The Europe Centralized Refrigeration Systems Market Size was valued at $7.9 billion in 2022 and is expected to reach $12.7 billion by 2032, registering a CAGR of 4.8% from 2023 to 2032. A centralized refrigeration system mainly includes components such as compressor, condenser, and evaporator, along with its control systems and other miscellaneous components.
These components cool the space or other processes by distributing the refrigerant through a network of pipes to various evaporators present in the location to be cooled. The refrigerant is then brought back to the compressor, cooled, and then circulated once more.
“The Europe centralized refrigeration systems market experienced decline owing to the outbreak of the COVID-19 pandemic. The retail, hotel, and restaurant venues were shut down for a longer period during this pandemic, eventually negatively affecting the Europe centralized refrigeration systems market. However, the rise in food & beverages, and pharmaceuticals sector drove the market growth, and the market recovered by the end of 2021.”
Market Dynamics
Refrigeration systems are widely used in the food & beverage industries. Due to the rise in demand for packaged and processed food and beverages in developing nations, FMCG product consumption has increased in recent years. Semi-processed foods and beverages are protected from decomposition with the help of industrial refrigerators. Moreover, refrigeration systems provide controlled temperature conditions for keeping perishable products, which aids in retaining freshness and maintaining the taste of processed food products. In addition, the rapid expansion and upgrades in cold storage facilities have led to the increasing need for industrial refrigeration and related equipment in many European countries.
Additionally, cold storage facilities and refrigerated warehouses offer characteristics for blast freezing, tempering, and modified atmosphere storage to a variety of processing sectors, including those in the food and beverage, dairy, ice cream, meat, poultry, and fish, as well as the chemical and pharmaceutical industries. In addition to this, the rise in the healthcare sector in the European region, owing to the rapidly increasing median age of the population, is also driving the market growth.
For instance, according to the European Union, the median age of its population increased from 41.9 years in 2012, to 44.4 years in 2022, an increase of 2.5 years during this period. Thus, various companies involved in the healthcare sector, including pharmaceuticals manufacturing are establishing their plants in Europe. For instance, in March 2023, Evonik Industries, a major supplier of specialty chemicals, opened a new plant in Germany to produce lipids for Pfizer and BioNTech's mRNA COVID-19 vaccine. Lipids must be stored at temperatures below -16°C. Furthermore, in November 2020, one of the largest hospitals in Europe was inaugurated in Spain, named ‘University Hospital of Toledo’. In addition, in March 2022, Cleveland Clinic opened its hospital in the UK.
However, centralized refrigeration systems that are widely used in various industrial applications such as food processing, product preservation, and others, consume enormous amounts of energy to control the temperature in a facility. Additionally, these systems require continuous monitoring to regulate the flow of refrigerant and come with greater maintenance costs. Therefore, it is anticipated that these factors will impede market expansion.
Moreover, the use of IoT-enabled refrigeration solutions has gained prominence for monitoring equipment in processing and storage industries. For instance, Zerynth S.p.A., a company involved in offering IoT enabled devices for industrial applications, offers Wi-Ref, an IoT-enabled solution designed for real-time refrigeration monitoring, including commercial as well as industrial. Similarly, IoT-Labs also offers IoT enabled devices that can monitor temperature, humidity, and other environmental factors, and provide insights on the performance of refrigeration systems. This can provide lucrative growth opportunities to the players in the Europe centralized refrigeration systems market share in emerging countries during the forecast period.
The demand for centralized refrigeration systems decreased in 2020 in the region, owing to low demand from different industries due to lockdowns imposed by the government of many countries. The COVID-19 pandemic led to shutdown of the various end users of centralized refrigeration systems including restaurants, hotels, retail stores, and others, leading to a halt in demand for centralized refrigeration systems. However, rise in food & beverages sector and pharmaceuticals sector prevented the market from taking a steep negative dive.
Fortunately, owing to the introduction of various vaccines, the severity of the COVID-19 pandemic reduced significantly, leading to the full-fledged reopening of businesses involved in the Europe centralized refrigeration systems market. Furthermore, it has been more than three years since the outbreak of this pandemic, and many companies have already shown notable signs of recovery. Contrarily, during the beginning of 2023, the number of COVID-19 cases surged again, especially in China, which brought negative sentiments to the overall global and regional market. In addition to COVID-19, another global event; worldwide inflation, driven by Ukraine-Russia war and quantitative easing done in some parts of the world during COVID-19 has also negatively affected the Europe centralized refrigeration systems market.
Segmental Overview
The Europe centralized refrigeration systems market is segmented into components, refrigerants, end-user industry, and region. By component, it is segregated into compressor, condenser, evaporator, control, and others. Depending on the refrigerant type, it is classified into ammonia, carbon dioxide, F-gases, and others. Based on end-user industry, the market is divided into commercial (hotel, restaurant, catering, and retail) and industrial (refrigerated warehouse, food processing, healthcare, and others). Region wise, it is analyzed across major countries in Europe, including Germany, France, the UK, Italy, Spain, Netherlands, and rest of Europe.
By Component Type,
The Europe centralized refrigeration systems market is divided into compressor, condenser, evaporator, control, and others. Compressors segment accounted for a higher market share in 2022. However, the controls segment is expected to grow with a higher CAGR during the forecast period. Compressors are indistinguishable components of any refrigeration system, as they are essential for compressing the refrigerant to a hot high pressure state. Furthermore, apart from compressors, industrial refrigeration systems comprise various components such as, condensers, evaporators, and controls which are connected via a pipe and tubing for allowing the refrigerant to pass through them. Refrigeration control systems, such as thermostat control, defrost control, and head pressure control are used to control the flow of liquid refrigerant and optimize the temperature & pressure within the refrigeration system. Moreover, other industrial refrigeration components include valves, refrigerant tanks, doors, pumps, pipes, tubes, and OEM equipment. The Others segment is expected to be the largest revenue contributor during the forecast period and the control segment is expected to exhibit the highest CAGR share under the component type segment in the Europe centralized refrigeration systems market during the forecast period.
By Components
Controls segment is projected to grow at a highest CAGR
By Refrigerant Type,
The Europe centralized refrigeration systems market is divided into ammonia (NH3), carbon dioxide (CO2), F gases, and others. The ammonia segment accounted for a higher market share in 2022, owing to the increased demand for natural refrigerants in large industrial plants. However, the carbon dioxide segment is expected to grow with a higher CAGR during the forecast period. The demand for carbon dioxide refrigerant has rapidly increased in the industrial refrigeration market, as various industries prefer using carbon dioxide as a refrigerant where toxicity or flammability is a key concern. Furthermore, F gases refrigerants are being phased out from commercial application due to increasing concerns of environmental issues such as depletion of ozone layer and global warming. Moreover, other natural refrigerants, such as water, air, and eco-friendly refrigerants are used in centralized refrigeration systems.
By Refrigerant
Ammonia segment holds dominant position in 2022
By End User,
The Europe centralized refrigeration systems market is divided into commercial (hotel, restaurant, catering, and retail) and industrial (refrigerated warehouse, food processing, healthcare, and Others). Out of these, the commercial segment accounted for a larger market share in terms of revenue in 2022, owing to the large-scale utilization of centralized refrigeration systems in places such as hotels, restaurants, catering, and retail stores. The commercial refrigeration segment includes varied applications critical in everyday life. If a commercial refrigeration system does not work properly, the entire business is at risk. The hotel, restaurant, catering, and retail venues make large-scale use of a centralized refrigeration system to refrigerate the food content and prevent it from degradation. Such factors are forcing centralized refrigeration manufacturers to come up with strategic development and to increase their market position.
By End User Industry
Commercial segment holds dominant position in 2022
For instance, in March 2023, Danfoss acquired BOCK GmbH, a world leader in CO₂ and low-GWP compressors utilized in cooling and heating applications. Additionally, centralised industrial refrigeration is utilised in a variety of sectors, including the production of polymers, chemicals, and pharmaceuticals as well as food processing. The expanding reliance of industry on refrigeration necessitates the development of increasingly specialised, one-of-a-kind systems that adhere to exacting standards to satisfy the requirements of the specific industry and its operations or the cooling requirements of a community. To meet these requirements, complex systems need thorough analysis, design, and implementation.
By Region,
The Europe centralized refrigeration systems market is analyzed across major countries in Europe, including Germany, France, the UK, Italy, Spain, Netherlands, and the rest of Europe. The rest of Europe region accounted for a higher market share in 2022. However, the UK is expected to grow with a higher CAGR during the forecast period. The rest of Europe includes Switzerland, Finland, Norway, Belgium, Austria, and others, which present many growth opportunities for the Europe centralized refrigeration systems market.
