The absorption chillers market is estimated to grow at a CAGR of 4.32% between 2022 and 2027. The size of the market is forecast to increase by USD 741.07 million. The growth of the market depends on serval factors, including the growing use of absorption chillers across various industries, the growing adoption of district heating and cooling infrastructure, and the stringent regulations on refrigerant use.
This report extensively covers market segmentation by application (industrial and HVAC), type (lithium bromide and ammonia), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Key Absorption Chillers Market Driver
The growing use of absorption chillers across various industries is the key factor driving the global absorption chillers market growth. These chillers lodge a vital position in a heating, ventilation, air conditioning, and refrigeration (HVAC and R) system. It offers numerous benefits over conventional chillers, which majorly include the ability to integrate with combined heat and power (CHP) generation and district cooling infrastructure, low noise levels, and improved efficiency.
These advantages have accelerated the adoption of these chillers among various industrial end-users. They help them to reduce their overall costs and enable them to meet their environmental targets. These factors make these chillers an appealing option in the industrial sector and allow many industrial users to meet their environmental and regulatory targets.
Significant Absorption Chillers Market Trend
The availability of substitute chiller technologies is the primary trend in the global absorption chillers market growth. The competition from alternative chiller technologies will remain the biggest challenge for the market during the forecast period. Although conventional chiller technologies are not much energy efficient as these chillers which are used in conjunction with CHP, cogeneration, or waste heat, they have several other advantages, which are encouraging their adoption over these chillers.
Chiller manufacturers are also investing in the development of new chiller technologies, which enhance efficiency and reduce the environmental footprint of conventional chillers, to boost product adoption. The introduction of chillers, which can meet stringent environmental regulations, is expected to impact the market negatively during the forecast period.
Major Absorption Chillers Market Challenge
High capital and maintenance costs are a major challenge to the global absorption chillers market growth. Most of the energy-efficient HVAC and R technologies, including these chillers, are considerably more expensive than their conventional counterparts. Although they provide significant energy savings, the breakeven period for the return on initial investment can be significantly longer. The high cost of absorption chillers may be a major challenge for price-sensitive customers, especially in emerging economies.
Most of the industries and commercial businesses in developing countries, such as India and China, are extremely price-sensitive; therefore, they are more concerned about the initial cost of purchase. The annual cost of maintenance of these chillers is 20%-35% higher than the conventional chillers, which can add up to a significant amount over many years. Therefore, the relatively higher cost of these chillers is one of the key reasons that is expected to affect the market growth during the forecast period.
Key Absorption Chillers Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
- Carrier Global Corp.
- Century Corp.
- CNIM SA
- Daikin Industries Ltd.
- EAW Energieanlagenbau GmbH
- Ebara Corp.
- Helioclim
- Johnson Controls International Plc.
- Kirloskar Pneumatic Co. Ltd.
- LG Electronics Inc.
- Mitsubishi Heavy Industries Ltd.
- Robur Spa
- Shuangliang Eco-Energy Systems Co. Ltd.
- THE PAR GROUP
- Thermax Ltd.