Europe Industrial Refrigeration Market Size - By Component, By Refrigerant Type, By Capacity, By End Use Industry, By Distribution Channel & Forecast, 2025 - 2034

Europe Industrial Refrigeration Market Size

The Europe industrial refrigeration market was estimated at USD 3.6 billion in 2024. The market is expected to grow from USD 3.8 billion in 2025 to USD 6.6 billion in 2034, at a CAGR of 6.3% according to latest report published by Global Market Insights Inc.

• The market for European industrial refrigeration system is witnessing strong growth, due to the growth of cold chain logistics and food and pharmaceutical demand. In addition, increasing consumption of frozen and processed foods, coupled with the growing popularity of e-commerce grocery delivery, has created an increased need for dependable temperature-controlled storage and transportation across the continent. According to the European Commission, in 2023, the e-commerce sector in Europe experienced 13% growth, driving incremental demand for new refrigeration solutions. Furthermore, the pharmaceutical market, especially the biologics and vaccine industries depend upon strict cold chain infrastructure to ensure product quality, thus creating a significant investment in modern refrigeration systems.
   
• The modernization of infrastructure and industrial facilities in Europe is also accelerating industrial refrigeration systems. Investment in food processing plants, logistics centers and chemical facilities is being made in markets such as Germany, France and Italy, which are dependent on modern refrigeration technologies. In addition, industrial refrigeration systems are changing due to innovations and digitalization. Innovations like IoT-based monitoring, AI-based predictive maintenance, and intelligent control systems enabling highly automated and energy efficient operation. These advances enhance performance and reduce costs, enhancing attractiveness for industrial applications, especially at scale.
   
• Another important factor driving market growth is Europe's strong regulatory framework that advocates sustainability and transitioning to natural and low-GWP refrigerants. The EU F-Gas Regulation, with a target of reducing fluorinated gas emissions by 66% by 2030, phases out high-GWP HFCs and encourages the adoption of environmentally friendly alternatives, such as CO2, ammonia, and hydrocarbons. The regulatory impetus aligns with Europe's bold decarbonization targets and corporate sustainability commitments. For example, the European Green Deal is targeting substantially net-zero greenhouse gas emissions by 2050, providing additional incentives for sectors to adopt energy efficient and environmentally friendly refrigeration systems. Together, these considerations are the basis for a rapidly evolving marketplace that is responding to environmental, technological, and consumer-driven demands.
   

Europe Industrial Refrigeration Market Trends

• Regulatory pressure and sustainability requirements are reshaping the European industrial refrigeration market. The EU's F-Gas Regulation and climate neutrality commitments are fostering a swift phase-down of high-GWP refrigerators, requiring producers and users to look for more sustainable approaches to refrigeration. These regulations are consistent with Europe’s overall decarbonization strategy, and therefore, sustainability becomes a major consideration in investment decisions. As a result, firms are focusing on systems to minimize emissions, increase energy efficiency, and meet stringent sustainability standards, leading to strong momentum for innovation and modernization across Europe.
   
• In parallel, the market is moving quickly towards natural and low-GWP refrigerants (e.g. CO2, ammonia, hydrocarbons) alongside enhancements in energy efficiency and hybrid systems. These refrigerants meet regulatory compliance and provide long-term financial savings through improved performance and environmental footprint. At the same time, energy saving features, such as variable speed compressors, heat recovery, and links to renewables, are becoming conventional. Hybrid refrigeration, which incorporates mechanical and absorption technologies, is also gaining traction to lower energy use and operational costs. Together, these trends position Europe to be at the forefront of sustainable and technologically advanced industrial refrigeration solutions.
   

Europe Industrial Refrigeration Market Analysis

Learn more about the key segments shaping this market

Download Free PDF

 

Based on refrigerant type, the market is categorized into ammonia (NH3), freon (CFCs, HCFCs, HFCs), CO2 (Carbon Dioxide) and others. The ammonia (NH3) accounted for revenue of around USD 1.5 billion in 2024 and is anticipated to grow at a CAGR of 7.4% from 2025 to 2034.
 

• Unlike synthetic refrigerants, ammonia has zero ozone depletion potential (ODP) and negligible global warming potential (GWP), making it a preferred choice under stringent EU F-Gas regulations aimed at reducing greenhouse gas emissions. Its high energy efficiency allows operators to achieve significant operational savings, which is critical for large-scale applications such as food processing, cold storage, and beverage production.
   
• Additionally, Europe’s focus on decarbonization and long-term compliance with climate targets is accelerating the transition to natural refrigerants, where ammonia stands out as a proven, reliable solution. While safety considerations require proper handling and system design, advancements in leak detection, automation, and safety technologies have mitigated these risks, further supporting its adoption.
   

Based on end-use industry of Europe industrial refrigeration market consists of food and beverage industry, chemical and petrochemical industry, pharmaceutical industry, logistics and cold chain and others. The food and beverage industry emerged as leader and held 47.6% of the total market share in 2024 and is anticipated to grow at a CAGR of 6.6% from 2025 to 2034.
 

• Europe has a highly developed food processing sector, driven by growing consumer demand for frozen, packaged, and convenience foods, as well as strict EU food safety regulations that mandate reliable refrigeration throughout the supply chain.
   
• Additionally, the rise of e-commerce grocery platforms and increasing exports of perishable goods have accelerated investments in cold storage facilities and advanced refrigeration systems. The industry’s focus on sustainability and energy efficiency further supports the adoption of modern technologies such as IoT-enabled monitoring, automated controls, and low-GWP refrigerants, ensuring compliance with environmental standards while reducing operational costs.
   

Learn more about the key segments shaping this market

Download Free PDF

 

Based on distribution channel of Europe industrial refrigeration market consists of direct and indirect. The indirect distribution channel emerged as leader and held 50.6% of the total market share in 2024 and is anticipated to grow at a CAGR of 5.3% from 2025 to 2034.
 

• Many manufacturers prefer indirect channels to leverage established networks that can handle complex installation, maintenance, and after-sales services, especially in diverse markets across Europe. This approach reduces operational burden for manufacturers while ensuring local support and compliance with regional regulations.
   
• Additionally, indirect channels often provide bundled solutions, financing options, and technical assistance, making them attractive for end-users seeking convenience and reliability. As demand for advanced refrigeration systems grows in food processing, pharmaceuticals, and logistics, the role of distributors and integrators becomes even more critical, driving the dominance and continued growth of this channel.
   

Looking for region specific data?

Download Free PDF

 

Germany industrial refrigeration market was worth around USD 1.01 billion in 2024 and is anticipated to grow at a CAGR of 6.6% from 2025 to 2034.
 

• Germany’s pharmaceutical and biotechnology industries are thriving, requiring highly reliable cold-chain infrastructure for vaccines, biologics, and temperature-sensitive drugs. Government regulations and EU directives aimed at reducing greenhouse gas emissions are accelerating the adoption of low-GWP refrigerants and energy-efficient refrigeration systems, creating opportunities for modernization and innovation.
   
• Furthermore, Germany’s emphasis on Industry 4.0 and digitalization is driving integration of IoT-enabled monitoring, predictive maintenance, and automation into refrigeration systems, improving operational efficiency and compliance. Combined with significant investments in logistics hubs, renewable energy integration, and sustainability-driven modernization, these factors position Germany as the key growth engine in Europe’s industrial refrigeration market.
   

Europe Industrial Refrigeration Market Share

• In 2024, the prominent manufacturers in Europe industrial refrigeration industry are Danfoss, Johnson Controls, Emerson, Daikin Europe and Alfa Laval collectively held the market share of ~30%.
   
• Danfoss consistently leads the market by driving innovation in energy-efficient refrigeration components and advanced digital solutions. The company makes substantial investments in smart controls, IoT-enabled monitoring, and variable-speed technologies, all designed to maximize system performance and significantly reduce energy consumption. Its strong focus on low-GWP refrigerants and strict compliance with EU F-Gas regulations firmly establish Danfoss as a sustainability pioneer.
   
• Johnson Controls leverages its extensive expertise in integrated building and refrigeration systems to deliver comprehensive, future-ready solutions that seamlessly integrate sustainability with advanced automation. The company strategically invests in AI-driven predictive maintenance, cloud-based monitoring platforms, and state-of-the-art control systems to enhance operational efficiency and reliability. Through targeted acquisitions, such as CO2 refrigeration specialists, Johnson Controls strengthens its portfolio of natural refrigerant
  solutions.

Europe Industrial Refrigeration Market Companies

Major players operating in the Europe industrial refrigeration industry include:

• Alfa Laval
• Carel
• Daikin Europe
• Danfoss
• Emerson
• EVAPCO
• Frascold
• Haier
• Johnson Controls
• Kelvion
• LU-VE
• Mayekawa Europe
• MTA
• SCM Frigo
• Star Refrigeration
   

Emerson maintains its competitive edge by focusing on cutting-edge compressor technology, IoT integration, and digital transformation. The company develops advanced hermetic and semi-hermetic compressors optimized for natural and low-GWP refrigerators, ensuring compliance with stringent EU regulations. Emerson’s innovative smart refrigeration solutions feature real-time monitoring, predictive analytics, and energy optimization tools, enabling customers to minimize downtime and reduce operational costs.
 

Daikin Europe distinguishes itself with innovative HVAC and refrigeration systems that prioritize energy efficiency and environmental compliance. The company invests heavily in low-GWP refrigerant technologies, hybrid cooling systems, and heat recovery solutions to meet and exceed EU climate targets. By integrating IoT and AI into its systems, Daikin enhances reliability and performance through advanced features like remote monitoring and predictive maintenance.
 

Europe Industrial Refrigeration Industry News

• In 2025, Kaltra introduced advanced compact microchannel condensers designed for compatibility with low-GWP refrigerants (R454B, R32, R290), reinforcing its commitment to sustainability-focused applications.
   
• In May 2025, Embraco launched innovative hermetic compressors optimized for hydrocarbons and low-GWP synthetics, supplemented by comprehensive position papers addressing the EU's transition to sustainable refrigerants.
   
• In January 2025, Emerson, a leading technology and engineering company, completed its acquisition of AspenTech, a premier software provider for process industries, in a transaction worth approximately USD 11 billion. This acquisition is set to significantly enhance Emerson's capabilities in digital transformation and automation, enabling the delivery of integrated solutions that optimize energy consumption, improve operational efficiency, and drive superior performance.
   
• In 2025, GEA unveiled “NEXUS,” a cutting-edge modular compressor solution with integrated heat recovery, leveraging natural refrigerants to maximize energy efficiency and minimize carbon emissions.
   

The Europe industrial refrigeration market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Million Units) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Component

• Compressor
  • Rotary screw compressor
  • Centrifugal compressor
  • Reciprocating compressors
  • Diaphragm compressors
  • Others
• Condenser
• Evaporator
• Controls
• Others

Market, By Refrigerant Type  

• Ammonia (NH3)
• Freon (CFCs, HCFCs, HFCs)
• CO2 (Carbon Dioxide)
• Others

Market, By Capacity

• Below 500KW
• 0.5 - 1MW
• 1-5 MW
• Above 5MW

Market, By End Use Industry

• Food and beverage industry
• Chemical and petrochemical industry
• Pharmaceutical industry
• Logistics and cold chain
• Others

Market, By Distribution Channel

• Direct
• Indirect

The above information is provided for the following regions and countries:

• Germany
• UK
• France
• Italy
• Spain
• Russia
• Rest of Europe