Industrial Refrigeration Market Expected to Reach $41.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Industrial Refrigeration Market," The industrial refrigeration market size was valued at $21.9 billion in 2020, and is estimated to reach $41.7 billion by 2032, growing at a CAGR of 5.2% from 2023 to 2032. An industrial refrigeration system is one of the primary pieces of machinery in any industry which handles a products that may parish in higher temperature conditions. For example, perishable goods such as food and beverages, and also pharmaceutical products are mostly stored or processed in temperature controlled environments.

Furthermore, various other industries such as petrochemical, power generation, data centers, and others also make use of refrigeration systems to enable their machinery to dissipate heat and remain relatively cooler; thereby ensuring their long life.

Moreover, the industrial refrigeration system is comprised of compressor, and condenser, as well as controls, an evaporator, and many others. Among these, the compressor segment accounted for a higher industrial refrigeration market share in 2020. The second segment is currently undergoing significant growth and is expected to achieve a higher Compound Annual Growth Rate (CAGR) throughout the forecast period. Industrial refrigeration systems utilize various types of refrigerants, such as ammonia, carbon dioxide, hydrofluorocarbons (HFC), hydrochlorofluorocarbons (HCFC), and other alternatives. Out of these segments, the ammonia segment generated a large revenue share in 2020. This is mostly due to the growing need for environmentally friendly refrigerants that are natural and safe for the environment. Countries around the world are making significant initiatives to bring down the use of hazardous and non-eco-friendly refrigerants.

Simultaneously, initiatives to encourage the use of eco-friendly refrigerants. Furthermore, due to increased demand for natural refrigerants, carbon dioxide is predicted to rise at a faster CAGR throughout the forecast period. Furthermore, the market is divided into fresh fruits and vegetables, meat, poultry, and fish, dairy and ice cream, drinks, chemicals, pharmaceuticals, petrochemicals, and others based on the application of industrial refrigeration systems. Among these, the meat, poultry, and fish category held a larger market share in 2020, owing to increased consumption of these items driven by rising disposable income. However, owing to the growing geriatric population which drives demand for pharmaceutical products, it is expected to help the pharmaceutical segment grow with a higher CAGR during the forecast period.

The industrial refrigeration market can be categorized into two primary segments: stationary refrigeration and transport refrigeration. Among these two, the stationary refrigeration sector held the dominant position in terms of revenue in 2020. The surge in demand for refrigeration systems in cold-storage warehouses is a significant factor contributing to this trend. Nevertheless, it is anticipated that the transport refrigeration segment will experience a more pronounced growth rate during the forecast period. This growth can be attributed to the rising volume of international and domestic trade activities.

Moreover, by sales type, the market is segmented into new sales and aftermarket. The new sales segment accounted for a higher market share in 2020; however, the aftermarket segment is anticipated to register a higher growth rate throughout the forecast period.

The industrial refrigeration market is experiencing a surge owing to the growth in population and increase in the consumption of packaged food, beverages, meat products, dairy, and others, included in the food & beverage industry. In addition, upgradation of existing cold storage and updating the industrial cooling systems in developing countries is also driving the industrial refrigeration market. Moreover, the adoption of eco-friendly and energy-efficient refrigerants is a major factor driving the industrial refrigeration market. However, high maintenance and operating costs act as restraints to the industrial refrigeration market. Contrarily, the technological developments in the refrigeration systems is expected to provide lucrative growth opportunities to the market players in the coming years which eventually lead to industrial refrigeration market growth.

In 2020, Asia-Pacific dominated the global industrial refrigeration market, in terms of revenue. This is mainly attributed to the high concentration of food and beverages, and pharmaceuticals manufacturing facilities, along with a large population which drives the growth of various other industrial sectors. On the other hand, LAMEA is expected to grow dominate the industrial refrigeration market forecast by growing with a higher CAGR during the forecast period, owing to its high potential for industrialization, and growing food and beverages industry.

Contrarily, key players in the industrial refrigeration market are experiencing difficulties in day-to-day operations owing to rising inflation worldwide. The inflation, which is primarily driven by the Ukraine and Russia war has led to higher prices of various raw materials used in the industry including metal, and has also led to fluctuations in the energy and food prices.

Key Findings of the Study

• The report provides an extensive analysis of the current and emerging industrial refrigeration market trends and dynamics.
• Depending on the component, the compressor segment dominated the industrial refrigeration market, in terms of revenue in 2020.
• Depending on the refrigerant type, the ammonia segment dominated the industrial refrigeration market, in terms of revenue in 2020.
• By application, the meat, poultry and fish segment accounted for the highest revenue share in 2020.
• Depending on the type, the stationary refrigeration segment dominated the industrial refrigeration market, in terms of revenue in 2020.
• By sales type, the new sales segment accounted for the highest revenue share in 2020.
• Asia-Pacific dominated the market in 2020, and LAMEA is projected to register the highest growth rate in the coming years.
• The key players within the industrial refrigeration market are profiled in this report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the industrial refrigeration industry.
• The report provides an extensive analysis of the current trends and emerging opportunities in the market.
• In-depth industrial refrigeration market analysis is conducted by constructing estimations for the key segments between 2023 and 2032.