Industrial Refrigeration Systems Market Size, Share & Trends Analysis Report By Component (Compressors, Condensers, Evaporators, Controls), By Capacity, By Application, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global industrial refrigeration systems market size was valued at USD 18.18 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2021 to 2028. The increasing demand for industrial refrigeration systems is attributed to the rising use of packaged and processed foods and drinks worldwide and the growing need to prevent them from spoilage. Global warming concerns have shifted manufacturers' focus from harmful coolants to natural refrigerants. Since natural refrigerants are climate-neutral and inexpensive to produce, the demand for natural refrigerant-based equipment has increased significantly, creating numerous growth opportunities for the market.

The emerging trend of improved and enhanced cold chain systems across the globe is expected to positively impact the market over the forecast period. This is largely attributed to the growing share of online grocery sales worldwide. Moreover, the cold chains play an important role for the post-harvest industry as it helps to minimize harvest spoilage with the help of technologies, such as absorption refrigerators and passive/evaporator coolers. Agroclimatic conditions such as excessive heat and high temperatures are also contributing to the market growth. However, the deployment of cold chains is low in developing countries due to lesser budgets allocated for advanced equipment.

Key players in the industrial refrigeration systems market are investing in technological advancements to develop simplified systems. These user-friendly applications and solutions offer information related to refrigerator systems. For instance, in March 2021, Emerson Electric Co. partnered with Carrier, a provider of sustainable and safe buildings and cold chain solutions, to offer advanced solutions from its cold chain and air conditioning business, including valves, sensors, and compressors. Furthermore, the prevalence of Artificial Intelligence (AI), Internet of Things (IoT), and next-generation technology in refrigeration systems offer lucrative opportunities for the market. For instance, in February 2021, Emerson Electric Co. introduced Lumity, a supervisory control platform for facility and refrigeration management. The platform simplifies operational complexities and streamlines facility management by allowing top-down visibility.

The increased deployment of natural refrigerants, such as Carbon dioxide (CO2), Ammonia (NH3), and others, has helped to reduce the emission of harmful gases that contribute to global warming. Manufacturers have shifted their focus from the thermodynamic features of refrigerants to their Ozone Depletion Potential (ODP) and Global Warming Potential (GWP) as the awareness of harmful hazards has increased among consumers. As a result, the global demand for natural refrigerant-based industrial equipment has grown in recent years. Key players in the industry are widely adopting natural refrigerants as a step toward social responsibility to minimize the depletion of the ozone layer. For instance, in October 2020, GEA Group Aktiengesellschaft launched an upgraded version of Purger that deploys propane (R290) and is used to eliminate non-condensable gases from refrigerated solutions. The natural refrigerant R290 is easy to install and has a low GWP, which allows the technology to comply with the new F-Gas regulations laid down by the European Union.

The COVID-19 pandemic has resulted in the temporary shutdown of various industrial operations owing to social distancing norms imposed by governments worldwide. On the other hand, the deployment of refrigerated transportation systems witnessed a boom during this period due to the need for vaccine preservation in large quantities for controlling the spread of the virus. The U.S. Centers for Disease Control and Prevention (CDC) has provided specific guidelines for the proper storage of vaccines, suggesting the deployment of pharmaceutical-grade or purpose-built units designed to either freeze or refrigerate. The agency recommends maintaining the temperature between -50°C and -15°C for freezers and 2°C and 8°C for refrigerators. Moreover, the constant demand for storage and distribution of vaccines as well as effective pharmaceuticals has stabilized the market.

Component Insights

The compressors segment is anticipated to witness the fastest CAGR of over 5.0% from 2021 to 2028. The growth of the compressors segment is attributed to features such as cost-effectiveness and heavy-duty design that supports longevity and durability. Moreover, compressors provide multiple forces, including consistent and efficient motive force, for smoother operations in manufacturing. These forces work as the backbone of most of the operations, such as the push in stamping, air spent in the performance of the machine, and others. The compressors segment is further segmented into the reciprocating, rotary screw, centrifugal, and others. Reciprocating compressors dominated the market with the highest revenue share in 2020. The growth of the segment can be attributed to the benefits offered by these compressors, such as the availability of oil-flooded and oil-free variants, production of high-pressure ranges of up to 30,000 PSI, and lesser use of energy, among others.

The compressors segment accounted for the largest revenue share of the overall market in 2020 and is expected to retain its dominance over the forecast period. Key players are also making significant investments in storage cabinets, display cases, coolers, and heat exchangers, which is driving the growth of the other’s segment. Furthermore, the evaporators segment is expected to witness significant growth due to the emerging need for energy-efficient and reliable systems. The ability of evaporators to intensify cooling by absorbing excess heat plays a significant role in the optimum cooling performance of refrigerators.

Capacity Insights

The 500kW-1,000kW capacity segment accounted for a high revenue share of over 30.0% of the overall market in 2020. This cooling capacity range is widely used by the food & beverage industry for storage and processing, especially for perishable and processed products. It is also used by dairy plants to store items for longer periods without spoilage. This medium-level capacity range of 500kW-1,000kW is considered as an optimal cooling environment in industrial plants for preventing large quantities of edible items from spoiling.

