The global industrial refrigeration market is anticipated to garner $30,250.6 million in the 2021–2028 period, rising from $20,117.9 million in 2020, at a noteworthy CAGR of 5.3%.
Market Synopsis
Reinvention of industrial refrigeration with Internet of Things (IoT) worldwide is projected to bolster the market of industrial refrigeration, during the analysis period.
However, a high investment cost of industrial refrigeration framework may hamper the growth of the global industrial refrigeration market.
According to the regional analysis of the industrial refrigeration market, the Asia-Pacific market is anticipated to surge at a CAGR of 6.1%, by registering a revenue of $10,557.5 million, during the forecast period.
Industrial Refrigeration Overview
Industrial refrigeration is the large-scale cooling systems particularly used in the segments such as dairy processing, cold food storage, ice rinks, and beverage production. Hence, the industrial refrigeration industry is under constant growth and invention. Industrial refrigeration is mainly comprised of the components including compressor, evaporator, condenser, and others. The industrial refrigeration system utilizes innovative and modern manufacturing methods that helps in extending product life span and reduces energy expenses.
Impact Analysis of COVID-19 on the Global Industrial Refrigeration Market
In response to the Covid-19 crisis, business sector including petroleum, transportation and textile industry have been forced to reconsider their business policies and models. However, global industrial refrigeration industry has witnessed notable growth, throughout the pandemic period mainly because of their vital role in decreasing post-harvest losses and in the preservation of food products. Due to lockdown situation, the demand for frozen food has extensively increased. Also, large number of people are purchasing groceries in bulk which has led to huge demand for refrigeration systems in order to store them. All these factors have created positive impact on the global industrial refrigeration market, during the COVID-19 situation.
Reinvention of Industrial Refrigeration with Internet of Things (IoT) to Create Enormous impact on the Global Market
IoT is revolutionizing refrigeration industry in terms of productivity, energy efficiency, better customer experience, and cost-effectiveness. Also, IoT integration into industrial refrigeration systems significantly provide the capability of real-time monitoring. Hence, the users will be able to monitor external and internal temperature, power usage, and humidity, through the integrated sensors. Owing to the above-mentioned key factors, the adoption of IoT-enabled industrial refrigeration systems is astonishingly increased across the food & beverage, petroleum, and other industry verticals.
Furthermore, in June 2019 M&M Systems, Inc., a key player in the design and manufacturing of cutting-edge automated control systems, announced its official alliance with Banyan Hills Technologies, the US based IoT company and a trusted partner for innovative software solutions. As per this strategic partnership, the companies have developed M&M Pulse, a smart software solution that provides the industrial refrigeration manufacturers with connectivity, actions, and valuable insights for equipment across individual as well as multiple facilities. Further, in April 2020, Johnson Controls, an Irish-domiciled multinational company, was awarded for the data-driven smart connected chillers solutions. These chillers are built with the new chiller performance index technology (CPI), which enables clients to reduce energy consumption from 10% - 30%.
Such company collaborations and technological advancements are further expected to flourish the market for industrial refrigeration market, in the forecast period.
A Higher Investment Cost of Industrial Refrigeration Framework may Obstruct the Growth of the Global Industrial Refrigeration Market
High energy consumption for industrial refrigeration operations is one of the major reasons restraining the global industry. Furthermore, requirement of high investment in the maintenance of industrial refrigeration systems may restrict the global industrial refrigeration market growth, in the analysis period.
Growing Adoption of Industrial Refrigeration System in Healthcare Sector to Create Enormous Opportunities for the Global Market in the Future
Significantly increasing need for the safe storage of drug molecules and blood derivatives from clinics, pharmacies, hospitals, and diagnostic centers is propelling the growth of the market worldwide. Reduced electrical consumption and maintenance costs, precise temperature control, and 24/7 remote monitoring systems are some of the elements of industrial refrigeration systems driving the demand in the healthcare sector. In addition to this, the increasing government financial support for pharmaceuticals sector as well as medical research is further projected to upsurge the global industrial refrigeration market growth. Moreover, in March 2021, Carrier, an American multinational home appliances corporation, announced to provide advanced warehouse refrigeration systems for critical COVID-19 vaccine cold storage in Europe. The company is supplying the critical temperature control components for an effective and safe cold chain owing to its turnkey capability. Such developments are expected to increase the market revenue in the coming years.
The compressors sub-segment is expected to have the dominating share in the global market and register a revenue of $11,966.9 million by 2028.
Compressors play a crucial role by rising refrigerant vapor pressure in a condenser to allow suitable temperature for food storage and other preservation applications, thereby accelerating the compressor component growth, during the analysis period. Also, the growing focus of companies to innovate advanced compressors to fulfil the diverse demands of customers is projected to fuel the market growth, throughout the analysis period. For instance, in November 2020, Embraco, a notable player in refrigeration technology, announced the launch of the ‘NEX compressors platform’. This compressor plays major role in the multiple applications including ice makers, display cases, beverage coolers, professional kitchen appliances, and blast chillers. Inventions are further expected to propel the compressor sub-segments’ growth, in the analysis period.
Controls sub-segment of the global industrial refrigeration market is anticipated to have lucrative growth, and surpass $3,278.4 million by 2028, with a rise from $2,098.7 million in 2020. Refrigeration system controls play essential part in controlling and optimizing the pressures and temperatures in a refrigeration system. Also, it has capability to automatically adjust the refrigeration’s operation in order to reduce its energy consumption. Hence, the controls sub-segment will have lucrative growth, during the forecast period.
The food & beverage sub-segment of the global industrial refrigeration market is estimated to grow at the most notable CAGR and surpass $16,653.6 million by 2028, with a rise from $11,006.4 million in 2020. The extensively increasing disposable income and changing food consumption trends have resulted in surged demand for frozen and processed food. This rising need for convenience food products has increased the number of refrigerated warehouses worldwide, with enhanced capacity. Moreover, government authorities in developing nations such as India and Brazil are promoting the enhanced cold chain infrastructure through effective schemes as well as by offering subsidies. For example, in September 2020, Indian government approved 27 integrated cold chain projects in 11 states with an investment of $100+ million. These government initiatives toward strengthening warehousing infrastructure facilities and cold storage in developing nations are projected to drive the demand for industrial refrigeration systems in food & beverage applications, in the analysis period.
The Asia-Pacific Industrial Refrigeration Market to be the Most Dominant and Lucrative
Asia-Pacific industrial refrigeration market is estimated to grow at the fastest growth rate and surpass $10,557.5 million by 2028, with a rise from $6,598.7 million in 2020. The significantly growing demand for fresh food products and beverages, combined with financial government support to phase out hydrochlorofluorocarbons (HCFCs) and adopt natural refrigerants in multiple refrigeration frameworks, is projected to drive the demand for industrial refrigeration systems in Asia-Pacific region. For example, in September 2019, Japan’s Ministry of Environment (MOE) announced to request almost $70 million to the Ministry of Finance in order to surge the adoption of natural refrigerant, in the coming years. The natural refrigerant subsidy will be applicable for the industrial segments including food manufacturing, cold storage, and food retail. Such support may also bolster the demand for industrial refrigeration systems, in the Asia-Pacific region, throughout the review period.
Also, the growing trend of online grocery shopping particularly in Singapore, India, and Australia also is likely to fuel the demand for refrigerated infrastructure, which, in turn, may flourish the industrial refrigeration system market in the Asia-Pacific region.
Some of the leading industrial refrigeration market players are Danfoss A/S, Rivacold srl, Clauger, Güntner GmbH & Co. KG, BITZER, DAIKIN INDUSTRIES, Ltd., Johnson Controls International Plc, Ingersoll Rand, Carrier Global Corporation, and EVAPCO, Inc.
Read More
