Absorption Chillers Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The absorption chillers market attained a value of USD 1.40 Billion in 2024. The market is expected to grow at a CAGR of 4.00% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 2.07 Billion.

With global net zero commitments, absorption chillers are increasingly adopted to reduce electricity usage by leveraging low grade heat from waste, solar or biomass. Their lower carbon footprint and cost effective performance align with government sustainability mandates and corporate ESG goals. Subsidies and incentives for green cooling further accelerate deployment. Growing emphasis on Scope 1 and Scope 2 emission reductions by corporations is pushing industries to adopt low-carbon technologies, driving the market growth.

The absorption chillers market outlook is impacted by rising integration with building management systems (BMS), IoT sensors, and AI enables remote diagnostics, predictive maintenance, and optimized chiller performance. Smart chillers also reduce downtime and operating costs while improving efficiency. For instance, in August 2024, Avigna.AI unveiled a smart absorption chiller embedded with IoT sensors and seamless BMS integration. Furthermore, cloud-based platforms enable centralized control across multiple facilities, making them especially valuable for large enterprises, smart cities, and campus environments.

Key Trends and Recent Developments

July 2025

At the 2025 Energy, Water & Sustainability Summit in Dubai, Johnson Controls-Hitachi Air Conditioning highlighted advanced chiller technologies alongside smart VRF systems to support net-zero goals. The company emphasized integrating high-efficiency chillers with building automation and low-carbon design to deliver energy-optimized, sustainable cooling solutions in commercial and industrial buildings across the Middle East and Africa.

March 2025

Panasonic’s absorption chillers supplied chilled water for cooling at the 2025 World Expo in Osaka, featuring six units, including five F Series CP type 500 RT chillers plus one 500 RT waste heat recovery Genelink machine. These products serve the Expo Hall, Messe, and select pavilions, offering eco efficient, compressor free cooling using water refrigerant.

February 2025

Carrier unveiled the AquaSnap™ 61AQ, its first high temperature, air source reversible heat pump using eco friendly R 290 refrigerant. Launched in Europe, it delivers heating up to 75 °C even at -7 °C outdoors, exceeds Ecodesign efficiency by up to 30%, and operates quietly at 78 dB(A).

November 2024

Johnson Controls was recognized by Verdantix as a leader in IoT digital platforms for building operations for its OpenBlue ecosystem, which excels in automation, AI, and BMS integration. Leveraging OpenBlue, its data-driven smart connected chillers provide real-time diagnostics, predictive maintenance, performance indices, and remote optimization.

Expansion in Developing Economies

Rapid urbanization and industrialization in Asia, Africa, and South America are fuelling infrastructure investments, adding to the absorption chillers industry revenue. According to the Asian Development Bank, over 55% of Asia’s population will be urban by 2030. Government programs and awareness of efficient cooling drive adoption of absorption chillers in new residential, commercial, and industrial projects.

Waste Heat Recovery Applications

Industrial sectors, such as petrochemicals, cement, food processing, and power generation generate abundant waste heat, which absorption chillers can convert into cooling. This dual utility lowers energy consumption, improves overall process efficiency, and enhances environmental performance in ESG driven operations. Furthermore, absorption chillers help industries meet stricter environmental regulations by reducing reliance on electrically driven compressors and minimizing refrigerant-related emissions.

Data Centre Growth

Explosive expansion of hyperscale and colocation data centres worldwide is driving the absorption chillers demand for high capacity cooling. In March 2025, Johnson Controls launched the YORK® YVAM Air cooled Magnetic Bearing Chiller in Europe for hyperscale and colocation data centres to offer up to 40% lower annual power use. Absorption chillers also offer reliability, energy efficiency, and scalability, especially in regions with waste heat or onsite thermal sources, making them attractive for large data centre operators.

Technological Advancements

Manufacturers are introducing double effect and triple effect absorption chillers that significantly improve COP and energy utilization. New materials and designs also boost performance, while modular systems offer flexibility for diverse applications. For instance, Panasonic’s hot water absorption chillers, using water as refrigerant, eliminate fluorocarbons entirely and consume just 4% of the power required by electric chillers.

Government Incentives and Regulations

Policies promoting lower GHG emissions, energy efficiency, and green construction, such as LEED and ENERGY STAR provide financial incentives and mandates. This regulatory environment is encouraging end-users to choose absorption chillers over conventional systems. In July 2023, the Inflation Reduction Act (IRA) expanded tax credits and incentives to accelerate adoption of energy-efficient, low-carbon, and renewable technologies. With this, companies are prioritizing technologies in sustainability-linked projects, further accelerating their adoption across new builds and retrofits in both the public and private sectors.

Absorption Chillers Industry Segmentation

The report titled “Absorption Chillers Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Refrigerant Type

• Ammonia
• Lithium Bromide

Key Insight: Ammonia-based absorption chillers are widely used in industrial and commercial sectors due to their high thermodynamic efficiency and zero ozone depletion potential. Ammonia acts as a natural refrigerant with a GWP of zero, making it ideal for facilities focused on sustainability. In February 2025, Star Refrigeration launched Azanechiller 3.0, an ultra-low-charge ammonia chiller offering high efficiency, reduced emissions, and industrial cooling versatility. These systems are especially common in food processing, breweries, and cold storage, where ammonia infrastructure already exists.

