Absorption Cooling Systems

Global Absorption Cooling Systems Market to Reach US$3.1 Billion by 2030

The global market for Absorption Cooling Systems estimated at US$2.6 Billion in the year 2024, is expected to reach US$3.1 Billion by 2030, growing at a CAGR of 2.9% over the analysis period 2024-2030. Ammonia-Water Absorption Systems, one of the segments analyzed in the report, is expected to record a 2.4% CAGR and reach US$1.3 Billion by the end of the analysis period. Growth in the Lithium Bromide-Water Absorption Systems segment is estimated at 3.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$709.3 Million While China is Forecast to Grow at 5.4% CAGR

The Absorption Cooling Systems market in the U.S. is estimated at US$709.3 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$599.6 Million by the year 2030 trailing a CAGR of 5.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.2% and 2.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.6% CAGR.

Global Absorption Cooling Systems Market – Key Trends & Drivers Summarized

Why Are Absorption Cooling Systems Gaining Prominence in Energy Efficiency Solutions?

Absorption cooling systems are emerging as a preferred alternative to conventional cooling systems, primarily due to their energy efficiency and minimal environmental impact. Unlike traditional compression-based cooling systems, absorption systems rely on heat sources such as waste heat, solar energy, or industrial exhaust to drive the cooling process, making them highly energy-efficient and eco-friendly. These systems are particularly suitable for regions with high energy costs or limited access to electricity, as they reduce dependence on electricity grids. The global shift toward sustainable energy solutions has further propelled the adoption of absorption cooling systems in various industries, including commercial buildings, data centers, and industrial facilities. Additionally, their ability to operate with natural refrigerants, such as water and ammonia, positions them as an environmentally responsible option in light of increasing regulatory restrictions on synthetic refrigerants with high global warming potential (GWP). As the world embraces the need for greener cooling technologies, absorption systems are becoming a critical component of energy-efficient and sustainable infrastructure.

How Are Technological Innovations Transforming Absorption Cooling Systems?

The absorption cooling systems market is experiencing significant advancements in technology, which are enhancing system efficiency, reliability, and scalability. Modern absorption cooling units are being equipped with smart sensors and IoT-enabled monitoring systems, allowing operators to track performance metrics, identify inefficiencies, and predict maintenance needs in real time. This reduces operational downtime and ensures optimal system performance. In addition, innovations in materials science, such as the use of corrosion-resistant alloys and high-performance insulation, have extended the operational lifespan of these systems while improving energy transfer efficiency. Hybrid absorption systems, which combine traditional compression technology with absorption technology, are also gaining traction, offering users the best of both worlds in terms of performance and energy savings. Furthermore, the integration of renewable energy sources, such as solar thermal energy, into absorption systems has significantly broadened their appeal, making them an attractive choice for off-grid applications and environmentally conscious businesses. These technological advancements are not only driving adoption but also positioning absorption cooling systems as a cutting-edge solution in the cooling technology market.

Which Industries and Regions Are Driving Demand for Absorption Cooling Systems?

The demand for absorption cooling systems spans a variety of industries and regions, driven by unique market needs and regulatory pressures. In industrial applications, particularly in sectors such as chemicals, food and beverage, and pharmaceuticals, these systems are widely used to utilize waste heat effectively while maintaining precise temperature control. The commercial building sector, including hotels, shopping malls, and office complexes, represents another key market, where energy-efficient cooling systems are essential to meet sustainability targets and reduce operating costs. Regionally, Asia-Pacific dominates the market, fueled by rapid industrialization, urbanization, and the increasing adoption of green building practices. China, India, and Southeast Asia are at the forefront of this growth, driven by government incentives for energy efficiency and rising demand for sustainable cooling technologies. In Europe and North America, stringent environmental regulations and the focus on reducing carbon emissions have also spurred investments in absorption cooling systems. These regions are witnessing significant adoption in niche applications, such as district cooling networks and renewable energy-integrated systems, further contributing to market growth.

What Factors Are Driving Growth in the Absorption Cooling Systems Market?

The growth in the Absorption Cooling Systems market is driven by several factors, including the rising need for energy-efficient cooling solutions, advancements in renewable energy integration, and increasing regulatory emphasis on reducing carbon footprints. Industries that produce large amounts of waste heat, such as manufacturing and power generation, are increasingly adopting absorption cooling systems to utilize this byproduct efficiently. The growing adoption of green building certifications and sustainability initiatives has further accelerated the deployment of these systems in commercial spaces. In addition, advancements in hybrid cooling technologies and the incorporation of IoT-enabled monitoring solutions have enhanced the reliability and operational efficiency of absorption systems, making them an attractive investment for businesses. Government policies promoting the use of natural refrigerants and phasing out high-GWP synthetic refrigerants have also boosted demand for environmentally friendly cooling systems. Lastly, the increasing availability of renewable energy sources, particularly solar thermal energy, is expanding the application scope of absorption cooling systems, ensuring sustained growth in this market across multiple sectors and regions.

SCOPE OF STUDY:

The report analyzes the Absorption Cooling Systems market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (Ammonia-Water Absorption Systems, Lithium Bromide-Water Absorption Systems, Other Types); End-Use (Food & Beverages End-Use, Pharmaceuticals End-Use, Chemical & Petrochemicals End-Use, Power Plants End-Use, Data Centers End-Use, Wastewater Treatment End-Use, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 44 Featured) -

• AGO GmbH Energie + Anlagen
• Carrier Global Corporation
• Ebara Thermal Systems (Thailand) Co., Ltd.
• Hope Deepblue Air Conditioning Manufacture Corp., Ltd
• Hyundai Climate Control Co., Ltd.
• Johnson Controls, Inc.
• Kawasaki Thermal Engineering Co., Ltd.
• Kirloskar Pneumatic Co., Ltd. (KPCL)
• LG Electronics, Inc.
• Shuangliang Eco-Energy Systems Company

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
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EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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