Absorption Cooling Device Market Forecasts to 2030 – Global Analysis By Product Type (Free Cooling, Absorption Cooling, Electric Chiller, Double Absorption Refrigerating Device, Three Effect Absorption Refrigerating Device and Other Product Types), End Us

Absorption Cooling Device Market Forecasts to 2030 – Global Analysis By Product Type (Free Cooling, Absorption Cooling, Electric Chiller, Double Absorption Refrigerating Device, Three Effect Absorption Refrigerating Device and Other Product Types), End User and By Geography

According to Stratistics MRC, the Global Absorption Cooling Device Market is expected to grow at a CAGR of 6.7% during the forecast period. The absorption refrigeration industry, which creates cooling effects by combining heat and a particular absorption fluid, is known as the absorption cooling device market. It has uses in a number of industries, including refrigeration, air conditioning, and industrial operations. Absorption cooling systems provide a number of benefits, including being suitable for isolated locations with limited access to electricity, using less electricity than traditional compression refrigeration, and being environmentally friendly due to their reliance on heat as an energy source. They may also be used to capture waste heat, which makes them economical and energy-efficient cooling options for a variety of environments.

According to research by the International Institute of Refrigeration (IIR), about 3 billion air- conditioning, heat pump and refrigeration systems exist worldwide.

Market Dynamics

Driver

Improvement of energy efficiency

When compared to conventional cooling systems, absorption cooling devices use less energy, which results in significant cost savings. They also support load-shifting techniques, which let users use electricity during off-peak hours and cut their electricity costs. Moreover, absorption cooling is a preferred option for sustainable construction and retrofit projects where energy efficiency and environmental impact are important factors because it is in line with green building standards.

Restraint

Insufficient cooling capacity

The cooling capacities of absorption cooling systems are frequently lower than those of their compression counterparts. Applications that demand high cooling loads, like sizable commercial buildings or industrial facilities, may find it difficult to work around this restriction. However, to meet the cooling demand, multiple absorption chillers might be required, increasing the initial investment and installation space needs.

Opportunity

Energy effectiveness and financial savings

Energy efficiency and cost savings are greatly enhanced by absorption cooling systems. Organizations and individuals are actively looking for methods to cut operating expenses as energy prices rise. Additionally, these objectives can be accomplished with the aid of absorption cooling, which offers more effective cooling while utilizing waste heat or inexpensive energy sources during off-peak hours. The cost of the initial investment may be offset by the long-term energy savings.

Threat

Competition from traditional systems

Competition from established and frequently used traditional compression-based cooling systems is one of the main threats to absorption cooling. These conventional systems are frequently less expensive up front and might be preferred in markets where initial investment is the main factor. Moreover, absorption cooling needs to consistently show off its superior energy efficiency and environmental advantages to overcome this threat.

Covid-19 Impact

Since the COVID-19 pandemic disrupted supply chains, delayed projects, and created economic uncertainty, it had a significant negative impact on the market for absorption cooling devices. This included investments made by the commercial and industrial sectors in energy-efficient cooling solutions. The pandemics after effects slowed down the market's growth in the short term, but absorption cooling technologies' long-term prospects are still bright due to their favourable environmental effects. However, as the world recovers and places more emphasis on sustainability, the market is anticipated to rebound with a focus on energy-efficient and environmentally friendly cooling solutions.

The Electric Chiller segment is expected to be the largest during the forecast period

In the market for absorption cooling devices, the electric chiller segment is anticipated to hold the largest share. Due to their effectiveness and simplicity of integration with existing infrastructure, electric chillers are frequently used for cooling applications in a variety of commercial settings. Moreover, they are a popular option for cooling systems because of their popularity and reputation for dependability in providing precise temperature control.

The Industrial segment is expected to have the highest CAGR during the forecast period

In the market for absorption cooling devices, the industrial sector is anticipated to grow at the highest CAGR during the forecast period. This was primarily brought on by growing industrialization, the expansion of manufacturing facilities, and an increase in the demand for cooling solutions in industries like food processing, chemicals, and data centers. Additionally, this market's expansion was driven by the demand for effective and dependable cooling systems to maintain ideal operating conditions in industrial facilities and processes.

Region with largest share

The region expected to hold the largest market share for absorption cooling devices is North America, particularly the United States. Furthermore, this dominance was fuelled by elements like the region's strong emphasis on energy efficiency, government incentives for sustainable cooling technologies, and the adoption of absorption cooling devices in various commercial and industrial applications.

Region with highest CAGR

The market for absorption cooling devices was growing at the highest CAGR in the Asia-Pacific region, which includes nations like China and India. Numerous factors, including escalating industrialization, a rise in the demand for energy-efficient cooling options, and government initiatives to support sustainable technologies, were cited as the causes of this quick growth. Moreover, the adoption of absorption cooling technology was being driven by the region's focus on lowering carbon emissions and improving energy efficiency in the commercial and industrial sectors.

Key players in the market

Some of the key players in Absorption Cooling Device Market include Carrier Corporation, Thermax, LG Air Conditioning, Johnson Controls, Century Corporation, Broad Air Conditioning, Trane, Hitachi Appliances, Robur Group, EAW Energieanlagenbau, Yazaki Energy Systems and Shuangliang Eco-Energy Systems.

Key Developments

In October 2023, LG Energy Solution and Toyota Motor North America, Inc. (Toyota) today announced that they have signed a supply agreement for lithium-ion battery modules to be used in Toyota battery electric vehicles (BEVs) that will be assembled in the United States. Under the contract, LG Energy Solution will supply automotive battery modules at an annual capacity of 20GWh starting from 2025. The battery modules, consisting of high-nickel NCMA pouch-type cells, will be manufactured in LG Energy Solution's Michigan facility.

In July 2023, Johnson Controls, a global leader for smart, healthy, and sustainable buildings announces an agreement with Constellation, the nation’s largest producer of carbon-free energy, to support the development of two new solar plants and match the power needs of four major Johnson Controls manufacturing and research and development facilities.

In March 2023, Thermax announced the partnership with Fortescue Future Industries. A Memorandum of Understanding (MoU) has been signed by Fortescue Future Industries (FFI), an Australian green energy and green technology company, and Thermax Limited, a leading provider of energy and environmental solutions, to investigate green hydrogen projects, including new manufacturing facilities, in India.

Product Types Covered
• Free Cooling
• Absorption Cooling
• Electric Chiller
• Double Absorption Refrigerating Device
• Three Effect Absorption Refrigerating Device
• Other Product Types

End Users Covered
• Commercial
• Residential
• Industrial
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements