Absorption Cooling System Market Size

Absorption Cooling System Market was valued at USD 2.58 billion in 2023 and is anticipated to register a CAGR of 4.5% between 2024 and 2032, attributed to the integration of renewable energy, increasing green building initiatives & regulations, growing urbanization & infrastructure development, and the rising demand for district cooling. Moreover, various sectors including commercial buildings, industrial facilities, and agricultural operations are increasingly adopting absorption cooling systems integrated with renewable energy.

The global Refrigeration & Air Conditioning (RAC) industry is booming as the growing population and global warming have increased the demand for RAC equipment. This equipment leads to a rise in Greenhouse Gas (GHG) emissions, which only worsens the situation. This trend can be significantly mitigated by moving away from highly climate damaging HCFC and HFC refrigerants and using low Global Warming Potential (GWP) alternatives such as natural refrigerants.

According to the UN, the global population is expected to reach 9.7 billion in 2050, an increase of 2 billion over the next 30 years. This significant growth is facilitated by the improvement in people's living standards, increased life expectancy, decreased mortality rates, and the continuous development of medical technology and drugs. As a result, new housing projects are being launched all over the world. This is expected to positively impact market growth. Rapid urbanization, along with the increasing demand for energy-efficient products, is fueling the demand for residential heat pumps. Favorable government initiatives and tax incentives for the installation of energy-efficient products are expected to increase market demand.