ABSORPTION CHILLERS MARKET ANALYSIS

Market Concentration and Competitive Landscape

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Growing construction industry and infrastructure development in emerging economies

Rapid urbanization and economic growth of developing nations have largely contributed to the immense development in their construction and infrastructure industry. Countries across Asia, Africa, South America, and Middle East are witnessing major investment in large-scale commercial, industrial, and public projects. The sheer size and number of upcoming construction projects in these emerging markets have opened up huge untapped opportunities for absorption chillers.

Developing regions experience hot and humid climates for most part of the year which necessitates efficient and resilient cooling solutions for various structures and facilities. Traditional vapor compression systems may not always be suitable or best suited for the climate/scale of some projects. On the other hand, absorption chillers are highly durable and require almost negligible maintenance even in harsh outdoor conditions. Their ability to leverage low-grade waste heat from engines, boilers, or thermal plants into chilled water makes them a dependable choice for off-grid and remote locations as well which are common in developing markets.

Moreover, absorption chillers are usually 30-40% cheaper to install than electric chillers and their operating costs are also lower owing to low electricity consumption. These economic benefits, along with supportive government policies and concessional green financing for cooling projects, have enticed developers, architects, and building owners in emerging countries to incline towards absorption chillers for their vast construction portfolios. Global cooling equipment manufacturers are proactively expanding their presence in high growth markets by establishing local production and supply chain to effectively capitalize on this window of opportunity.