Industrial Refrigeration System Market

GMI Research analysis indicates that the Industrial refrigeration Market size was estimated at USD 19.9 billion in 2022 and is slated to register a single digit CAGR of 4.9% over the forecast period, and is projected to reach USD 29.2 billion in 2030.

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Major Industrial refrigeration Market Drivers

The global industrial refrigeration market is predicted to grow more significantly due to the growing number of working professionals, considerable rise in industrialization across emerging nations, increase in pharmaceutical and food and beverages market, increasing demand for packaged and processed food items, coupled with rising government support to reinforce the infrastructure of cold chain in both developed and developing countries. The extensive consumption of packages and processed beverages and food, coupled with the necessity to minimize spoilage, is propelling the need for industrial refrigeration systems. Manufacturers, compelled by concerns about global warming, are prioritizing natural refrigerants over environmentally harmful coolants. Presently, the market for authentic refrigerant-based equipment has expanded significantly, due to the cost-effectiveness and climate-neutral nature of natural refrigerants. It is predicted that due to rise of developed and enhanced cold chain systems will impact the industrial refrigeration system market trends in the forecast period.

Moreover, shifting lifestyles, dietary preferences, and busy schedules have led customers to increasingly choose processed, packed, and frozen ready-to-eat food items. Additionally, the growing need for compact and advanced refrigeration systems influences market growth. Industrial refrigeration system is also witnessing significant traction globally, propelled by innovations in cold chain infrastructure employing a variety of cooling and freezing units for storage, processing, and production activities. The introduction of product innovations, including the adoption of natural refrigerant-based systems and the introduction of units equipped with monitoring systems, serves as additional factors driving growth in the market. Natural refrigerants provides superior thermodynamic properties and high energy efficiency, making them well-suited for industrial applications. The industrial refrigeration industry growth is predicted to grow due to the rapid industrialization and the emerging trend of progressing prevailing industrial refrigeration systems.

Global e-commerce grocery sales are outpacing physical grocery sales, with cold chains decreasing harvest spoilage through technologies such as passive or evaporator coolers, and absorption refrigerators. Market growth is propelled by high temperatures, agro-climatic conditions, and excessive heat. In emerging countries, restricted budgets allocated for advanced equipment result in low cold chain deployments. Additionally, key companies in industrial refrigeration market are prioritizing technological innovations to offer streamlined solutions. In 2022, Emerson Electric Co. marked a milestone by establishing 200 million Copeland compressors globally. These compressors, employed in both residential and commercial conditioning, operate under ideal conditions, accomplishing lower potential of Global Warming Potential and high efficiency.

Companies are directing their focus toward environmentally friendly technologies like Active Magnetic Regenerative refrigerators. This innovative technology uses a magnetic solid, functioning as a refrigerant through the magnetocaloric effect, resulting in approx. 30%, reduction in energy consumption. In addition to active magnetic regenerative refrigeration, opportunities for manufacturers arise from Artificial Intelligence, the Internet of Things, and next-generation technology. In 2022, Johnson Controls presented its approach to make residential energy efficiency with less cost and easily accessible for homeowners through robust financing options and rebates.

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The increase in demand for the Internet of Things, automated technologies, and big data in the refrigerator sector is remarkable. Many market players are also pivoting toward integrating artificial and machine learning solutions across the industrial refrigeration market. This transition is primarily propelled by the necessity to find solutions that optimize energy consumption and utilization. Presently, machine learning and artificial intelligence algorithms are in development to discover asset health and problems, contributing to a reduction in energy costs and allowing the employment of more predictive maintenance programs. Furthermore, digital connectivity facilitates the acquisition of information from different procedures through sensors or other measurements, delivering benefits such as optimal plant function and minimized downtime.

However, frozen food products are often prompted by factors like contamination with foreign objects such as hard particles, and glass fragments. These incidents not only predict threats to customer safety but also harm the sales of frozen food products, thereby disturbing the market for commercial refrigeration. Moreover, there is a rising overweight population in different countries, including the UK, the US, and the UAE. This rise in obesity rates may result in a shift towards the consumption of freshly cooked food products as countered to processed items including frozen foods. The growing preference for freshly cooked over frozen products in above mentioned countries may have adverse effects on the consumption of frozen food. Therefore, this trend could impact the need in the industrial refrigeration system market, predicted to restrain the market growth in the forecast period.

The need for secure storage of blood derivates, temperature-sensitive medications, and blood in healthcare settings such as pharmacies, hospitals, diagnostic facilities, and clinics has led to a shift to advanced, modern, and energy-efficient cold storage systems. The increase in research and development activities focused on the management and treatment of infective and chronic diseases is propelling the global industrial refrigeration equipment market. Pharmaceutical, petrochemical, and chemical segments are probably to experience an increase in the need for industrial refrigeration in the forecast period to store and transport immunization globally.

The compressor segment registered the largest market size in the global market 

Compressors have an important function to perform in refrigeration systems as they increase vapor pressure in a refrigerant condenser to confirm appropriate temperature for preservation and storage of food applications, thereby driving the global refrigerant compressor market growth. Additionally, screw and reciprocating compressors are majorly utilized in industrial refrigeration. However, the rise in the need for screw compressors has been observed due to different advantages such as less regular maintenance, high consistency, and compactness proposed by them. Also, the growth of this segment is attributed to automation, industrialization, and a rise in the need for oil-free compressors across the HVAC industry owing to eco-friendly concerns. A substantial growth in the requirement for power-efficient and reliable systems evaporators is also predicted to rise significantly in the forecast period.

