USD 1.62 Billion
Absorption Chillers Market Size, Share, and Growth Analysis
Absorption Chillers Market By Refrigerant Type (Ammonia-based, Lithium Bromide), By Product (Single-Effect Absorption Chillers, Double-Effect Absorption Chillers, and Triple-Effect Absorption Chillers), By Energy Source (Natural Gas, Steam, Hot Water, and Others), By Application (Commercial, Industrial), By Region -Industry Forecast 2025-2032
Report ID:
SQMIG20I2369 |
Region:
Global |
Published Date: April, 2025
Pages:
193
|Tables:
112
|Figures:
69
Format -
Absorption Chillers Market Insights
Global Absorption Chillers Market size was valued at USD 1.62 Billion in 2023 and is poised to grow from USD 1.7 Billion in 2024 to USD 2.49 Billion by 2032, growing at a CAGR of 4.9% in the forecast period (2025-2032).
The global absorption chillers market is experiencing steady growth, driven by the increasing emphasis on energy-efficient and environmentally friendly cooling solutions. Unlike conventional mechanical chillers, absorption chillers utilize heat sources such as steam, hot water, or waste heat to provide cooling, making them particularly attractive in settings where electricity consumption needs to be minimized.
The market is benefiting from growing applications across commercial, industrial, and residential sectors, especially in regions with rising temperatures and expanding infrastructure. Industries such as power generation, chemicals, and pharmaceuticals are increasingly adopting absorption chillers to utilize waste heat and enhance overall operational efficiency. Additionally, government incentives and regulations supporting sustainable technologies are further encouraging the adoption of absorption chillers globally.
Rising investments in data center construction to manage huge volumes of data and increasing digital transformation are also slated to promote the demand for chillers going forward. Rapid urbanization and industrialization around the world are also expected to present new opportunities for chiller providers over the coming years. High emphasis on sustainability and energy efficiency is also expected to offer new business scope for energy-efficient chillers in the long run.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Lithium Bromide
Fastest Growth
Ammonia-based
Growth Rate
4.9% CAGR
Global Absorption Chillers Market ($ Bn)
Country Share for North America Region (%)
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Absorption Chillers Market Segments Analysis
Global absorption chillers market is segmented based on product, energy source, application and region. Based on the refrigerant type, the market is segmented into ammonia-based and lithium bromide. Based on the product, the market is segmented into single-effect absorption chillers, double-effect absorption chillers, and triple-effect absorption chillers. Based on energy source, the market is segmented into natural gas, steam, hot water and others. Based on application, the market is segmented into commercial and industrial. Based on the Region, the market is segmented into North America, Europe, Asia-Pacific and the Middle East and Africa.
What Drives the Growing Demand for Ammonia-Based Absorption Chillers?
As per global absorption chillers market analysis, lithium bromide dominates the market, particularly in commercial and industrial cooling applications. These systems are widely used for air conditioning in buildings, district cooling, and HVAC systems in hospitals, hotels, and data centers. LiBr-based chillers typically operate with water as the refrigerant and lithium bromide as the absorbent, making them well-suited for applications requiring cooling temperatures above freezing.
The ammonia-based segment is experiencing notable global absorption chillers market growth, especially in the industrial sector. These systems use ammonia as both the refrigerant and absorbent and are favored in process cooling applications such as food and beverage, chemical, and pharmaceutical industries, where lower cooling temperatures are required.
What Makes the Commercial Sector the Key Growth Driver for Absorption Chillers?
As per global absorption chillers market outlook, the commercial segment dominated the market. Surging demand for highly efficient HVAC systems in commercial buildings and growing emphasis on keeping commercial buildings cool are expected to boost sales of chillers in commercial settings. Complex cooling requirements of commercial structures and the increasing adoption of smart building technologies are also expected to create new opportunities for chiller providers in this segment. The growing number of data centers around the world and the need for efficient cooling systems are also promoting the demand for chillers in this segment.
As per global absorption chillers market forecast, industrial is the fastest growing segment. The demand for chillers in industrial applications is slated to rise at a robust pace in the future. Rapid industrialization and rising need for cooling systems in multiple industry verticals are expected to present new opportunities for chiller providers targeting this segment. Efforts to enhance the efficiency and productivity of industrial operations are also slated to promote the adoption of chillers in industrial settings.
Global Absorption Chillers Market By Refrigerant Type (%)
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Absorption Chillers Market Regional Insights
What are the Key Drivers of the Absorption Chillers Market in North America?
As per regional outlook, this region is seeing strong demand for energy-efficient and sustainable cooling solutions due to environmental regulations and an increasing focus on reducing energy consumption. Both commercial and industrial sectors are key drivers of absorption chiller market, particularly as businesses seek to optimize their cooling systems in compliance with green building standards.
Absorption Chillers Market in United States
The United States is witnessing a surge in the demand for environmentally friendly, energy-efficient HVAC systems, especially in commercial sectors such as office buildings, healthcare facilities, and data centers. The drive for reduced energy consumption and operational costs is increasing the adoption of absorption chillers, which provide cooling through heat sources like natural gas or waste heat. This growing shift toward sustainable building technologies is a key driver of the market. In fact, the market is expected to hold a significant absorption chiller market share of approximately 30% in the U.S. in 2024.
Absorption Chillers Market in Canada
Canada is implementing strict building codes and regulations aimed at reducing energy consumption and carbon emissions. As a result, the Canadian market is increasingly favoring absorption chillers, which are seen as an effective solution for energy-efficient cooling. In particular, the push for green building certifications, such as LEED (Leadership in Energy and Environmental Design), is encouraging businesses to adopt sustainable cooling technologies like absorption chillers.
Why is Asia-Pacific Experiencing Rapid Adoption of Absorption Chillers?
As per industry analysis, this region is experiencing the fastest growth in the absorption chillers market, driven by rapid industrialization, urbanization, and the increasing need for energy-efficient solutions. The demand for absorption chillers is rising in commercial and industrial applications, where energy-saving technologies are becoming a priority to reduce both operational costs and environmental impacts.
Absorption Chillers Market in Japan
Japan’s commitment to technological innovation and environmental sustainability has played a significant role in the growth of absorption chillers. With high energy costs and a focus on reducing carbon footprints, Japan is increasingly adopting energy-efficient cooling solutions like absorption chillers, especially in large commercial and industrial sectors. The government’s policies on energy efficiency and low-emission technologies further support market growth.
Absorption Chillers Market in South Korea’s
South Korea’s rapid industrialization and increasing demand for cooling solutions in its commercial buildings and manufacturing industries have led to higher adoption rates for absorption chillers. As the country focuses on reducing energy consumption, absorption chillers, which utilize waste heat or natural gas as a power source, are gaining popularity due to their ability to reduce operational costs and minimize environmental impact.
What Factors Contribute to Europe’s Expanding Absorption Chillers Market?
As per regional forecast, Europe is advancing rapidly in the adoption of absorption chillers, with a strong emphasis on sustainability and meeting strict environmental regulations. The region's commitment to energy efficiency in buildings and industries fuels demand, particularly as countries prioritize reducing carbon footprints and promoting eco-friendly technologies.
Absorption Chillers Market in UK
The United Kingdom is a key player in the absorption chillers market due to its commitment to meeting ambitious environmental targets. The country’s emphasis on reducing carbon emissions and improving energy efficiency through policies such as the Energy Efficiency Directive has led to increased demand for absorption chillers. Moreover, government incentives for sustainable technologies are helping commercial and industrial sectors adopt these systems.
Absorption Chillers Market in Germany
Germany's strong commitment to renewable energy and its focus on energy-efficient industrial processes make it an attractive absorption chillers market. The country’s aggressive energy transition strategy encourages the integration of sustainable technologies like absorption chillers, which offer benefits such as low energy consumption and reduced environmental impact in commercial and industrial applications.
Absorption Chillers Market in Italy
The absorption chillers market in Italy is poised for continued growth, supported by favorable government policies, technological advancements, and an increasing focus on sustainability. As industries and commercial establishments seek to meet energy efficiency goals and reduce operational costs, absorption chillers are becoming a preferred choice for cooling solutions.
Global Absorption Chillers Market By Geography
- Largest
- Fastest
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Absorption Chillers Market Dynamics
Absorption Chillers Market Drivers
Growing Demand for HVAC Systems
- Rapidly increasing infrastructure development activity around the world is projected to primarily drive up the demand for HVAC systems thereby also benefiting sales of chillers. High demand for temperature control and cooling in offices, residential buildings, and industries is expected to promote market in the future.
Rise in Number of Data Centers
- Data centers are becoming more and more important in an increasingly digital world and so is the demand for cooling systems for them. Chillers offer an efficient means to manage the heat generated by servers, ensuring optimal performance and reliability thereby making them a mainstay in all types of data centers.
Absorption Chillers Market Restraints
Complex Maintenance Needs
- After the high initial costs of procurement and installation chillers also incur a substantial maintenance cost for end users. The requirement of constant cleaning, refrigerant replacement, component repairs, and monitoring of chillers to maintain their functionality requires skilled technicians thereby adding complexity to ownership and impeding adoption.
Energy Consumption Concerns
- Even though chillers are highly efficient cooling systems, concerns regarding their energy consumption are expected to hurt their sales going forward. Although chillers are known for their high cooling efficiency, growing concerns about their energy consumption are likely to negatively impact their future sales. High energy usage contributes to increased operational costs and environmental concerns, which in turn, is slated to impede the absorption chillers market outlook in the long run.
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Absorption Chillers Market Competitive Landscape
In 2024, the global absorption chillers industry remains highly competitive, with both established players and emerging innovators striving to expand their global footprint through strategic partnerships, technological advancements, and sustainability-focused product development. In March 2024, Trane Technologies collaborated with BASF to co-develop next-generation absorption chillers using low-global warming potential (GWP) refrigerants. This strategic partnership aims to combine Trane’s HVAC expertise with BASF’s advanced chemical solutions to enhance energy efficiency and reduce the environmental impact of large-scale cooling systems. The collaboration also focuses on integrating IoT-enabled monitoring to provide real-time performance analytics and predictive maintenance, positioning the companies as leaders in sustainable cooling solutions.
The absorption chillers market is seeing a rise in innovative startups that are focused on providing sustainable cooling solutions. These startups aim to cater to the growing demand for energy-efficient HVAC systems, particularly in commercial sectors such as office buildings, data centers, and healthcare facilities. By leveraging renewable energy sources like solar power and waste heat, these startups are developing advanced absorption chillers that offer both energy savings and reduced environmental impact.
- Ice Energy (Founded in 2017): Ice Energy focuses on providing sustainable cooling solutions using ice storage technology. Their goal is to reduce the energy consumption of air conditioning systems by shifting energy use to off-peak hours, thus improving energy efficiency and lowering costs for commercial buildings and industrial applications.
- Glen Dimplex Thermal Solutions (Founded in 2018): Glen Dimplex specializes in high-efficiency absorption chillers and heat pumps. Their mission is to provide environmentally friendly solutions to the HVAC industry, focusing on reducing the carbon footprint and promoting the use of renewable energy sources like solar and geothermal systems in commercial and industrial cooling applications.
Top Player’s Company Profiles
- Carrier Corporation
- Daikin Industries
- Johnson Controls
- Trane Technologies
- Thermax Ltd.
- Broad Air Conditioning
- Hitachi Appliances
- Midea Group
- Robur Corporation
- Shuangliang Eco-Energy Systems
- LG Electronics
- Yazaki Energy Systems Inc.
Recent Developments in Absorption Chillers Market
- In September 2024, Carrier, a leading name in the HVAC and cold chain business announced the launch of new screw chillers. The Eurovent- and AHRI-certified AquaForce 30XF high performance chillers were launched specifically for data center applications as demand for data center cooling solutions intensifies around the world.
- In February 2024, Daikin, a leading air conditioner manufacturer from Japan announced the launch of its new air-cooled chiller. The new R32 cooling-only chillers feature a scroll compressor with an impressive load capacity of 1010 kW for industrial, IT, process, and comfort cooling applications.
- In August 2024, Trane Technologies, a leading name in the chiller business announced its plans to launch its chillers in the Australian market by the end of 2024. MTA brand R290 chillers and heat pumps are expected to be made available in New Zealand and Australia by the end of 2024.
Absorption Chillers Key Market Trends
- Use of Eco-friendly Refrigerants: Chiller providers are projected to move towards the use of eco-friendly refrigerants as awareness and emphasis on sustainability increases around the world. Imposition of stringent mandates regulating the use of harmful refrigerants is expected to make this a key absorption chillers market trend going forward. Low-GWP and natural refrigerants such as ammonia, CO2, and hydrocarbons are expected to gain popularity through 2031.
- Development of Modular Chillers: Chiller companies are expected to invest in the development of modular chillers that provide high scalability to meet varying needs of different end users in several industry verticals. These modular chillers also provide opportunities for chiller companies to target new customer bases as this absorption chillers industry trends makes chillers more affordable.
Absorption Chillers Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, rapid industrialization and urbanization coupled with high use of HVAC systems are forecasted to bolster the demand for chillers over the coming years. Absorption chillers are typically utilized in the petroleum and food and beverage industries. This is because these industries require accurate temperature control and economical energy utilization. Absorption refrigerating machines save operating costs and dependency on electrical energy by efficiently using waste heat. They further support process heat exchanger capacity development and monoethylene glycol absorption in the petroleum industry. At the same time, they help guarantee product safety and quality in the food and beverage industry. These chillers are projected to increase energy efficiency, thereby reducing greenhouse gas emissions, which is beneficial in achieving the environmental sustainability targets. Stringent regulatory standards have pushed manufacturers to innovate and discard underperforming units. This change has led to the development of reliable, energy-efficient, and noiseless absorption cooling systems that satisfy industrial needs for performance and value.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 1.62 Billion |
| Market size value in 2032 | USD 2.49 Billion |
| Growth Rate | 4.9% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Absorption Chillers Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Absorption Chillers Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Absorption Chillers Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Absorption Chillers Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Absorption Chillers Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Absorption Chillers Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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