Asia-Pacific (APAC) Industrial Refrigeration Systems Market by Equipment Type (Compressors, Condensers, Evaporators, Controls), by Refrigerant Type (Ammonia, CO2, HFC), by Application (Food & Beverage, Chemicals& Pharmaceutical, Oil & Gas), by Country (China, Japan, India) –Market Size, Share, Development, Growth and Demand Forecast, 2013–2023

APAC Industrial Refrigeration Systems Market Overview

The APAC industrial refrigeration systems market was valued at $ 7,058.6 million in 2017 and is forecasted to witness a CAGR of 7.1% during 2018–2023. Rising food and beverage processing industry in developing countries, and also growing application of refrigeration in chemical and pharmaceutical industries recording positive growth.

INDIA INDUSTRIAL REFRIGERATION MARKET, BY APPLICATION, $M (2013 - 2023)

Based on equipment type, the APAC industrial refrigeration systems market has been classified into compressors, condensers, evaporators, controls and others, wherein others include pumps, valves, vessels and auxiliary equipment. Out of these, compressors generated highest revenue in 2017, owing to high cost of compressors as compared to other components and its wide use in the industrial refrigeration system. On the contrary, the market for controls category is expected to exhibit fastest growth, during the forecast period, on account of its energy saving and customizable features.

Based on refrigerant type, the APAC industrial refrigeration systems market has been categorized into ammonia, CO2, HFC and others, wherein others include chlorofluorocarbon (CFC), hydrochlorofluorocarbon (HCFC), fluorocarbon (FC), hydrocarbon (HC), Air and Water (H2O). CO2 based industrial refrigeration units are expected to register highest CAGR, during the forecast period, owing to its relatively safer properties such as low toxicity and non-flammable. Also, CO2 provides energy saving in the range of 3-5% depending on the ambient temperatures as compared to conventional refrigerants such as ammonia.

Based on application, the APAC industrial refrigeration system market has been categorized into food and beverage, oil and gas, chemical and pharmaceutical and others, wherein others include manufacturing, and construction. The food and beverage category constituted largest market share of over 40% in 2017. This can be attributed to the growing food & beverage industry in China and India. Refrigeration helps in preserving food & beverage products without adversely affecting its nutritional content.

APAC Industrial Refrigeration Systems Market Dynamics

Trends

The key trends observed in the APAC industrial refrigeration systems market include use of environment friendly refrigerants; and adoption of screw compressors. The market has witnessed inclination towards the use of environment friendly refrigerants with the concern over increased ozone depletion. Various governments in the APAC region have adopted several stringent regulations towards the use of halogen-based refrigerants. The small and medium sized refrigerated warehouses and food processing industries in the developing countries of APAC have started following F-gas regulations recently, due to increasing international pressure for the adoption of Montreal Protocol.

Also, growing application of screw compressors was observed in the APAC industrial refrigeration systems market. Screw compressors are more compact than reciprocating compressors, as the use of screw compressors in refrigeration results in utilization of fewer compressors for large loads. Additionally, screw compressors are more reliable than reciprocating compressors and require less frequent maintenance.

Drivers

The APAC industrial refrigeration systems market is driven by factors such as growing food and beverage processing industry, increasing use of refrigeration in chemical and pharmaceutical industries and strengthening cold chain infrastructure. The food and beverage processing industry is termed as one of the largest industries in the region. Increasing production and consumption of processed foods in developing countries such as India and China are increasing the demand for industrial refrigeration systems.

The market is also posting rise in the adoption of refrigeration systems by chemical and pharmaceutical industries. The chemical, petrochemical and oil refining industries need refrigeration for condensation of gases, dehumidification of air, removal of health of reaction, and preservation of compounds. The pharmaceutical industries need to maintain a high standard of cleanliness to provide end products that are acceptable to consumers. Refrigeration is used in these industries more on account of growing demand for growth in pharmaceutical industry in the region. Hence, owing to this, the demand for refrigeration in chemical and pharmaceutical industries is tending to drive the market.

Opportunities

Rise in demand for CO2 and ammonia-based cascade refrigeration system is posing opportunity for market players in APAC industrial refrigeration systems market. CO2 can be used in cascade systems in conjunction with ammonia. The pressure within the CO2 system is moderate even if the compressors are available for pressures up to 50 Bar. In this system, all portions of the system are under positive pressure, which negates the need for an air purging sub-system found on ammonia installations with freezers and refrigeration pressures that run under vacuum pressure.

On the contrary, the CO2 compressor operates at a moderate pressure and remains at positive pressure ratio. In this way, both the benefits are obtained in a single refrigeration system. Therefore, application of ammonia and CO2 based refrigerants expected to be followed as mainstream refrigerant type in the APAC industrial refrigeration systems market, offering ample opportunities for market players.

APAC Industrial Refrigeration Systems Market Competitive Landscape

The major players in the APAC industrial refrigeration systems market are enhancing their in-house capabilities by means of various organic and inorganic strategic developments, to capture a larger user base. For instance, companies like Danfoss GmbH and Daikin Industries Ltd are primarily focusing on R&D where investments of around $10,000 million and $500 million, respectively, were made.

Some of the major players in the APAC industrial refrigeration systems market include Johnson Controls International PLC, GEA Group Aktiengesellschaft, Industrial Frigo SRL, Emerson Electric Co., Bitzer Kühlmaschinenbau GmbH, Danfoss A/S, Daikin Industries Ltd, Mayekawa Mfg. Co. Ltd, Dover Corporation, United Technologies Corporation, and Ingersoll-Rand plc.