Industrial Refrigeration Market Overview and Growth by 2030

The industrial refrigeration market size is projected to reach US$ 36.8 billion by 2030 from US$ 19.1 billion in 2022. The market is expected to register a CAGR of 8.5% during 2022–2030. The rising deployment of energy-efficient systems to reduce operating costs and environmental impact is likely to remain a key trend in the market.

Industrial Refrigeration Market Analysis

Industrial refrigeration equipment manufacturers are focused on designing environment-friendly products with improved chilling efficiency. Stringent regulations regarding food safety and quality drive the need for reliable refrigeration solutions, which leads to the increased deployment of IoT-integrated, advanced control systems and environment-friendly refrigerants. Further, the rise in global trade and e-commerce is expanding the need for efficient cold-chain transportation of various products. Hence, industries are increasingly adopting greener technologies, such as natural refrigerants, which are environment-friendly, to align with sustainability goals.

Industrial Refrigeration Market Overview

The industrial refrigeration equipment market has grown steadily due to increasing demand for cold storage, preservation, and transporting perishable goods. Industrial refrigeration equipment is used in a broad range of products used in industrial applications, such as chemical processing, cold storage, and food and beverages, where the materials are required to be kept in a temperature-controlled environment. The market growth is also attributed to the growing approval of natural refrigerants, increasing efforts toward attaining energy efficiency in advanced countries, and a fast-expanding processed food industry. Furthermore, the usage of industrial refrigeration equipment is rapidly increasing in beverage production, food processing, process cooling, and HVAC applications. Thus, the growing number of applications in the food & beverages, pharmaceuticals, and chemical industries fuels the global industrial refrigeration equipment market.

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Industrial Refrigeration Market: Strategic Insights

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Industrial Refrigeration Market Drivers and Opportunities

Increasing Demand for Cold Chain Infrastructure to Favor the Market

The expansion of online grocery and e-commerce delivery services is driving the demand for efficient cold chain logistics. Companies such as Amazon Fresh and Instacart rely on refrigerated warehouses, delivery vans, and last-mile refrigeration solutions to ensure that the products are delivered to customers in optimal condition. Hence, several companies with cold-chain logistics are increasing their capabilities. For instance, in December 2022, a 5,000 metric-ton capacity cold-storage facility commenced operation in Assam, India. This cold storage facility is the largest in the Northeastern region of the country. These facilities significantly require various refrigeration systems; therefore, many companies in the refrigeration market have launched their refrigeration products for the cold-chain industry. Therefore, the demand for cold chain infrastructure is growing due to the increasing international trade of perishable goods, the expanding food industry, and rising consumer expectations for fresh products, which is driving the industrial refrigeration equipment market growth.

Demand for Energy Efficiency and Innovative Solutions

In the pursuit of sustainability and cost savings, energy efficiency has become a primary goal for enterprises that use refrigeration systems. Modern refrigeration technology is rapidly evolving to satisfy these demands. Compressors, a key component of refrigeration systems, are being significantly improved to increase efficiency and minimize energy use.

Innovative refrigeration technologies improve not only energy savings but also entire refrigeration system performance and dependability. As industries strive to optimize their energy use and lower their carbon footprint, these improvements in energy-efficient refrigeration are expected to gain traction.

Industrial Refrigeration Market Report Segmentation Analysis

Key segments that contributed to the derivation of the industrial refrigeration market analysis are setup, carriage, and application.

• Based on type, the industrial refrigeration market is divided into mechanical-compression refrigeration systems, evaporative cooling, absorption, and thermoelectric. The mechanical-compression refrigeration systems segment held a larger market share in 2022.
• By refrigerant type, the market is segmented into ammonia - R717, carbon dioxide (CO2) - R744, and hydrocarbons - HCs. The ammonia-R717 segment held a larger market share in 2022.
• On the basis of application, the market is divided into food and beverages, pharmaceutical, chemical and petrochemical, district cooling, data centers, electricity production, and others. The food and beverages segment held a larger market share in 2022.

Industrial Refrigeration Market Share Analysis by Geography

The geographic scope of the industrial refrigeration market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

The North American industrial refrigeration equipment market is segmented into the US, Canada, and Mexico. The US held the largest share of the industrial refrigeration equipment market in North America in 2022. In the US, various manufacturers of industrial refrigerators are developing products and controller technology for the CO2 industrial refrigeration system. In January 2022, Logix Controls, a US-based manufacturer, launched its refrigeration system controller specifically designed for industrial CO2 refrigeration systems. The Logix controller has been developed in partnership with the South African CO2 refrigeration consultancy Future Green Now (FGN). Logix Controller and Future Green Now (FGN) are focused on developing industrial refrigeration controllers due to the growing use of CO2 refrigeration systems in industrial applications in the US. The new CO2 system controller minimizes the energy consumption of large industrial CO2 system operations and ensures the safest operation.

Industrial Refrigeration Market Regional Insights

The regional trends and factors influencing the Industrial Refrigeration Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Industrial Refrigeration Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Industrial Refrigeration Market Report Scope

Industrial Refrigeration Market Players Density: Understanding Its Impact on Business Dynamics

The Industrial Refrigeration Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Industrial Refrigeration Market News and Recent Developments

The industrial refrigeration market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the industrial refrigeration market are listed below:

• Honeywell International Inc. announced that Sinopharm Shanghai Biomedical Co., Ltd. subsidiary of China National Pharmaceutical Group Co., Ltd. (Sinopharm)-has adopted Honeywell Solstice N40 (R-448A) refrigerant. The energy-efficient, low global-warming-potential (GWP) solution will be used for cold storage of Sinopharm vaccines used in Shanghai, including the company's COVID-19 vaccine. (Source: Honeywell International Inc, Company Website, April 2022)
• Evapco Inc. acquired Systèmes LMP, Canada, a CO2 refrigeration systems manufacturer. Evapco expects the strategic alliance to support its efforts to meet growing market demand for environmentally sustainable refrigeration systems using natural refrigerants. The acquisition strengthens its chiefly ammonia-based industrial technology offerings through expansion into LMP's carbon dioxide expertise and product offerings. (Source: Evapco Inc., Company Website, February 2022)

Industrial Refrigeration Market Report Coverage and Deliverables

The “Industrial Refrigeration Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:

• Industrial refrigeration market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Industrial refrigeration market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Industrial refrigeration market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the industrial refrigeration market
• Detailed company profiles