Industrial Refrigeration System Market 2025 by Types, Application, Technology, Opportunities, End Users and Regions

Industrial Refrigeration System Market to 2025 - Global Analysis and Forecasts by Refrigerant Type (CO2, HFC, and Ammonia); Equipment (Compressor, Condenser, Evaporator, and Others); and Application (Food Processing, Chemicals & Pharmaceuticals and Refrigerated Logistics)

  • Report Code : TIPTE100001045
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 145
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The industrial refrigeration system market was valued at US$ 20.02 billion in 2017 and is projected to reach US$ 33.66 billion by 2025; it is expected to grow at a CAGR of 6.8% during 2018–2025.

The importance of refrigerant systems in industries such as food processing and storing, chemicals and pharmaceuticals, oil & gas and transportation industry globally has gained prominence over the years. This has led the manufacturers to continuously innovate and design technologically advanced refrigeration systems which marked a significant influence on the end users. Innovations in the field of refrigerants have witnessed several alternatives and up gradations like HFC to Ammonia and then Ammonia to CO2 and again Ammonia (NH3) and CO2 cascade. The HFC used to be the most prominent refrigerant, however, owing to the disadvantages like high ODP (Ozone Depletion Potential) and high GWP (Global Warming Potential), highly inflammable characteristics and toxic nature compelled the manufacturers to replace the refrigerant with Ammonia (NH3). The refrigeration system with Ammonia has gained substantial popularity in the market owing to three distinctive advantages such as natural occurrence and thus is an environment-friendly gas, possesses extreme thermodynamic capabilities and require minimum heat transfer areas which facilitates the manufacturers to use smaller pipelines. In addition, NH3 gas is 15% - 20% more efficient than the traditional HFC refrigerants. However, due to the hygroscopic nature of the gas, it evaporates easily and migrates to the environment which causes hazardous consequences to human as well as machinery in the vicinity due to the toxicity of the gas. Another disadvantage of Ammonia vapors is the inflammable capability when contaminated with lubricating oil from the machinery. In the current scenario, the manufacturers of Industrial Refrigeration System are using carbon dioxide CO2 individually as well as cascading CO2 and NH3 as the refrigerants. The CO2 is easily available and is much cheaper as compared to its counterparts, which helps the manufacturers to reduce the upfront cost of the final product and also increase the operational efficiency of the system. In addition, the cascade of CO2 and NH3 possesses much more efficiency in refrigeration, and also saves huge amounts of energy, thereby helping the end user to reduce their operating costs. These trends are being observed among the global industrial refrigeration system manufacturers, which is heavily impacting on the growth of the system presently.

The future of market for industrial refrigeration system market is promising, as the research centers are continually innovating new technologies and researching on replacing traditional refrigerants in order to enhance the technicalities of the machinery and to reduce environmental hazards. As a result, technologically enriched sensors systems are being developed and integrated, which is expected to attract the significant number of industries in the coming years.

Lucrative Regions for Industrial Refrigeration System Market

Lucrative Regions for Industrial Refrigeration System Market
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Market Insights–Industrial Refrigeration System Market

Rising Demand for Packaged Food Storage Capabilities

The trend of consuming packaged foods has increased significantly in the recent years globally, with special marks in North America, and Asia Pacific regions. The consumption of packaged food or frozen food products have grown 50% over the past decade in the US. The consumers in the North American countries are more concerned about the changing lifestyle, consumption convenience, and also health awareness. These factors are catalyzing the demand for packaged foods globally. Packaged foods industry has outperformed in the North America region in recent years, owing to the rapid increase in consumption of savoury and dairy products, confectionery products and others products. Another food product that is catalyzing the demand for packaged food is the meat. The Food and Drug Administration (FDA), the United States under the act Federal Food, Drug and Cosmetic Act (FFDCA) work closely with these food packaging companies in order to deliver the best quality packages. The FDA also implements several rules to omit the unhygienic or unhealthy substances from packaging. Pertaining to the benefit of permission from the US Government, the procurement of packaged foods have increased in the region. The increase in consumption of packaged foods has also grown in the recent times attributing to the substantial increase in retail stores and departmental stores in the region. Owing to the increasing trend of packaged food consumption, several companies are emerging along with well-established companies in the region. The growth of food packaging companies in the region has simultaneously led the region to witness the growth of industrial refrigerators. This is due to the fact that, these industrial refrigerators are capable of maintaining temperatures that vary widely. In addition to temperature variation, these industrial refrigerators use Ammonia and CO2 in their volatile form or cascade form as the cooling agent or refrigerants, which is energy efficient and combination enhances the safety of the food production as well as food packaging and storing areas. Moreover, these packaged foods are also stored in cold storages for longer times with an objective to maintain the freshness of the packaging, which also demands industrial refrigerators in order to maintain the desired temperature for respective food items. Thus, the packaged processing and packaging, as well as storage capabilities, are the major factors triggering the growth of the market for industrial refrigerators in the current scenario.

