Scroll and Absorption Chillers Market Size & Outlook, 2025-2033

Scroll and Absorption Chillers Market Overview

The global scroll and absorption chillers market size was valued at USD 14.16 billion in 2024 and is projected to grow from USD 14.79 billion in 2025 to reach USD 21.62 billion by 2033, growing at a CAGR of 4.94% during the forecast period (2025–2033). The market is driven by rising demand for energy-efficient HVAC systems, stricter environmental regulations on refrigerants, rapid commercial and industrial expansion, and increasing adoption of smart, IoT-enabled chillers supporting sustainability and net-zero building initiatives.

Key Market Insights

• Asia-Pacific held the largest market share, over 40% of the global scroll and absorption chillers industry.
• By Chiller Type, the absorption chillers segment is expected to witness the fastest CAGR of 4.85%.
• By Cooling Capacity, the 100–500 kW segment held the highest market share of over 40%.
• By Application, the commercial buildings segment held the highest market share of over 35%.
• By End-User, the energy service companies (ESCOs) segment is expected to witness the fastest CAGR of 5.25%.

Market Size & Forecast

• 2024 Market Size: USD 14.16 billion
• 2033 Projected Market Size: USD 21.62 billion
• CAGR (2025-2033): 4.94%
• Largest market in 2024: Asia-Pacific
• Fastest-growing region: North America

Scroll and absorption chillers are cooling systems widely used in commercial, industrial, and institutional facilities. Scroll chillers rely on scroll compressors for compact, efficient, and low-noise operation, making them ideal for offices, hospitals, and data centers. Absorption chillers, on the other hand, use heat sources such as steam, hot water, or waste heat instead of electricity, making them suitable for industrial plants, cogeneration facilities, and district cooling networks. Both types play a key role in sustainable, energy-efficient cooling solutions.

The market is driven by stricter environmental regulations, pushing the adoption of low-GWP refrigerants and eco-friendly cooling technologies. Rising urbanization and green building certifications such as LEED are creating opportunities for energy-efficient chillers. Government-backed cooling action plans and incentives for reducing carbon footprints further support demand. Moreover, growing healthcare and pharmaceutical sectors require reliable climate control and expanding chiller usage. The push for waste-heat utilization in industrial facilities also offers opportunities for absorption chillers, strengthening their role in sustainable energy management.

Market Trend

Increasing Integration of Smart and IoT-enabled Chiller Systems

The global scroll and absorption chillers market is witnessing a significant shift toward smart and IoT-enabled systems. These advanced chillers allow real-time monitoring, predictive maintenance, and remote control, enhancing operational efficiency and reducing downtime. Integration of sensors and automated controls is becoming a key differentiator for modern cooling solutions.

Moreover, IoT-enabled chillers support data-driven energy optimization, helping facilities minimize electricity consumption and lower operational costs. The ability to analyze performance metrics and adapt to changing load conditions makes these systems highly attractive for commercial and industrial applications, driving market adoption and fostering innovation in energy-efficient cooling technologies.

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Market Driver

Rapid Growth in the Commercial and Industrial Sectors

The global scroll and absorption chillers market is being driven by the rapid expansion of commercial and industrial sectors worldwide. Increasing urbanization, infrastructure development, and the rising need for energy-efficient cooling solutions are fueling demand for advanced chillers. Businesses and industries are investing in modern facilities, data centers, and logistics hubs, which require reliable and high-performance cooling systems.

• In September 2025, in India, the Maharashtra government signed MoUs worth ₹1.09 lakh crore across sectors such as IT, food processing, warehousing, data centers, and logistics hubs, expected to generate 48,000 direct jobs. Key projects include Adani Enterprises' ₹70,000 crore integrated coal surface gasification project in Nagpur and Lodha Developers' ₹30,000 crore Green Integrated Data Centre Park in Thane.

Such developments are creating strong growth opportunities for the chiller market.