Market Breakup by Technology

• Single Stage
• Double Stage
• Others

Key Insight: Single-stage absorption chillers industry revenue is growing, driven by low-temperature heat sources such as hot water or low-pressure steam. These are best suited for smaller capacity cooling applications and are ideal for use in solar-assisted cooling, district heating networks, and combined heat and power systems. They are most efficient when waste heat is readily available but of lower grade. Panasonic and Ebara offer single-effect models optimized for hot water input and clean room environments, often used in hospitals or labs.

Market Breakup by Source of Energy

• Gas Fired
• Steam Heated
• Direct Fired
• Hot Water Heated
• Others

Key Insight: Gas fired absorption chillers use natural gas or biogas as the primary heat source, offering reliable cooling independent of electricity grids. These are widely adopted in areas with cheap gas supply or frequent power outages, especially in commercial buildings and remote industrial facilities. For instance, the Flue-Gas Fired Absorption Chiller by Shuangliang Eco-Energy uses waste heat from flue gas to produce cooling. They are also particularly effective in district cooling, shopping malls, and hospitals where stable cooling is critical.

Market Breakup by Application

• Food Storage
• Air Conditioning
• Others

Key Insight: In food storage applications, the absorption chillers industry share is expanding due to the ability to operate reliably in low-temperature ranges, critical for preserving meat, dairy, and perishables. In 2025, Yazaki Energy Systems introduced its enhanced absorption chiller system, the WFC-M100 and WFC-MB100 models. Their ability to operate with waste heat from industrial processes makes them cost-effective in integrated food manufacturing units. Moreover, they meet HACCP and food safety standards, providing a clean, efficient, and sustainable cooling solution for the growing global cold storage industry.

Market Breakup by End Use

• Domestic
• Industrial
• Commercial

Key Insight: The domestic use of absorption chillers is rising in luxury villas, smart homes, and off-grid houses, especially in areas with abundant solar energy. Small-scale lithium bromide or water-based absorption units powered by solar hot water or biomass are emerging in Japan, Germany, and India. These systems offer silent, clean, and cost-effective cooling, especially in eco-housing projects where grid independence is prioritized. Manufacturers like Yazaki have compact absorption models specifically designed for residential HVAC, especially in net-zero energy homes where environmental credentials matter to both developers and homeowners.

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Key Insight: Asia Pacific leads the global absorption chillers market, driven by rapid industrialization, urban expansion, and strong emphasis on energy-efficient infrastructure in China, India, Japan, and South Korea. For instance, India’s ADEETIE scheme, with ₹1,000 crore funding, promotes advanced energy-efficient technologies in MSMEs to boost sustainability and reduce costs. Government incentives for low-carbon cooling, expanding district cooling networks, and waste heat utilization in power and cement sectors further fuel adoption. Integration with solar thermal systems in India and Japan is also on the rise, especially in eco-cities and green-certified commercial buildings.

Absorption Chillers Market Share

Lithium Bromide Absorption Chillers to Gain Popularity

Lithium bromide absorption chillers dominate commercial and HVAC applications, primarily using water as the refrigerant and lithium bromide as the absorbent. They are best suited for medium to large buildings, such as hotels, hospitals, and universities, where chilled water is required for comfort cooling. These chillers are also favoured for their silent operation, low maintenance, and compatibility with waste heat, steam, or solar energy sources.

Surging Deployment for Double Stage Absorption Chillers

The double stage segment is driving the absorption chillers market outlook due to rising prevalence in industrial facilities, large commercial campuses, and data centres. Companies like Carrier, Johnson Controls, and Thermax have released direct-fired and steam-fired double-effect chillers that reduce emissions and energy usage significantly. They are increasingly paired with IoT and AI for adaptive performance management in mission-critical infrastructure.

Steam Heated & Direct Fired Absorption Chillers to Accrue Preference

Steam-heated chillers utilize waste steam from industrial processes, boilers, or power plants, making them highly efficient in co-generation and CHP setups. These systems reduce both cooling costs and emissions by recovering energy that would otherwise be wasted. For example, Thermax and Shuangliang Eco-Energy provide double-effect steam-fired chillers used in refineries, paper mills, and power generation facilities. Their integration with building automation systems allows optimized performance.

Direct-fired absorption chillers demand is growing as they are ideal for standalone cooling where waste heat or steam is unavailable. These systems are particularly common in hotel chains, universities, and commercial complexes. Carrier, Yazaki, and Johnson Controls offer compact direct-fired lithium bromide chillers that can be installed with minimal infrastructure changes. They are also used as a primary cooling source in off-grid or energy-secure zones, where control and independence from local utility providers is essential.

