Absorption Chillers Market Size And Trends

The global absorption chillers market size is valued to be US$1.76 billion in 2025, reaching US$2.46 billion by 2032 and exhibiting a CAGR of 4.5% during the forecast period 2025-2032. The market is gathering momentum due to rising energy costs, environmental regulations, and industrial cooling demands, with the adoption of hybrid and solar-powered solutions expanding worldwide.

Recent Developments

• The uptake of gas-fired and solar-powered absorption chillers is rising, particularly in regions with unstable power grids or where combined heat and power (CHP) systems are in use.
• Regulatory focus on reducing refrigerant emissions and phasing out high-GWP (global warming potential) refrigerants has favored the wider utilization of absorption chillers, especially under environmental frameworks such as the Kigali Amendment.
• Industries facing high heat load demands, such as from data centers, pharmaceuticals, and chemical processing, are increasingly integrating large-capacity absorption chiller systems to ensure reliable and energy-efficient cooling.
• Recent technical enhancements include hybrid absorption-compression chillers and improved heat exchanger design, improving overall efficiency and adaptability across diverse industrial conditions.
• Several manufacturers are diversifying their portfolios to include modular and skid-mounted units, allowing faster installation, scalable capacity, and reduced operational downtime.

Global Absorption Chillers Market in News

• April 2025: Researchers from K. J. Somaiya Institute of Technology and IIT Kharagpur developed an optimized design for a solar-powered absorption refrigeration system using an exergoeconomic approach. By analyzing thermodynamic efficiency and cost-related parameters, such as flow rates and component temperatures, the study identified a configuration that maximizes cooling performance while minimizing operational costs, offering a sustainable and economically viable solution for solar refrigeration.
• February 2025: Trane enhanced its HVAC portfolio for large commercial and institutional buildings with several innovations. The new lineup includes the Hydronic Branch Conductor, enabling simultaneous heating and cooling in two-pipe systems, and compact, high-performance process chillers acquired through MTA. The company also introduced updated chillers and rooftop heat pumps that now use low-GWP refrigerants such as R-513A and R-454B, supporting energy efficiency, electrification, and building decarbonization goals.

Segmental Analysis

The lithium bromide segment is leading the absorber category, which is expected to hold a 91.4% market revenue share. An industry-wide shift toward lithium bromide-based systems is becoming increasingly evident, driven by their superior energy efficiency, operational reliability, and environmentally sustainable design. These chillers leverage the compound’s strong affinity for water to maintain vacuum conditions, allowing consistent cooling through flash evaporation at low temperatures. As a result, lithium bromide absorption chillers are emerging as the system of choice for large-scale HVAC applications in commercial buildings and industrial facilities. Ongoing technological developments are further accelerating market growth, particularly in the segment of double-stage absorption chillers, which are expected to account for 86% of the total revenue share in the technology segment in 2025. These systems offer up to 35% higher efficiency compared to single-stage units, making them well-suited for energy-intensive sectors seeking to reduce utility costs and enhance long-term energy performance.

Regional Analysis

The absorption chillers market is looking at strong growth prospects across key regions, primarily owing to the rising demand for energy-efficient cooling solutions and supportive policy frameworks. In Asia Pacific, rapid industrialization and the development of cost-effective manufacturing techniques are propelling the market growth. China and India are investing heavily in absorption cooling systems for large-scale projects such as ultra-supercritical power plants and oil-to-chemicals facilities, reflecting the increasing preference for sustainable HVAC technologies in commercial and industrial applications. Asia Pacific is estimated to account for around 41% of the market in 2025.

North America is set to capture 34.1% of the absorption chillers market share by 2025, backed by federal incentives such as the Inflation Reduction Act and major infrastructure investments in data centers and advanced reactors. At the same time, the absorption chillers industry in Europe is envisaged to reach new heights under the influence of the European Green Deal and Horizon Europe, which promote climate-neutral infrastructure and smart city innovations. These rapidly evolving regional dynamics are a testament to the soaring adoption of absorption cooling systems as a reliable, eco-friendly alternative in the global HVAC landscape.

Industry Players

The global absorption chillers market features an exciting competitive landscape packed with HVAC leaders and specialty manufacturers. Some of the major players include Trane, York (Johnson Controls), Daikin, Carrier, Mitsubishi Heavy Industries, Thermax, Broad, Robur, and Hamworthy. These firms are taking substantial efforts to differentiate themselves through green credentials, product innovation, and aftermarket services.

The intense market competition between these firms hinges on the areas of efficiency performance, low-emission refrigerants, modular design, and digital control interfaces. Vendors are investing in R&D for hybrid systems, solar integration, and smart monitoring capabilities. Partnerships with energy providers and government-led clean cooling initiatives are accelerating adoption. Organizations offering scalable, energy-efficient, and emission-compliant absorption chillers are positioned to lead in the evolving market through 2032.