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Absorption Chillers Market Is Expected to Witness CAGR of 5% During the Forecast period (2024-2031)

Absorption Chillers Market Is Expected to Witness CAGR of 5% During the Forecast period (2024-2031) - Coherent Market Insights

Publish In: Aug 26, 2024

Global Absorption Chillers Market is estimated to Witness Steady Growth Owing to Increasing Data Center Construction and Growing District Cooling Adoption

The Global Absorption Chillers Market is estimated to be valued at USD 1.43 Bn in 2024 and exhibit CAGR of 5% over the forecast period 2024-2031. Absorption chillers offer several advantages over traditional compression chillers such as lower operating costs and ability to utilize low-grade heat from sources such as industrial waste heat or natural gas. Furthermore, growing construction of large data centers across the globe is also expected to drive the demand for absorption chillers due to their high efficiency in providing cooling for server rooms and data processing facilities.

Market Dynamics:

The Global Absorption Chillers Market is expected to witness steady growth over the forecast period. This can be attributed to two key drivers - increasing construction of large data centers and growing adoption of district cooling systems in commercial and industrial sectors. Rapid digitalization and emphasis on cloud computing are fueling significant investments in data center infrastructure development around the world. As absorption chillers offer cost-effective and sustainable cooling solutions for server rooms, their demand from data center operators is anticipated to increase substantially.

Global Absorption Chillers Market: Market Drivers

Demand for Energy Efficient and Eco-friendly Cooling Systems

Absorption chillers provide highly energy efficient and environmentally friendly cooling compared to conventional electric chillers. They utilize waste heat or renewable thermal energy such as natural gas, biomass, solar thermal etc. as the primary energy source to power the cooling process. With growing focus on reducing carbon footprint and switching to sustainable cooling technologies, absorption chillers are gaining widespread acceptance across various industries and buildings. Their ability to significantly lower energy consumption and costs associated with cooling makes them an attractive proposition for commercial establishments and process industries globally. This is a major factor driving the growth of global absorption chillers market.

Increasing Adoption in Waste Heat Recovery Applications

Absorption chillers provide an efficient way to leverage low-grade waste heat in industrial processes for useful applications like space cooling. A wide variety of waste heat streams in industries such as petrochemicals, refineries, cement, iron & steel etc. ranging from 60°C to 150°C can be used as a fuel for absorption chillers. This enables double utility of otherwise lost waste heat and reduces primary energy usage. Absorption chillers integrated with waste heat recovery systems also enhance the overall energy efficiency of production facilities. Growing focus on waste heat recovery across process industries worldwide is propelling the demand for absorption chillers with integrated waste heat utilization capabilities.

Global Absorption Chillers Market: Market Restraints

High Initial Capital Cost Compared to Electric Chillers

The initial capital cost of installing an absorption chiller system is significantly higher compared to conventional vapor compression electric chillers of similar capacity. This high upfront investment acts as a major restraint in wider adoption, especially for small-scale cooling applications and in cost-sensitive markets. Absorption chillers also have higher maintenance requirements which increase the overall ownership cost over long term. This makes their economic feasibility dependent on factors such as energy tariffs, incentives for renewables, payback period consideration, etc.

Lack of Awareness about Technical & Economic Benefits

Despite the energy saving and environmental advantages, absorption chillers still suffer from lack of broad awareness about their technical workings and long-term economic benefits over electric chillers. Limited understanding among building owners, facility managers and EPC contractors pose challenge in proper evaluation and selection of absorption chillers. There is a need for more aggressive information dissemination campaigns by OEMs and policymakers to highlight application-specific performance advantages and help promote their greater acceptance. Knowledge gaps continue to restrain the growth momentum of global absorption chillers industry.

Global Absorption Chillers Market: Market Opportunities

Rise of District Cooling and Cooling as a Service Models

District cooling schemes that utilize central chilling plants to provide space cooling to multiple residential/commercial buildings are gaining increased traction worldwide. Such shared utility models are driving demand for large capacity central absorption chillers that can leverage waste heat on a distributed basis. Emergence of "cooling as a service" offerings by ESPC/EPC contractors also present an opportunity to promote standardized absorption chillers tailored for turnkey district cooling projects. Their technical suitability and economic benefits can be maximized through such innovative delivery models.

Growth in Renewable Energy Integration

Proactive policies to integrate more renewables including solar PV and solar thermal into the energy mix are opening up opportunities for hybrid cooling systems powered by these resources. Absorption chillers compatible with low temperature heat inputs from solar thermal collectors and waste heat recovery are well positioned to leverage this emerging trend. Their ability to independently control cooling output based on variable thermal and electrical inputs makes them an attractive option for sustainable campus-scale cooling projects increasingly powered by hybrid energy systems.

Link - https://www.coherentmarketinsights.com/market-insight/absorption-chiller-market-1464

Key Developments:

  • In June 2024, Johnson Controls, a prominent global provider of building technologies and solutions, revealed that its YORK YHAU-CGN Direct Fired Absorption Chiller-Heater captured the silver award in Consulting-Specifying Engineer's annual Product of the Year competition. This accolade underscores the chiller-heater's cutting-edge design and exceptional performance within the industry.
  • In December 2023, Ebara Refrigeration Systems, a Tokyo-based leader in refrigeration technology, announced the creation of the world's first hydrogen-powered absorption chiller/heater. This groundbreaking system is designed to cut annual CO2 emissions by 94% compared to conventional gas systems. Notably, hydrogen can be combusted directly for use without needing to be converted into power or electricity.
  • In June 2023, Johnson Controls, a global leader in smart, healthy, and sustainable building solutions, announced its acquisition of M&M Carnot, a notable provider of natural refrigeration solutions with ultra-low global warming potential (GWP). This acquisition is intended to strengthen Johnson Controls' portfolio in sustainable refrigeration technologies, allowing for improved service to its expanding customer base.

Key Player:

Broad Air Conditioning Co., Ltd., Carrier Corporation, EAW Energieanlagenbau GmbH, Ebara Corporation, Frigel Firenze S.p.A., Hitachi Appliances, Inc., Johnson Controls International plc, Kawasaki Thermal Engineering Co., Ltd., LG Electronics Inc., Robur Corporation, Shuangliang Eco-Energy Systems Co., Ltd., Shuangliang Clyde Bergemann GmbH, Thermax Limited, Trane Inc., and Yazaki Corporation

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