Industrial Refrigeration Systems Market Analysis Report By Component, By Application, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global industrial refrigeration systems market size was worth USD 19.55 billion in 2019. The market is anticipated to grow at a CAGR of 4.6% over the forecast duration, 2020 to 2027. The demand for industrial refrigeration is gaining traction in the FMCG industry, which in turn, is driving the growth of the market. Increasing demand for packaged and processed food has led to the rising use of refrigeration systems. In addition, increasing support from the government to consolidate the cold chain infrastructure coupled with innovation in the refrigeration system is supplementing the growth of the market.

In the recent past, the demand for online food delivery has surged significantly. This trend has provided a new opportunity in the market, as the refrigeration system would help in keeping the food fresh for a longer duration. In addition, online delivery of meat, fish, poultry, and other processed food has strengthened the demand for cold chain operations, which in turn, has driven the market growth. Further, the growing penetration of the retail sector in emerging countries is supplementing the industrial refrigeration market.

Refrigerant is used in the refrigeration cycle to cool the particular area. The majority of refrigerants harm the environment as they cause global warming and ozone layer depletion. Considering this, companies are increasingly focusing on the development of natural refrigerants. Further, regulatory guidelines are also driving the production of natural refrigerants-based refrigeration systems.

Fueled by the increasing government support, the cold chain industry is witnessing significant traction and investment. For example, the Ministry of Food Processing Industries of India has introduced cold chains, preservation infrastructure, and value addition. To reduce post-harvest losses, the ministry offers financial support in setting up integrated cold chain facilities.

Component Insights

Based on the component, the compressor segment dominated the industrial refrigeration systems market and held over 15.0% share by revenue in 2019. Compressors are used for various applications such as refrigeration, HVAC, chiller systems, humidifiers, and heat-pump. In an industrial refrigeration system, compressors help in increasing the vapor pressure of refrigerants to ensure the optimum temperature required for the storage and preservation of foods. 

In addition, compressors convert low-pressure and low-temperature refrigerants into high pressure and high temperature. The growing number of refrigeration systems across the globe is anticipated to drive the demand for compressors. Market players are emphasizing reducing the cost of compressors by developing innovative compressors that can cater to diverse requirements. This factor is further projected to augment the segment growth over the forecast duration.

Application Insights

Depending on the application, the market is classified into food & beverage, chemical, pharmaceutical, refrigerated transportation, and refrigerated warehouse. Among them, the food and beverage segment accounted for the highest share of over 55.0% in 2019. Further, the segment is likely to maintain its dominant position over the forecast duration.

The demand for processed food has increased considerably, primarily because of changing lifestyles and growing disposable income. Thus, increasing demand for processed food has led to a rise in the demand for refrigerated warehouses with improved capacity. In addition, increasing automation in the refrigerated warehouse industry is further anticipated to propel market growth over the forecast duration.

The demand for fresh food products such as meat, dairy products, seafood, and poultry is increasing. Consumers, as well as suppliers, are both concerned about the freshness of food. Therefore, the use of refrigeration has surged to maintain the quality of food products. As a result, the demand for refrigerated warehouses application is increasing considerably. On the other hand, the chemical, petrochemical, and pharmaceutical segment are projected to register the maximum growth of 6.0% over the forecast duration.

Regional Insights

In 2019, North America accounted for more than 30.0% share in the industrial refrigeration system market by revenue. Increasing consumption of frozen foods in the form of skillet, oven meal, bowl meal, and others are increasing the demand for efficient refrigeration systems in the region. Food producers are likely to contribute to the majority of the share in the market. In addition, an increasing number of ongoing research and clinical testing amid COVID-19 are further anticipated to drive the growth of the product from the pharmaceuticals industry.

The Asia Pacific is estimated to provide lucrative opportunities for the market players owing to the increasing number of cold chain storage systems in countries such as India, China, and Japan. India, on the other hand, is the second-largest producer of vegetables and fruits. Storing and ensuring the improved shelf life of fruits and vegetables can be a challenging task. However, increasing focus by industry players and government in setting up cold storage facilities is driving the demand for industrial refrigeration systems in the country.

COVID-19 Impact Analysis

The market has been negatively affected owing to the outbreak of COVID-19. The majority of industrial operations were shut down across different parts of the world to contain the spread of the virus. Further, consumers’ preferences for home-cooked products have led to a significant drop in the demand for processed food. In addition, disruption in the supply chain further restrained the market growth. However, the demand for essential items continued to rise during the pandemic. Panic buying of food products has positively affected the market growth initially. In addition, the demand for refrigeration systems has witnessed a surge from the pharmaceutical industry. This trend is anticipated to continue owing to ongoing clinical trials and increased demand for medicine.

Industrial Refrigeration Systems Market Share Insights

Key players such as GEA Group¸ DAIKIN INDUSTRIES, Ltd, Danfoss Industries Pvt. Ltd, Emerson Electric Co., and Johnson Controls held the prominent share in the market in 2019. Market players are focusing on developing new technologies collectively to increase profitability. Industry players are continuously undertaking strategic initiatives such as mergers & acquisition, partnerships, agreements, and new product development to stay competitive in the market. For example, Danfoss Industries Pvt. Ltd, in April 2020, introduced an electric liquid level switch. This switch is anticipated to play a crucial role in the safety of the refrigeration system.

Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Million Insights has segmented the global industrial refrigeration systems market report based on component, application, and region:

• Component Outlook (Revenue, USD Million, 2016 - 2027)
    • Compressors
    • Condensers
    • Evaporators
    • Controls
    • Others

• Application Outlook (Revenue, USD Million, 2016 - 2027)
    • Refrigerated Warehouse
    • Food & Beverage (Fruit & Vegetable, Meat, Poultry, & Fish, and Dairy Products)
    • Chemical, Petrochemical, & Pharmaceutical
    • Refrigerated Transportation

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
    • Europe
        • Germany
        • The U.K.
        • France
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • The Middle East and Africa