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The industrial refrigeration market size is forecast to increase by USD 3.6 billion at a CAGR of 3.22% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for preserving food products with longer storage life. This trend is particularly prominent in the food and beverage industry, where maintaining optimal temperature conditions is crucial for product quality and safety. One emerging technology gaining traction in the market is the CO2 refrigeration type, which offers energy efficiency and a lower carbon footprint compared to traditional refrigerants. Another trend shaping the market is the integration of advanced technologies such as Big Data, AI, and Machine Learning (ML) for predictive maintenance and optimization of refrigeration systems. Companies are leading the way with their R&D initiatives in this area. Moreover, there is a growing focus on alternative refrigerants such as magnetic refrigeration technology, which utilizes ferromagnetic materials to cool down spaces. Ammonia and carbon dioxide are also gaining popularity as sustainable refrigerants. Compressor technology is also evolving, with reciprocating compressors and screw compressors becoming more efficient and reliable. However, challenges such as high-pressure requirements and issues associated with refrigerated food products continue to pose challenges for market growth.
The market is witnessing significant growth due to the increasing demand for cold storage facilities in various industries, particularly in cold-chain industries and perishable goods sectors. CO2 refrigeration type is gaining popularity due to its environmental benefits and energy efficiency. Big data, AI, and machine learning (ML) are transforming industrial refrigeration systems by enabling predictive maintenance and optimizing energy consumption. Companies are leading the R&D initiative in this area. The World Trade Organization's regulations on the phase-out of hydrofluorocarbons (HFCs), chlorofluorocarbons (CFCs), and hydrochlorofluorocarbons (HCFCs) are driving the adoption of alternative refrigerants such as propane (R290), isobutane (R600a), ammonia (R717), and carbon dioxide (R744).
Moreover, key players are investing in the development of advanced refrigeration systems using these natural refrigerants. The future of industrial refrigeration lies in sustainable, energy-efficient, and cost-effective solutions.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The compressor segment is estimated to witness significant growth during the forecast period. Compressors play a crucial role in industrial refrigeration systems, as they provide the necessary pressure for refrigerants to circulate and absorb heat. These compressors come in various types, including reciprocating, rotary, screw, and centrifugal. Among these, screw compressors are widely utilized in industrial refrigeration due to their advantages, such as continuous operation, ease of maintenance, quiet operation, high airflow rate, and ability to function at extreme temperatures. Ammonia-based refrigeration systems are extensively employed in refrigerated warehouse applications and cold storage facilities, particularly in the cold-chain industries that handle perishable goods. These industries are essential for maintaining the health benefits of perishable products and ensuring the success of cold-chain logistics.
Additionally, the World Trade Organization's Agreement on the Application of Sanitary and Phytosanitary Measures facilitates international trade in these industries. Refrigerants, such as ammonia, are essential components of industrial refrigeration systems. With advancements in technology, innovations like Artificial Intelligence (AI) and Danfoss iMCHE are being integrated into these systems to optimize performance and reduce energy consumption. The COVID-19 pandemic and inflation have impacted the market, leading to increased demand for energy-efficient solutions. In conclusion, compressors, specifically screw compressors, are vital components of industrial refrigeration systems, enabling the efficient circulation of refrigerants and maintaining the required temperature for perishable goods storage. The integration of advanced technologies and the ongoing challenges of the industrial landscape continue to shape the future of the market.
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The compressor segment was valued at USD 3.90 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 32% 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 North American market holds a significant share of the global industrial refrigeration industry. This dominance is attributed to the expansion of industries such as food and beverages, pharmaceuticals, and chemical processing. The growth in cold-chain logistics and the ongoing industrialization in these sectors will fuel the demand for industrial refrigeration systems in the region. Industrial refrigeration plays a crucial role in maintaining optimal conditions for storing and transporting perishable goods and volatile chemicals. Key components of these systems include chillers, compressors, and various other cooling components. Ammonia-based refrigeration systems are widely used in refrigerated warehouse applications and cold storage facilities due to their energy efficiency and ability to maintain low temperatures.
Additionally, in the context of the COVID-19 pandemic and inflation, the health benefits of preserving perishable products through industrial refrigeration have become increasingly important. Furthermore, advancements in technology, such as the integration of Artificial Intelligence (AI) in systems like Danfoss iMCHE, are revolutionizing the industrial refrigeration landscape.
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.
