The “Global Absorption Chillers Market, by Technology (Single Stage and Double Stage), by Absorber Type (Lithium Bromide and Ammonia), by Application (Non-industrial and Industrial (Chemicals, Food & Beverages, Petroleum, Power, Paper & Pulp, and Other Industries)), by Power Source (Direct Fired, Indirect Fired, and Water Driven), and by Geography (North America, Europe, Asia Pacific, and Latin America, Middle East & Africa) - Global Forecast to 2027”, is expected to be valued at US$ 2,364.7 million by 2027, witnessing a CAGR of 6.6% during the forecast period (2019-2027).
Absorption chillers thermally-operated chiller or refrigerator that runs on a sorbent or liquid refrigerant and a heat source to provide cooling to industrial equipment and buildings. Absorption chiller uses a vacuum to pull refrigerant from a region of high pressure to a region of low pressure to create cooling effect. There are four main process areas involved in absorption chiller namely condenser, absorber, evaporator, and generator. In lithium bromide chillers, water is used as a refrigerant, while lithium brome is used as absorbent. Moreover, in ammonium water-based absorption chiller, ammonia is used a refrigerant and water is used as an absorbent.
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.
Growing focus of many industries to reduce energy costs and increase environmental stability
Absorption chillers find applications in regions where prices of natural gas are insignificant in comparison with price of electricity. This results in reduction of average manual cost and thereby minimizing the payback period of the product. Moreover, absorption chillers are relatively environment-friendly as compared to their counterparts, since the former depends upon natural refrigerant such as water. It also eliminates the use of CFC and HCFC refrigerants, which cause the emission of carbon dioxide. This, in turn, is expected to drive the market growth over the forecast period. For instance, in a plant where low pressure steam is exhausted into the atmosphere, a mechanical chiller with a COP of 4.0 is used 4,000 hours per year (hr/yr) to produce an average of 300 tons of refrigeration. Electricity costs at the plant are US$ 0.06 per kilowatt-hour (kWh). Replacing a mechanical chiller with an absorption chiller requiring 5,400 pounds per hour of 15-PSIG steam can provide annual electrical savings of around US$ 63,287.
Demand for environment-friendly products, in order to comply with regulatory policies
Many end-use industries are focused on the adoption of environment-friendly products, in order to observe stringent regulatory policies enforced the government agencies. Conventional electricity chillers are not environment-friendly and have a negative impact on the surrounding atmosphere with the emission of CO2. Absorption chillers are environment-friendly since they use natural refrigerants such as water. This, in turn, has increased the demand for absorption chillers from various end-used industries significantly, which is expected to provide lucrative business opportunities for market players during the forecast period.
Escalating electricity prices combined with shortage of electricity in some regions is expected to hamper the global absorption chillers market growth over the forecast period
Certain regions such as Africa and other emerging economies often face the shortage of electricity. This, in turn, has increased the electricity prices in the aforementioned regions thereby hindering the adoption of absorption chillers. Thus, rising electricity prices are expected to hinder the market growth in the near future.
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. This growth is attributed to the increase in development of double stage absorption chillers by manufacturers as compared to single stage absorption chillers.
Industrial segment dominated the global absorption chillers market in 2018, accounting for 88.7% share in terms of value, followed by non-industrial, respectively. This growth is attributed to the increase in adoption of absorption chillers in chemicals and food & beverages industry.
Power Source Segment:
Direct fired segment dominated the global absorption chillers market in 2018, accounting for 47.3% share in terms of value, followed by indirect fired, and water driven, respectively. This growth is attributed to the increase in scope of application of direct fired based absorption chillers in industrial sector.
Remote monitoring equipment are widely used in various end-used industries, as they offer flexibility and enhanced visibility of operations across geographies. Moreover, development of wireless networks and technology has provided the platform for manufacturers to capitalize such opportunities. This trend is expected to continue across geographies during the forecast period
Electric and other compression chillers consume significant amount of electricity that increases overall annual energy cost. This, in turn, has compelled end-use industries to adopt solar-powered absorption chillers. Moreover, solar-energy offer backup solution to power outage problem in the region that is required for chiller application. For instance, in July 2014, MTN Group, a leading telecommunication company based in South Africa, commenced operations at its first cooling plant in the country, featuring an absorption chiller that integrates cutting edge solar technology and uses water as a refrigerant.
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.