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Saudi Arabia Industrial Refrigeration Systems Market Overview
Industrial refrigeration systems market is gaining traction in Saudi Arabia as they are extensively used to maintain quality and taste of the food products till it reaches the end-users. The market size in the study represents the revenue generated through various equipment such as industrial racks, industrial compressors, industrial heat exchangers, and industrial evaporators. On the basis of coolant type, market for CO2 based refrigeration systems is projected to witness fastest growth during 2017-2023. The regional industrial refrigeration systems market in food & beverages is expected to witness the fastest growth during the forecast period on account of increasing consumption of meat and poultry based products as they require temperature control throughout the food supply chain.
Saudi Arabia is one of the world’s largest markets in terms of food imports, and it receives huge quantity of perishable food items that require refrigeration to keep the eatables fresh for consumption purpose. Due to high temperature throughout the year, the country imports major chunk of edible meat to fulfill its domestic demand which requires refrigeration processes. Industrial refrigeration systems market is witnessing a steady growth and is gaining adoption in making effective cold chains for food & beverages. Food items such as dairy, seafood, and beverages require temperature control to transport them to distant location, and refrigeration allows manufacturers and suppliers to maintain quality of production in a cost-effective manner.
Saudi Arabia Industrial Refrigeration Systems Market Dynamics
The significant rise in food processing industry, along with surging demand for cold-chains is projected to drive growth for industrial refrigeration systems market in coming years. Owing to the support from Saudi Arabia government in the form of subsidies, food processing industry is adopting different refrigeration equipment to keep the food items fresh for a longer period of time.
Growing adoption of natural refrigerant to increase the life of perishable food items is one of the major factors driving the growth of industrial refrigeration systems market. The government has made stringent regulations towards the use of fluorochemicals as a refrigerant. The technology has changed in recent years from ‘F’ gas to natural refrigerant. Countries such as Saudi Arabia and the U.S are using ammonia as an industrial refrigerant to reach energy efficiency with minimal effect on environment.
Surge in cold chains is another major factor driving the growth for industrial refrigeration systems market in the Saudi Arabia. Cold chain systems are crucial for the growth of global trade in perishable products for the availability of food and health supplies, globally. In Saudi Arabia, cold chains are designed to meet the growing demand from businesses, consumers and regulators.
Businesses require products that meet the level of quality of their business structure. Consumers demand the highest quality available based on the price they are willing to pay; and regulators, such as the Ministry of Agriculture and Saudi Food and Drug Authority (SFDA), set requirements and minimum safety standards for the handling of many consumer foods and temperature-sensitive products. According to the Cold Chain Alliance, the cold chain market is expected to witness a high growth during the next five years, which clearly depicts the rising need for different types of refrigeration solutions in the country.
Saudi Arabia Industrial Refrigeration Systems Market Competitive Landscape
The global industrial refrigeration systems market is witnessing a tremendous growth as businesses have been using it to increase the life of perishable food items. The market is growing at a notable pace, which leads to a moderate intensity of rivalry. Key market players such as Johnson Control Inc., Daikin Industries Ltd., Danfoss A/S, Evapco, Inc., Alfa Laval, CGS, Saudi Salajah, Emerson Electric, Awal Gulf Manufacturing Co., and BITZER. seek to gain market share through continuous innovations in refrigeration technology.
Key competitors are specifically focusing on Makkah, Jizan and Asir regions of Saudi Arabia for expansion of the industrial refrigeration systems market, as these regions show a strong tendency to adopt the refrigeration technology in coming years.