Absorption Cooling System Market, By Product Type, By Cooling Source, By Application, By End-User, By Country, and By Region - Global Industry Analysis, Market Size, Market Share & Forecast from 2025-2032
Absorption Cooling System Market size was valued at US$ 2,793.43 Million in 2024, expanding at a CAGR of 4.98% from 2025 to 2032.
The absorption cooling system market revolves around thermally driven cooling technology that utilizes heat energy instead of electricity to produce cooling effects, making it a sustainable alternative to conventional systems. Rising demand for energy-efficient cooling solutions, increasing industrial applications, and stringent environmental regulations promoting low-emission technologies are fueling market growth. A notable shift toward renewable energy sources, such as solar and waste heat recovery, has also accelerated adoption. In 2024, approximately 35% of industrial cooling systems integrated absorption technology to reduce carbon footprints. However, high initial costs and lower cooling efficiency compared to compression-based systems present challenges. Limited awareness and slower adoption in developing regions further restrain expansion. On the bright side, growing investments in smart city projects, technological advancements in absorption chillers, and increasing use in data centers and district cooling systems create significant opportunities. Additionally, government incentives for eco-friendly cooling technologies further support market expansion.
Absorption Cooling System Market- Market Dynamics
Rising Adoption of Energy-Efficient and Eco-Friendly Cooling Solutions
The growing emphasis on sustainability and energy efficiency has accelerated the adoption of absorption cooling systems across various industries. Organizations like the U.S. Department of Energy and the International Energy Agency (IEA) have highlighted the role of thermally driven cooling in reducing carbon emissions, with absorption chillers increasingly integrated into district cooling and industrial applications. For instance, the European Union's energy policies encourage the use of waste heat recovery, contributing to the installation of over 500 MW of absorption cooling capacity in industrial plants across Europe. In Japan, the government has promoted gas-fired absorption chillers as part of its energy diversification strategy, leading to a 20% increase in adoption over the past five years. With rising global temperatures and electricity demand straining power grids, industries and commercial buildings are shifting towards absorption cooling solutions powered by solar energy and waste heat, ensuring both cost savings and environmental benefits.
Absorption Cooling System Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 4.98% over the forecast period (2025-2032)
Based on product type segmentation, Lithium Bromide-based was predicted to show maximum market share in the year 2024
Based on Cooling Source segmentation, Waste heat absorption was the leading Cooling Source in 2024
Based on Application segmentation, Industrial Processes was the leading Application in 2024
On the basis of region, North America was the leading revenue generator in 2024
Absorption Cooling System Market- Segmentation Analysis:
The Global Absorption Cooling System Market is segmented on the basis of Product Type, Cooling Source, Application, End-User, and Region.
The market is divided into two categories based on product type: Ammonia-based and lithium-bromide-based. Lithium bromide-based absorption cooling systems hold a higher market share due to their widespread use in commercial buildings, district cooling, and industrial applications, driven by efficiency and lower toxicity. Ammonia-based systems, though less dominant, are preferred in low-temperature industrial and refrigeration applications.
The market is divided into four categories based on Cooling sources: Solar-powered absorption cooling, Waste heat absorption cooling, Natural gas absorption cooling, and Water-cooled absorption cooling. Waste heat absorption cooling leads the market and is widely adopted in industrial and district cooling applications for energy efficiency. Natural gas absorption cooling follows, driven by cost-effectiveness. Water-cooled systems are preferred for large-scale operations, while solar-powered absorption cooling is growing but remains niche due to high costs.
Absorption Cooling System Market- Geographical Insights
The absorption cooling system market exhibits strong regional variation, influenced by climate conditions, industrialization, and government policies. Asia-Pacific leads the market, driven by rapid urbanization, high energy demand, and government incentives promoting energy-efficient cooling. Countries like China and Japan have widely adopted absorption chillers in district cooling, with China accounting for nearly 40% of global installations due to its large-scale industrial sector. In North America, rising concerns over carbon emissions and incentives for sustainable cooling solutions have increased adoption, particularly in data centers and commercial buildings. The U.S. Department of Energy has supported absorption cooling as part of energy efficiency programs, driving installations in large-scale facilities. Europe follows closely, with strict environmental policies and waste heat recovery initiatives pushing the market forward. Germany, for instance, has integrated absorption cooling in over 300 district energy projects. Meanwhile, the Middle East and Africa witness growing demand due to extreme temperatures and rising infrastructure developments, especially in Gulf countries investing in district cooling systems.
