Market Overview

An absorption refrigerator or chiller is a thermally-driven chiller that uses liquid refrigerant or sorbent solution and a heat source to provide cooling to buildings. These chillers use relatively less energy as compared to traditional chillers such as electrical chillers and cool buildings and industrial equipment without using ozone-depleting chlorofluorocarbons (CFCs). Moreover, absorption chillers use heat energy with limited mechanical energy for pumping and can be powered by steam, hot water, natural gas, and waste water. There are two types of commercial absorption chillers used namely single-stage and double-stage systems. In single-stage system, a single condenser and generator are employed. However, thermal efficiency of single-stage chiller is low thus it hinders their cost competitiveness as compared to conventional electric chillers. Furthermore, double-stage system consists of two condensers and two generators, in order to allow more refrigerants to boil-off from the absorbent solution.

The global absorption chillers market is estimated to account for US$ 1,416.9 Mn in terms of value and 13,560 Units in terms of volume by the end of 2019.

Market Dynamics- Drivers

  1. Growing adoption of solar-powered absorption chillers in different end-use industries is expected to drive growth of the global absorption chillers market during the forecast period

Non-electricity driven equipment have witnessed high demand from various end-use industries in the recent past, wherein primary source could be utilized more efficiently. Therefore, absorption chillers powered by solar energy have gained significant traction in the market for large chilling operations. These chillers provide maximum cooling performance while reducing electrical power consumption thereby minimizing ever increasing need for electricity in summer. This, in turn, is expected to drive the market growth in the near future. For instance, for the World Cup 2022 which is scheduled to be held in Qatar, a CLFR solar collector field has been developed to power a 1MW absorption chiller to provide air-conditioning for a 500-seat showcase football stadium at Doha, Qatar.

  1. Increasing deployment of engines and turbines is expected to propel the global absorption chillers market growth over the forecast period

Air conditioning unit is required to ensure efficient performance in turbines and engines in operations. Favorable temperature for efficient performance of turbines is around 1500C. However, maintaining this temperature becomes challenging, especially in Asia Pacific and Middle East where average temperature is higher than 2500C. Therefore, absorption chillers are extensively used to prevent the waste of heat from turbines, which can be further effectively used power absorption chiller at a negligible fuel costs. Thus, increasing number of turbines integrated with efficient heat rate requirement is expected to boost the market growth in the near future. 

Asia Pacific region dominated the global absorption chillers market in 2018, accounting for 32.4% share in terms of value, followed by MEA, Europe, North America, and Latin America, respectively.

Absorption Chiller  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. High capital investment for installation along with high operational cost is expected to restrain the global absorption chillers market growth during the forecast period

When compared to conventional electric and mechanical chillers, absorption chillers require high installation costs, which results in long payback period. Operational cost for absorption chillers is also higher than conventional chillers, thereby restraining the market growth in the near future. Furthermore, local equipment suppliers and facility workers are sufficiently trained for maintenance of absorption chillers, which makes end users sign a contract with chiller manufacturers, in order to ensure efficiency of the equipment. According to Coherent Market Insights’ analysis, absorption chiller installation requires around US$ 830/ kWc with additional US$ 58/kWc per year for operation and maintenance. Such high operational and maintenance cost is expected to hinder the adoption of absorption chillers and thereby hamper the market growth in the near future.

  1. Lack of skilled professionals for maintenance works is expected to hinder growth of the global absorption chillers market over the forecast period

Absorption chillers require skilled and expert professionals for maintenance. Such high maintenance is not possible from local vendors and distributors. Moreover, key players do not provide consulting for the maintenance works and concentrate only on promotion of other substitute equipment. This, in turn, is expected to restrain the global absorption chillers market growth over the forecast period up to certain extent.

Market Opportunities

  1. Offering consulting and for operation and product maintenance

Absorption chillers, unlike conventional chillers, require high maintenance. For instance, in lithium bromide-based absorption chillers, prevention of crystallization of refrigerant for efficient working is essential. Very few players around the world can offer this service, which in turn, creates significant business opportunity for market players to expand their presence and gain confidence of consumers. For instance, Trane provides extensive aftermarket support wherein service personnel ensure that designated unit operators thoroughly understand absorption system operation and unit capabilities and limitations.

