Global Industrial Refrigeration Market expected to grow at a expected to grow at a ~7% CAGR during 2022 to 2028, with market size of ~US$ 30 billion by 2028 - Ken Research

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Global Industrial Refrigeration Market expected to grow at a expected to grow at a ~7% CAGR during 2022 to 2028, with market size of ~US$ 30 billion by 2028 - Ken Research

According to Ken Research Analysis, the Global Industrial Refrigeration Market was valued at ~US$ 15 billion in 2017, it is estimated to be ~US$ 20 billion in 2022 and is expected to grow at a ~7% CAGR during 2022 to 2028, with market size of ~US$ 30 billion by 2028, due to the increased usage of packed and processed food and the need to prevent spoilage are causing the high demand for Industrial Refrigeration.

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Growth in the industrial refrigeration market is attributed to the increased use of natural refrigerant-based refrigeration as a result of stringent rules and regulations and the rising need for refrigerant for mass-produced cooling, frizzing, and chilling of food.
According to National Renewable Energy Laboratory (NREL), if a natural refrigerant system costs US$ $10,000 which is more than the baseline system, and the natural refrigerant system is expected to cost $2000 less per year to operate then it will pay back in 5 years.
Furthermore, a rise in the number of refrigerated warehouses with increased capacity propels the market growth. It is majorly due to the constantly expanding population and rising demand for frozen and processed foods. According to American Frozen Food Institute, online frozen food dollar sales climbed 75% in 2020, with frozen dinners/entrees, beef, poultry, and seafood being the top online sellers.
High maintenance cost, acts as one of the major challenges for the industrial refrigeration market. According to the United Nations Environment Program (UNEP), RACHP (Refrigerator, Air-Conditioning, and Heat pump), lifecycle costs are segmented into 3 categories, namely, maintenance 75%, capital cost 15%, and electricity 10%.
During the ongoing COVID-19 pandemic, pharmaceutical, and the food and beverage sectors were operating at full capacity, raising the demand for industrial refrigerators and cold storage systems to store food products and vaccines. According to Pfizer, the COVID-19 vaccine should be kept in the refrigerator between 2 and 8 degrees Celsius for up to one month.

Key Trends by Market Segment

By Component: The compressor segment held the largest market share of the global industrial refrigeration market in 2021, owing to high-pressure ranges of up to 30,000 PSI, energy efficiency, and the availability of oil-free and oil-flooded varieties.

Compressors play an important role by increasing refrigerant vapor pressure in a condenser which helps in maintaining temperature for storage of products and other preservatives.
In January 2020, Emerson Electric Co., an American manufacturing company launched a new product line of compressors, for industrial and commercial refrigeration. The product range of compressors is optimized with low (Global warming potential) GWP refrigerants so that the company can meet the standards and regulations established by the Department of Energy (DOE).
In November 2020, Embraco announced the introduction of the "NEX compressors platform" this platform will provide a powerful compressor for commercial use. NEX will be having a greater cooling capacity, smaller size, more energy-efficient, and lower noise.

By Refrigerant Type: The ammonia segment held the largest market share of the global industrial refrigeration market by refrigerant type in 2021, due to the increase in the use of natural refrigeration which is less harmful to the environment.

The high critical temperature of ammonia (NH3) enables low-pressure production. Ammonia is widely utilized in industrial refrigeration owing to its cost-effectiveness and favorable thermodynamics. Both Ozone Layer Depletion Potential (ODP) and Global Warming Potential (GWP) of ammonia are zero. A refrigeration system driven by ammonia is 10%-20% less expensive than a typical refrigeration system.
A low-cost packaged ammonia/NH3 (R717) chiller series has been introduced by M&M Carnot Refrigeration for use in industrial refrigeration applications. With capacities ranging from 30 to 400TR (106 to 1,407kW), the new PureChill series can serve a wide range of applications, including beverage production, food processing, and food storage.
According to North America Sustainable Refrigeration Council (NASRC), in December 2021, it secured a total of US$880,000 in funding support for natural refrigerants grocery projects.
By Capacity: The 500 kW-1,000 kW capacity segment held the highest market share in 2021, due to its extensive usage in the food and beverage industry for storing and preservation of products.
500 kW-1,000 kW capacity provides the cooling capacity which is important for industries such as food and beverage as it is used for storing and processing food. This capacity is also required for dairy products for increasing the shelf life and minimize the wastage of products.
According to the U.S Department of Agriculture in 2021, the major contributors to the overall value added in the food sector are the production of beverages (16%) and the processing of meat (19%). These products need high-capacity cooling to prevent spoilage, leading to the market's growth.

By End-User: The food & beverage segment accounted for the largest market share in 2021, owing to the rising popularity of frozen food.

The rise in the demand for packed and frozen food is one of the major factors for the growth of the food & beverage segment. In March 2022, according to indiareailing.com, India's leading Retail Intelligence portal packed frozen food has been growing at a healthy rate of 20% which has attracted various companies such as ITC and Indian companies to start manufacturing packed and frozen foods.
Refrigeration transport is a method for transporting goods using temperature-controlled trucks this method is mainly used in the food and beverage sector to transport food without getting spoiled. For instance, in September 2020, the government of India approved 27 cold chain projects with an investment of more than US$ 100 million.
The market growth for industrial refrigeration is being driven by the increased need for food products to be stored and preserved for export across international borders. According to market data provided by the Food & Drink Federation (FDF), food and beverage exports to the UK increased by nearly 10.7% in 2019, reaching up to US$ 7.4 billion.

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By Geography: North America accounted for the largest market share in 2021 of the global Industrial Refrigeration market due to the presence of a large number of Industrial refrigeration companies such as Emerson Electric Co., Baltimore Aircoil Company, and Lennox International Inc.

The growth of the North American market is due to the increasing demand for industrial refrigeration in end-user industries such as chemical, pharmaceutical, and food and beverage industries.
According to the American Frozen Food Institute, frozen foods are a COVID-19 powerhouse in 2020, the category accounted for US$ 65.1 billion in the retail sector.  This is a 21% increase compared to 2019.

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Competitive Landscape

The industrial refrigeration market is competitive with ~150 players which include globally diversified players, regional players as well as a large number of country-niche players having their niche in industrial refrigeration.

Country-niche players control about 45% share of the total competitors by type, while regional players hold the second largest share. Some of the major players in the market include Emerson Electric Co, Baltimore Aircoil Company, Bitzer, Daikin Industries Ltd., Danfoss, GEA Group AG, Ingersoll Rand, Gunter GmbH & Co. KG., Johnson Controls, Lennox International Inc., LU-VE Group, Mayekawa.

Recent Developments Related to Major Players

In January 2021, Daikin acquired ABCO to expand its distribution channel in New York, New Jersey, and the surrounding states. ABCO is the leading distributor of refrigeration systems and HVAC in the North-Eastern United States.
In June 2021, Johnson Controls has diversified its product portfolio by adding a new product Quantech QWC4 Water-Cooled Screw Chiller, which uses various speed drive technology which helps in reducing the cost of carbon emission by 30% as compared to traditional chillers.
 In March 2021, Emerson Electric Co. launched a range of two-way and three-way solenoid valves that support original equipment manufacturers' (OEMs) need to develop more compact machines and equipment without compromising fluid control performance.

Conclusion

Global industrial refrigeration market is forecasted to continue an exponential growth that is witnessed since 2017, due to the increasing demand for industrial refrigeration and a rise in government investment in cold chain infrastructure causing the market growth. Though the market is competitive with ~150 players; few global players control the dominant share and regional players also hold a significant share.

Note: This is an Planned/On-Demand report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients and report delivered within a maximum of 2 working weeks.

Ken Research has recently published report titled, Global Industrial Refrigeration Market Size, Segments, Outlook, and Revenue Forecast 2022-2028 The Industrial Refrigeration Market is segmented by Component, Refrigerant Type, Capacity, and End-User. In addition, the report also covers the market size for each of the four regions in the industrial refrigeration market. The revenue used to size and forecast the market for each segment is US$ Billion.

For more information on the research report, refer to the below link:

https://www.kenresearch.com/business-research/global-industrial-refrigeration-market-outlook-2028/

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This release was published on openPR.