Market Restraint

High Initial Investment Cost of Advanced Chillers

The adoption of advanced scroll and absorption chillers is often restrained by their high initial investment costs. These systems, while energy-efficient and technologically advanced, require significant capital expenditure compared to conventional cooling solutions. For many small- and medium-sized businesses, the upfront cost can be a barrier, despite long-term savings on energy and maintenance. As a result, market growth in certain regions may be slowed, particularly where budget constraints limit the adoption of high-tech chiller technologies.

Market Opportunity

Technological Advancements

The global scroll and absorption chillers market is witnessing significant growth opportunities driven by continuous technological advancements. Manufacturers are increasingly focusing on developing energy-efficient, eco-friendly, and smart chiller systems to meet rising demand in commercial and industrial sectors.

• In July 2025, LG introduced next-generation air-cooled inverter scroll chillers utilizing R32 refrigerant. These units feature LG’s All-Inverter compressor, operating across a wide frequency range (30Hz to 120Hz), which delivers high performance while reducing energy consumption even under partial load conditions.

This innovation exemplifies how advanced design and smart technology integration are enhancing operational efficiency and sustainability. Such developments are expected to propel market expansion and adoption globally in the coming years.

Regional Analysis

Asia-Pacific leads the global scroll and absorption chillers market with over 40% share and is witnessing significant growth momentum , fueled by green building initiatives, decarbonization efforts, and rising demand for energy-efficient cooling. Governments across the region are mandating stricter energy codes for commercial infrastructure, pushing the adoption of inverter-based and low-GWP refrigerant systems. Leading players such as Daikin, LG, and Mitsubishi Electric are actively expanding regional R&D centers to localize technology for tropical climates.

At the same time, regional sustainability frameworks such as clean energy transition roadmaps are supporting large-scale adoption of chillers in industrial zones, smart cities, and high-density urban projects, accelerating long-term market expansion.

China’s market for scroll and absorption chillers is expanding rapidly under its dual-carbon goals, which emphasize peak emissions by 2030 and neutrality by 2060. Domestic manufacturers like Broad Group and Shenling are advancing non-electric absorption chillers for district cooling and industrial parks. Additionally, multinational firms such as Trane and Carrier are strengthening partnerships with local developers to comply with China’s strict GB energy standards.

India’s scroll and absorption chillers market is supported by the Energy Conservation Building Code (ECBC) and government-led cooling action plans promoting sustainable HVAC solutions. Companies like Voltas and Blue Star are scaling up scroll chiller production with eco-friendly refrigerants to align with Kigali Amendment commitments. Industrial demand is increasing in pharmaceuticals and food processing, where absorption chillers are favored for waste heat utilization.

North America Market Trends

North America remains the largest market, driven by strict regulatory compliance and large-scale retrofitting programs. The U.S. Department of Energy’s updated efficiency standards and Canada’s Net-Zero Building Code are pushing facilities toward high-performance HVAC technologies. Companies like Johnson Controls, Carrier, and Trane Technologies are investing heavily in low-GWP refrigerant systems and AI-driven chiller optimization. Widespread deployment in commercial towers, healthcare, and data centers is further boosting adoption. The region’s focus on sustainability certifications, such as LEED and WELL standards, ensures consistent demand for advanced scroll and absorption chillers.

The United States scroll and absorption chillers industry is growing under DOE’s new 2023–2027 efficiency standards and tax incentives under the Inflation Reduction Act, which encourage the adoption of sustainable HVAC systems. Trane Technologies and Carrier are expanding production of air-cooled scroll chillers using R-1234ze refrigerants to meet low-GWP targets. Moreover, Honeywell is integrating advanced IoT platforms for predictive maintenance.

Canada’s scroll and absorption chillers industry is tied to its 2030 Emissions Reduction Plan and nationwide shift toward net-zero building standards. Companies like Johnson Controls and Daikin are collaborating with local contractors to deliver scroll and absorption chillers optimized for cold-climate performance. Provincial energy-efficiency incentives, particularly in Ontario and British Columbia, are driving upgrades in commercial and institutional facilities.