Absorption Cooling System Market- Competitive Landscape:
The absorption cooling system market is characterized by the presence of several global and regional players competing through technological advancements, strategic partnerships, and product innovations. Major companies such as Johnson Controls, Carrier Corporation, Thermax Limited, and Yazaki Corporation dominate the industry with a strong focus on energy-efficient solutions. Johnson Controls has expanded its absorption chiller portfolio, integrating smart technology to optimize performance, while Yazaki Corporation continues to lead in lithium bromide-based absorption cooling systems for commercial applications. In 2023, Carrier Corporation partnered with multiple energy firms to enhance waste heat recovery applications in industrial cooling. Regional players, particularly in Asia-Pacific, are gaining traction by offering cost-effective solutions tailored to local market needs. Governments worldwide are also supporting industry players through incentives for low-emission cooling technologies. Competition is further intensified by increasing investments in R&D to improve system efficiency and reduce operational costs. As demand grows, collaborations between manufacturers and energy service companies are shaping the competitive landscape, enhancing market penetration across various sectors.
Recent Developments:
In March 2022, Carrier Global Corporation introduced the AquaForce Vision 30KAV, a compact process cooling chiller featuring the ultra-low GWP refrigerant R-1234ze, designed to offer enhanced environmental sustainability with its PUREtec refrigerant for improved performance and efficiency.
In July 2024, Panasonic initiated a demonstration experiment in Japan to utilize heat from hydrogen fuel cell generators for absorption chillers, bridging a 20°C temperature gap. This innovation aims to enhance energy efficiency and support a carbon-free society.
SCOPE OF THE REPORT
The scope of this report covers the market by its major segments, which include as follows:
GLOBAL ABSORPTION COOLING SYSTEM MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Broad Air Conditioning Co., Ltd.
Carrier Global Corporation
Century Corporation
Danfoss A/S
Hitachi, Ltd.
Johnson Controls International Plc
Kawasaki Heavy Industries, Ltd.
Kirloskar Pneumatic Company Limited
LG Electronics Inc.
McQuay International
Midea Group
Robur Corporation
Shuangliang Eco-Energy Systems Co., Ltd.
Thermax Limited
Trane Technologies Plc
Yazaki Corporation
Others
GLOBAL ABSORPTION COOLING SYSTEM MARKET, BY PRODUCT TYPE- MARKET ANALYSIS, 2019 - 2032
Ammonia-based
Lithium Bromide-based
GLOBAL ABSORPTION COOLING SYSTEM MARKET, BY COOLING SOURCE- MARKET ANALYSIS, 2019 - 2032
Solar-powered absorption cooling
Waste heat absorption cooling
Natural gas absorption cooling
Water-cooled absorption cooling
GLOBAL ABSORPTION COOLING SYSTEM MARKET, BY APPLICATION- MARKET ANALYSIS, 2019 - 2032
Commercial Buildings
Industrial Processes
Residential Buildings
Data Centers
GLOBAL ABSORPTION COOLING SYSTEM MARKET, BY END-USER- MARKET ANALYSIS, 2019 - 2032
HVAC
Food & Beverage
Chemical & Petrochemical
Healthcare
GLOBAL ABSORPTION COOLING SYSTEM MARKET, BY REGION- MARKET ANALYSIS, 2019 - 2032
North America
U.S.
Canada
Europe
Germany
UK
France
Italy
Spain
The Netherlands
Sweden
Russia
Poland
Rest of Europe
Asia Pacific
China
India
Japan
South Korea
Australia
Indonesia
Thailand
Philippines
Rest of APAC
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of LATAM
The Middle East and Africa
Saudi Arabia
UAE
Israel
Turkey
Algeria
Egypt
Rest of MEA
Table of Contents
1. Absorption Cooling System Market Overview
1.1. Study Scope
1.2. Market Estimation Years
2. Executive Summary
2.1. Market Snippet
2.1.1. Absorption Cooling System Market Snippet by Product Type
2.1.2. Absorption Cooling System Market Snippet by Cooling Source
2.1.3. Absorption Cooling System Market Snippet by Application
2.1.4. Absorption Cooling System Market Snippet by End-User
2.1.5. Absorption Cooling System Market Snippet by Country
2.1.6. Absorption Cooling System Market Snippet by Region
2.2. Competitive Insights
3. Absorption Cooling System Key Market Trends
3.1. Absorption Cooling System Market Drivers
3.1.1. Impact Analysis of Market Drivers
3.2. Absorption Cooling System Market Restraints
3.2.1. Impact Analysis of Market Restraints
3.3. Absorption Cooling System Market Opportunities
3.4. Absorption Cooling System Market Future Trends
4. Absorption Cooling System Industry Study
4.1. PEST Analysis
4.2. Porter's Five Forces Analysis
4.3. Growth Prospect Mapping
4.4. Regulatory Framework Analysis
5. Absorption Cooling System Market: Impact of Escalating Geopolitical Tensions
5.1. Impact of COVID-19 Pandemic
5.2. Impact of Russia-Ukraine War
5.3. Impact of Middle East Conflicts
6. Absorption Cooling System Market Landscape
6.1. Absorption Cooling System Market Share Analysis, 2024
6.2. Breakdown Data, by Key Manufacturer
6.2.1. Established Players' Analysis
6.2.2. Emerging Players' Analysis
7. Absorption Cooling System Market - By Product Type