|Status : Published||Published On : May, 2021||Report Code : VRCH2029||Industry : Chemicals & Materials||Available Format :||Page : 184|
The global condensing unit market was estimated at USD 24.2 billion in 2020 and is expected to rise to USD 38.6 billion by 2025, with a compound annual growth rate of 6.7 per cent.
Condensing unit is another name for the outdoor HVAC unit. These units can either be an air conditioning unit or a heat pump. These are temperature-control devices in air conditioners, refrigerators, heat pumps, and chillers. They move energy in the form of heat by compressing gas and then pump it through a system of coils, further, using the coil to heat and cool spaces. The typical component of this unit includes compressor, fan, and condensing coil. The condensing unit market is projected to register significant growth during the forecast period, owing to their extensive use in cold rooms, milk cooling tanks, fermentation rooms, supermarkets, hospitals, and others.
Insight by Type
Based on type, the condensing unit market is segmented into air-cooled, water-cooled, and evaporative condensing unit. Of all these, the air-cooled condensing unit category is expected to hold the largest share in the market during the forecast period. This is attributed to the various factors in terms of advantages it offers to the users, such as, low maintenance cost, low installation cost, wide commercial applications, rising water scarcity, and others. All these factors are driving the demand of these units in the market, resulting in market growth.
Insight by Application
On the basis of application, the condensing unit market is categorized into commercial, industrial, and transportation. The industrial segment is leading the market and also expected to witness the fastest growth in the coming years. This can be attributed to the increasing demand of advanced refrigeration from different industries in various application areas including power plants, retail stores, dairy cabinets, hospitals, and others.
Insight by Function
Based on function, the condensing unit market is categorized into air-conditioning, refrigeration, and others (heat pumps). Of all these, the air-conditioning category is dominating the market, registering the fastest growth in the market. Owing to the multi-utility of these units in different end-user industries such as industrial facilities, office buildings, schools, and others, the market is expected to witness the significant growth during the forecast period.
Growth of end-user industries in developing countries and improved shelf life of these units is the major factors driving the market growth. The condensing unit market growth is mainly driven by the increasing demand from commercial and industrial sectors which include food manufacturing industries, food retails, commercial refrigeration, and others. Along with that, the increasing commercial complexes, banqueting suites, office space, and others are further expected to drive the growth of the market in the coming years.
The major challenge identified in the condensing unit market is the strict regulations regarding the usage of refrigerants in condensing units. In the recent years, the U.S. Department of Energy (DOE) issued various regulations affecting HVACR equipment manufacturers and they have to adapt these regulatory changes that affect both efficiency requirements and refrigerants. For instance, the F- gas (HFCs, PFCs and SF6) regulation has been revised in 2015 by European Union (EU) Commission for restricting rising emissions that might restrain the condensing unit market.
The condensing unit market is highly fragmented and competitive. The companies are struggling because of the lack of service differentiation, customer loyalty, and market growth. The customers in the market are demanding more transparency and efficient delivery.
Globally, Asia-Pacific is expected to register the fastest growth in the condensing unit market during the forecast period. The factors contributing in the region’s growth are the growth in chemical and power industries. Also, the increasing demand for food processing and storage facilities is also contributing towards the market growth in the region. In Asia-Pacific, China is the largest consumer of these units, owing to the increasing population, which is resulting in increasing demand of these units in order to meet the demand.
Emerson Electric Company, Danfoss, GEA Group, Carrier Corporation, Heatcraft Worldwide Refrigeration, Baltimore Aircoil Company, Officine Mario Dorin, Bitzer, Blue Star, Voltas, Advansor, and Daikin Applied are among the major players operating in the condensing unit market.
Source: VynZ Research
Source: VynZ Research