Industrial Refrigeration Equipment Market

Industrial Refrigeration Equipment Market Study by Compressors, Condensers, Evaporators, and Controls for F&B, Chemicals, Petrochemicals, Pharmaceuticals, and Others from 2024 to 2034

Analysis of Industrial Refrigeration Equipment Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Industrial Refrigeration Equipment Market Outlook (2024 to 2034)

The global industrial refrigeration equipment market is anticipated to be valued at US$ 21,123.2 million in 2024 and is forecast to reach a value of US$ 32,491.1 million by 2034, with a projected CAGR of 4.4% from 2024 to 2034.

The market is witnessing substantial growth, driven by increasing demand across various end-use industries such as food and beverage, chemicals, and pharmaceuticals. The rising need for efficient cooling solutions to preserve perishable goods and maintain optimal processing conditions is a key factor propelling market expansion.

Technological advancements, including integrating smart sensors and energy-efficient systems, further contribute to the market's evolution. Additionally, stringent environmental regulations promoting eco-friendly refrigerants are shaping the industry landscape. As industries prioritize sustainability and energy efficiency, the market is poised for continued advancement in the foreseeable future.

Key Market Growth Drivers

  • Growing demand for industrial refrigeration equipment is fueled by diverse sectors, including food and beverage, chemicals, and pharmaceuticals, necessitating effective cooling solutions for optimal operations.
  • Ongoing innovations, such as integrating smart sensors and energy-efficient systems, contribute to the market's expansion by enhancing industrial refrigeration equipment's overall performance and sustainability.
  • The market is influenced by strict environmental regulations promoting the adoption of eco-friendly refrigerants, compelling industries to invest in equipment that aligns with sustainable and environmentally conscious practices.
  • With industries emphasizing sustainability and energy efficiency, the market is poised for continued growth as companies seek environmentally friendly and resource-efficient solutions.

Increased industrialization, especially in emerging economies, has led to a growing requirement for refrigeration in diverse sectors, including pharmaceuticals and chemicals. Furthermore, the ongoing trend towards stricter environmental regulations has stimulated the adoption of energy-efficient and environmentally friendly refrigeration technologies.

As industries strive for sustainability, the market is witnessing a shift towards integrating smart technologies and using eco-friendly refrigerants. This evolving trend reflects a broader industry focus on meeting efficiency standards, reducing environmental impact, and ensuring the long-term viability of industrial refrigeration solutions.

Report Attributes Details
Estimated Market Value (2024E) US$ 21,123.2 million
Forecasted Market Value (2034F) US$ 32,491.1 million
Global Market Growth Rate (2024 to 2034) 4.4% CAGR
Control Segment Growth Rate (2024 to 2034) 5% CAGR
Refrigerated Warehouse Segment Growth Rate (2024 to 2034) 4.6% CAGR
Pharmaceuticals Segment Growth Rate (2024 to 2034) 4.6% CAGR
North America Market Share (2024) 28.6%
East Asia Market Share (2024) 37.9%
Key Companies Profiled
  • Carrier
  • Daikin Industries Ltd.
  • Danfoss Group
  • Emerson Electric Co.
  • EVAPCO Inc.
  • GEA Group AG
  • Johnson Controls
  • Ingersoll Rand
  • LU-VE Group
  • Mayekawa Mfg. Co. Ltd.

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Which Factors Have Driven the Global Surge in Market Demand?

“Increase in Production and Consumption Patterns”

The global surge in demand for industrial refrigeration equipment can be attributed to the escalating consumption patterns across various industries, including food and beverage, chemicals, and pharmaceuticals.

As these sectors witness increased production and distribution needs, efficient cooling solutions are paramount to preserving perishable goods and maintaining optimal processing conditions. The growing global population and evolving consumer preferences contribute to the heightened demand for industrial refrigeration equipment, creating a substantial market pull.

“Evolution of Technology Enhances the Market Sector”

Another key driver fueling the demand for industrial refrigeration equipment is the continuous evolution of technology within the industry. Integrating smart sensors and energy-efficient systems has become a transformative factor, enhancing refrigeration solutions' overall performance and sustainability.

Industries are increasingly adopting advanced technologies to improve operational efficiency, reduce energy consumption, and meet environmental regulations. The quest for innovation and the adoption of cutting-edge refrigeration technologies further amplify the demand for upgraded industrial refrigeration equipment on a global scale.

What Hinders the Market from Growing?

“Increase in Costs of Technologies Hinders the Market from Growing”

One significant hindrance to the growth of the industrial refrigeration equipment market is the substantial upfront investment required to acquire and install advanced refrigeration systems.

The initial costs of purchasing and implementing these technologies can be prohibitive for some businesses, particularly smaller ones. This financial barrier may impede widespread adoption, limiting market expansion and hindering the potential benefits of energy-efficient and environmentally friendly refrigeration solutions.

“Complex Regulatory Compliance Restrains the Market”

The industrial refrigeration sector is subject to stringent environmental regulations and standards governing refrigerants and system efficiency. Adhering to these complex and evolving regulatory requirements poses a challenge for businesses operating in the market.

Complying with diverse international and regional standards can be resource-intensive and time-consuming. The need to constantly update systems to meet changing regulations adds a layer of complexity, potentially slowing down market growth as businesses navigate the intricacies of regulatory compliance.

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What Strategies Can Start-ups Employ to Capitalize on Industrial Refrigeration Equipment?

“Startups to Focus on Strategic Partnerships and Collaborations”

Industrial refrigeration equipment sector start-ups can leverage strategic partnerships and collaborations with established industry players. By forming alliances with experienced companies, start-ups gain access to valuable resources, industry knowledge, and established distribution networks.

This collaborative approach facilitates the sharing of expertise and accelerates market entry, enabling start-ups to overcome challenges and capitalize on their partners' established reputation and customer base.

Through strategic collaborations, start-ups can enhance their credibility, accelerate product development, and create a mutually beneficial ecosystem that fosters innovation and growth in the competitive industrial refrigeration market.

Country-wise Insights

North America’s industrial refrigeration equipment market is projected to have a CAGR of 4.6% through 2034. The surge is primarily attributed to increasing product demand in key countries, notably the United States and Canada. In 2024, the United States dominated the industry with an estimated 69.1% market share.

Meanwhile, the East Asia industrial refrigeration equipment market is anticipated to exhibit substantial progress, aiming for a 5% CAGR by 2034. In East Asia, China is emerging as the key player in the industry, commanding a significant share of 56.9% in 2024.

Why is Canada Dominating the Market?

“Abundance in Natural Resources and Robust Industrial Infrastructure Boost the Canada Market”

Attribute Canada
Market Value (2024) US$ 978.7 million
Growth Rate (2024-2034) 5% CAGR
Projected Value (2034) US$ 1,588.4 million

Canada's dominance in the industrial refrigeration equipment market can be attributed to its abundant natural resources and robust industrial infrastructure. The country's vast agricultural and food processing sectors and thriving chemical and pharmaceutical industries drive the demand for advanced refrigeration solutions. Canada's strategic geographical position and well-developed transportation networks further enhance its role as a key player in the global market.

The nation's commitment to sustainability and adherence to stringent environmental standards also contribute to the adoption of eco-friendly refrigeration technologies. This confluence of factors positions Canada at the forefront of the market, allowing it to meet the diverse needs of its industries while maintaining a competitive edge on the global stage.

What Drives the China Market?

“Rising Demand for Cold Chain Infrastructure Drives the China Market”

Attribute China
Market Value (2024) US$ 4,555.2 million
Growth Rate (2024-2034) 5.1% CAGR
Projected Value (2034) US$ 7,465.6 million

China's industrial refrigeration equipment market share is poised for significant growth, with a forecasted CAGR of 5.1% by 2034. The driving force behind the growth of the market in China is the country's rapid industrialization and the simultaneous expansion of its cold chain infrastructure.

As China's economy develops, there is a rising demand for efficient refrigeration solutions, especially in food and beverage, pharmaceuticals, and chemicals. The expanding cold chain, essential for preserving and transporting perishable goods, propels the need for advanced industrial refrigeration equipment.

This surge is further accentuated by the government's focus on modernizing logistics and ensuring food safety, creating a robust market environment that positions China as a key player in the global industrial refrigeration sector.

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Category-wise Insights

Based on the equipment type, the controls segment is estimated to hold a 24.9% market share in 2024. The increasing integration of artificial intelligence (AI) and Internet of Things (IoT) technologies.

Based on the application, the refrigerated warehouse is projected to hold a market share of 23.1% in 2024. The integration of automation technologies in refrigerated warehouses reflects a broader industry movement towards streamlining processes and ensuring precision in temperature-controlled storage environments.

Based on the end-use industry, the pharmaceutical segment will account for a market share of 11.4% in 2024. This trend aligns with global efforts to reduce the environmental impact of industrial activities, showcasing the pharmaceutical sector's commitment to eco-friendly and regulatory-compliant refrigeration technologies.

How is the Increasing Adoption of Industrial Refrigeration Controls Impacting Growth?

“Integration of AI and IoT in Refrigeration Controls”

Attribute Control
Market Value (2024) US$ 5,259.7 million
Growth Rate (2024-2034) 5% CAGR
Projected Value (2034) US$ 8,545.2 million

The prominence of the controls segment in the industrial refrigeration equipment market, with a projected 24.9% market share in 2024, underscores the critical role of advanced control systems.

This indicates a growing demand for sophisticated technologies that optimize and regulate industrial refrigeration processes. The controls segment encompasses smart sensors and automated systems, reflecting the industry's inclination towards enhancing operational efficiency and ensuring precise temperature management.

What Drives the Steady Expansion of the Refrigerated Warehouse Sector?

“Rise in Demand for Cold Storage Solutions”

Attribute Refrigerated Warehouse
Market Value (2024) US$ 4,879.5 million
Growth Rate (2024-2034) 4.6% CAGR
Projected Value (2034) US$ 7,635.4 million

The substantial market share of 23.1% held by the refrigerated warehouse application in 2024 signifies the pivotal role of these storage facilities in the industrial refrigeration landscape.

This high market share underscores the increasing need for cold storage solutions, particularly in industries such as food and pharmaceuticals. The demand for refrigerated warehouses is driven by the imperative to maintain optimal conditions for storing perishable goods, reflecting the industry's reliance on efficient and expansive cold chain logistics.

What Leads to Rise in the Pharmaceutical Sector?

“Transition to Environmentally Friendly Refrigerants”

Attribute Pharmaceutical
Market Value (2024) US$ 2,408 million
Growth Rate (2024-2034) 4.6% CAGR
Projected Value (2034) US$ 3,769 million

The pharmaceutical segment's 11.4% market share in 2024 highlights its significance within the industrial refrigeration equipment market. This substantial market presence underscores the critical role of refrigeration in pharmaceutical storage and manufacturing processes.

As the pharmaceutical industry prioritizes stringent temperature control to preserve sensitive drugs and vaccines, the demand for specialized industrial refrigeration equipment tailored to these requirements continues to grow, contributing to the notable market share held by the pharmaceutical end-use segment.

Competitive Landscape

The competitive landscape of the industrial refrigeration equipment industry is characterized by intense rivalry among key players vying for market share. Major industry participants strategically focus on technological advancements, such as smart sensors and energy-efficient systems, to gain a competitive edge.

Moreover, adherence to stringent environmental regulations, particularly in adopting eco-friendly refrigerants, is a pivotal factor shaping the competitive dynamics. Key players are engaged in continuous research and development efforts to enhance product efficiency and sustainability.

As industries increasingly prioritize environmental consciousness and energy efficiency, the competitive landscape is marked by a drive for innovation and strategic positioning to meet evolving market demands.

Some of the recent developments in the industrial refrigeration equipment market

  • In July 2023, BITZER successfully acquired OJ Electronics A/S. This acquisition aimed to develop a center of excellence for HVAC&R electronic components in Denmark.
  • In June 2023, Johnson Controls announced that it acquired M&M Carnot with the aim of leveraging a sustainable industrial refrigeration system portfolio.

The strategic business deals with addresses that accentuate the need for ultra-low global warming potential technologies in refrigerants with the help of its unique CO2 technology to achieve net zero emissions.

Segmentation of Industrial Refrigeration Equipment Market Research

  • By Equipment :

    • Compressor
    • Condenser
    • Evaporator
    • Controls
  • By Application :

    • Refrigerated Warehouse
  • By End Use Industry :

    • Food & Beverage
    • Chemical Petrochemical
    • Pharmaceuticals
    • Others
  •  By Region :

    • North America
    • Latin America
    • Western Europe
    • Eastern Europe
    • South Asia and Pacific
    • East Asia
    • Middle East and Africa

- FAQs -

What was the value of the industrial refrigeration equipment market in 2019?

The global market for industrial refrigeration equipment was worth US$ 17,133.8 million in 2019.

What is the sales outlook for industrial refrigeration equipment in 2024?

The sales outlook for industrial refrigeration equipment is likely to be valued at US$ 21,123.2 million in 2024.

What will be the projected forecast value for the market by 2034?

By 2034, the market will generate US$ 32,491.1 million in value terms.

What is the projected forecast CAGR for the industrial refrigeration equipment market by 2034?

The market is estimated to project a CAGR of 4.4% by 2034.

At what rate is the market in the United States predicted to grow?

The market in the United States is projected to expand at a CAGR of 4.7% by 2034.

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