Industrial Refrigeration Systems Market

Global Industrial Refrigeration Systems Market Forecast
The Industrial Refrigeration Systems Market is expected to grow from USD 25.4 Billion in 2026 to USD 41.6 Billion by 2033, reflecting strong industry expansion and registering a CAGR of 7.3% during the forecast period from 2026 to 2033.

Industrial Refrigeration Systems Market

The market size for industrial refrigeration systems was US$18.3 Bn in 2021, and it is projected to grow at a CAGR of 5.1% during the forecast period.

Growing use of packaged, processed foods and beverages and the growing need to keep the products safe from spoiling are driving up demand for industrial refrigeration systems on a global scale. Global warming worries have compelled businesses to prioritize natural refrigerants over hazardous coolants. Moreover, with the low production cost and natural refrigerants' environmental neutrality, the market for real refrigerant-based equipment has recently outgrown itself. The global adoption of upgraded and improved cold chain systems is anticipated to impact the industrial refrigeration systems market during the projected period.

Globally, e-commerce grocery sales are expanding more quickly than traditional supermarket sales. With the increased use of technology like evaporator/passive coolers and absorption refrigerators in cold chains helps minimize harvest spoiling. Agroclimatic conditions and high temperatures in addition to severe heat support market expansion. Leading market competitors are concentrating on technological developments to offer streamlined solutions. For instance, in March 2021, Emerson Electric Co., an HVAC and cold chain solutions provider, collaborated with Carrier to deliver sophisticated solutions from its air conditioning and cold chain businesses, including sensors, valves, and compressors. In addition, environmentally friendly technology, including Active Magnetic Regenerative refrigeration, is being prioritized by many businesses. The technique requires a magnetic solid, which serves as a refrigerant via the magnetocaloric effect and reduces energy usage by roughly 30%. In addition to these technologies, opportunities for manufacturers are presented by artificial intelligence, next-generation technology, and the internet of things.

In March 2021, Emerson Electric Co., an HVAC and cold chain solutions provider, started selling sophisticated valves, sensors, and compressors as a part of its air conditioning and cold chain operations. With the rising customer awareness, manufacturers are gradually moving toward natural refrigerant solutions as they concentrate on the refrigerants' Ozone Depletion Potential and Global Warming Potential. Ammonia, Co2, and hydrocarbons are examples of natural refrigerants that can cause inflammation and toxicity (NH3). However, their use has decreased greenhouse gas emissions. For instance, in July 2021, a new compact compressor, the CSW85/95, was, for example, introduced by Bitzer Kühlmaschinenbau GmbH to increase efficiency in water-cooled liquid chillers. This is because water-cooled systems are becoming more common in Europe due to the regulations envisioned by the Ecodesign Directive.

Industrial Refrigeration Systems Market: COVID-19 Impact

The pandemic's onset has impacted industrial operations as manufacturing hubs have stopped due to lockdowns and quarantines enacted by governments worldwide. However, the market saw a demand for its products due to the requirement for massive quantities of vaccinations to be preserved globally to combat the pandemic's scope. The Centers for Disease Control and Prevention (CDC) in the United States advise using pharmaceuticals, freezers, or refrigerators specially made for storing vaccinations. The recommended storage temperatures for vaccinations were 2°C to 8°C for refrigerators and -50°C to -15°C for freezers. As a result, the market was kept alive by the necessity to store and distribute effective medicines and vaccines.

Government Funding to Enhance Cold Chain Infrastructure to Drive Industrial Refrigeration Systems Market Growth

An ineffective cold chain infrastructure is the main factor behind food loss and wastage. Fruits, vegetables, fish, and dairy products have substantially shorter shelf life due to incorrect handling, inadequate infrastructure, lack of access to cold chains, lack of energy resources to power these cold chain facilities, etc. To ensure uninterrupted temperature-controlled transport and storage of perishable food products, beverages, chemicals, medicines, and pharmaceuticals, among other things, many developing nations, including China and India, have started installing modern refrigeration systems across the cold chain and cold storage infrastructure. The development of cold storage facilities and refrigerated transportation systems in China, particularly in populated areas like Shanghai and Beijing, is fueled by aggressive government initiatives. Similarly, in India, assistance is given for developing post-harvest infrastructure, including the construction of cold storage, under the National Horticulture Mission plan. Such initiatives by the government will propel the growth of the market.

Cascade Refrigeration Systems Based on Carbon Dioxide and Ammonia (CO2/NH3) Driving Market Growth

Both ammonia and carbon dioxide are readily available, inexpensive, and easy to utilize as refrigerants. Low-temperature industrial applications where a product's necessary temperature ranges from -30° C to -50° C are ideal for carbon dioxide/ammonia-based cascade refrigeration systems. For uses such as process plate freezers, spiral freezers, chilled warehouses, and blast freezers, these systems range in capacity from 25 to 1,500 tonnes. Typically, a cascade system consists of two distinct one-stage refrigeration cycles, each using a different refrigerant. These systems work best in situations when the gap between the heat rejection temperature and the refrigeration temperature is too great for anyone refrigerant to have the desired qualities. In CO2/NH3-based cascade refrigeration systems, ammonia and CO2 refrigerants are employed in circuits operating at high and low temperatures. For instance, in May 2022, The newest CO2 cascade refrigeration system produced by BITZER  in Australia is the Generation-8 Cascade CO2 Parallel Compressor System. The Gen-8 is a cascade plant with BPHE condensers that can be chosen for several high-side configurations, such as Glycol or DX Refrigeration Systems using R134a, R513, or additional refrigerants upon request.

