Industrial Refrigeration System Market worth $19 Bn by 2026
Published Date: November 20, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
Industrial Refrigeration System Market size is set to exceed USD 19 billion by 2026, according to a new research report by Global Market Insights, Inc.
Growing concerns related to harmful refrigerant leakages and energy efficiency is expected to drive the industrial refrigeration system industry growth. Growing market trend of adopting advanced refrigeration systems operating with natural refrigerants is set to generate lucrative opportunities.
The integration of advanced technologies, such as AI and IoT, into refrigeration equipment is transforming the industrial refrigeration system market. The upward trend of integrating these technologies into refrigeration systems can be attributed to their various advantages such as enhanced efficiency and increased control. IoT technology allows users to constantly monitor the health of the entire system in real-time.
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Analyst view: “Rising concerns related to environmental impact of toxic refrigerants are increasing the adoption of eco-friendly industrial refrigerators in the market.”
The major market factor restraining the growth of the industrial refrigeration system market is the high initial installation cost associated with these systems. The leading market players offer extended warranties up to five years on the equipment, restricting the new equipment installation. Additionally, the maintenance and repair cost associated with these machines is comparatively lower than the installation of new system, posing a challenge for the new equipment sales. High energy consumption of these systems also is adversely impacting the market representation.
The COVID-19 health crisis has inflicted high losses to the global economy. Several countries across the globe imposed stringent lockdowns and restrictions on movement during the months of March and May 2020. This led to complete halt of several industries including manufacturing, e-commerce, and retail, hampering the product adoption in these sectors. However, the pandemic led to an unprecedented growth in the pharmaceutical industry, creating robust market opportunities. Industrial refrigeration system are likely to witness a rising demand, supported by government policies.
Growing demand for user-friendly controls in the industrial refrigeration system market
The Europe industrial refrigeration controls market is anticipated to expand at over 6% CAGR through 2026. The ability of advanced industrial refrigeration system controls to optimize the pressure and temperature settings with high accuracy is augmenting the market demand. With the integration of connected technologies, such as IoT, controls can also automatically optimize the energy consumption of refrigeration equipment.
Browse key industry insights spread across 170 pages with 186 market data tables & 21 figures & charts from the report, “Industrial Refrigeration System Market Size By Component (Compressor, Condenser, Evaporator, Controls), By Refrigerant (Ammonia, CO2, HFC), By Application (Food & Beverage, Chemical & Petrochemical, Pharmaceutical, Utility), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
High demand for industrial refrigeration in the pharma industry
The Asia Pacific pharmaceutical application held around 25% of the industrial refrigeration system market share in 2019 and is projected to grow at a rapid pace during 2020 to 2026 due to increasing demand for industrial cold storage facilities to store medicines and vaccines. The growing number of infections and diseases globally has improved the market for industrial refrigerators in 2020. The pharmaceutical industry also relies on refrigerated or temperature-controlled systems to preserve and maintain the integrity of products.
Low operating costs and high efficiency augmenting the adoption of ammonia refrigerant
The increasing popularity of ammonia in the market can be attributed to several advantages offered by this refrigerant including low operating costs and high energy efficiency. According to the industry standards, ammonia is considered to be around 3% to 10% more efficient compared to other refrigerants. It also has a zero rating on the Ozone Depletion Potential (ODP) and Global Warming Potential (GWP) index, further proliferating the market expansion.
High demand for frozen food boosting the market revenues in Europe
The Europe industrial refrigeration system market accounted for nearly USD 3 billion in 2019. Growing demand for frozen food in households and professional kitchens due to reliable quality, economy, and sustainability will fuel the adoption of these systems. According to Frozen Food Europe, the Germany frozen food market has grown by around 30% over the last decade due to increasing urbanization and rising consumer spending. Furthermore, stringent government regulations regarding production, processing, and storage of frozen food will drive the product penetration.
Market leaders are laying a strong emphasis on partnerships and collaborations with other players and technology providers to add extensive features and capabilities to their industrial refrigeration systems. Companies are also focusing on launching new products to gain a high market share.
Key players active in the industrial refrigeration system market include Kirloskar Pneumatic, Ingersoll-Rand Plc, Rivacold, Srl, MAYEKAWA Mfg. Co. Ltd, Frick India Ltd. Bitzer, LEWA GmbH, Emerson, Dorin, Johnson Controls, Danfoss, and M&M Systems.