Air Conditioning to boost Absorption Chillers Adoption

Absorption chillers are widely used in air conditioning applications for large buildings like airports, malls, hospitals, and office complexes, especially in regions with high energy costs or limited power infrastructure. In July 2024, Panasonic began demonstrating its novel absorption chiller for air conditioning, powered by hot water at just 70 °C sourced from hydrogen fuel cell generators. Lithium bromide-based systems are popular due to their efficiency, quiet operation, and compatibility with district cooling and cogeneration systems.

Booming Absorption Chillers Demand in Industrial & Commercial Sectors

The industrial sector is shaping the absorption chillers market trends, driven by the need to utilize process heat efficiently. The oil & gas, chemicals, pulp & paper, cement, and power generation sectors deploy large-scale systems to convert waste heat into useful cooling, improving overall plant efficiency and ESG performance. These systems also integrate with plant-wide energy management systems, helping industrial players comply with regulatory standards and carbon disclosure frameworks.

In the commercial segment, absorption chillers are used for centralized cooling, especially in buildings seeking LEED, WELL, or BREEAM certifications. Adoption is highest in Middle East, Europe, and Asia, where government policies and utility subsidies promote green construction. In May 2024, Carrier launched a Made-in-India scroll chiller, tailored for India's climate, offering efficient, reliable cooling for commercial buildings. These chillers are also used in district cooling networks, enabling efficient, shared cooling infrastructure across urban developments.

Absorption Chillers Market Regional Analysis

Europe & North America to Drive Absorption Chillers Usage

The absorption chillers market share in Europe is driven by strict environmental regulations, carbon neutrality goals, and widespread adoption of renewable energy in building systems. Absorption chillers are increasingly used in district heating and cooling, especially in Germany, France, Italy, and Scandinavia. In June 2025, CyrusOne and E.ON partnered to launch a 61 MW on-site gas‑fired power system, delivering absorption‑chiller cooling in Frankfurt. The EU Green Deal and REPowerEU plan support absorption technology, particularly in retrofitting public and commercial buildings with waste heat recovery systems.

North America is experiencing steady growth, particularly in data centres, hospitals, and university campuses seeking sustainable cooling. The U.S. Inflation Reduction Act (IRA) offers tax incentives that now include absorption chillers in green building upgrades. Adoption is rising in California, Texas, and New York, where decarbonization mandates and high electricity costs favour gas or steam-driven cooling. Johnson Controls, Carrier, and Yazaki are active players offering smart, low-emission systems.

Competitive Landscape

Key players in the absorption chillers market are focusing on technological innovation, energy efficiency, and strategic partnerships. Leading companies are heavily investing in research and development to create advanced chillers with improved COP, lower emissions, and compatibility with renewable energy sources. Emphasis is placed on eco-friendly refrigerants and sustainable cooling solutions to meet stringent environmental regulations. Market players are also expanding their global footprint through mergers, acquisitions, and strategic alliances to enhance their product portfolios and strengthen distribution networks.

Partnerships with HVAC service providers and engineering firms help in securing large commercial and industrial contracts. Additionally, customization of products to meet industry-specific requirements is gaining traction. Digital integration is another emerging focus, with companies incorporating IoT and smart controls to offer predictive maintenance, energy monitoring, and improved system performance. Government incentives for energy-efficient systems are also prompting players to target developing regions with cost-effective solutions.

Carrier Global Corporation

Founded in 1915 and headquartered in Palm Beach Gardens, the United States, Carrier is a pioneer in HVAC technologies. Carrier emphasizes innovation in energy-efficient chillers, smart building integration, and environmentally responsible refrigerants to support global decarbonization goals.

Thermax Limited

Established in 1966, Thermax Limited is headquartered in Pune, India. Renowned for its eco-friendly engineering solutions, Thermax specializes in absorption chillers powered by waste heat. It has introduced high-efficiency vapor absorption machines and is recognized for its role in advancing clean energy technologies across industrial and commercial sectors.

Kirloskar Pneumatic Company Ltd.

Founded in 1958 and based in Pune, India, Kirloskar Pneumatic excels in engineering products like compressors and refrigeration systems. The company is known for manufacturing robust and efficient absorption chillers suited for industrial use. It continuously innovates in thermal systems, emphasizing reliability, performance, and sustainable operations.

Johnson Controls-Hitachi Air Conditioning

Formed in 2015 as a joint venture between Johnson Controls and Hitachi Appliances, the company is headquartered in Tokyo, Japan. It delivers advanced HVAC solutions, including absorption chillers with cutting-edge inverter and control technologies. The brand is recognized for integrating AI-driven energy management into its cooling systems for optimal efficiency.

Other players in the absorption chillers market are LG Electronics, Trane Technologies Company, LLC, and ROBUR S.p.A, among others.

Key Features of the Absorption Chillers Market Report

• In-depth quantitative analysis of global, regional, and segment-wise market trends.
• Forecast insights up to 2034 to support strategic decision-making and investments.
• Coverage of key industry drivers, restraints, challenges, and growth opportunities.
• Detailed competitive landscape including profiles of leading absorption chiller manufacturers.
• Technological innovations and emerging product developments across various applications.
• Analysis of regulatory and environmental policies shaping market growth globally.

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