Industrial Refrigeration Systems Market Size, Share & Trends Analysis Report By Component (Compressors, Condensers, Evaporators, Controls, Others), By Capacity (Less than 100 kW, 100-500 kW, 500kW-1000kW, 1000kW-5000kW, More than 5000 kW), By Applications (Refrigerated Warehouse, Food and Beverage, Chemical Petrochemical and Pharmaceuticals, Refrigerated Transportation) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global industrial refrigeration systems market size was valued at USD 19.73 billion in 2022. It is estimated to reach USD 29.07 billion by 2031, growing at a CAGR of 4.4% during the forecast period (2023–2031). The demand for equipment using natural refrigerants has greatly expanded globally in recent years, boosting the expansion of the industrial refrigeration system market.

Equipment and accessories designed to extract heat from large-scale processes or materials and drop the temperature to a specified level are referred to as industrial refrigeration. In industrial refrigeration, condensers come in three varieties: evaporative, water-cooled, and air-cooled. By lowering the temperature to a set point, industrial refrigeration eliminates heat from large-scale processes or materials. Industrial refrigeration can be applied using various techniques depending on factors, including temperature differential, temperature accuracy, and output volume.

Industrial refrigeration applications are frequently utilized in establishments like cold storage facilities for food, dairy processing facilities, beverage production facilities, ice rinks, and heavy industries. These cooling systems are on a grand scale. For refrigerators to function, the refrigerant that circulates inside them must transform from a liquid into a gas. Evaporation is the process that causes this cooling and results in the desired outcome. By putting a few drops of alcohol on your skin, you can verify this procedure for yourself. For the refrigerant gas or fluid to move along the refrigerant circuit, pressure changes must occur in the refrigerant, which is accomplished by the compressor, the main component of refrigeration equipment.

Market Dynamics

Global industrial refrigeration systems market drivers:

Rising global consumption of processed food

Over the past few years, the worldwide population's eating habits have changed significantly due to rising disposable incomes, the onset of industrialization, and other demographic shifts. Over the past ten years, significant changes in eating patterns have also been brought about by improvements in food supply chains, economic growth, and the gradual eradication of nutritional shortages. These elements and the market for fast-growing frozen foods are anticipated to increase demand for commercial refrigeration systems globally shortly. The need for cold storage facilities is rising due to the increased working-class population, busy lives, shifting consumer purchasing habits, accessibility to various frozen food goods across different categories, and better value propositions.

Rising demand for natural refrigerant based equipment

Any refrigeration system relies heavily on refrigerants. A refrigerant is a material that cools a specific space by being employed in the refrigeration cycle. Choosing a refrigerant with the ideal thermodynamic characteristics and high performance takes time. Many refrigerants currently utilized in industrial settings significantly contribute to greenhouse gas emissions and are considered environmentally damaging. Refrigeration systems emit greenhouse gases that warm the planet by absorbing infrared radiation and trapping it in the atmosphere.

The focus of producers and consumers alike has changed from the thermodynamic characteristics of refrigerants to their ozone depletion potential (ODP) and global warming potential (GWP) due to an increased awareness of the risks posed by climate change. As a result, the demand for equipment using natural refrigerants has greatly expanded globally in recent years, boosting the expansion of the industrial refrigeration system market.

Global industrial refrigeration systems market restraint:

Lack of skilled labor and high safety concerns

Lack of qualified labor hinders the expansion of the industrial refrigeration market. For instance, in the North American region, the market is affected by the rising number of retiring baby boomers and the declining number of new people entering the workforce. The industrial refrigeration market has a skills gap due to rapid technological advancements and the absence of fresh talent. In addition, the shift of the younger population toward other sectors, such as commerce, small businesses, and information technology, limits the number of new qualified workers entering the industry. Most employees in the industrial refrigeration market are exposed to hazardous substances in the workplace, resulting in a decline in employment in this field.

Diseases affecting workers' health include metal fumes, bronchitis, Pontiac fever, and other serious conditions. Most workers are exposed to carcinogenic radiation that causes cancer of the lungs, liver, and other organ cancer. The workers should be provided with accurate information regarding the chemicals used in manufacturing facilities and the long-term impacts of exposure to various toxic gases. Proper health and safety requirements enforced by a health and safety professional would aid in reducing health risks to workers and provide the knowledge necessary to limit the health risks, thereby increasing the labor force.

Global industrial refrigeration systems market opportunities:

Use of iot-enabled refrigeration solutions for equipment monitoring

The Internet of Things (IoT) is becoming an integral component of industrial refrigeration, introducing innovative features such as increased efficiency, real-time monitoring, and maintenance and diagnostics. The IoT-enabled systems allow clients to monitor power consumption, internal and external humidity, temperature, and other variables. Using precise refrigeration system trends enables users to make informed decisions regarding energy consumption and operations.

Additionally, the emerging trend among end-users to deploy smart devices to experience better outcomes and benefits is anticipated to boost the industrial refrigeration market. Through real-time monitoring, personnel can manage their systems from their smartphones or other smart devices and set alarms when a predetermined temperature is reached, which is crucial in emergencies. As a result of its increased efficacy and throughput, IoT technology is anticipated to fuel market demand. With intelligent industrial refrigeration monitoring, for instance, systems can operate at full capacity when necessary and with less power consumption when less chilling is required, resulting in cost savings. The IoT technology also allows users to schedule system maintenance as required and anticipate potential issues. In the future, these factors are anticipated to increase demand for intelligent systems.

