The Global Absorption Chillers Market size is expected to reach $1.9 billion by 2028, rising at a market growth of 4.5% CAGR during the forecast period.
An absorption chiller is a machinery utilized in the industrial, commercial, and residential sectors for air conditioning, refrigeration, and cooling in industrial settings. An absorption chiller operates on vapor absorption technology, in which heat from hot water, steam, and others from different industrial and non-industrial sources transport the refrigerant around the chiller’s circuit. Also, direct-fired absorption chillers in the market utilize direct flames generated from oil or gas to introduce energy to the system.
Absorption chillers, unlike conventional chillers, utilize the collection of waste heat from other equipment or processes to conduct a thermodynamic process that allows water to be chilled and distributed for HVAC (Heating, ventilation, and air conditioning) requirements. In place of conventional refrigerants, water is generally mixed with either lithium bromide or ammonia. It has broader usage in low-grade heating.
The absorption chillers use a concentrated salt solution to make water chilled. An absorption chiller comprises four key parts: generators, absorption, evaporators, and condensers. It allows the use of variable heat sources, which contain a gas burner and recovering waste heat in the form of low-pressure steam or hot water or steam or boiler-generated hot water.
They can deliver significant cooling capacity to a facility without contributing to the peak electric demand because they are free of electric compressors. The primary consideration that must be made when considering the applicability of such a chiller is that they need a significant and constant flow of waste heat to function. Industrial manufacturing facilities usually require absorption chiller but other institutions like big hospital complexes, large hotels, or university campuses.
The absorption chillers market is likely to increase with the lifting of the restriction imposed by the government. Numerous sectors are anticipated to rebound quickly post-COVID-19 due to the vast number of applications they serve. Due to pandemic-related logistics problems, many organizations considered localizing more manufacturing for their customers and themselves. This deglobalization is driven by the new automation of technologies that increase wages by enhancing efficiency. Hence, the market for absorption chillers is likely to resume its business and see growth after the ease in restrictions due to the pandemic.
The rapidly increasing urbanization and the disposable income of the people have increased the popularity of fast foods and packaged foods. The population shift from rural to urban living is a major factor that further changes people's consumption habits. The constantly increasing number of people leaving their homes to work increases the consumption of packaged food products in many regions. Hence, the constant growth of the food & beverages sector will increase the usage of the absorption chillers for food processes and facility cooling, propelling the expansion of the absorption chillers market.
The power consumption of the electrically driven centrifugal chiller and a boiler installed as an HVAC system is higher than the direct-fired electric power absorption chiller. The direct fired double effect absorption chillers consume significantly less electric power, which is only around 6-7% of the power consumed by the electric power consumption of the centrifugal chiller. Hence, the lower power usage by the absorption chiller is expected to surge its adoption in different industry verticals and drive market growth.
The fluorinated gas laws are a primary factor impacting the broader adoption of absorption chillers as condensers and evaporator coils. Many organizations are working to implement major changes in the fluorinated gas regulations to decrease hydrofluorocarbon emissions (HFCs). The utilization of HFCs is restricted in many applications. Only if the system in issue fulfills the eco-design requirements are HFC refrigerants authorized. The high initial cost and the strict regulations related to fluorinated gas and HFCs are expected to hamper the growth of the absorption chillers market.
Based on refrigerant type, the absorption chillers market is segmented into ammonia and lithium bromide. The lithium bromide segment dominated the absorption chillers market with maximum revenue share in 2021. This is because lithium bromide is non-toxic, reliable, pollution free, odorless, non-toxic, and meets environmental protection requirements. In addition, the type is more commonly utilized as it uses water as the refrigerant. The primary usage of lithium bromide is to provide chilled water for process and space cooling. These factors will aid in the expansion of the segment during the forecasted period.
On the basis of energy source, the absorption chillers market is divided into hot water treated, steam heated and others. The steam-heated segment procured a substantial revenue share in the absorption chillers market in 2021. The growth is attributed to the fact that this source is highly eco-friendly. This type aids in reducing the operating cost for the company and allows the company avoids the need for an air conditioner. Also, the potential to monetize the heat by selling it to nearby facilities will further aid the company in having extra earnings. These features are expected to propel the market growth in the projected period.
By application, the absorption chillers market is classified into food & beverages, oil & gas, chemical and others. The chemical segment registered the highest revenue share in the absorption chillers market in 2021. This is because these industries use absorption chillers for air conditioning as well as for the cooling process. Majorly, the absorption chillers harness energy from wasted heat such as steam or hot water. Also, it has an ideal temperature range which is beneficial for air conditioning equipment in the chemical industry. Hence, the usage by the chemical industry for cooling equipment and other purposes is expected to drive market growth in the projected period.
Based on the end user, the absorption chillers market is bifurcated into residential, commercial and industrial. The commercial segment recorded a prominent revenue share in the absorption chillers market in 2021. This is due to their usage to maintain a constant temperature in commercial buildings like public buildings, hospitals, educational offices, and offices, etc. They are even used in data centers for keeping an ideal temperature and air purity to reduce equipment failure and downtime. Also, the number of commercial buildings is increasing due to the rising urbanization and population.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 1.4 Billion |
| Market size forecast in 2028 | USD 1.9 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 4.5% from 2022 to 2028 |
| Number of Pages | 238 |
| Number of Table | 440 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Energy Source, Application, Refrigerant Type, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
|
| Restraints |
|
Region-wise, the absorption chillers market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region generated the highest revenue share in the absorption chillers market in 2021. The growth is attributed to the growth of numerous end-use industries in developing nations. Many manufacturers are investing in the region to establish their production plants and enhance their market presence. Also, many regional governments are introducing schemes for developing the industrial sector, which will further increase the utilization of absorption chillers and thereby boost the market growth in the region.
Free Valuable Insights: Global Absorption Chillers Market size to reach USD 1.9 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include LG Electronics (LG Corporation), Carrier Global Corporation, Thermax Limited, Hitachi, Ltd., Trane Technologies PLC, Johnson Controls International PLC, World Energy Co., Ltd., EAW Energieanlagenbau GmbH (WEGRA Anlagenbau GmbH), Yazaki Corporation, and Styne Group.
By Application
By End User
By Refrigerant Type
By Energy Source
By Geography
The global Absorption Chillers Market size is expected to reach $1.9 billion by 2028.
The growing food & beverages sector are driving the market in coming years, however, High implementation cost and strict regulations restraints the growth of the market.
LG Electronics (LG Corporation), Carrier Global Corporation, Thermax Limited, Hitachi, Ltd., Trane Technologies PLC, Johnson Controls International PLC, World Energy Co., Ltd., EAW Energieanlagenbau GmbH (WEGRA Anlagenbau GmbH), Yazaki Corporation, and Styne Group.
The expected CAGR of the Absorption Chillers Market is 4.5% from 2022 to 2028.
The Industrial segment acquired maximum revenue share in the Global Absorption Chillers Market by End User in 2021 thereby, achieving a market value of $1 billion by 2028.
The Asia Pacific market dominated the Global Absorption Chillers Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $786.6 million by 2028.
Unique Offerings Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