Chiller Type Insights

Absorption chillers hold the leading market position and are forecasted to expand at the fastest CAGR of 4.85%, due to their ability to provide sustainable cooling using waste heat or renewable energy sources. Single-, double-, and triple-effect systems, along with hybrid absorption units, are widely adopted in commercial and industrial applications where energy efficiency and environmental compliance are critical. Their use in large-scale operations, such as district cooling and data centers, allows for reduced electricity consumption and lower carbon emissions, making them a preferred choice for energy-conscious businesses and government projects globally.

Cooling Capacity Insights

The 100–500 kW cooling capacity range leads the market, accounting for over 40% share and standing as the most dominant segment, catering to medium-sized commercial and industrial facilities. This capacity range offers a balance between energy efficiency and cost-effectiveness, making it ideal for offices, hospitals, malls, and mid-sized industrial plants. Chillers in this range provide sufficient cooling without excessive energy consumption, ensuring operational reliability. Their modular design also allows for scalability, enabling businesses to expand capacity as demand grows while maintaining high efficiency and lower maintenance costs.

Application Insights

The commercial buildings segment emerged as the leading application category, capturing over 35% of the market. Commercial buildings, including offices and shopping malls, are the primary application segment driving market demand. Rising urbanization, increased construction of high-rise buildings, and the need for comfortable indoor environments are fueling the adoption of advanced chillers. Air-cooled and absorption chillers are increasingly used to optimize energy consumption while maintaining consistent cooling. The focus on sustainable and efficient building designs, coupled with stricter HVAC regulations, has accelerated chiller deployment, making commercial buildings the most significant contributor to market growth globally.

End-User Insights

Energy Service Companies (ESCOs) dominate the end-user segment and are expected to witness the fastest CAGR of 5.25%, due to their expertise in implementing energy-efficient cooling solutions for large-scale clients. ESCOs design, install, and manage chiller systems for commercial, industrial, and institutional facilities, offering performance-based contracts that reduce operational costs and energy consumption. Their role in retrofitting existing infrastructure with advanced scroll and absorption chillers has grown significantly, driven by demand for sustainability, energy savings, and regulatory compliance. ESCOs are pivotal in accelerating market adoption of efficiency chiller systems.

Company Market Share

The global scroll and absorption chillers market share is moderately consolidated, with a mix of multinational manufacturers and regional suppliers shaping competition. Leading players are focusing on expanding production facilities, particularly in the Asia-Pacific region, to cater to rising demand from commercial and industrial projects. A significant share is held by firms investing in low-GWP refrigerants, inverter-driven compressors, and IoT-enabled monitoring solutions. Others are emphasizing sustainability commitments, aligning products with net-zero building codes and international climate goals.

Johnson Controls International: Founded in 1885 by inventor Warren S. Johnson, Johnson Controls evolved from thermostats into a global building-technology leader. Headquartered in Cork, Ireland, after the 2016 Tyco merger, it operates major HVAC and chiller brands and has produced absorption chillers since the 1960s. The company supplies HVAC, fire, security, and building-management systems, pursues acquisitions, and IoT-enabled efficiency and low-GWP refrigerant strategies to serve commercial, data-centre, and industrial customers worldwide and globally.

• In August 2025, Johnson Controls completed the sale of its Residential and Light Commercial HVAC business to Bosch for USD 8.1 billion, including its North American ducted business and its global residential joint venture with Hitachi. JC is streamlining its portfolio to focus more on enterprise-level building solutions, commercial and industrial cooling technologies, and service- and IoT-driven offerings.

List of key players in Scroll and Absorption Chillers Market

1. Daikin Industries, Ltd.
2. LG Electronics
3. Gree Electric Appliances, Inc. of Zhuhai
4. Mitsubishi Electric Corporation
5. Hisense Group
6. York International Corporation
7. Haier Group
8. Johnson Controls International
9. Carrier Corporation
10. Lennox International, Inc.
11. TCL Corporation
12. Hitachi, Ltd.
13. Midea Group
14. Samsung Electronics

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Recent Development

• In September 2025, Shree Refrigerations Limited (SRL) partnered with Canada-based Smardt Chillers Pte Ltd to introduce advanced oil-free chiller cooling solutions tailored for data centers in India. This collaboration highlights the growing focus on sustainable and advanced technologies to support the expanding digital infrastructure in the country.