19% year on year in the United States showing a growing trend in green construction practices. Furthermore, the Canadian government’s objective to lower greenhouse gas emissions by 40-45% below 2005 levels by 2030 is predicted to increase the use of energy-efficient technologies such as absorption chillers, across a variety of industries.

 Will Investments in the Residential and Commercial Building Sectors Drive the Market in the Asia Pacific Region?

The Asia Pacific region is predicted to dominate the worldwide absorption chiller market owing primarily to significant expenditures in residential and commercial buildings. According to a report by the Asian Development Bank (ADB), the Asia Pacific region is rapidly urbanizing with an estimated 44 million people joining urban populations per year. This urban expansion is driving demand for new residential and commercial buildings resulting in a greater need for efficient cooling systems such as absorption chillers. The International Energy Agency (IEA) predicts that energy consumption for cooling in Southeast Asia alone will rise by 150% between 2020 and 2040. This increase in demand is due in part to increased earnings and improved living conditions throughout the region.

In 2020, China’s National Bureau of Statistics reported a 6.5% year-on-year rise in real estate investment, reaching 14.14 trillion yuan (about USD 2.18 trillion), despite the global economic slump. Similarly, India’s Ministry of Housing and Urban Affairs predicts that the country will need to build 25 million more affordable housing units by 2030 to fulfill rising urban demand, which will most likely include sophisticated cooling systems.

Competitive Landscape

The absorption chiller market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the absorption chiller market include

• Thermax Ltd
• Helioclim
• MultiChill Technologies, Inc.
• Kirloskar Pneumatic Company Ltd
• World Energy Absorption Chillers Europe Ltd
• LG Air Conditioning (Shandong) Co. Ltd.
• Johnson Controls, Inc.
• Hitachi Appliances, Inc.
• EAW Energieanlagenbau GmbH
• Carrier Corporation
• Century Corporation
• Yazaki Energy Systems, Inc.

Latest Developments

• In May 2024, Johnson Controls, Inc. creates and manufactures conventional and customized air-handling systems, rooftop systems, and sustainable environments, as well as lead-acid and lithium-ion batteries, building efficiency and technology solutions, and HVAC equipment such as absorption chillers. They also provide training, maintenance, leasing, and repairs.
• In May 2024, Carrier Corporation makes commercial refrigeration systems. Refrigeration systems consist of air-cooled condensing units, absorption chillers, air-cooled gas coolers, compressor racks, multi-rack compressors, heating systems, and heat exchangers. Their applications include cash and carry, supermarkets, hypermarkets, discount stores, retail stores, small merchants, and distribution centers.

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