The global industrial refrigeration market is estimated to generate revenue of USD 41.5 billion by 2024 and is expected to witness 6.6% CAGR during the forecast period. Industrial refrigeration systems are extensively being adopted by several industries for cold storage applications, chemical processing and food & beverages industry where materials are required to be maintained under a minimum temperature. These products are extensively in demand for beverage production, HVAC applications, food processing and process cooling. The industrial refrigeration market is observing extensive growth due to its increasing utilization by food & beverage industry, chemical and pharmaceutical industries.
The market is majorly being influenced by developing processed food sector, increasing efforts of developing nation in order to attain energy efficiencies and recognition of natural refrigerants. Moreover, the organizations operating in pharmaceutical sector are undertaking research and development in order to develop new drugs that need industrial refrigeration equipment to store samples. Furthermore, the manufacturers dealing in industrial refrigeration systems are laying greater emphasis upon the establishment of eco-friendly offerings that enhances the freezing efficiency. These factors are thereby strengthening the growth of the industrial refrigeration market.
Insight by Type
The industrial refrigeration market is segmented into industrial racks, evaporator units, industrial heat exchangers, industrial compressors and others. Among all these segments evaporator units have been contributing largest revenue throughout the estimated period and will hold the largest share during the forecast period. Moreover, the industrial racks segment is expected to observe the fastest growth at a CAGR of 7.8% during the forecast period.
Insight by Application
On the basis of application, the industrial refrigeration market is segmented into oil & gas, food & beverage, chemicals & pharmaceuticals and others. Among all these segments food & beverage segment is expected to contribute largest revenue and is also expected to witness a CAGR of 5.8% during the forecast period.
Advancement in energy efficient products, swelling acceptance of natural refrigerants and increasing demand of industrial refrigeration from food processing industry are the major factors contributing towards the growth of the global industrial refrigeration market. Furthermore, flow in global cold chain capacity in the emerging economies is another factor pertaining towards the growth of this market. Moreover, the increasing consumption and production of processed food in the food processing industry of the emerging economies is particularly driving the growth of the industrial refrigeration market.
According to a recent report, it has been observed that the food processing industry in India is attaining significant support from the government authorities. For instance, the Government of India has recently included food processing domain in its very aspiring initiative “Make in India”. These factors are majorly driving the growth of industrial refrigeration market both in developed as well as developing economies.
However, high initial cost of setting up of these refrigeration systems along with other operating expenses is expected to further hinder the growth of the industrial refrigeration market.
Globally industry players are leveraging market growth by offering various modified commercial refrigeration systems. Moreover, there are several strategic developments undertaken in this market by the industry players along with several mergers and acquisitions that are helping them in achieving competitive efficiencies and technological development.
Geographically, Asia-Pacific has been contributing largest revenue throughout the estimated period and will continue to remain the largest market during the forecast period. The region is also expected to witness the fastest growth at 7.9% CAGR in industrial refrigeration market during the forecast period, owing to rapid growth opportunities observed from cold-chain storage infrastructure in various countries of the developing nations.
GLOBAL INDUSTRIAL REFRIGERATION MARKET, BY REGION (2017)
North America is the second largest market and is expected to witness considerable growth during the forecast period. Among all the countries in the region, the U.S. is the largest consumer in industrial refrigeration market due to extensive demand from food & beverage processing sector and refrigerated warehouses. Moreover, increasing installation platform for CO2 cascade storage systems along with excessive adoption and popularity of CO2 based transport storage systems are bolstering the growth of industrial refrigeration in countries such as the U.S., Mexico, and Canada.
Some of the major players in the global industrial refrigeration market include Johnson Controls, GEA Group, Industrial Frigo, Emerson Electric, Bitzer, Danfoss, United Technologies Corporation, Star Refrigeration, Hussmann Corporation, and Dover Corporation.