Industrial Refrigeration Systems Market Size, Share & Trends Analysis By Component (Compressors, Condensers), By Compressor Type, By Capacity, By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global industrial refrigeration systems market size accounted for USD 19.10 billion in 2021 and is anticipated to expand at a CAGR of 4.3% from 2022 to 2030. Globally, the use of processed and packaged foods and drinks and the need to prevent spoilage are causing the demand for industrial refrigeration systems to increase. Concerns over global warming have forced manufacturers to focus on natural refrigerants over harmful coolants. In recent years, the market for genuine refrigerant-based equipment has overgrown due to natural refrigerants being inexpensive to produce and climate-neutral. Over the forecast period, the market is expected to be impacted by the emergence of enhanced and improved cold chain systems across the globe.

E-commerce grocery sales are growing faster throughout the world than physical grocery sales. Additionally, cold chains play an integral role by minimizing harvest spoilage using technologies such as evaporator /passive coolers and absorption refrigerators. High temperatures and excessive heat, in addition to agro-climatic conditions, contribute to market growth. In developing countries, however, cold chain deployments are low due to fewer budgets allocated for advanced equipment.

Leading players in the market are focusing on advancements in technology to provide simplified solutions. Emerson Electric Co., cold chain solutions provider and an HVAC, partnered with Carrier in March 2021 to offer advanced solutions from its air conditioning and cold chain businesses, including sensors, valves, and compressors. Companies are focusing on environmentally friendly technology such as Active Magnetic Regenerative refrigeration. The technology requires magnetic solid, which acts as a refrigerant using magneto caloric effect and reduces energy consumption by almost 30%. Besides these technology Artificial Intelligence, next-generation technology, and the Internet of Things create opportunities for manufacturers. Emerson Electric Co., which provides HVAC and cold chain solutions, has partnered with Carrier to offer advanced valves, sensors, and compressors as part of its air conditioning and cold chain businesses in March 2021. 

Natural refrigerants such as Co2, hydrocarbons, and ammonia pose threats of toxicity (NH3) and inflammation. However, their use has reduced the emission of greenhouse gases. Manufacturers are steadily switching to natural refrigerant options as they focus on the refrigerants’ Global Warming Potential and Ozone Depletion Potential due to increasing awareness among consumers. For instance, in July 2021, Bitzer Kühlmaschinenbau GmbH introduced a new compact compressor CSW85/95 to improve efficiency in water-cooled liquid chillers as water-cooled systems are becoming popular in Europe due to the regulations projected by the Ecodesign Directive.

The onset of the pandemic has affected industrial operations as production hubs shut down due to lockdowns and quarantines imposed by governments worldwide. However, the market witnessed a demand for its products due to the global need for preserving vaccines in vast quantities to fight the extent of the pandemic. The U.S. Centers for Disease Control and Prevention (CDC) have suggested using pharmaceutical, or specially designed refrigerators or freezers, to properly store vaccines. The guidelines for storage of vaccines indicated storage temperature between 2°C and 8°C for refrigerators and -50°C and -15°C for freezers. As a result, the need for storing and distributing vaccines and effectual pharmaceuticals preserved the market.

Component Insights

The compressor market is expected to witness the fastest CAGR of over 6.7% from 2022 to 2030 due to its key features like pressure building, usage control, and financial ability. For smoother operations in manufacturing, compressors provide an efficient and consistent motive force. Compressors can be distinguished by their various types, namely centrifugal, reciprocating, rotatory screw compressors, and others. In 2020, reciprocating compressors influenced the market regarding their revenue share. The main factors for its growth are its benefits such as high ranges of pressure up to 30000 PSI, energy efficiency, and availability of oil-free and oil-flooded variants.

The compressor segment is projected to maintain the leadership in market share in the forecasted period as it did in 2021. Factors such as industrialization, automation, and a surge in demand for oil-free compressors in the HVAC industry due to environmental concerns are influencing the growth of the compressor segment. Due to the rising need for more reliable and energy-efficient systems, the evaporators segment is expected to grow significantly in the coming years. For a refrigerator to perform at its best, evaporators must increase cooling by absorbing the excess heat.

Capacity Insights

The 500kW-1000kW capacity segment had the highest revenue share of around 32.3% of the entire market in 2021. The cooling capacity is of utmost importance in the food and beverage industry as it is used for storing and processing processed and perishable items. This characteristic is a requirement in the dairy industry to increase shelf life and minimize wastage of items. 500kW-1000kW is the optimal temperature range to avoid spoilage of edibles and resource loss.