Refrigerated warehouse applications exhibited largest market size in the global market 

The continuous increase in the global population and the increasing need for processed food have led to an increase in the number of refrigerated warehouses. Over the past few years, these warehouses have observed improved capacity. As per the Global Cold Chain Alliance, the total facility of refrigerated storehouses globally reached 616 million cubic meters during 2018. The Indian government’s initiatives, such as the Scheme for effective Cold Chain, Preservation Infrastructure, and Value Addition, coupled with the Scheme of Mega Food Park, are actively encouraging the development of cold chain facilities. These efforts focused on developing cold storage and warehousing infrastructure in emerging regions are predicted to bolster the increased adoption of industrial refrigeration systems in applications connected to refrigerated warehouses in the forecast period.

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North America region registered the largest market size in the global market 

The market growth in North America region is attributed to the expansion and development of the e-commerce platform. Additionally, different favorable government initiatives such as giving incentives and subsidies, and implementation of different policies such as SNAP and AIM that motivate food processing organizations to accept natural refrigerant-based systems. Additionally, the continuous rise in grocery shopping on online platforms in the North America region along with ongoing growing application areas of refrigerant-based refrigeration systems, is predicted to propel the industrial refrigeration market around North America.

Furthermore, innovations in technology, prominence on decreasing carbon emissions through eco-friendly practices, and preference for innovative refrigeration solutions will present a positive market growth in the North America industrial refrigeration market.

Top Market Players

Various notable players operating in the market include Johnson Controls, Danfoss, GEA Group Aktiengesellschaft, Emerson Electric Co., Mayekawa MFG Co. Ltd., BITZER Kuhlmaschinenbau GmbH, DAIKIN Industries Ltd., EVAPCO Inc., Guntner GmbH & Co. KG, LU-VE S.p.A among others.

Key Developments

• • In 2023, BITZER acquired Danish Company OJ Electronics A/S to introduce an excellence center for electronic elements for the industry of HVAC&R around Denmark.
  • In 2023, Johnson acquired M&M Carnot to meet the rising demand of customers for eco-friendly industrial refrigerant technologies.
  • In 2023, Beijer REF and Bitzer joined hands to assist customers in finding appropriate power-efficient solutions.
  • In 2023, Johnson Controls acquired Gordon Brothers Industries to surge the growth in segment of the industrial refrigeration and to increase the capability to provide large eco-friendly projects across Australia.
  • In 2023, Advansor launched ValuePack Light and Low Superheat eco-friendly CO2 refrigeration systems to fulfill the needs of customers who require energy-efficient solutions.
  • In 2021, Johnson Controls decided to incorporate Quantech QWC4 Water-Cooled Screw Chiller in its product portfolio, using variable speed drive technology to minimize carbon emissions and offer flexibility in handling high-lift applications. The Quantech QWC4 chiller also reduces environmental impacts by managing refrigerant charges and potential leak points.
  • In 2021, GEA Group Aktiengesellschaft entered into an agreement to sell its refrigeration contracting operations in Spain and Italy to Clauger, the French family-owned company, specializing in industrial refrigeration and air-conditioning systems.
  • In Oct 2019, Mayekawa launched its second production plant in Serbia, Europe. This plant will focus on designing, manufacturing, sales, and after-sales service of compressor packages for industrial refrigeration, supplying markets in Russia, the Middle East, and Africa.

Segments covered in the Report:

The Global Industrial Refrigeration Market has been segmented on the basis of Component, Refrigerant Type and Application. Based on the Component, the market is segmented into Compressor, Condenser, Evaporator, Control, Others. Based on the Refrigerant Type, the market is segmented into Ammonia, CO2, Others. Based on the Application, the market is segmented into Refrigerated Warehouse, Food & Beverage, Chemical Petrochemical & Pharmaceuticals, Refrigerated Transportation.

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Market Segmentation

Global Industrial Refrigeration System Market by Component

• • Compressor
  • Condenser
  • Evaporator
  • Control
  • Others

Global Industrial Refrigeration System Market by Refrigerant Type

• • Ammonia
  • CO2
  • Others

Global Industrial Refrigeration System Market by Application

• • Refrigerated Warehouse
  • Food & Beverage
  • Chemical Petrochemical & Pharmaceuticals
  • Refrigerated Transportation

Global Industrial Refrigeration System Market by Region

• • North America Industrial Refrigeration System Market (Option 1: As a part of the free 25% customization)

• • • By Component
    • By Refrigerant Type
    • By Application
    • US Market All-Up
    • Canada Market All-Up

• • Europe Industrial Refrigeration System Market (Option 2: As a part of the free 25% customization)

• • • By Component
    • By Refrigerant Type
    • By Application
    • Spain Market All-Up
    • Netherlands Market All-Up 
    • Germany Market All-Up
    • UK Market All-Up
    • France Market All-Up
    • Rest of Europe Market All-Up

• • Asia-Pacific Industrial Refrigeration System Market (Option 3: As a part of the free 25% customization)

• • • By Component
    • By Refrigerant Type
    • By Application
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Malaysia Market All-Up
    • Australia Market All-Up
    • Rest of APAC Market All-Up

• • ROW Industrial Refrigeration System Market (Option 4: As a part of the free 25% customization)

• • • By Component
    • By Refrigerant Type
    • By Application
    • Brazil Market All-Up
    • Argentina Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Leading Market Players (Option 5: As a part of the free 25% customization – Profiles of 5 Additional Companies of your Choice)

• • Johnson Controls
  • Emerson Electric Co.
  • Dan Foss
  • GEA Group Aktiengesellschaft
  • MAYEKAWA MFG Co. Ltd.
  • BITZER Kuhlmaschinenbau GmbH
  • DAIKIN Industries Ltd.
  • EVAPCO Inc.
  • Guntner GmbH & Co. KG
  • LU-VE S.p.A