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Written by George Buttler » Updated on: June 13th, 2025
According to the report by Expert Market Research (EMR), the global absorption chillers market reached a value of approximately USD 1.40 billion in 2024. Aided by rising environmental concerns, increasing energy costs, and the demand for sustainable cooling technologies, the global absorption chillers market size is projected to grow at a CAGR of 4.00% between 2025 and 2034, reaching nearly USD 2.07 billion by 2034.
Absorption chillers are thermally driven cooling systems that utilise a heat source—such as steam, hot water, or direct-fired gas—instead of electricity to produce chilled water. Unlike conventional electric chillers, absorption chillers operate using a refrigerant and an absorbent, typically water and lithium bromide or ammonia and water, depending on the application. Their efficiency, low greenhouse gas emissions, and suitability for waste heat recovery make them an ideal choice for industrial and commercial facilities looking to improve energy efficiency and reduce environmental impact.
The market size of absorption chillers has expanded steadily over the last decade, in response to escalating global efforts to adopt green and energy-efficient cooling solutions. Growing investments in infrastructure, particularly in emerging economies, have led to increased adoption of HVAC systems that align with energy-saving mandates. This, in turn, has enhanced the demand for absorption chillers across industries such as petrochemicals, pharmaceuticals, data centers, food processing, and commercial buildings.
Asia Pacific holds a significant portion of the global market due to its rapid industrialisation, high population density, and growing urban infrastructure. Countries like China, India, and Japan are key contributors to regional demand. North America and Europe follow closely, driven by strong regulatory frameworks promoting energy-efficient systems and retrofitting of old HVAC installations in large commercial buildings.
The absorption chillers market is moderately fragmented, with several global and regional players competing based on innovation, efficiency, and service. Prominent players include Carrier Corporation, Johnson Controls, Trane Technologies, Thermax Limited, and Broad Air Conditioning Co. Ltd. These companies dominate the global market with extensive distribution networks, strategic partnerships, and a strong focus on R&D.
Hot water-based absorption chillers account for the largest market share, driven by their compatibility with cogeneration systems and industrial waste heat recovery. In terms of application, the industrial segment leads, owing to the widespread use of absorption chillers in chemical, petrochemical, and manufacturing facilities where waste heat sources are abundant.
Integration with Cogeneration and Trigeneration Systems: A growing trend is the integration of absorption chillers with Combined Heat and Power (CHP) systems. These systems improve energy efficiency by capturing waste heat for use in heating and cooling, thereby enhancing the operational value of the chillers.
Demand for Eco-Friendly Refrigerants: With increasing environmental regulations on synthetic refrigerants, absorption chillers—which often use natural refrigerants like water and ammonia—are being favoured for their minimal environmental footprint.
Retrofit and Modernisation Projects: Aging infrastructure in developed countries is driving retrofitting efforts. Older buildings are upgrading their HVAC systems with absorption chillers to comply with new energy regulations and reduce electricity usage.
Focus on District Cooling: Absorption chillers are being increasingly deployed in district cooling systems, especially in the Middle East and Southeast Asia, where large-scale cooling is required for residential and commercial complexes.
Surge in Renewable Energy Integration: There is a growing push to integrate absorption chillers with renewable energy sources like solar thermal systems. These combinations are particularly effective in sun-rich regions and are gaining momentum in the push toward net-zero emissions.
Rising Energy Prices and Electricity Demand: With the cost of electricity rising globally, industries are seeking alternative cooling solutions that lower operational costs. Absorption chillers, powered by waste heat or solar thermal energy, offer a viable and cost-effective alternative.
Stringent Environmental Regulations: Governments and regulatory bodies across the globe are implementing stricter rules on carbon emissions and energy efficiency. This regulatory push is encouraging the replacement of conventional chillers with absorption chillers.
Urbanisation and Infrastructure Development: Rapid urban growth, particularly in developing regions, is increasing the demand for commercial spaces, malls, hospitals, and hotels—sectors where HVAC systems, including absorption chillers, are essential.
Industrial Waste Heat Utilisation: The rising emphasis on industrial energy optimisation is leading to greater utilisation of waste heat, a key energy source for absorption chillers. Industries now view these chillers as tools for improving energy efficiency and sustainability.
Growing Focus on Sustainable Cooling: The global shift towards sustainable building solutions and low-carbon technologies is directly contributing to the adoption of thermally driven chillers, including absorption systems.
Technological innovation in absorption chillers is focused on improving performance, compactness, and environmental compatibility. Recent developments include:
Advanced Control Systems: Intelligent control systems using IoT and AI are being integrated into absorption chillers for real-time monitoring, performance optimisation, and predictive maintenance, reducing downtime and enhancing efficiency.
Double and Triple Effect Absorption Chillers: These chillers use advanced thermodynamic cycles to achieve higher Coefficients of Performance (COP), significantly improving energy utilisation in high-load industrial applications.
Hybrid Cooling Systems: Manufacturers are developing hybrid absorption-electrical chillers that combine the benefits of both technologies, allowing for greater operational flexibility and energy efficiency.
Compact and Modular Designs: Newer models feature modular setups that allow easy installation in space-constrained facilities. This has expanded market opportunities in retrofitting and small-scale applications.
The market can be divided based on refrigerant type, technology, source of energy, application, end use, and region.
Breakup by Refrigerant Type
Breakup by Technology
Breakup by Source of Energy
Breakup by Application
Breakup by End Use
Breakup by Region
Some of the major players explored in the report by Expert Market Research are as follows:
High Initial Cost: Absorption chillers require a higher upfront investment compared to electric chillers. This acts as a deterrent, particularly for small and medium-sized enterprises with limited capital budgets.
Operational Complexity: These chillers have more complex operational requirements and may require specialised maintenance, limiting their use to facilities with trained personnel and technical resources.
Limited Awareness in Developing Regions: A lack of awareness about the long-term cost benefits and environmental advantages of absorption chillers is hindering their adoption in certain markets.
Expansion in Developing Economies: As energy infrastructure improves in emerging markets, opportunities for absorption chillers are expanding. Growing industrialisation and urbanisation in Asia, Africa, and Latin America offer untapped potential.
Application in Renewable Energy Projects: Absorption chillers powered by solar thermal or biomass energy can be a sustainable alternative in off-grid and remote locations, opening new revenue streams for manufacturers.
Public Sector Projects and Green Initiatives: Adoption of sustainable HVAC systems in government buildings, hospitals, and universities provides significant growth avenues, especially as countries move toward zero-carbon infrastructure.
Growth in Data Centers and Pharmaceuticals: The increasing number of data centers and pharmaceutical facilities—which generate substantial waste heat—can greatly benefit from heat-driven cooling systems, thus boosting market demand.
The global absorption chillers market is projected to grow steadily over the next decade, reaching nearly USD 2.07 billion by 2034, driven by the increasing need for efficient and environmentally friendly cooling solutions. As industries and governments prioritise sustainability and energy efficiency, the market is likely to see robust investment and technological innovation.
The adoption of renewable energy integration, combined with industrial waste heat recovery and district cooling systems, will further enhance the growth prospects of the absorption chiller market. With supportive policies, rising energy costs, and a shift in consumer and corporate attitudes toward sustainability, absorption chillers are set to play a central role in the future of green cooling technologies.
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