Industrial Refrigeration Systems Market Overview
The global industrial refrigeration systems market was valued at $23,862.7 million in 2017 and is predicted to witness a CAGR of 5.8%, during 2018–2023. Rising food and beverages processing industry in developing countries, increased application in cold chain industry as well as in chemicals and pharmaceuticals industry is driving the market growth.
GLOBAL INDUSTRIAL REFRIGERATION SYSTEMS COMPRESSOR MARKET, BY TYPE, $M (2013 - 2023)
Based on equipment type, the industrial refrigeration systems market is categorized into compressors, condensers, evaporators, controls and others (pumps, valves, vessels and auxiliary equipment). The compressor is divided into four categories: reciprocating, centrifugal, screw and scroll. The reciprocating compressors category held a market share of around 32% in 2017. This is attributed to the immense popularity of these compressors. Even though, reciprocating compressors are one of the most expensive compressor types; they generate minimal heat during the operation and provide least amount of energy wastage.
Based on the refrigerant type, the industrial refrigeration systems market has been categorized into ammonia, carbon dioxide (CO2), HFC and others [chlorofluorocarbon (CFC), hydrochlorofluorocarbon (HCFC), fluorocarbon (FC), hydrocarbon (HC), Air and Water (H2O)]. CO2 based industrial refrigeration systems are expected to register highest CAGR of around 7%, during the forecast period, owing to its low toxicity and non-flammable properties. Industries, around the globe, are prioritizing safety as a primary objective which is assisting the market for CO2 based units. Along with this, there are no impending legislation of phasing down CO2, which is being pitched as a long-term refrigerant alternative, which is further projected to drive the market growth.
Based on application, the industrial refrigeration systems market has been categorized into food and beverages, oil and gas, chemicals and pharmaceuticals and others (manufacturing and construction). In terms of value, the food and beverages category held the largest market share of over 45% in 2017. Refrigeration maintains freshness of food or beverages without affecting the quality through excessive processing. As the high quality along with regulatory requirements in the food and beverages industry is getting stringent, this is set to propel the market growth.
Industrial Refrigeration Systems Market Dynamics
Adoption of environment friendly refrigerants is a major trend observed in the industrial refrigeration market. Different types of natural refrigerants include ammonia, carbon dioxide, hydrocarbons and water. Globally, governments have adopted several stringent regulations towards the use of halogen-based refrigerants. For instance, in 2015, F-gas regulation was enacted in the European Union (EU) that banned the use of certain F-gases based on Global Warming Potential (GWP). Thus, developed countries of Europe and North America have adopted ammonia, as an industrial refrigerant for some years in order to reduce global carbon footprint.
Another notable trend observed was the growing application of screw compressor in the industrial refrigeration systems market. Screw compressor doesn’t get affected from discharge of high temperature associated with the use of ammonia in reciprocating compressor. Screw compressors are more reliable than reciprocating compressors and requires less frequent maintenance. Due to these factors, screw compressors are used in the refrigeration systems now-a-days which tends to make the process easier and faster than the traditional refrigeration.
Industrial refrigeration systems market is driven by factors such as growing food and beverages processing industry in developing countries and increasing use of refrigeration in chemicals and pharmaceuticals industries.
Food and beverages processing is one of the largest industries in the world. As the production of meat and poultry continues to increase, to cater to the growing global demand, industrial refrigeration and temperature control are vital aspects throughout the entire food and beverage delivery process. The food processing rate in developing countries is quite low as compared to the developed countries. However, it is expected to increase in the forthcoming years, due to growing demand for processed foods. For instance, in India, the food processing sector in India, contributes 9-10% of the country’s GDP. During the 11th and 12th five-year plan, the government of India sanctioned 40 mega food park projects in the country.
The chemicals and pharmaceuticals industry, an important application area for industrial refrigeration held a market share of over 23% in 2017. The chemical, petrochemical and oil refining industries needs refrigeration for condensation of gases, dehumidification of air, and preservation of compounds.
Rise in application of carbon dioxide and ammonia-based cascade refrigeration system is a key opportunity observed in the industrial refrigeration systems market. Carbon dioxide can be used in cascade systems in conjunction with ammonia. The pressure within the carbon dioxide system are moderate even if the compressors are available for pressures up to 50 Bar. Advantage of this system is that 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 ratio and remains at positive pressure ratio. In this way, both the benefits are obtained in the single refrigeration system. Therefore, application of ammonia and CO2 based refrigerants expected to be followed as mainstream refrigerant type in the industrial refrigeration systems market, offering ample opportunities for market players.
Industrial Refrigeration Systems Market Competitive Landscape
The market for industrial refrigeration systems is consolidated with top five companies accounting for more than 50% of the total market in 2017. The major players in the global 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, in June 2018, GEA Group Aktiengesellschaft launched screw compressors, which will fulfill the requirements of chemical and petrochemical industries.
Some of the major players operation in the global industrial refrigeration systems market include Ingersoll Rand plc, United Technologies Corporation, Emerson Electric Co., Danfoss A/S, Industrial Frigo SRL., GEA Group Aktiengesellschaft, BITZER Kühlmaschinenbau GmbH, Star Refrigeration Ltd., Daikin Industries Ltd, Dover Corporation, Hussmann Corporation, Johnson Controls International plc, and Mayekawa Mfg. Co. Ltd.