Absorption Chillers Market size is set to grow by USD 727.6 million from 2024-2028, Growing use of absorption chillers across various industries to boost the market growth, Technavio

NEW YORK, June 4, 2024 /PRNewswire/ -- The global absorption chillers market size is estimated to grow by USD 727.6 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.1%  during the forecast period. 

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Key Market Trends Fueling Growth

Absorption chillers are gaining popularity in the global market due to their energy-saving capabilities. In industrial and commercial sectors, these chillers utilize direct-fired heat energy from various sources to chill water, reducing the need for electricity.

This makes absorption chillers ideal for use in industrial facilities and power plants, where waste heat can be utilized. Additionally, they are beneficial in remote areas not connected to the electric grid. The EU, heavily reliant on energy imports, prioritizes energy efficiency and absorption chillers' adoption for heating and cooling applications. 

The Absorption Chiller market is experiencing significant growth, driven by the increasing demand for energy-efficient cooling solutions. One key trend is the use of advanced technologies such as Compressorless Absorption Chillers and Foam-Enhanced Absorption Chillers. These technologies offer improved performance and energy savings.

Another trend is the integration of Absorption Chillers with renewable energy sources like solar and geothermal. This combination provides sustainable cooling solutions for various industries, including data centers and hospitals. Additionally, the market is witnessing the adoption of Carbon Nanotubes in Absorption Chillers for enhanced heat transfer and efficiency. Overall, the Absorption Chiller market is poised for continued growth due to these trends and advancements. 

Market Challenges

•         The global absorption chillers market experiences growth due to the energy efficiency focus in various industries. However, high initial and maintenance costs hinder market expansion. Absorption chillers are pricier than conventional alternatives, with longer breakeven periods.

•         Price-sensitive businesses in emerging economies may find this a barrier. Additionally, absorption chillers require 20%-35% more annual maintenance than conventional chillers, adding to long-term expenses. These factors contribute to the anticipated market growth challenges during the forecast period.

•         The Absorption Chillers market faces several challenges. One key challenge is the high energy consumption of these systems, which can lead to increased operational costs. Another challenge is the need for large amounts of water for cooling, making water management a critical issue. Additionally, the lack of awareness and understanding of Absorption Chillers technology among consumers and businesses can hinder market growth.

•         Furthermore, the high initial investment cost is a significant barrier to entry for new players in the market. Lastly, the increasing demand for renewable energy sources and energy efficiency is driving the need for more advanced and efficient Absorption Chillers. Companies must address these challenges to remain competitive in the Absorption Chillers market.

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Segment Overview 

1. Application 
• 1.1 Industrial
• 1.2 HVAC
2. Type 
• 2.1 Lithium bromide
• 2.2 Ammonia
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Industrial-  The Absorption Chillers Market is experiencing steady growth due to increasing demand for energy-efficient cooling solutions. These chillers use thermal energy to produce chilled water, making them an eco-friendly alternative to traditional compressor-based systems. Key players in the market include Trane, Carrier, and Emerson, who continue to innovate and expand their product offerings.

The market is driven by factors such as rising energy costs, stringent regulations, and the need for sustainable infrastructure. Absorption Chillers offer significant cost savings and reduced carbon emissions, making them an attractive option for industries and commercial buildings. The market is expected to reach significant growth in the coming years, as more businesses seek to reduce their environmental footprint and lower operational costs.

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Research Analysis

In the context of Developing Nations and Urbanization, the Absorption Chillers Market holds significant potential due to their ability to utilize various heat sources for the cooling process. Mechanical energy derived from waste heat, steam, hot water, natural gas, and even wastewater, can be employed as the heat source in absorption refrigeration systems.

These systems use a sorbent solution and a liquid refrigerant, typically water and lithium bromide, to absorb heat and generate cooling. Absorption chillers offer an eco-friendly alternative to traditional refrigeration systems that rely on ozone-depleting chlorofluorocarbons (CFCs). As Electricity rates continue to rise in Developing Nations, absorption chillers, which consume less electricity compared to compression refrigeration systems, are gaining traction in the Petrochemical industry and other sectors.

The Absorption Chillers Market encompasses a range of cooling systems that utilize a sorption process to produce chilled water. These systems are primarily driven by thermal energy sources such as waste heat or renewable energy. Absorption chillers consist of key components including a generator, condenser, absorber, and evaporator. The market for absorption chillers is growing due to their energy efficiency, low carbon footprint, and ability to operate with various thermal energy sources.

Applications of absorption chillers include industrial processes, commercial buildings, and large-scale refrigeration systems. The market is also driven by government initiatives to reduce greenhouse gas emissions and promote sustainable cooling solutions. Technological advancements in absorption chiller design and materials are further enhancing their performance and competitiveness in the market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Industrial
• HVAC
• Type
• Lithium Bromide
• Ammonia
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio