Absorption Chiller Market Support USD 2.98 Billion by 2036
According to the latest analysis by Future Market Insights, the global absorption chiller market is entering a new phase of steady, sustainability-driven growth, fueled by increasing integration of energy systems, regulatory pressure on high-GWP refrigerants, and rising investment in district cooling infrastructure. According to Future Market Insights (FMI), the market is projected to grow from USD 1.88 billion in 2026 to USD 2.98 billion by 2036, registering a CAGR of 4.7%.
This growth reflects a structural shift toward thermally driven cooling technologies that leverage waste heat, solar energy, and cogeneration systems—positioning absorption chillers as a critical enabler of low-carbon industrial and commercial cooling.
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Market Size (2025): USD 1.80 Billion Market Size (2026): USD 1.88 Billion Forecast Value (2036): USD 2.98 Billion CAGR (2026–2036): 4.7% Key Growth Driver: Waste heat utilization & district cooling expansion Top Growth Markets: India (5.4%), China (4.6%), Canada (4.2%), Japan (4.0%) Market Dynamics: Why Absorption Chillers Are Gaining Momentum
Key Growth Drivers
Energy Efficiency Mandates: Governments worldwide are enforcing stricter building energy codes, pushing adoption of low-energy cooling systems. Waste Heat Recovery: Industrial facilities are increasingly converting unused thermal energy into cooling capacity. District Cooling Expansion: Rapid infrastructure development in high-temperature regions is boosting centralized cooling demand. Kigali Amendment Compliance: Transition away from high-GWP refrigerants is accelerating interest in water- and ammonia-based systems. Emerging Opportunity
Solar Thermal Integration: Declining costs of concentrated solar thermal systems are unlocking new applications for solar-powered absorption chillers. Technology & Segment Insights
Double-Stage Absorption Chillers Lead
Market Share (2026): 85.4% Preferred due to higher coefficient of performance (COP) at elevated temperatures (150–180°C) Ideal for cogeneration plants, data centers, and hospitals Lithium Bromide Systems Dominate
Market Share (2026): 92.5% Favored for high efficiency, reliability, and vacuum stability Widely used in large-scale HVAC and district cooling systems Regional Insights: Asia Driving Global Growth
India – Fastest Growing Market (5.4% CAGR)
Strong policy support via India Cooling Action Plan Rapid adoption in smart cities and industrial clusters Increasing demand from pharmaceuticals and chemicals China – Industrial Powerhouse (4.6% CAGR)
Expansion of district heating-cooling networks Major investments in chemical and power plants Japan – Mature but Stable (4.0% CAGR)
Strong installed base of cogeneration systems Continuous efficiency upgrades Canada – Regulation-Driven Growth (4.2% CAGR)
Focus on low-GWP cooling technologies Favorable building energy codes Expert Insight
According to Nikhil Kaitwade, Principal Consultant at FMI:
“The biggest barrier to adoption isn’t performance—it’s planning. Absorption chillers require integration with thermal energy sources, which often fall outside traditional HVAC procurement. Organizations that align cooling systems with energy infrastructure unlock significant lifecycle cost advantages.”
Key Industry Trends
Solar-Powered Absorption Cooling
Growing adoption across commercial and industrial sectors Reduces dependence on grid electricity Supports corporate sustainability goals Decarbonization Across Industries
Food & beverage and manufacturing sectors leveraging waste heat cooling Integration with Combined Heat & Power (CHP) systems Service-Based Business Models
OEMs offering maintenance and operational consulting Enhances customer retention and lifecycle value Market Challenge
Competition from Advanced Electric Chillers
Innovations like variable-speed drives and smart controls are improving electric chiller efficiency Lower upfront costs remain a barrier for absorption systems Competitive Landscape
The market is moderately consolidated, with Tier 1 players holding 30%–45% share.
Leading Companies
Thermax Ltd Shuangliang Eco-Energy Systems Co. Ltd. Carrier Corporation Trane Inc. Johnson Controls LG Electronics Kawasaki Thermal Engineering Kirloskar Pneumatic Company Ltd.
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