The 1,000kW-5,000kW segment is expected to expand at the highest CAGR over the forecast period. This cooling capacity range is used in warehouse refrigeration for the cold storage of vaccines, petrochemicals, and other items that can deteriorate due to the lack of cool storage premises. Also, the performance and cooling capacity of high-scale power plants depend on the high temperature of the inner infrastructure, which is often up to 50 to 100 degrees Celsius. The ability to neutralize the effect of high temperatures has contributed to the market growth of industrial refrigeration systems in the cooling capacity range of 1,000kW-5,000kW.

Application Insights

The food and beverage segment accounted for the largest revenue share of over 55.0% of the market in 2020 and is expected to continue dominating the market over the forecast period. The rising consumption of packaged food and expansion of retail food chains globally are expected to drive the growth of this segment. Meanwhile, the refrigerated warehouse segment is expected to experience substantial growth over the forecast period due to the rising population and increasing demand for frozen food. Also, rapid requirements for pharmaceuticals and vaccines have led to the increased demand for refrigerated warehouses during the COVID-19 pandemic.

The chemical, petrochemical, and pharmaceutical segment is anticipated to witness the fastest growth, registering a CAGR of over 5.0% from 2021 to 2028. This growth is attributed to the increased demand for sterilizing tissues, samples, and medical devices. Advanced refrigerators are deployed by the chemical industry to maintain the temperature of inorganic- and organic-industrial chemicals, ceramic products, agrochemicals, rubber, and petrochemicals. Moreover, most pharmaceuticals, bioengineered medications, and vaccines generated from living cells are required to be stored at controlled temperatures. This factor is significantly contributing to the adoption of industrial refrigeration systems.

Regional Insights

North America accounted for the largest revenue share of over 30.0% in 2020 and is expected to experience steady growth over the forecast period. This growth can be attributed to the rapid expansion of online grocery business operations, which has created a demand for refrigerated storage systems to preserve perishable food materials. In addition, clinical trials, and research to diminish the spread of the COVID-19 pandemic across the region are driving the growth of the market in North America.

Asia Pacific is expected to witness the fastest growth, registering a CAGR of nearly 6.0% over the forecast period. This is attributed to the emerging demand for cold storage infrastructure in countries such as China, India, and Japan. Moreover, India is the world's second-largest producer of fruits and vegetables. The government has taken several initiatives to support the expansion of cold storage infrastructure and ease the management of refrigerated warehouses and refrigeration in the country.

Key Companies and Market Share Insights

The key players operating in the market focus on advancements in components to gain a competitive edge. Companies are constantly striving to offer better and more efficient systems with newer features to grow their customer base. For instance, in January 2019, Johnson Controls expanded the capacity of its YZ magnetic bearing centrifugal industrial chiller, with 1,000 tons (3,516 kW) and 1,350 tons (4,747 kW) refrigeration capacity. The chiller system’s high reliability, wide operating map, simplicity, and lower maintenance are a result of the enhanced lubrication-free magnetic bearings that can support any operating condition.

The key players are acquiring and partnering with third-party distributors in other regions to expand their geographical footprint worldwide. For instance, in January 2021, Daikin North America LLC, a subsidiary of DAIKIN INDUSTRIES, Ltd., acquired ABCO, a leading distributor of refrigeration and HVAC systems in the U.S. With this acquisition, the company aimed to strengthen its reach in New Jersey, New York, and other surrounding states of the U.S. via ABCO branches. Some of the prominent players operating in the global industrial refrigeration systems market are:

• Johnson Controls

• Emerson Electric Co.

• Danfoss

• GEA Group Aktiengesellschaft

• MAYEKAWA MFG. CO., LTD.

• BITZER Kühlmaschinenbau GmbH

• DAIKIN INDUSTRIES, Ltd.

• EVAPCO, Inc.

• Güntner GmbH & Co. KG

• LU-VE S.p.A.

Industrial Refrigeration Systems Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global industrial refrigeration systems market report based on component, capacity, application, and region:

• Component Outlook (Revenue, USD Billion, 2018 - 2028)

  • Compressors

    • Rotary Screw Compressors

    • Centrifugal Compressors

    • Reciprocating Compressors

    • Other Compressors

  • Condensers

  • Evaporators

  • Controls

  • Others

• Capacity Outlook (Revenue, USD Billion, 2018 - 2028)

  • Less than 100 kW

  • 100-500 kW

  • 500kW-1,000kW

  • 1,000kW-5,000kW

  • More than 5,000 kW

• Application Outlook (Revenue, USD Billion, 2018 - 2028)

  • Refrigerated Warehouse

  • Food & Beverage

  • Chemical, Petrochemical, & Pharmaceutical

  • Refrigerated Transportation

• Regional Outlook (Revenue, USD Billion; 2018 - 2028)

  • North America

    • U.S

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa