The Global Industrial Refrigeration Market Anticipated to Register a Revenue of $30,250.6 Million, Growing at a CAGR of 5.3% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
The global industrial refrigeration market size is expected to be valued at $30,250.6 million by 2028, surging from $20,117.9 million in 2020, at a noteworthy CAGR of 5.3%.
Impact Analysis of COVID-19 on the Industrial Refrigeration Market
The global market for industrial refrigeration system has witnessed a growth, during the COVID-19 pandemic crisis. This growth is mainly attributed to the massive increase in online grocery sales, which has led to the surged demand for overall industrial cold storage capacity. The pandemic situation has kept consumers in their homes, who are dependent on online groceries to get items like meats, vegetables, and milk. In order to fulfil this demand, there has been an extensive rise in sales of industrial cold storage capacity equipment. These factors have created a significant impact on the global industrial refrigeration market.
Furthermore, in April 2020, Johnson Controls, an Irish-domiciled multinational company, announced to deliver ‘essential products, services and personnel’ throughout the COVID-19 situation. The company has been addressing this crisis by providing HVAC, industrial refrigeration, security systems, and portable fire extinguishing equipment to the hospitals. Such company initiatives are further expected create massive opportunities, during the pandemic situation.
Global Industrial Refrigeration Market Analysis
The global industrial refrigeration market is expected to witness exponential growth, during the forecast years, mainly because, government authorities across are taking initiatives in order to attract investment in the cold chain industry along with strengthen the cold chain infrastructure. For example, in July 2021, Japan government announced to provide almost $9.3 million aid to government of India for building cold-chain infrastructure, during the COVID-19 pandemic. Such factors may propel the demand for industrial refrigeration worldwide, during the analysis period.
In addition to this, the need for industrial refrigeration is expected to increase owing to the significant postharvest economic losses due to gaps in cold chain infrastructure. For instance, as per research of Food and Agriculture Organization (FAO), the agency of the United Nations (UN) that leads global efforts to enhance nutrition & food security, almost 30-40% of total global food production is lost before it reaches the market due to the poor cold chain infrastructure. All these facts and figures are expected to drive the demand for refrigeration systems, which may bolster the global market growth.
However, high installation cost of industrial refrigeration is one of the major reasons hampering the global industrial refrigeration industry, during the analysis period. In addition to this, lack of skilled personnel in the global refrigeration industry is also restraining the market growth.
The demand for sustainable refrigeration systems is exponentially increasing mainly because they have multiple key features such as zero ozone-depleting potential, compact construction, and eliminated greenhouse effect (global warming potentials, GWP = 1). Moreover, initiatives of developing nations towards the natural refrigerant technologies can also augment the adoption of eco-friendly refrigeration systems in industry sector. For instance, in February 2020, The Electricity Generating Authority of Thailand (EGAT) announced the RAC NAMA (RAC: refrigeration and air-conditioning, NAMA: national appropriate mitigation action) fund in order to initiate the climate-friendly transformation in the Thailand RAC. As a result, around 9 industrial refrigeration system manufacturers have adopted natural refrigerants particularly in the manufacturing process. Such effective government initiatives towards green refrigerants may create enormous opportunities across the industrial refrigeration market.
Global Industrial Refrigeration Market, Segmentation
The global industrial refrigeration market is segmented based on product, application, and region.
The component segment is further classified into compressors, condensers, evaporators, controls, and others. Among these, the compressors sub-segment is predicted to have the largest share and cross $11,966.9 million by 2028, with the rise from $7,803.9 million in 2020.
The capability of compressors to regularly maintain a low temperature in industrial refrigeration systems is one of the major factors contributing to their notable penetration. Also, the technological advancements and growing R&D investments across the companies namely Danfoss, Johnson Controls, and GEA have also created positive impact on the sub segment’s growth.
The application segment is further classified into refrigerated warehouse, food & beverage, chemical, petrochemical & pharmaceutical, and refrigerated transportation. Among these, the food & beverage sub-segment is expected to have the dominating share and surpass $16,653.6 million by 2028, with the increase from $11,006.4 million in 2020.
Refrigeration system ensures that the meat, seafood, dairy, and poultry products remain safe and fresh for consumption, which is getting crucial for both health-conscious consumers as well as business reputation. Also, these systems play a vital role in retaining the quality of food products and maintaining energy efficiency as well as cost efficiency. Such key elements are likely to upsurge the demand for industrial refrigeration systems specifically in the food & beverage applications, over the analysis period.
The industrial refrigeration market for the Asia-Pacific region is anticipated to have a lucrative growth. Asia-Pacific industrial refrigeration market accounted $6,598.7 million in 2020 and is expected to register a revenue of $10,557.5 million by 2028.
The extensively increasing need for innovative and compact industrial refrigeration systems is one of the key elements boosting the development of the industry. One of the major reasons behind this growth can be the lack of expertise and the poor cold chain infrastructure. For instance, as per data published by FnBnews.com, India-based notable online food and beverage news platform, in August 2021, Indian agriculture sector loses almost $8-15 billion every year, owing to the nascent cold chain.
Key Players in the Global Industrial Refrigeration Market
Some of the leading global industrial refrigeration market players Danfoss A/S, Rivacold srl, Clauger, Güntner GmbH & Co. KG, BITZER, DAIKIN INDUSTRIES, Ltd., Johnson Controls International Plc, Ingersoll Rand, Carrier Global Corporation, and EVAPCO, Inc.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Industrial refrigeration Market
- Bargaining Power of Suppliers: The suppliers of global industrial refrigeration are high and more globalized. So, there will be less threat from the supplier. Thus, the negotiation power of industrial refrigeration supplier decreases.
Hence, the bargaining power of the supplier is low.
- Bargaining Power of Buyer: Buyers have high bargaining power, mainly because of increasing buyers’ demand for advanced industrial refrigeration in lower cost. Thus, multiple suppliers are providing best yet cost-efficient industrial refrigeration. Hence, the buyers can select the service that best fits their preferences.
The bargaining power of the buyer is high.
- Threat of New Entrants: The startups entering this market are providing advanced solutions to clients. Moreover, these organizations are mainly focusing on the implementation of multiple strategies, brand development, product innovation, and many others.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: There is no substitute available for the industrial refrigeration.
Therefore, the threat of substitute is low.
- Competitive Rivalry in the Market: The ventures operating in the global industrial refrigeration industry are opting for multiple business development strategies to stronghold their market position in the industry. Also, the key players like Johnson Controls International Plc, Ingersoll Rand, and Carrier Global Corporation are investing heavily to provide integrated services to the customers.
Therefore, competitive rivalry in the market is high.