The 1,000kW-5,000kW segment is anticipated to grow at a significant rate over the forecast period. This change is subjected to the growing demand for the storage of petrochemical, vaccines, and items which may perish in uncontrolled environments. The temperature range in the inner infrastructure of high-scale power plants is between 50-100 degrees Celsius. As these refrigeration systems ranging between 1,000kW-5,000kW capacity neutralize the effect of high temperatures in the shop floors, the demand for the same is set to grow in the future.

Application Insights

The food & beverage segment accounted for the largest share of over 57.9% of the market in 2021, and it is projected to dominate the market in the forecast period. The rising popularity of packaged and frozen food around the globe is the main factor affecting the segment's growth. The refrigerated transportation and warehouse are anticipated to overgrow due to the increase in urban population and their demand for packaged food and beverages and frozen food. The pandemic has also brought awareness into people's lifestyles around the globe. As a result, the need for vaccines and pharmaceuticals has risen, thus contributing to refrigerated warehouses and transportation growth.

The petrochemical, pharmaceutical and chemical, segment is expected to show substantial growth over the forecast year 2022 to 2030. This growth rate results from increased demand for freeze-drying processes, sterilizing medical devices, removing the heat of action, etc. Chemical industries use advanced cooling systems to control the temperatures of organic and inorganic chemicals, agrochemical, and petrochemicals. Additionally, the pharmaceutical industry requires storing and maintaining the composition of raw materials and finished products like bioengineered medications and vaccines through refrigeration processes. These factors are significant causes for the adoption of industrial refrigeration systems.

Regional Insights

North America accounted for the largest revenue share of over 33.5% in 2021 and is expected to maintain steady growth over the forecast period. The main factor contributing to the market's development is the expansion of e-commerce. E-commerce has impacted consumers' buying behavior as online grocery purchasing has become a lifestyle requirement. Furthermore, retailers must store perishables at standard temperatures set by HACCP, thus increasing the need for suitable refrigerated storage systems. In addition, clinical trials and research aimed at slowing the spread of the COVID-19 pandemic across North America are driving the market's growth.

The Asia Pacific region is expected to acknowledge the fastest growth, registering a CAGR of nearly 5.9% over the forecast period. It is attributed to the expanding demand for cold storage infrastructure in India, China, and Japan. China is the world's largest producer of fruits and vegetables followed by India. China and India export harvests to many countries around the globe. The respective governments have taken various initiatives to expand cold storage management and improve refrigeration and refrigerated warehouse management in their respective countries.  

Key Companies and Market Share Insights

The key players in the industrial refrigeration systems market focus on innovation, advancements, and acquisition of components to gain a competitive edge. In November 2018, Daikin Industries, Ltd. announced its acquisition of Austrian refrigeration and freezing showcases, AHT Group. The buy-out will allow Daikin Industries Ltd. to add AHT group’s showcases in their range of products based on its refrigeration and air conditioning equipment, enabling Daikin Industries Ltd. to provide complete coordination of refrigeration and air conditioning products. The acquisition will also strengthen and allow full-scale operation expansion in Europe, U.S.A, and Asia.

Companies are continually spending lots of resources researching and developing new features and technology. In November 2020, Güntner GmbH & Co. KG launched its UV-C installed Güntner Cubic VARIO Air Cooler, which claims to eliminate over 99% of the airborne germs in less than a few hours. Güntner GmbH & Co. KG teamed with biologists from Fraunhofer Institute for Process Engineering and Packaging to test its UV-C emitter technology and prove its efficacy. The tests were conducted in their lab in Fürstenfeldbruc. Some of the prominent players operating in the global industrial refrigeration systems market include:

• 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 the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 - 2030. For this study, Grand View Research has segmented the global industrial refrigeration systems market based on component, compressor type, capacity, application, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Compressors

    • Rotary Screw Compressors

    • Centrifugal Compressors

    • Reciprocating Compressors

    • Other Compressors

  • Condensers

  • Evaporators

  • Controls

  • Others

• Capacity Outlook (Revenue, USD Million, 2018 - 2030)

  • Less than 100 kW

  • 100-500 kW

  • 500kW-1,000kW

  • 1,000kW-5,000kW

  • More than 5,000 kW

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Refrigerated Warehouse

  • Food & Beverage

  • Chemical, Petrochemical, & Pharmaceutical

  • Refrigerated Transportation

• Region Outlook (Revenue, USD Million, 2018 - 2030)

  • North Americ

    • U.S

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa