Refrigerant Compressors Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, India, Japan, Germany - Size and Forecast 2024-2028

Refrigerant Compressors Market Size 2024-2028 

The refrigerant compressors market size is forecast to increase by USD 3.84 billion at a CAGR of 4.5% between 2023 and 2028. The market is experiencing significant growth due to the expanding commercial refrigeration industry, driven by the increasing demand for cold storage and temperature-controlled logistics. Compressors are essential components in refrigeration systems, and their market is influenced by several trends, including the rising pressure requirements for compressors to enhance energy efficiency and reduce greenhouse gas emissions. Additionally, regulatory policies, such as the European Union's F-Gas Regulation, are driving the transition towards natural refrigerants and phasing out high-global-warming-potential (GWP) refrigerants, creating new opportunities for compressor manufacturers. These trends and regulatory shifts are shaping the refrigerant compressors market dynamics and are expected to continue influencing its growth trajectory.

Market Analysis

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The refrigerant compressors market is witnessing significant growth due to the increasing demand from various industries, particularly cold-chain industries, food and beverages, retail outlets, and the transportation sector. These industries require efficient and reliable refrigeration systems to maintain the cold chain capabilities for perishable goods, frozen meals, fast-moving consumer goods, and medicines. Refrigerant compressors play a crucial role in refrigeration systems by compressing the refrigerant gas and delivering it to the condenser, where it is cooled and transformed into a liquid. The refrigerant then flows through the expansion valve to the evaporator, where it absorbs heat and cools down the surrounding environment. With the advent of the Internet of Things (IoT), compressor manufacturers are exploring new opportunities for remote monitoring and predictive maintenance, further enhancing the overall efficiency and performance of these systems.

Further, reciprocating compressors, rotary compressors, and centrifugal compressors are the primary types of refrigerant compressors used in various applications. Reciprocating compressors are commonly used in small to medium-sized refrigeration systems due to their cost-effectiveness and reliability. Rotary compressors offer high efficiency and are suitable for larger systems, while centrifugal compressors provide the highest efficiency and are used in industrial applications. The food and beverages sector is a significant consumer of refrigerant compressors due to the need to maintain optimal temperatures for food preservation and distribution. The transportation sector also relies heavily on refrigerant compressors to maintain the cold chain capabilities for perishable goods during transportation.

Further, the production-linked incentive scheme introduced by the government is expected to boost the demand for refrigerant compressors in various industries. This incentive scheme aims to encourage domestic manufacturing and reduce the dependence on imports, thereby creating a favorable environment for the growth of the refrigerant compressor market. In conclusion, the refrigerant compressor market is expected to witness steady growth due to the increasing demand from various industries, particularly cold-chain industries, food and beverages, retail outlets, and the transportation sector. The efficient and reliable refrigeration systems provided by refrigerant compressors are essential for maintaining the cold chain capabilities of perishable goods, frozen meals, fast-moving consumer goods, and medicines. The introduction of production-linked incentives is expected to further boost the demand for refrigerant compressors in the region.

Market Segmentation

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

• Application
  • Hermetic
  • Semi-hermetic reciprocating
  • Domestic
  • Semi-hermetic screw
  • Others
• Geography
  • APAC
    • China
    • India
    • Japan
  • North America
    • US
  • Europe
    • Germany
  • South America
  • Middle East and Africa

By Application Insights

The hermetic segment is estimated to witness significant growth during the forecast period. In the realm of compressor technology, hermetic compressors represent a unique and sealed solution for various industrial and commercial applications. These compressors, which are entirely enclosed with the casing welded shut, offer several advantages such as eliminating the risk of spillage or debris intrusion. This feature ensures improved safety and operational efficiency, particularly in harsh environments. However, the airtight design of hermetic compressors comes with certain limitations. For instance, they may not be suitable for use in volatile or unstable conditions due to the lack of accessibility for maintenance or repairs. Moreover, the refrigerant compressor market encompasses a diverse range of technologies, including those utilizing Ammonia, Carbon dioxide, Hydrofluorocarbons, and Hydrochlorofluorocarbons.

The market is witnessing significant growth, driven by the increasing adoption of energy-efficient technologies and the expanding cold chain capabilities. In terms of market segmentation, the domestic segment is expected to showcase steady growth due to the increasing demand for energy-efficient appliances and the expanding cold chain infrastructure. Inflation and changing regulations regarding refrigerants are key factors influencing the market dynamics. As the market evolves, it is essential for businesses to stay informed about the latest trends and developments to remain competitive.

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The hermetic segment accounted for USD 4.42 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 66% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in APAC is experiencing significant growth due to the increasing investment in commercial applications by refrigeration equipment companies. This trend is driven by the presence of high-growth economies such as India and China. Urbanization in developing countries is a major factor contributing to this growth, as the rate of rural-to-urban migration and rising disposable incomes lead to the development of retail stores and supermarkets. The demand for these commercial spaces is increasing, resulting in a corresponding rise in the demand for refrigeration systems and, consequently, refrigerant compressors. Food security and food waste reduction are also key factors driving the market, as the middle-class population in APAC continues to grow and consumer purchasing power increases. Further, scroll compressors and screw compressors are the most commonly used compressor types in commercial refrigeration applications.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The growth of commercial refrigeration market is notably driving market growth. The market plays a crucial role in ensuring the preservation and transportation of temperature-sensitive items, such as medicines and ready-to-eat food items, through cold chain logistics. Cold-chain infrastructure relies heavily on refrigerant compressors to maintain optimal temperatures, thereby extending the shelf life and ensuring the quality of food and beverages, chemicals, and other perishable goods. The choice of refrigerant type significantly influences the performance and efficiency of compressors in various applications within HVAC systems and cold-chain logistics. Companies specializing in refrigerant compressors continue to innovate and improve their offerings to meet the evolving demands of various industries. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

The increasing pressure requirements for compressors is the key trend in the market. The market plays a crucial role in ensuring the preservation of medicines, ready-to-eat food items, and other perishable goods through cold chain logistics and infrastructure. Refrigerant compressors are essential components in refrigeration systems used for food and beverages, chemicals, and HVAC applications. The choice of refrigerant type significantly impacts the performance and efficiency of these systems. Cold chain logistics relies heavily on the reliable operation of refrigerant compressors to maintain the required temperature conditions for transporting and storing perishable goods. The refrigerant compressor market is driven by the growing demand for cold chain infrastructure to maintain the quality and safety of various industries, including food and beverages, pharmaceuticals, and chemicals. Thus, such trends will shape the growth of the market during the forecast period.

Market Challenge

The changes in regulatory policies is the major challenge that affects the growth of the market. The refrigerant compressor market plays a crucial role in ensuring the preservation of medicines, ready-to-eat food items, and other perishable goods through cold chain logistics and infrastructure. Refrigerant compressors are essential components in refrigeration systems used for food and beverages, chemicals, and HVAC applications. The choice of refrigerant type significantly influences the performance and efficiency of these systems. Cold chain logistics relies heavily on the reliable operation of refrigerant compressors to maintain optimal temperatures and preserve the quality of the goods being transported. Food and beverage industries, in particular, depend on refrigerant compressors to ensure the freshness and safety of their products. The market for refrigerant compressors is expected to grow steadily due to the increasing demand for temperature-controlled storage and transportation solutions. Hence, the above factors will impede the growth of the market during the forecast period.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

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.

Daikin Industries Ltd. - The company offers refrigerant compressors that include Daikin refrigeration compressor, Daikin DC inverter scroll compressor, and Jt160G-P8Y1 daikin.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• BITZER Kuhlmaschinenbau GmbH
• Carrier Global Corp.
• Danfoss AS
• Emerson Electric Co.
• Frascold Spa
• Fusheng Precision Co. Ltd.
• GEA Group AG
• Hanbell Precise Machinery Co. Ltd.
• Johnson Controls International Plc.
• LG Electronics Inc.
• MAYEKAWA MFG. CO. LTD.
• Mitsubishi Electric Corp.
• Nidec Corp.
• OFFICINE MARIO DORIN Spa
• Panasonic Holdings Corp.
• Ramco Industries Ltd
• Tecumseh Products Co. LLC
• TORAD Engineering LLC
• Zhuhai Gree Electric Appliances Co. Ltd

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Refrigerant compressors play a crucial role in various industries, particularly in cold-chain industries, where maintaining low temperatures is essential. These compressors come in different types, including reciprocating, rotary, centrifugal, scroll, and screw compressors. The food and beverages sector and the chemical industry are significant end-users of refrigerant compressors. The demand for refrigerant compressors is driven by the growing need to preserve perishable goods, such as food products, medicines, and ready-to-eat food items. The increasing middle-class population and rising consumer purchasing power have led to an increase in the demand for consumer appliances like refrigerators and refrigeration systems. The use of refrigerant compressors in cold-chain logistics and infrastructure is also on the rise due to the need to reduce food waste and ensure food safety.

Additionally, the refrigerant type used in these compressors can vary, with ammonia, carbon dioxide, hydrofluorocarbons, and hydrochlorofluorocarbons being commonly used. The integration of artificial intelligence and the Internet of Things in refrigeration systems is expected to boost market growth. However, inflation and production-linked incentives can impact the market dynamics. Despite the challenges, the market for refrigerant compressors is expected to grow steadily due to the increasing demand for cold-chain capabilities in various industries.

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

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

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