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The industrial refrigeration market size is estimated to grow at a CAGR of 4.42% between 2022 and 2027. The market size is forecast to increase by USD 4.91 billion. The growth of the market depends on several factors such as the need to increase the storage life of food products, the growth of the automotive heating, ventilation, and air conditioning (HVAC) market, and the market expansion by end-users. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
This report extensively covers market segmentation by component (compressor, evaporator, condenser, control, and vessel and others), type (ammonia, CO2, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Industrial Refrigeration Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The shelf life of food products depends on factors such as storage conditions. The shelf life of food products is mainly controlled by preventing or limiting microbial growth. This can be achieved by cooling, reducing water activity, and adding preservatives. Among these, refrigeration is a means of preserving freshness without loss of quality due to over-processing. Refrigeration is necessary to maintain nutritional and microbial quality.
Moreover, commercial refrigeration equipment is required for the proper functioning of food service establishments. It makes it possible to store products that are not available in season. In addition, the price of some products may increase depending on the season. By stocking these products in advance, end users can reduce costs. Therefore, due to the benefits that industrial refrigerators bring, end users are investing more and more in their adoption, which will fuel the growth of the market during the forecast period.
There is a clear preference for industrial refrigeration compressors, capable of handling higher pressure conditions, to facilitate the use of higher efficiency systems such as CO2 trans systems. Given the moderate size of the industrial refrigeration sector, manufacturers need to develop an investment strategy for high-pressure compressors, focusing on the market or application they are targeting. The development of these components will require significant investment from component and equipment manufacturers.
Currently, due to the limited application of the high-pressure system, the investments are not financially attractive. However, as mentioned earlier, the trend toward high-pressure systems is likely to change the financial dynamics of these investments over the forecast period. Thus, factors such as increasing high-pressure requirements for compressors are anticipated to drive the growth of the global industrial refrigeration market during the forecast period.
Some of the factors that lead to recalls of frozen food products are contamination by foreign objects, such as glass fragments and hard particles in frozen food products. In addition, product recalls may have a negative impact on sales of frozen food products and thus on commercial refrigeration equipment sales.
Furthermore, the obese population is growing in many countries, such as the US, UK, and United Arab Emirates. The increase in obese populations in these countries may encourage the consumption of freshly cooked food products instead of processed food products including frozen foods. This may negatively affect the consumption of frozen food products and thus affect demand in the industrial refrigeration market. As such, these factors will hinder the growth of the global industrial refrigeration market during the forecast period.
The compressor segment will account for a major share of the market's growth during the forecast period.? The compressor is the central part of all refrigeration systems as it is responsible for providing the necessary pressure for the circulation of the refrigerant. The compressor ensures that the refrigerator absorbs enough heat and is sufficiently cooled. The compressor raises the temperature of the refrigerant during compression.
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The compressor segment was valued at USD 3.78 billion in 2017.?There are several types of compressors, such as reciprocating compressors, rotary compressors, screw compressors, and centrifugal compressors. The screw compressor is one of the popular and widely used compressors in industrial refrigeration due to its advantages such as continuous operation, easy maintenance, no duty cycle, quiet operation, high airflow and the ability to operate in extreme temperatures compared to other compressors. Such factors make industrial compressor refrigeration highly applicable in several industries, which will drive the market growth during the forecast period.
Based on type, the market has been segmented into ammonia, CO2, and others. The ammonia?segment will account for the largest share of this segment.?Ammonia is one of the most efficient refrigerants and is known to be the refrigerant of choice in food preservation and industrial processes. Industrial ammonia refrigeration systems are most commonly used in the food and beverage industry to ensure optimum temperature conditions are maintained. In addition, another advantage of ammonia as an industrial refrigerant is that it is environmentally friendly and does not cause ozone depletion. Thus, these factors will drive the growth of the ammonia segment in the global industrial refrigeration market during the forecast period.
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North America is estimated to contribute 37% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The growth of the North American industrial refrigeration market is mainly driven by various factors, such as the growth of the food, beverage, and pharmaceutical industries. The proliferation of cold chain industries and increasing industrialization in the region in all of these industries will drive the need for industrialization in the region.
Furthermore, in various industries, such as chemical, food, and beverage refrigeration system services, as well as solutions such as chillers, compressors, and other components to keep machinery cool in industries as well as in data centers. The growth of these industries is driving demand for industrial refrigeration in the region. In addition, products such as frozen and non-frozen foods and beverages such as ice cream, desserts, meat, poultry, and dairy products require specific cold temperatures to maintain quality and prevent damage. The growing demand for these products in the region will boost the demand for industrial refrigeration in the region during the forecast period.
In 2020, due to the outbreak of the COVID-19 pandemic, the industrial refrigeration market in the region was negatively affected. However, the initiation of large-scale vaccination drives lifted the lockdown restrictions, which led to the resumption of operations in the end-user industries. The significant growth in the food and beverages industry in the region will grow the demand for industrial refrigeration. Therefore, the regional industrial refrigeration market will witness significant growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
BITZER Kuhlmaschinenbau GmbH, Carrier Global Corp., CLAUGER, COOLPLUS COMMERCIAL REFRIGERATION and KITCHEN EQUIPMENT CO. LTD., Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., EVAPCO Inc., GEA Group AG, Gordon Brothers Industries Pty Ltd, Guntner GmbH and Co. KG., Johnson Controls International Plc, LUVE SpA, MAYEKAWA MFG. CO. LTD., RefPlus, SRM Italy Srl, Star Refrigeration, Stellar, and Toromont Industries Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The industrial refrigeration market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Industrial Refrigeration Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.42% |
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Market growth 2023-2027 |
USD 4.91 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.29 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 37% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BITZER Kuhlmaschinenbau GmbH, Carrier Global Corp., CLAUGER, COOLPLUS COMMERCIAL REFRIGERATION and KITCHEN EQUIPMENT CO. LTD., Daikin Industries Ltd., Danfoss AS, Emerson Electric Co., EVAPCO Inc., GEA Group AG, Gordon Brothers Industries Pty Ltd, Guntner GmbH and Co. KG., Johnson Controls International Plc, LUVE SpA, MAYEKAWA MFG. CO. LTD., RefPlus, Rivacold srl, SRM Italy Srl, Star Refrigeration, Stellar, and Toromont Industries Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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