Scroll And Absorption Chillers Market Size, Share, Competitive Landscape and Trend Analysis Report, by Product Type, by Power Range, by End User Industry : Global Opportunity Analysis and Industry Forecast, 2020 - 2032

Scroll And Absorption Chillers Market Research, 2032

The global scroll and absorption chillers market size was valued at $4 billion in 2020, and is projected to reach $6 billion by 2032, growing at a CAGR of 3.3% from 2023 to 2032. 

Scroll chiller is a type of refrigeration system that uses one or more scroll compressors to circulate refrigerant and cool water or other fluids. It uses two interlocking scrolls to compress the refrigerant, which makes it more energy-efficient and quieter than other types of compressors. They are easy to install and maintain as they possess fewer moving parts. However, absorption chillers use wasted heat such as used steam, heat exchange fluid, and others, as well as direct heat from burning fuel. It comprises four main parts, including generators, condensers, evaporators, and absorbers. The generator contains a mixture of refrigerant and absorber.

Typically, an absorption chiller does not use electricity as energy source, instead it uses wasted heat energy from hot water, steam, flue gas, and others from various industrial and non-industrial sources; thereby reducing expenses that go on air conditioning of an organization as well as on process cooling in an industry. Moreover, in many parts of the world electricity is more expensive than oil and gas, and using an electrical machinery is often expensive. Therefore, absorption chiller is popular in such places. Contrarily, the coefficient of performance (COP), of an absorption chiller is less as compared to electric compression based chillers; however, owing to inexpensive or free of cost nature of energy source for absorption chiller make it competitive to electric compression based chillers. Moreover, absorption chillers do not use refrigerant that release greenhouse gases, making it comparatively environment friendly than the electric compression based chillers. On the other hand, scroll chillers have high coefficient of performance (COP). This means, scroll chillers can provide more cooling with a less amount of energy; thereby, making them highly efficient. Therefore, both of these chillers can save significantly on the energy bills of any industry.

A few of the major industries that make extensive use of scroll and absorption chiller are food and beverages, pharmaceuticals, power plants, petrochemical industries, and metal fabrication industries. Industries such as power plants, and petrochemical industries use high temperature processes which include use of steam, hot water, and others, which are the perfect energy source for an scroll and absorption chiller. In addition, owing to high temperature process, industrial machineries become excessive hot, which need to be cool down to ensure their long life; thereby, increasing demand for industrial chillers including scroll and absorption chillers. Governments around the world, especially in the developing countries offer financial aid, or other policy support to help establish and grow domestic industrial sector. For instance, in October 2022, Argentina launched a $3.2 billion scheme called ‘Argentine Credit Programme’. This is done to help grow SMEs and large industrial and agro-industrial companies for investments and import substitution projects. Such support increases the number of industrial facilities in a country, and creates opportunities for absorption chillers market. Moreover, as of November 2022, Vietnam is constructing approximately 400 industrial parks around the country. This development will positively affect the scroll and absorption chillers, as they are crucial for many industrial applications. These machineries provide reliable and efficient cooling solutions that help maintain optimal temperatures and prevent equipment failure. Thus, the growth of the manufacturing industry boosts the scroll and absorption chillers industry.

The rise in global population is also driving the scroll and absorption chillers market growth. Rise in population which also drives the urbanization is responsible for the construction of many residential and commercial establishments. Builders of these buildings install scroll and absorption chillers for air conditioning and other similar applications that require cooling.

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.

Chillers consist of a large number of components; thus, chillers have a high initial cost. Also, an installation cost of 1 ton air conditioning unit is around $1,300; however, water-cooled chiller plant requires a cost of approximately $1700/ton. The installation cost of an air-cooled chiller is around $260,000 and water-cooled chiller plant requires approximately $340,000 to $400,000. Thus, this is anticipated to hamper the growth of the global water chillers market.

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 chillers with low energy consumption.

On the basis of product type, the air cooled segment was accounted for producing the highest revenue in 2020. Air cooled chillers are easy to operate than water cooled ones; however, water cooled chillers are more reliable and efficient. Moreover, growth in industries that produce high amount of heat through their operations are expected to drive the growth of water cooled chillers during the forecast period.

Based on Power Range, the more than 200 kW segment held the highest market share in terms of revenue in 2020. However, the demand for smaller and less energy consuming chillers are expected to witness a higher demand. Thus, the segment including less than 50 kW chillers is expected to grow with a higher CAGR during the forecast period. Smaller chillers often use less energy and are designed to handle smaller cooling loads. This can significantly lower the energy bills of the manufacturers.