  1. Rising waste of heat and high operational cost of ships is expected to pose lucrative growth opportunity

Operating large ships leads to wastage of large amounts of heat, which in turn, increases operational cost of ships and negatively affects the environment with emission of CO2. However, the waste heat can be to power an absorption chiller, which further can be used to cool the vessels. According to Coherent Market Insights’ analysis, in 2014, there were around 50,000 ships operating in the ocean, which is expected to increase at a rate of 3% annually. Therefore, research and development in absorption chillers used in maritime application are expected to pose significant growth opportunities for market players in the near future.

Absorption Chiller  | Coherent Market Insights

Source: Coherent Market Insights

Global double stage based absorption chillers market was valued at US$ 1,108.0 Mn market in 2018 and is forecasted to reach a value of US$ 2,013.1 Mn by 2027 at a CAGR of 6.9% between 2019 and 2027.

Market Trends

  1. Offering low coefficient of power (COP) for absorption chillers is a major trend in the market

Coefficient of power for absorption chillers should be as low as possible, in order to attain efficient operations. Offering low COP can be the major USP for manufacturers in the highly competitive market. Many companies in the market offer absorption chillers with low COP, which is expected to continue during the forecast period. For instance, in April 2013, Kawasaki Thermal Engineering Co., Ltd. developed double-effect absorption chiller with COP of around 1.51, which is the highest rated COP for double-effect chillers.

  1. Absorption chillers with remote monitoring facilities via multiple interface is another major trend in the market

Remote monitoring of equipment offer flexibility, efficiency, and increases visibility of operations across different geographies and management hierarchies. Moreover, development in wireless networking and technology has enabled manufacturers to offer compatible features that offer remote monitoring capabilities for absorption chillers, which is expected to continue over the forecast period. For instance, Programmable Logic Control (PLC) absorption chillers are trending. These enable end users to view the performance of absorption chillers on wireless devices such as smart phones and laptops, thereby reducing demand for operational engineers, in order to ensure its efficient working.

Segment information:

In Global Absorption Chillers market, by application segment, the industrial sub-segment dominated the global market in 2018, accounting for 88.7% share in terms of value, followed by non-industrial, respectively.

Absorption Chiller  | Coherent Market Insights

Source: Coherent Market Insights

Value Chain Analysis

Absorption Chiller  | Coherent Market Insights

Source: Coherent Market Insights

Competitive Section

Key players operating in the global absorption chillers market are Broad Air Conditioning Co. Ltd., Thermax Inc., Carrier Corporation, Shuangliang Eco-Energy Systems Co. Ltd., Kawasaki Thermal Engineering Co., Ltd., Hyundai Climate Control Co., Ltd., Johnson Controls, Inc., Robur Corporation, Yazaki Corporation, EAW Energieanlagenbau GmbH, and Trane Inc.

Key Developments

  1. Key players in the market are focused on product development, in order to enhance their product portfolio. For instance, in January 2019, Broad Air Conditioning Co. Ltd. developed a triple-effect absorption chiller that can produce chilled water down to 50
  2. Major companies in the market are focused on capacity expansion, in order to enhance their market presence. For instance, in January 2019, Thermax Inc. inaugurated a new manufacturing unit in Sri City in Andhra Pradesh, India to produce vapor absorption products as chillers, heaters, and heat pumps for domestic and export markets.

Absorption chillers have gained widespread adoption as compared to traditional chillers in industrial sector due to their capability to integrate cogeneration systems and function with industrial waste heat streams. The absorption chillers market is growing rapidly due to the rising adoption of absorption chillers in industrial sector and the increase in demand for refrigeration across other processing industries. There are different types of absorption chillers based on different technology and absorber type. Also, this absorption chillers offer several benefits as compared to conventional chillers such as low noise levels, better efficiency, and low maintenance costs. These factors are expected to boost the demand for absorption chillers across the globe.

