Scroll And Absorption Chillers Market Expected to Reach $6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Scroll And Absorption Chillers Market," The scroll and absorption chillers market size was valued at $4 billion in 2020, and is estimated to reach $6 billion by 2032, growing at a CAGR of 3.3% from 2023 to 2032.

Asia-Pacific was responsible for generating the highest revenue share in 2020. There are many industrial facilities in Asia-Pacific region, countries such as China and India are the major industrialized countries. These countries have relatively easy statutory guidelines about industries which attracts many industries. In addition, labor laws are also relatively easy in Asia-Pacific, which further drives the industrialization in the region.

Furthermore, the population along with urbanization is rising rapidly in major parts of the world. This population growth is responsible for increasing number of residential and commercial buildings. These buildings make significant use of scroll and absorption chillers for comfort cooling for the occupants, as well as for refrigeration systems in the buildings.

Industries in the energy sector such as petrochemical processing plants and electricity power plants make use of scroll and absorption chillers to cool down and absorb heat from a process load. Petrochemical industries use high temperature to separate constituents of crude oil. Moreover, to meet the rise in demand in the energy sector, public and private entities are building petrochemical processing plants and power plants.

Based on product type, there are two types of scroll and absorption chillers, which include air and water cooled. The air cooled chillers being easy to operate and maintain generated a higher revenue in 2020. Water-cooled segment; however, is expected to dominate the scroll and absorption chillers market share by growing with a higher compound annual growth rate during the forecast period. Water cooled chillers have a higher efficiency than that of the air cooled chillers.

Furthermore, the industrial sector comprises of many small and large-scale industries. Both industries have different needs. For example, large scale industries have high number of machinery; thus, they require a large chiller. However, the small-scale industries have less number of machineries and also they have less capital. Thus, small scale industries require low-powered chillers. Owing to such  demand, scroll and absorption chillers are available in a wide range of cooling capacities and cooling technologies, making them suitable for use in both, small and large industrial facilities. Thereby positively influencing the growth of the market.

Furthermore, the raw materials required for manufacturing scroll and absorption chillers are copper, aluminum, and steel. The price of these materials have been fluctuating especially after the COVID-19 and the Ukraine-Russia war. The fluctuations increases the total cost of manufacturing scroll and absorption chillers, and can affect the profitability of the manufacturers, which can lead to higher prices for customers. Thereby, constraining the growth of the market.

However, manufacturers are continuously innovating their offerings to make scroll and absorption chillers more productive and environment friendly. For instance, Carrier Global Corporation has implemented many new technologies in their air-cooled scroll and absorption chillers. It has implemented digital controls for achieving accurate responses from scroll and absorption chillers. Also, it has introduced new software for making product energy efficient. In addition, it has also incorporated design improvements in condensers and other components to achieve higher efficiency. Such incorporation of advanced technologies scroll and absorption chillers is anticipated to create lucrative opportunities for the market growth.

Market players have a high growth opportunity to increase their market presence by developing technologically advanced and high-quality products. New developments are expected to make the cooling process easier and convenient; thus, requiring low electricity and reducing the cost. Moreover, market players are planning to develop advanced technology and effective cooling scroll and absorption chillers with low energy consumption.

In February 2023, Daikin Industries Ltd., a prominent air conditioning equipment manufacturer, introduced a new line of scroll and absorption chillers known for their optimal energy efficiency and cost-effectiveness. These chillers utilize R-32 refrigerant, significantly reducing environmental impact by minimizing global warming potential and allowing for recovery and recycling, preventing refrigerant emissions. The enhanced efficiency of scroll and absorption chillers is anticipated to lower operating costs, attract more customers, and create lucrative opportunities for competitors. Key players like Carrier Global Corporation, Mitsubishi Electric Corporation, and Daikin Industries Ltd. are actively developing new products to bolster their market presence. These companies focus on product launches and business expansion, as exemplified by Mitsubishi Electric Corporation's introduction of the Climaveneta NX2 scroll and absorption chillers in December 2020. These air-cooled chillers, equipped with two or four scroll compressors, offer a cooling capacity ranging from 40 to 376 Kw, catering to various settings like hotels, offices, hospitals, and universities.

Moreover, rise in demand for eco-friendly chillers is a major scroll and absorption chillers market opportunity. Absorption chillers are superior to other compressor-based chillers in many respects, including sustainability and eco-friendliness. An absorption chiller requires a heat source to function which can be extracted by recycling hot process water, hot air, steam, sun, or direct flame; thereby, preventing expensive electricity bills. Since it does not require electricity, it is highly suitable for places facing frequent power cuts. Moreover, many of the gases used in refrigerants are incorporated in other types of chillers are hydrofluorocarbons (HFCs), which are infamous for causing greenhouse effects and are highly polluting in nature. It is estimated that around 25% of these refrigerants gets leaked annually. Contrarily, unlike other chillers, absorption chiller does not use highly toxic and environment degrading refrigerant, instead it uses a mixture of water and lithium bromide or ammonia, making it more environment friendly. Moreover, it has very few moving components, owing to the lack of compressors with electric motors; thus, it has a silent and more reliable operation. Such advantageous features of absorption chillers are expected to provide lucrative opportunities for the market growth.

Furthermore, the market is witnessing a major obstruction in growth due to recent economic downturns. Previously, the COVID-19 led lockdowns which halted the global economy, and now the high prices of oil & gas due to Ukraine-Russia war have negatively affected the scroll and absorption chillers market Growth.

KEY FINDINGS OF THE STUDY

• The report provides an extensive analysis of the current and emerging  scroll and absorption chillers market trends and dynamics.
• On the basis of product type, the Air Cooled segment has dominated the scroll and absorption chillers market, in terms of revenue in 2020.
• On the basis of power range, the More Than 200 kW segment has registered highest revenue in 2020.
• Chemicals and Petrochemicals industry is projected to register the highest growth rate in the coming years.
• The key players within the scroll and absorption chillers market are profiled in this report, and their strategies are analyzed thoroughly, which helps understand competitive outlook of the scroll and absorption chillers industry.
• The global scroll and absorption chillers market forecast analysis from 2023 to 2032 is included in the report.
• Extensive scroll and absorption chillers market analysis is conducted by following key product positioning and monitoring of the top competitors within the market framework.