Along with large healthcare sector, food and beverage, and cold-chain logistics industries are witnessing a boom in this region. In addition, in October 2020, it was reported that around $15 million were invested to build a cold storage in Osijek, Croatia. This facility will be used to store food, fruits, and vegetables. Moreover, the UK has a large food and beverages industry, which contributes more than the automotive and aerospace sectors in the country. According to the Food and Drink Federation of UK, in 2021, the total turnover of food & beverage was valued more than $150 billion. Such factors have been instrumental in the increasing growth of the centralized refrigeration systems in the region.
By Country
UK is projected to grow at a highest CAGR
Competition Analysis
Competitive analysis and profiles of the major players in the Europe centralized refrigeration systems market are provided in the report. Major companies in the report include Johnson Controls, Carrier Global Corporation, Emerson Electric Co., GEA Group, Bitzer Kühlmaschinenbau GmbH, LU-VE S.p.A., Danfoss, EVAPCO Inc., Daikin, and Industrial Frigo Srl.
Major companies in the market have adopted acquisition, product launch, business expansion, and other strategies as their key developmental strategies to offer better products and services to customers in the Europe centralized refrigeration systems market.
Some examples of acquisition in the market
In January 2023, Johnson Controls acquired Hybrid Energy AS. Through this acquisition, Hybrid Energy will assist environmental and decarbonization activities in Europe and beyond while providing clients with innovative, cost-effective choices.
In December 2020, Daikin Airconditioning India has acquired the air handling business of Gujarat, India, based Citizen Industries. With this move, Daikin Airconditioning India has enhanced its air conditioning and chillers offering in the region.
Example of expansion and product development in the market
In May 2023, GEA AWP expanded and optimized the refrigeration design program ValveCalc with additional content and functions. The brand-new ValveCalc 7.5 program can also be used to dimension safety and overflow blowoff lines that have pipes, bends, transitions, and other potential components.
Key Benefits for Stakeholders
- The report provides an extensive analysis of the current and emerging Europe centralized refrigeration systems market trends and dynamics.
- In-depth Europe centralized refrigeration systems market analysis is conducted by constructing market estimations for key market segments between 2022 and 2032.
- Extensive analysis of the Europe centralized refrigeration systems market is conducted by following key product positioning and monitoring of top competitors within the market framework.
- A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
- The Europe centralized refrigeration systems market forecast analysis from 2023 to 2032 is included in the report.
- The key players within the Europe centralized refrigeration systems market are profiled in this report and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the Europe centralized refrigeration systems industry.
Europe Centralized Refrigeration Systems Market Report Highlights
| Aspects | Details |
 By Components |
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 By End-user Industry |
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 By Refrigerant |
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 By Country |
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Analyst Review
The Europe centralized refrigeration systems market has witnessed significant growth in the past few years, owing to an increase in demand for fresh fruits & vegetables, meat, poultry, fish, dairy & ice cream, beverages, chemicals, pharmaceuticals, and other products. Moreover, the rapid expansion and upgrades in cold storage facilities have led to a higher demand for centralized refrigeration systems and related equipment in various European countries such as Germany, Italy, the UK, and Spain. Industrial refrigerators aid in preventing the decomposition of semi-processed and processed foods and drinks.
Moreover, demand for frozen and chilled foods is increasing due to changes in lifestyles of people in the region. However, the high maintenance cost of the centralized refrigeration system is anticipated to limit the market growth. Contrarily, the integration of the latest advanced technologies such as automation in the freezing technology are providing lucrative opportunities for the growth of the market.
The Europe centralized refrigeration systems market was valued at $7,991.1 million in 2022.
Based on components, the compressors segment holds the maximum market share of the Europe Centralized Refrigeration System market in 2022.
The Europe Centralized Refrigeration System market is expected to reach $12,771.7 million by 2032, registering a CAGR of 4.8% from 2023 to 2032.
: Rise in the commercial real estate industry and surge in refrigeration projects in industries are the key trends in the Europe Centralized Refrigeration System market.
The product launch is key growth strategy of Europe Centralized Refrigeration System industry players.
The company profile has been selected on factors such as geographical presence, market dominance (in terms of revenue and volume sales), various strategies and recent developments.
Rise in cost of raw materials are the effecting factors for Europe Centralized Refrigeration System market.
The end users of the Europe Centralized Refrigeration System include commercial and industrial.
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