Industrial Refrigeration Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Germany, Canada, UK - Size and Forecast 2024-2028

Industrial Refrigeration Market Size 2024-2028

The industrial refrigeration market size is forecast to increase by USD 3.6 billion, at a CAGR of 3.22% between 2023 and 2028. Market growth hinges on various factors, including the imperative to prolong the storage life of food products, the burgeoning automotive heating, ventilation, and air conditioning (HVAC) sector, and the expanding market reach among end-users. These elements collectively drive the trajectory of the market, reflecting broader trends toward sustainability, efficiency, and consumer demand. The emphasis on extending food storage life underscores a growing interest in food preservation technologies and solutions. Simultaneously, the growth in the automotive HVAC market signifies increased demand for climate control systems in vehicles. Additionally, market expansion among end-users highlights the diverse applications and evolving needs driving innovation and competition in the market landscape. These interconnected factors shape the market's evolution, highlighting the intersection of technological advancement, industry demand, and consumer preferences. 

What will be the Size of the Market During the Forecast Period?

Market Forecast 2024-2028

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Market Dynamics

The market is evolving with a focus on CO2 refrigeration systems, such as Carbon dioxide (R 744), which offer eco-friendly alternatives to traditional Hydrochlorofluorocarbons (HCFCs) and Hydrofluorocarbons (HFCs). Companies like HYCOOL and Veolia Serveis Catalunya are leading innovations in this space, driven by advancements in Big Data, AI, and Machine Learning (ML). These technologies enhance the efficiency of cold storage facilities and cold-chain industries, which are crucial for perishable goods in sectors like the chemical and petrochemical industries. Additionally, strategic R&D initiatives are paving the way for new solutions, with support from organizations such as the American Frozen Food Institute and Freshfel Europe's Consumption Monitor. The integration of the Internet of Things (IoT) is further optimizing industrial operations.

Key Market Driver - Need to increase the storage life of food products

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.

Significant Market Trends- Increasing pressure requirements for compressors

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 market during the forecast period.

Major Market Challenge - Issues associated with refrigerated food products

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 market. As such, these factors will hinder the growth of the global market during the forecast period.

Market Segmentation 

Component Segment Analysis

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 3.90 billion in 2018. 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.

Type Segment Analysis:

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 market during the forecast period.

Regional Analysis

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North America is estimated to contribute 32% to the growth by 2028. 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 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.

Who are the Major Market Companies?

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.

• Rivacold srl: The company offers industrial refrigeration such as SE Packed system for compliant cabinets.

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 market growth 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.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Component Outlook 
  • Compressor
  • Evaporator
  • Condenser
  • Control
  • Vessel and others
• Type Outlook 
  • Ammonia
  • CO2
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market encompasses the production, sales, and installation of refrigeration systems employed in various industries. These systems are essential for preserving temperature-sensitive products and maintaining optimal production conditions. The market is driven by the increasing demand for perishable food products and the need for temperature-controlled environments in various industries. Chemicals and petrochemicals, pharmaceuticals, food and beverage, and agriculture are key end-users of industrial refrigeration systems. Compressors, evaporators, and condensers are the primary components of these systems. The market is also witnessing the adoption of advanced technologies such as natural refrigerants and automation to enhance energy efficiency and reduce environmental impact. The market is expected to grow due to the increasing demand for temperature-controlled logistics and storage solutions.

Additionally, the growing trend toward sustainable refrigeration solutions is expected to provide significant opportunities for market growth. The market is highly competitive, with several players offering a range of products and services to cater to the diverse needs of industries. Chillers, compressors, and refrigerants are the major product segments in the market. The market is also witnessing the increasing adoption of modular and pre-engineered refrigeration systems due to their ease of installation and flexibility. The market is shifting towards CO2 refrigeration type systems, leveraging Carbon dioxide (CO2) for eco-friendly solutions. This change is supported by R&D initiatives and global standards from the World Trade Organization. Alternatives like Chlorofluorocarbons (CFCs) are being replaced by Propane (R 290), Isobutane (R 600a), and Ammonia (R 717), enhancing efficiency for perishable products.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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