Regional Analysis

North america dominates the global market

Based on region, the global industrial refrigeration systems market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global Industrial Refrigeration Systems market shareholder and is estimated to exhibit a CAGR of 2.0% over the forecast period. The fact that North America is regarded as one of the most important markets in the world for industrial refrigeration systems may be attributed, in large part, to the contributions made by various types of businesses and industries. These industries deal with food and beverages, pharmaceuticals, chemicals, and cold storage facilities. The strong infrastructure of the region, in addition to its stringent rules concerning food safety and quality, plays a critical role in the large impact that plays in the necessity for industrial refrigeration systems in the region. This is because the robust infrastructure of the region plays a vital role in the substantial influence of the region's requirement for industrial refrigeration systems.

Asia-Pacific is anticipated to exhibit a CAGR of 5.9% over the forecast period. The robust growth of the market for industrial refrigeration systems in the Asia-Pacific area is ascribed to the region's rapid industrialization rate, quick urbanization, and the emergence of the food processing sector. In addition, the rapid rate of urbanization in the region has contributed to expanding the market for industrial refrigeration systems. Countries such as China, India, Japan, and South Korea, as well as the states that comprise Southeast Asia, are significant contributors to the expanding market in this region. South Korea is also one of the states that make up Southeast Asia. Additionally, playing a significant part in this expansion are the countries of Southeast Asia.

Europe, home to several developed nations and large commercial and manufacturing communities, is another significant market for industrial refrigeration systems. Because of this, Europe is such a significant market, which is only one of the many reasons why Europe is so important. The food processing industry in nations such as Germany, France, and the United Kingdom considerably impacts the need for refrigeration systems in this region. These countries include Germany, France, and the United Kingdom. Countries like Germany, France, and the United Kingdom are in this region.

In Latin America, the market for industrial refrigeration systems is affected by a myriad of different elements, some of which include the expansion of the food and beverage sector, the expansion of the pharmaceutical industry, and the growth of cold chain logistics. These are only some of the many elements that come into play while analyzing the market's performance. There is a consensus among industry experts that Brazil and Mexico are the two most important marketplaces in this region of the world.

The Middle East and Africa hold a significant market share. The rise in demand for industrial refrigeration systems in the region that encompasses the Middle East and Africa can be attributed to several different factors, such as the expansion of the food processing sector, the growth of the oil and gas industry, an increased emphasis on energy efficiency and sustainable practices, and so on. These are just some factors that have contributed to this rise in demand.

Segmental Analysis

The global industrial refrigeration systems market is bifurcated into components, capacity, and applications.

Based on the components, the global industrial refrigeration systems market is bifurcated into compressors, condensers, evaporators, controls, etc. 

The compressors segment dominates the global market and is projected to exhibit a CAGR of 6.7% over the forecast period. The industrial refrigeration system market's greatest market share (-41%) was held by compressors. By raising the refrigerant vapor pressure in a condenser to provide a sufficient temperature for food storage and preservation applications, compressors play a crucial role in industrial refrigeration systems, driving the growth of the refrigerant compressor market. The majority of industrial refrigeration systems use reciprocating and screw compressors. However, due to several advantages given by screw compressors, including excellent reliability, little maintenance requirements, and compactness, there has been a growth in the demand for them.

Based on capacity, the global industrial refrigeration systems market is segmented into Less than 100 kW, 100-500 kW, 500kW-1000kW, 1000kW-5000kW, and more than 5000 kW. 

The 1000kW-5000kW segment dominates the global market and is predicted to exhibit a CAGR of 5.1% during the forecast period. As a result of the fact that the cooling capacity ranges are also utilized in warehouse refrigeration for cold storage purposes of other things such as vaccines, petrochemicals, and other items that can be damaged due to the absence of cool storage premises, it is anticipated that the 1000-5000kW market segment will increase at a large rate over the upcoming years. The temperature range that can be found inside the infrastructure of large-scale power plants is between fifty and one hundred degrees Celsius. In other words, the temperature range is between fifty and one hundred degrees Fahrenheit. Because modern refrigeration systems with capacities ranging from 1,000kW to 5,000kW can counteract the effect of high temperatures on shop floors, demand for systems with capacities of the same kind is anticipated to grow in the coming years.

Based on application, the global industrial refrigeration systems market is bifurcated into refrigerated warehouses, food and beverage, chemical petrochemical and pharmaceuticals, and refrigerated transportation. 

The refrigerated warehouse segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 3.4% over the forecast period. As the world's population has grown and the demand for frozen and processed goods has increased, more and better-equipped refrigerated warehouses have been constructed globally in recent years. According to the Global Cold Chain Alliance (GCCA), the total storage space of all refrigerated warehouses worldwide is 616 million cubic meters. The Indian government encourages the construction of cold chain facilities through its Value Addition and Preservation Infrastructure, Mega Food Park, and Scheme for Cold Chain programs. The increase in the usage of industrial refrigeration systems in refrigerated warehouse applications is predicted to occur throughout the projection period due to these initiatives to enhance the infrastructure for cold storage and warehousing in developing countries.

Recent Developments

• February 2023- Frigoblock, a leading transport refrigeration manufacturer and a brand of Thermo King has tested and started deliveries of electric multi-temperature vehicles that are energy-efficient and getting prime preference across the industry
• September 2022- Ryder acquired San Francisco-based start-up Baton to grow supply chain and transportation solution businesses. This acquisition helped to bring new technologies to the market.