Market Dynamics

One of the major factors that is expected to boost the demand for absorption chillers is growing awareness for energy conservation, therefore taking initiatives to develop energy-efficient scroll and absorption chillers. Moreover, growing adoption of solar-powered absorption chillers in different end-use industries and increasing deployment of engines and turbines are the major factors that are expected to drive the demand for absorption chillers market globally.

Market Taxonomy

This report segments the global absorption chillers market on the basis of technology, printer type, and end-use industry. On the basis of technology, the global absorption chillers market is segmented into single stage and double stage. On the basis of absorber type, the market is segmented into lithium bromide and ammonia. On the basis of application, the market is segmented into non-industrial and industrial. The industrial sub-segment is further segmented into chemical, food & beverage, petroleum, power, paper & pulp, and other industries. On the basis of power source, the market is segmented into direct fired, indirect fired, and water driven.

Key features of the study:

  • This report provides an in-depth analysis of the global absorption chillers market and provides market size (US$ Million) and Compound Annual Growth Rate (CAGR %) for the forecast period (2019 – 2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global absorption chillers market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include Broad Air Conditioning Co. Ltd., Thermax Inc., Carrier Corporation, Shuangliang Eco-Energy Systems Co. Ltd., Kawasaki Thermal Engineering Co., Ltd., Hyundai Climate Control Co., Ltd., Johnson Controls, Inc., Robur Corporation, Yazaki Corporation, EAW Energieanlagenbau GmbH, and Trane Inc.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up-gradation, market expansion, and marketing tactics
  • The global absorption chillers market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global absorption chillers market

Detailed Segmentation:

  •  Global Absorption Chillers Market, By Technology:
    • Single Stage
    •  Double Stage
  •  Global Absorption Chillers Market, By Absorber Type:
    • Lithium Bromide
    •  Ammonia  
  •  Global Absorption Chillers Market, By Application:
    • Non-industrial
    • Industrial
      • Chemicals
      • Food & beverage
      • Petroleum
      • Power
      • Pulp & Paper
      • Other Industries
  • Global Absorption Chillers Market, By Power Source:
    • Direct Fired
    • Indirect Fired
    • Water Driven
  • Company Profiles
    • Broad Air Conditioning Co. Ltd. *
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Thermax Inc.
    • Carrier Corporation
    • Shuangliang Eco-Energy Systems Co. Ltd.
    • Kawasaki Thermal Engineering Co., Ltd.
    • Hyundai Climate Control Co., Ltd.
    • Johnson Controls, Inc.
    • Robur Corporation
    • Yazaki Corporation
    • EAW Energieanlagenbau GmbH
    • Trane Inc.

*Browse all the market data tables and figures on "Global Absorption Chillers Market - Forecast to 2027”

Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Technology
      • Market Snippet, By Absorber Type
      • Market Snippet, By Application
      • Market Snippet, By Power Source
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New Product Launch/Approvals
      • Value Chain Analysis
      • Porter’s Analysis
      • PEST Analysis
  4. Global Absorption Chillers Market, By Technology, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Single Stage
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Double Stage
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  5. Global Absorption Chillers Market, By Absorber Type, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Lithium Bromide
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Ammonia
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  6. Global Absorption Chillers Market, By Application, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Non-industrial
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Industrial
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
      • Chemicals
      • Food & beverage
      • Petroleum
      • Power
      • Pulp & Paper
      • Other Industries
  7. Global Absorption Chillers Market, By Power Source, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Direct Fired
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Indirect Fired
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Water Driven
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  8. Global Absorption Chillers Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Absorber Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Power Source, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Absorber Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Power Source, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Absorber Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Power Source, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Absorber Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Power Source, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Technology, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Absorber Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Power Source, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Israel
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  9. Competitive Landscape
    • Company Profiles
      • Broad Air Conditioning Co. Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Thermax Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Carrier Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Shuangliang Eco-Energy Systems Co. Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Kawasaki Thermal Engineering Co., Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hyundai Climate Control Co., Ltd.,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Johnson Controls, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Robur Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Yazaki Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • EAW Energieanlagenbau GmbH
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Trane Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
    • Analyst Views
  10. Section
    • References
    • Research Methodology
    • About us and Sales Contact

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