Expensive Installation and Additional Costs to Hamper Industrial Refrigeration Systems Market Growth

With the high cost of their components, such as compressors, condensers, and evaporators, industrial refrigeration systems often have a high installation cost. The pricey control systems employed in modern refrigeration systems also increase the installation cost. In addition, certain hydrocarbons and ammonia are caustic and flammable refrigerants. Similarly, breathing in excessive ammonia levels is poisonous and potentially fatal. Therefore, when dealing with ammonia-based refrigeration systems, safety equipment is needed. Along with the installation cost, additional expenses like routine maintenance, staff training, and the high energy cost further raise overall operating costs, limiting market expansion.

Compressor Will Dominate Industrial Refrigeration Systems Market due to its Pressure Building Ability

With its essential characteristics, including pressure building, use control, and financial capability, the compressor industry is anticipated to see the quickest growth rate in the forecast period. Compressors offer a reliable and effective driving power for more streamlined manufacturing operations. Centrifugal, reciprocating, rotatory screws, and other compressors can be used to identify them from one another. The compressor market is expanding due to factors like industrialization, automation, and a rise in the demand for oil-free compressors in the HVAC sector due to environmental concerns.

With Increased Demand for Processed Food, Food and Beverage Category Dominates Industrial Refrigeration Systems Market

In the forecast period, the food and beverage segment held the largest market share, and it is anticipated that it will continue to rule the market during the forecast period. The key element influencing the segment's growth is the increase in demand for packaged and frozen food around the globe. With the growing urban population and their need for packaged food, beverages, and frozen food, it is projected that refrigerated transportation and warehouse will outgrow their capacity. Fresh food items including meat, dairy, seafood, and poultry are in higher demand than ever. Both suppliers and customers are worried about how fresh the food is. As a result, the use of refrigeration has increased to preserve food goods' quality.

North America Leads Industrial Refrigeration Systems Market due to Growing Preference for Online Grocery Shopping

Over the forecast period, it is anticipated that the North American market will account for the largest revenue share. This is due to the quick development of e-commerce and the increased popularity of e-grocery among consumers. The U.S. Commerce Department reported that e-commerce sales reached USD 257.62 billion in Q4 2021, an increase of 9.2 percent from the same period in the previous year. According to projections, supermarket e-commerce sales would make up 9.5 percent of all grocery sales in the United States in 2021, totaling USD 1.097 trillion, up from USD 1.137 trillion in 2020. In 2020, 46% of customers who shop for groceries online used delivery at least once in the year prior. As a result, the production of refrigeration systems for perishable food products has increased, ensuring that shops adhere to Hazard Analysis Critical Control Point (HACCP) standards. The need for industrial refrigeration is predicted to expand considerably as a result. The usage of industrial refrigeration and cold storage is also anticipated to rise due to US Food and Drug Administration (USFDA) requirements like HACCP. HACCP aims to ensure food safety by identifying and reducing biochemical and physical risks. This is anticipated to fuel market revenue growth in the area.

The Asia Pacific market is anticipated to experience stable revenue growth throughout the forecast period due to the region's rapid industrialization and the quick expansion of the food and beverage industry across its nations due to rising consumer demand. Compressors, condensers, and evaporators are being exported from the nations of this region as a result of the manufacturing industries' rapid rise in these nations. As an illustration, Shanghai Xinran Compressor Co., Ltd. is China's largest exporter and domestic manufacturer of air compressors. Similarly, the Indian government is investing in cold storage infrastructure to protect perishable food items. In India, cold storage facilities are utilized to keep or transport about 2% of the agricultural goods, and at the moment, potatoes and onions occupy 68% of the available cold storage space. In India, cold storage facilities are utilized to keep or transport about 2% of the agricultural goods, and at the moment, potatoes and onions occupy 68% of the available cold storage space. Throughout the forecast period, this is anticipated to fuel market revenue growth in the area.

Global Industrial Refrigeration Systems Market: Competitive Landscape

In June 2021, Johnson Controls expanded its product offering with the Quantech QWC4 Water-Cooled Screw Chiller, which combines variable speed drive technology to cut carbon emissions and give flexibility in handling high-lift applications. The Quantech QWC4 chiller also lessens its negative environmental effects by directly controlling refrigerant charges and potential leak spots. Moreover, in March 2021, Emerson Electric Co. introduced a new line of two-way and three-way solenoid valves to help original equipment manufacturers (OEMs) design more compact machines and equipment while maintaining fluid control performance. The ASCOTM Series 256/356 has a smaller overall size, up to a 40% reduction in power consumption and a 30% increase in pressure ratings.

Few of the players in the industrial refrigeration systems market include 

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

Market Segmentation

By Component

• Compressors
• Condensers
• Evaporators
• Controls
• Pumps, Valves & Auxiliary Equipment

By Refrigerant Type

• Ammonia (NH3)
• Carbon Dioxide (CO2)
• Hydrofluorocarbons (HFCs)
• Hydrofluoroolefins (HFOs)
• Others

By Application

• Food & Beverage Processing
• Cold Storage
• Refrigerated Warehouses
• Chemical & Petrochemical
• Pharmaceutical

By System Type

• Compressor-Based Systems
• Absorption Refrigeration Systems
• Cascade Refrigeration Systems
• CO2 Refrigeration Systems
• Hybrid Refrigeration Systems

By End Use Industry

• Food & Beverage
• Chemicals & Petrochemicals
• Pharmaceuticals
• Logistics & Cold Chain
• Manufacturing & Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa