The industrial refrigeration equipment market has been increasingly shaped by the demand for advancements in wide assortment of technologies. Additionally, continuous improvements in the capabilities of the various components including compressors, air conditioning systems, controllers, chillers, heat pumps, and valves have expanded the options for industrial refrigeration.
Applications of Industrial Refrigeration in Multiple Industries Reflect Wealth of Possibilities in Industrial Refrigeration Equipment Market
The prospects of industrial refrigeration have grown steadily from the need for meeting the characteristics unique to the end-use industry. The demand has grown profusely in pharmaceuticals, chemicals and petrochemicals, data centers, and electricity production. The wide range of applications has fueled the revenue generation.
Over the past few decades, the use of industrial refrigeration has risen rapidly in the pharmaceutical and biopharmaceutical industries. Storage of the medications and drugs in controlled conditions is crucial for success of the process. Moreover, the growing need for technologically-advanced industrial refrigeration in the industries has expanded frontiers. The introduction of innovative defrosting and disinfection of industrial refrigeration systems has enriched the landscape. Adoption of cleanrooms in pharmaceutical industry has boosted the uptake of industrial refrigeration equipment. Expansion of avenues in the industry is largely guided by regulatory guidelines. A case in point is expanding array of HVAC system in the industrial refrigeration equipment market that complies with European standards, specifically the HACCP methodology.
Massive Use in F&B Processing Spurs Sales
Ensuring reliable cold chain for food and dairy processing presents a vast avenue. Industrial refrigeration systems are used for cooling, freezing, and temperature maintenance are extensively used in food and beverage production and storage. The use in F&B processing is massive. The demand is expected to generate sizable shares to the overall global market--which is projected to reach approximately US$ 37 Bn by 2027. Refrigeration systems have become mainstream technology in the entire F&B industry for food preservation and prevention of microbiological contamination. A wide variety of refrigeration systems have been commercialized in the industry and for multiple applications—be it preservation of the final products, completion of biological and chemical reactions in brewery, and in extending the consumption period of the food products. Many of the flagship introduces in recent years are promoting energy-efficient refrigeration systems as value proposition to capture new revenues in the industrial refrigeration equipment market.
Evolving regulations pertaining to food safety has generated demand for industrial refrigeration equipment. SMEs are the at forefront of adoption. The demand has growing rapidly among small and medium restaurants, food outlets, and food establishments. The lower cost of ownership of the system has spurred the demand among SMEs.
Condensers Rapidly Emerging Industrial Refrigeration Technology
Pumps and condensers have been rapidly emerging technologies. Particularly, the revenue generation by condensers is massive and account for a leading share of the global industrial refrigeration equipment market valuation. Indeed, abundant adoption of direct/indirect condensation systems has propelled revenue growth in the segment. Widespread use of medium and low temperature condensing units in food storage has cemented the potential of the condenser segment.
End-use Industries’ Inclination Toward Sustainable Solutions Offers Value-grab Opportunities
Sustainability is perhaps the most attractive value proposition for OEMs and suppliers in the industrial refrigeration equipment market. Environmental impacts of refrigerants used in the system combined with financial considerations. Unarguably, HVAC systems including refrigeration units have been source of massive energy consumption for industries at the site. For some industries, it accounts for more than 50%. Logically enough, OEMs are scrambling for offering energy-efficient designs. The widespread inclination toward sustainable solutions have spurred attention toward turnkey cooling installations.
Suppliers and OEMs Expanding Breed of Energy-efficient Solutions to Ear Trust
Developing energy-efficient systems entail several approaches ranging from innovative heat dissipation system to cutting-edge energy-reuse systems. Some companies are promoting combined Heat and Power (CHP) schemes during the installation of the refrigeration system. On another count, advancements in the system have led to repurposing of waste heat to be reused in the manufacturing process. These also account for value-added benefits that will lend competitive edge to new entrants in the industrial refrigeration equipment market.
Environmental Impacts of Synthetic Refrigerants Under the Scanner
Emerging breed of technologies in the industrial refrigeration equipment market are stirring groundswell of interest in climate friendly low charge refrigerants. Regulations on phasing down of F-gas—the gases with high GWP values--played a crucial role here. The F-gas regulation in the European Union is considerably influencing the contours of the market in the near future. Synthetic refrigerants are fast loosing sheen, given their impact on global warming (GWP) or ozone depletion (ODP).
The preference of natural refrigerant-based systems is growing, and will unlock new frontiers. The horizon has already been expanded with the adoption of ammonia in several refrigeration systems being adopted by various end-use industries. In this regard, OEMs are making the technology compatible with natural refrigerants, while able to offer high-performance, energy efficient cooling and heating capability. Ammonia is emerging as a notably versatile refrigerant.
Tellingly, food & beverage processors are keen on adopting sustainable solutions that promote environmental-friendly refrigerants. On the other hand, safety against the leakage of refrigerants is notably propelling technological advancements in the equipment. The growing number of automatic permanent refrigerant leak detection has led to uptick in sales of products in the industrial refrigeration equipment market.
However, the F-gas is unlikely to be phased out any time soon, at least not until 2030. Interestingly, industrial refrigeration solution providers and OEMs will aim at achieving at blends. The attractive low GWP solutions will mainly include blending conventional refrigerants with carbon dioxide, hydrocarbons, and HFOs. The growing use of very low GWP solutions in cooling systems will enrich the growth potential of the industrial refrigeration equipment market. Blends notably help customers meet environmental targets for phasing out of these F-gases.
Aside from the environmental impacts of the gases used in industrial refrigeration, firms are scrambling to reduce the maintenance requirements and ease installations in various industries. Solution providers need to optimally configure the system to reduce the energy consumption. The installation requirements are complex for the marine industry. In many cases, companies have bolstered their sales strategies by offering trained service teams post installation. Daikin, GEA, and Araner are some of the pioneers in developing sustainable solutions to grab lucrative avenues in the industrial refrigeration equipment market.
Source: Transparency Market Research