Refrigerant Type Segment Insights

Based on refrigerant type, the industrial refrigeration system market is segmented into CO2, HFC, and ammonia. Global warming and the changing environmental conditions and the allied governing body regulations play a significant role in the functioning of the industrial refrigeration system market. The refrigerant choice has witnessed gradual changes in the adoptions over the years owing to various compliance demands across the world. Ammonia, and Hydrocarbons were the first choice refrigerant used in this industry until few years back.


Equipment Segment Insights

Based on equipment, the industrial refrigeration system market is bifurcated into compressor, condenser, evaporator, and others. The industrial refrigeration system market is consisting of vital components that are critical for their smooth functioning. Compressors, Condensers, Evaporators, and other smaller components comprise of the industrial refrigeration system.

Application Segment Insights

Based on application, the industrial refrigeration system market is bifurcated into food processing, chemicals & pharmaceuticals and refrigerated logistics. The food processing industries contributed the maximum revenue shares in 2017 in the region, pertaining to the rapid surging demand for frozen foods, chilled-ready meats, confectioneries, breweries, and liquid milk processing among the North American mass. The US is one of the largest consumers of packaged foods and frozen food followed by developed countries in the Europe. Also, other regions of the world such as Middle East, and the developing economies of APAC exhibit changing patterns in the demand of packaged food and food products.

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Industrial Refrigeration System Market: Strategic Insights

Market Size Value inUS$ 20.02 Billion in 2017
Market Size Value byUS$ 33.66 Billion by 2025
Growth rateCAGR of 6.8% from 2018-2025
Forecast Period2018-2025
Base Year2018
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The market players focus on new product innovations and developments by integrating advanced technologies and features in their products to compete with the competitors.
2018:GEA Group signed a EUR 150 million loan agreement running until 2025 with the European Investment Bank (EIB) to finance its research, development and innovation spending.
2018:Carnot Refrigeration entered into a distribution agreement with Emergent Cold Technologies. Under this agreement Emergent Cold will deliver Carnot Refrigeration's CO2 systems to its customers present in several US regions.
2017:EVAPCO, Inc. announced its plan to expand its manufacturing facility in Taneytown by investing US$ 15 Mn.

Industrial Refrigeration System Market – By Refrigerant Type

  • CO2
  • HFC
  • Ammonia (NH3)

Industrial Refrigeration System Market – By Equipment

  • Compressor
  • Condenser
  • Evaporator
  • Others

Industrial Refrigeration System Market – By Application

  • Food Processing
  • Chemicals & Pharmaceuticals
  • Oil & Gas
  • Refrigerated Logistics

Industrial Refrigeration System Market – by Geography

  • North America

    • US
    • Canada
    • Mexico
  • Europe

    • France
    • Germany
    • Italy
    • UK
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)

    • China
    • India
    • South Korea
    • Japan
    • Rest of APAC
  • Middle East & Africa (MEA)

    • South Africa
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Argentina
    • Rest of SAM  

Industrial Refrigeration System Market – Companies Profiles

  • Carnot Refrigeration
  • Emerson Electric Co.
  • United Technologies Corporation
  • Innovative Refrigeration Systems, Inc.
  • Johnson Controls, International Plc.
  • Ingersoll-Rand PLC
  • Evapco, Inc.
  • GEA Group AG
  • Hussmann Corporation
  • Dover Corporation
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Refrigerant Type ; Equipment ; and Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

The List of Companies

1. Carnot Refrigeration
2. Emerson Electric Co.
3. United Technologies Corporation
4. Innovative Refrigeration Systems, Inc.
5. Johnson Controls, International Plc.
6. Ingersoll-Rand PLC
7. Evapco, Inc.
8. GEA Group AG
9. Hussmann Corporation
10. Dover Corporation

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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