The global industrial refrigeration systems market size was valued at USD 19.55 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.6% from 2020 to 2027. The increasing demand for industrial refrigeration systems across the FMCG sector is majorly driving market growth. This is due to an increase in the use of processed and packaged food and drinks in the developed and developing nations and the prevention of spoilage of semi-processed food and beverages. Moreover, the growing government support to strengthen the cold chain infrastructure and rising demand for compact and innovative refrigeration systems is expected to drive demand over the forecast period. In 2020, the market is predicted to have a substantial impact due to the COVID-19 pandemic. However, the recent lockdown situation to contain the COVID-19 pandemic has created a trend to purchase perishable products online.
This trend has led to new opportunities, thereby creating demand for advanced temperature monitoring systems that would maintain the safety of fresh food products. Also, the increasing demand for perishable products and fast delivery supplies associated with the e-commerce-based meat, poultry, and fish processing products and fresh food and beverage delivery market has led to a significant boost in cold chain operations. These factors are expected to aid in market growth.
Additionally, understanding consumer behavior, attitude towards food consumption, understanding societal trends, and consumer access to food would help the company develop the products to attract the customer. Increasing consumer trends towards diet have urged the food manufacturers to keep track of current trends and adopt new technologies to tap the potential market. The rising trend of buying packaging products and increasing adoption of e-commerce has augmented the demand for refrigerated transportation and warehouse. Further, the increasing penetration of the organized retail sector in the emerging economies has propelled the demand for packaged food. These are several key factors behind the growing demand for industrial refrigeration systems.
The refrigerant is a substance that is used in a refrigeration cycle to cool a particular space. Most refrigerants harm the environment as they contribute to ozone layer depletion and global warming. Greenhouse gases, such as emissions from some refrigerants and carbon dioxide, contribute to global warming as they absorb infrared radiation and retain it in the atmosphere. Therefore, the adoption of natural refrigerant-based equipment owing to stringent regulatory policies is another factor driving the industrial refrigeration system market growth.
Moreover, several governments are taking initiatives to strengthen the cold chain infrastructure and attract investment in the cold chain industry. This, in turn, is creating demand for industrial refrigeration systems across the globe. For instance, the Ministry of Food Processing Industries of India implemented the scheme of the cold chain, value addition, and preservation infrastructure. The program offers financial support for setting up the integrated cold chain infrastructure to avoid post-harvest losses. These factors are likely to aid in market growth over the forecast period.
The compressors product segment led the market and accounted for more than 15.0% revenue share in 2019. On the basis of product, the market is segmented into the compressors, controls, evaporators, condensers, and others. Compressors are mostly used for industrial and commercial refrigeration, heat pump, and air-conditioning applications such as HVAC, humidifiers, chillers systems, etc. In industrial refrigeration equipment, compressors play an essential role by rising refrigerant vapor pressure in a condenser to ensure appropriate temperature-level for preservation and food storage applications.
Besides, a compressor takes in low-temperature and low-pressure refrigerant from the evaporator and compresses the refrigerant into high-temperature and high-pressure gaseous state. The increasing number of refrigerated warehouses across the world drives the compressor market growth. Several market players are concentrating on cost reduction in the manufacturing of compressors. With the increase in the application industries of industrial refrigeration equipment, market players are developing new compressors to meet the diverse requirements of end-users and explore the untapped market; this, in turn, is further estimated to upsurge the demand for compressors in the forthcoming years.
The food and beverage application segment led the market and accounted for more than 55.0% share of the global revenue in 2019. Based on application, the market can be segmented into the refrigerated warehouse, food and beverage (including fruit and vegetable, meat, poultry, and seafood, and dairy products), chemical, petrochemical, and pharmaceutical, and refrigerated transportation.
The increasing disposable income and growing population have resulted in an augmented demand for frozen and processed food products. This developing demand for convenience products has increased the number of refrigerated warehouses across the globe, with improved capacity in the past few years. Moreover, the growing automation of refrigerated warehouses is further anticipated to enhance the market demand over the projected period.
Ensuring that the seafood, meat, poultry, and dairy products remain fresh and safe for consumption is getting vital not only health-conscious consumers but also for businesses. As a result, the application of the cold chain technology is no longer limited only to getting these products safely from the warehouse to the market. Retaining the quality of these products as well as maintaining cost efficiency and energy efficiency is also getting of paramount importance. These factors are likely to upkeep the increasing use of industrial refrigeration systems in refrigerated warehouse applications over the forecast period. However, the chemical, petrochemical, and pharmaceutical application segment are expected to expand at the highest CAGR of 6.0% from 2020 to 2027.
North America dominated the market and accounted for over 30.0% share of global revenue in 2019. This is due to the aggressive and convenient marketing of frozen food products in the number of varieties, such as bowl meals, skillet and oven meal kits, and restaurant-quality pizza. Food producers are estimated to drive demand over the next seven years. Running clinical testing and research to halt the spread of the outbreak of COVID-19 pandemic across North America is also driving the market growth in the pharmaceutical industry.
Asia Pacific is projected to be the most attractive regional market due to rapid growth opportunities observed from cold-chain storage infrastructure in various countries such as India, Japan, and China. For instance, India is the second-largest vegetable and fruit producer across the globe. The cold storage and managing the refrigeration for such huge fruits and vegetables produce is a challenging task. Industry players and government both adopt and initiate several initiatives to expand the facilities and overall agricultural output and revenues. Such government strategies to support cold chain management systems are anticipated to drive the demand for industrial refrigeration systems in the Asia Pacific region.
The key players that dominated the global market in 2019 include Johnson Controls; Emerson Electric Co.; GEA Group Aktiengesellschaft; DAIKIN INDUSTRIES, Ltd.; and Danfoss Industries Pvt. Ltd. Industry players emphasize strategic collaborative initiatives for technology development in the market and increase their profitability and market share. End-use industries are using the industrial refrigeration system for several applications have diverse requirements based on specific processes and level of in-house expertise, product type, and environment. The market player continuously undertakes strategic initiatives such as new product launches, inaugurating new plants, agreements and contracts, and partnerships to sustain their market position. For instance, in April 2020, Danfoss Industries Pvt. Ltd. launched the electronic liquid-level switches that play an essential role in refrigeration equipment's safety. Further, In April 2020, Danfoss Editron inaugurated a new in-house testing laboratory in Lappeenranta, Finland. Some of the prominent players in the industrial refrigeration systems market include:
Danfoss Industries Pvt. Ltd.
Johnson Controls
DAIKIN INDUSTRIES, Ltd.
GEA Group Aktiengesellschaft
Güntner GmbH & Co. KG
BITZER
EVAPCO, Inc.
Report Attribute |
Details |
Market size value in 2020 |
USD 19.61 billion |
Revenue forecast in 2027 |
USD 26.90 billion |
Growth Rate |
CAGR of 4.6% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Component, Application, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
The U.S.; Canada; The U.K.; Germany; France; China; India; Japan; Brazil; Mexico |
Key companies profiled |
Johnson Controls; Emerson Electric Co.; GEA Group Aktiengesellschaft; DAIKIN INDUSTRIES, Ltd.; Danfoss Industries Pvt. Ltd. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global industrial refrigeration systems market report on the basis of component, application, and region:
Component Outlook (Revenue, USD Million, 2016 - 2027)
Compressors
Condensers
Evaporators
Controls
Others
Application Outlook (Revenue, USD Million, 2016 - 2027)
Refrigerated Warehouse
Food & Beverage (Fruit & Vegetable, Meat, Poultry, & Fish, and Dairy Products)
Chemical, Petrochemical, & Pharmaceutical
Refrigerated Transportation
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Canada
Europe
Germany
The U.K.
France
Asia Pacific
China
India
Japan
Latin America
Brazil
Mexico
The Middle East and Africa
b. The global industrial refrigeration systems market size was estimated at USD 19.5 billion in 2019 and is expected to reach USD 19.6 billion in 2020.
b. The global industrial refrigeration systems market is expected to grow at a compound annual growth rate of 4.6% from 2020 to 2027 to reach USD 26.9 billion by 2027.
b. North America dominated the industrial refrigeration systems market with a share of 32.6% in 2019. This is attributable to the rising demand for beverages, fresh food products, and medicines, and government initiatives to phase out HCFCs refrigerant and adopt natural refrigerants in various refrigeration applications.
b. Some key players operating in the industrial refrigeration systems market include Johnson Controls; Emerson Electric Co.; Danfoss Industries Pvt. Ltd.; DAIKIN INDUSTRIES, Ltd.; and Guntner GmbH & Co. KG.
b. Key factors that are driving the industrial refrigeration systems market growth include increasing adoption of natural refrigerant-based refrigeration systems owing to strict regulatory policies, and growing need for refrigeration for freezing, cooling, and chilling of food at large owing to the growth in food production.
This report has a service guarantee. We stand by our report quality.
We are in compliance with GDPR & CCPR norms. All interactions are confidential.
Design an exclusive study to serve your research needs.
Get your queries resolved from an industry expert.
"The quality of research they have done for us has been excellent..."