Industrial Refrigeration Systems Market To Reach $41.1 Billion by 2030

  • Published: September 2020

The global industrial refrigeration systems market garnered $26.8 billion revenue in 2019, and it is expected to reach $41.1 billion in 2030. The expanding food and beverage processing industry in developing countries and increasing application of such appliances in the cold chain industry, as well as the chemicals and pharmaceuticals industry, are driving the market growth.

The COVID-19 pandemic crisis has severely affected the growth of the global industrial refrigeration systems market, due to which the market size is expected to witness a dip in 2020. The disruption in the global supply chain and closure of manufacturing facilities are the major factors that are affecting the market growth. The inconsistent supply of raw materials and components, coupled with the decline in spending by customers, has further resulted in the contraction of the market size.

Compressor Category To Dominate Market Throughout Forecast Period

Based on equipment type, the compressor category generated the highest revenue in industrial refrigeration systems market in 2019, and it is expected to continue the trend during the forecast period. Since industrial refrigeration systems are purchased as a complete unit, the primary factor behind compressors constituting the largest market share is that they account for 25–35% of the total unit cost. Thus, compressor price and efficiency are among the deciding factors for refrigeration system adoption.

Based on application, the chemicals and pharmaceuticals category is expected to witness the highest growth, by value, during the forecast period. This can be ascribed to the significant growth in the biopharma cold chain logistics ecosystem around the world. Additionally, there has been a substantial rise in the use of refrigerators in industries to provide better storage facilities for raw materials and, in turn, increase the inventory levels. Further, the chemical, petrochemical, and oil refining industries need refrigeration for the condensation of gases, dehumidification of air, and preservation of compounds. All these factors are projected to contribute notably to the industrial refrigeration systems market growth in the coming years.

APAC is projected to be the fastest-growing region in the industrial refrigeration systems market in the years to come, owing to the growing packaged food demand globally. Due to their increasing popularity, the consumption of Asian food products in North America and Europe is surging. The increasing industrialization rate in regional countries, such as China, Japan, and India, changing food habits, and growing culture of eating out are some other factors that would push the market forward during the forecast period.

Mergers and Acquisitions Are Important Strategic Developments

The surging investments through mergers and acquisitions are shaping the global industrial refrigeration systems market, as the players are focusing on cementing their place at the regional and global levels.

For instance, in July 2019, M&M Refrigeration LLC, a provider of CO2-based cascade systems for industrial process and other large-scale refrigeration purposes, acquired Carnot Refrigeration, a regional player offering CO2-based trans-critical refrigeration solutions for commercial and industrial applications in North America. With this acquisition, M&M Refrigeration LLC sought to expand its collective service and controls offerings.

Similarly, in June 2019, American Refrigeration Supplies Inc. (ARS) acquired Quality Heating & Cooling Supply, based in Bullhead City, Arizona. The acquisition of Quality Heating & Cooling Supply is helping ARS better serve customers in the Bullhead/Laughlin area and surrounding regions and bring a broader range of products to Quality’s customers.

Trane Technologies plc, Carrier Global Corporation, Hussmann Corporation, Dover Corporation, Daikin Industries Ltd., Johnson Controls International PLC, Midea Group Co. Ltd., Industrial Frigo SRL, GEA Group Aktiengesellschaft, Emerson Electric Co., BITZER Kühlmaschinenbau GmbH, Danfoss A/S, Star Refrigeration Ltd., and Mayekawa Mfg. Co. Ltd. are the major players operating in the global industrial refrigeration systems market.