Saudi Arabia Industrial Refrigeration Systems Market Analysis

Saudi Arabia Industrial Refrigeration Systems Industry Analysis

Offering Analysis

• The equipment category accounts for the higher revenue, of USD 351.61 million, in 2024. It is also the faster-growing category, with a CAGR of 10.22% during the forecast period.
• This dominance is owing to the growing demands for advanced and efficient refrigeration systems in the expanding food processing, logistics, and petrochemicals sectors.
• With the development of these industries, coupled with their modernization, high-performance refrigeration equipment, including compressors, controllers, evaporators, and condensers, has become necessary to meet the strict quality and safety guidelines.
• In addition, the surging demand for energy usage optimization and the augmenting environmental consciousness drive investments in the latest refrigeration technologies.

The offerings analyzed in this report are:

• Equipment (Larger and Faster-Growing Category)
  • Compressors
  • Condensers
  • Evaporators
  • Controls
  • Others
• Services

Refrigerant Type Analysis

The ammonia category has the highest Saudi Arabian industrial refrigeration systems market revenue, of USD 162.61 million.

This is due to the exceptional cooling efficiency, cost-effectiveness, and environmental advantages of NH3. Ammonia is favored for its superior thermodynamic properties, which allow it to absorb significant heat with minimal refrigerant volume. This reduces energy consumption—crucial in energy-sensitive industries—and the cost of operation.

Additionally, unlike hydrofluorocarbons (HFCs), ammonia has zero ozone depletion effect and a low Global Warming Potential, making it an eco-friendly option amidst the increasing sustainability consciousness. Moreover, its wide availability and lower costs enhance its appeal, particularly in the food processing, petrochemicals, and cold storage industries. Furthermore, the advancements in safety protocols have made ammonia-based systems more reliable, guaranteeing that their benefits offset the potential hazards.

Carbon dioxide will have the highest CAGR as it is an organic refrigerant with a net-zero potential for ozone depletion. This is why it complies with the global sustainability targets and regulations. Although the procurement and installation cost of CO2-based industrial refrigeration systems can be higher, the operational cost savings over the long term make them economically viable.

The refrigerant types analyzed in this report are:

• Ammonia (Largest Category)
• Carbon Dioxide (CO2) (Fastest-Growing Category)
• Hydrofluorocarbons (HFCs)
• Others

Application Analysis

The food & beverages category dominates the Saudi Arabia’s industrial refrigeration systems market. The continuing population rise, coupled with an ever-growing preference for processed and packaged food, necessitates its storage and transportation under controlled temperatures. Refrigerators in this industry are used for various purposes, including cold storage, freezing, chilling, and processing, ultimately, for increasing the shelf life of perishable goods.

Precise and consistent cooling is challenging in the high temperatures of Saudi Arabia, where spoilage can easily occur. This could restrain the products from meeting the national and international health and safety standards, thereby rendering them unsellable and leading to unnecessary wastage and inventory losses.

Chemicals & pharmaceuticals has the highest CAGR, of 10.42%, during the forecast period. The pharmaceuticals industry is experiencing growth because of the rising domestic demand and regional potential for exports. Further, the advances in biopharmaceuticals, which need controlled temperatures throughout their lifecycle, contribute to the need for refrigeration solutions. Moreover, the country has a thriving chemicals sector, led by its oil & gas industry and state-owned behemoths, such as SABIC and Aramco.

The applications analyzed in this report are:

• Food & Beverages (Largest Category)
• Chemicals & Pharmaceuticals (Fastest-Growing Category)
• Oil & Gas
• Others