The need to increase the storage life of food products is the key driver of the market. The market plays a crucial role in preserving the quality and safety of food products by maintaining optimal temperatures. Food degradation and losses are significant issues for food service establishments, and inadequate storage conditions can lead to microbial growth and nutritional deterioration. Commercial refrigerators are a vital investment for maintaining the shelf life of perishable goods. Refrigeration technology, such as CO2 and ammonia, is a primary method for controlling microbial growth and preserving food freshness without excessive processing. Advancements in technology, including Big Data, AI, and Machine Learning (ML), are revolutionizing the market. Companies are leading R&D initiatives to develop innovative refrigeration solutions.
For instance, magnetic refrigeration technology uses ferromagnetic materials to cool down spaces, offering energy efficiency and environmental benefits. Compressors, such as reciprocating and screw compressors, are essential components in refrigeration systems, ensuring efficient and reliable temperature control. Carbon dioxide refrigeration type is gaining popularity due to its low global warming potential and energy efficiency. Ammonia, another common refrigerant, is known for its high cooling capacity and low cost. These refrigerants, along with advanced technologies, are shaping the future of the market.
The increasing pressure requirements for compressors is the upcoming trend in the market. The market exhibits a growing trend towards the utilization of CO2 refrigeration systems due to their energy efficiency. Big Data, AI, and Machine Learning technologies are increasingly being integrated into these systems for optimized performance. Companies are spearheading R&D initiatives in this area. Magnetic refrigeration technology, which employs ferromagnetic materials, is another promising development in the industrial refrigeration sector.
Additionally, ammonia and carbon dioxide are the most commonly used refrigerants, with compressors playing a crucial role in their compression. Reciprocating compressors and screw compressors are the primary types used in industrial refrigeration applications. Manufacturers are focusing on developing higher-pressure compressors to cater to the growing demand for transcritical CO2 systems. However, the production of larger, high-pressure (above 90 bar) compressors is anticipated to be a gradual process, as the development of high-pressure components necessitates an entirely new platform.
The issues associated with refrigerated food products is a key challenge affecting the market growth. The market has been experiencing significant growth due to the increasing demand for refrigerated food and beverage products. However, product recalls in the market pose a challenge to this growth. Contamination by foreign bodies, such as glass or hard particles, in refrigerated food products can lead to recalls, negatively impacting sales and ultimately affecting the demand for commercial refrigeration equipment. On a positive note, the rising obesity epidemic in countries like the US, the UK, and the UAE may boost the consumption of freshly cooked food products, potentially increasing the demand for industrial refrigeration systems using technologies like CO2 refrigeration type, Magnetic refrigeration technology, and compressors such as reciprocating compressors and screw compressors.
Furthermore, advancements in technologies like Big Data, AI, and Machine Learning (ML) through initiatives by companies are expected to revolutionize the market. Ammonia and Carbon Dioxide are some of the refrigerants being used in the market, and the ongoing R&D initiatives are aimed at improving the efficiency and sustainability of these refrigerants.
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
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.
BITZER Kuhlmaschinenbau GmbH - The market encompasses the provision of advanced cooling solutions, including BITZER compressors, for various industries to maintain optimal temperature conditions for their processes and storage needs.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The market is witnessing significant growth due to the increasing demand for cold storage facilities and refrigerated warehouse applications in various industries such as beverages, chemicals, petrochemicals, and cold-chain logistics. The market is segmented based on refrigerant type, sales type, and component. CO2 refrigeration type is gaining popularity due to its environmental benefits and energy efficiency. Advancements in technology are driving the market growth, with R&D initiatives in magnetic refrigeration technology using ferromagnetic materials. Big data, AI, and machine learning are being integrated into industrial refrigeration systems for improved efficiency and performance. Ammonia and carbon dioxide are commonly used refrigerants in industrial operations, with ammonia-based refrigeration systems being widely adopted in large-scale applications.
Additionally, the market is also influenced by external factors such as the COVID-19 pandemic, inflation, and geopolitical tensions like the Ukraine-Russia war. The World Trade Organization's regulations on refrigerants are also impacting the market dynamics. Energy-efficient technologies such as variable speed drives, heat recovery systems, and renewable energy sources like solar and wind power are being adopted to reduce carbon footprint and operational costs. Industrial refrigeration systems are essential for maintaining the cold chain and preserving perishable products, ensuring food safety and health benefits for consumers. Companies and others are leading the market with innovative solutions and technologies. The North American market is a significant contributor to
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Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2023 |
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Historic period |
2017-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.22% |
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Market growth 2024-2028 |
USD 3.6 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.86 |
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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 32% |
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Key countries |
US, China, Germany, Canada, 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, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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