By end user industry, the chemicals and petrochemicals industry was responsible for generating highest sales in 2020, thus, contributed significantly to the scroll and absorption chillers market share In the industries, industrial air and water chillers are used for preventing machinery from failing or damaging due to overheating.  Therefore, a rise in these industries is expected to create lucrative opportunities for the market growth. In metal and construction industries, increasing use of automation with high processing speeds leads to high demand for cooling systems and technology for safe supply and controlled temperature conditions. These factors are expected to provide numerous opportunities for the growth of the market during the forecast period.

However, the scroll and absorption chillers market is witnessing various obstructions in its regular operations due to the COVID-19 pandemic and inflation. Earlier, the global lockdowns resulted in reduced industrial activities, eventually leading to reduced demand for scroll and absorption chillers from various sectors such as construction and industrial. However, COVID-19 has subsided, and the major manufacturers in 2023 are performing well. Nonetheless, the global economic downturn is a major obstructing factor for the entire industry. This economic downturn is a direct result of the war between Ukraine and Russia. Russia which is a major exporter of natural gas and Oil has been barred by many nations from exporting oil and gas, this has had a major negative impact on the global economy, and thus introduced volatility in the prices of raw materials used for manufacturing scroll and absorption chillers. Countries and regions such as Europe, Latin America, and developing economies in Asia-Pacific are experiencing severe negative impacts on industrial production, including the production of scroll and absorption chillers. Contrarily, India and China are performing relatively well. The scroll and absorption chiller market is anticipated to experience decline until major manufacturer and suppliers shift their supply chain from the affected regions to the stable ones. In addition, economic downturn is expected to get worse in the coming years, if no peace agreement is signed between Ukraine and Russia.

Region wise, Asia-Pacific accounted for the highest market share in 2020, in terms of revenue. Commercial buildings such as office buildings, shopping malls, airports, hospitals, and others are increasing at a substantial rate with the increase in population and urbanization. Comfort cooling, also known as air conditioning, is a major part of any building system, and absorption chillers are its major source. Moreover, the chillers market is mainly saturated in North America, owing to high chemical and petrochemicals infrastructure present in developed economies such as the U.S. and Canada. However, developing, manufacturing, food & beverages, and chemical industries in Mexico exhibit high demand for water chillers in the region.

Competition Analysis

Competitive analysis and profiles of the major players in the scroll and absorption chillers market, Carrier Global Corporation, Mitsubishi Electric Corporation, Daikin Industries Ltd, Dimplex Thermal Solutions, LG Electronics, Johnson Controls International Plc, Gree Electric Appliances Inc of Zhuhai, Midea Group Co. Ltd, Thermax Ltd, and Trane Technologies Plc.

The study highlights Porter’s Five Force analysis for the global scroll and absorption chillers market. In addition, drivers of the market, its restraints, and upcoming opportunities are also analysed in the report. Furthermore, the report covers the study and analysis of top companies operating in the market along with their market share.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market trends, segments, estimations, and dynamics of market analysis from 2020 to 2032 to identify the prevailing scroll and absorption chillers market opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth scroll and absorption chillers market analysis of the segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global the scroll and absorption chillers market forecast.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global scroll and absorption chillers market trends, key players, market segments, application areas, and market growth strategies.

  Scroll And Absorption Chillers Market Report Highlights

Aspects	Details
Market Size By 2032	USD 6 billion
Growth Rate	CAGR of 3.3%
Forecast period	2020 - 2032
Report Pages	186
By End User Industry	Chemicals and Petrochemicals Food and Beverages Medical Others
By Product Type	Air Cooled Water Cooled
By Power Range	Less Than 50 kW 50-200 kW More Than 200 kW
By Region	North America  (U.S., Canada, Mexico) Europe  (Germany, Italy, UK, France, Rest of Europe) Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific) LAMEA  (Latin America, Middle East, Africa)
Key Market Players	LG Electronics, Thermax Limited, Mitsubishi Electric, Midea Group Co., Ltd., Trane Technologies plc, GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI, Johnson Controls, Carrier Global Corporation, DAIKIN INDUSTRIES LTD., Dimplex Thermal Solutions, LLC

Analyst Review

Growth of manufacturing industries, especially in countries such as India, China, and Vietnam, has led to rise in demand for scroll and absorption chillers. In addition, growth in the foods & beverages sector in countries such as South Korea, Germany, and the U.S. has increased demand for scroll and absorption chillers. Furthermore, scroll chillers are ideal for use in small and medium scale industries.

In addition, advancements in technologies are expected to reduce the negative environmental impact of scroll and absorption chillers. For instance, the introduction of low-GWP (global warming potential) refrigerant in scroll and absorption chillers is anticipated to reduce pollution caused by them. Furthermore, availability of scroll and absorption chillers in a wide range of configurations and capacities increases its usability and positively influences the market.

 

Author Name(s) : Ajitesh Gupta | Sonia Mutreja

Related Tags

• Absorption Chillers
• Chillers
• Hvac Equipment
• Cold Storage
• Hvac Control
• Scroll Chillers

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