Industrial Refrigeration Equipment Market 2020 Is Set for a Potential Growth Worldwide 2023
Author : Rahil mahajan | Published On : 28 Apr 2021
Energy-efficient Industrial Refrigeration Equipment Gain Popularity
Industrial refrigeration equipment is extensively used across a range of industrial sectors, including chemicals, pharmaceuticals, and food & beverages. Over the past decade, in terms of the overall construction and design, industrial refrigeration equipment have evolved at a rapid pace. For several decades, stakeholders in the industrial refrigeration equipment market were reluctant to explore beyond the realms of conventional designs even at new facilities. However, over time, the widening gap between the available technology and existing designs was becoming increasingly evident, which, in turn, led to innovations and major developments in the global industrial refrigeration equipment market.
While improving the capabilities and bringing about innovations in modern industrial refrigeration equipment, owing to mounting environmental concerns, minimizing energy consumption, improving efficiency, and reducing the environmental footprint were some of the key areas that witnessed significant progress in recent times. Moreover, the last few years witnessed a significant rise in the adoption of innovative technologies and the deployment of advanced industrial refrigeration equipment and systems. The use of natural refrigerants in these refrigeration systems is gaining significant popularity and the trend is expected to continue during the forecast period. Due to these factors and substantial growth of end-use industries, the global industrial refrigeration equipment market is expected to reach a value of ~US$ 37 Bn by the end of 2023.
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Ammonia to Remain Most Popular Refrigerant Type
Due to the rapidly evolving regulatory norms and regulations pertaining to environmental safety, the use of natural refrigerants in industrial refrigeration equipment has gained significant traction. Additionally, as natural refrigerants have repeatedly proved their efficacy, safety, and value over the past decade, the demand for natural refrigerants within the industrial refrigeration equipment market has witnessed a significant growth in recent past, and the trend is likely to continue during the assessment period. The noteworthy shift toward energy-efficient and leaner industrial refrigeration equipment hinges its hopes on natural refrigerants, including ammonia (NH3) and carbon dioxide (CO2). While environmental degradation continues to make the headlines in the current industrial refrigeration equipment market landscape, research and development activities are predominantly focused on the discovery of energy-efficient solutions.
Compliance with federal regulations and growing demand for industrial refrigeration equipment are likely to propel the growth of the market for industrial refrigeration equipment during the forecast period. Ammonia is set to remain the most preferred refrigerant type during the forecast period, followed by carbon dioxide and hydrofluorocarbon. Moreover, as ammonia has a zero rating for global warming potential (GWP) and ozone depletion potential, it is expected to grow in the industrial refrigeration equipment market, in terms of demand, market share, and value. The demand for ammonia continues to move an upward trajectory, particularly in multi-zone factory projects, food & beverages sector, and refrigerated warehouses. With significant advancements in ammonia technology, the global industrial equipment market is staring at a greener, safer, and a cost-efficient future.
New Guidelines Likely to Impact Industrial Refrigeration Equipment Market
Refrigerants are required to adhere to mandates set by the Department of Energy. In 2020, original equipment manufacturers, within the industrial refrigeration equipment market are likely to focus on manufacturing equipment that complies with minimum requirements of the annual walk-in efficiency factor (AWEF) standards. The onset of stringent regulations coupled with the growing emphasis on curbing emission has fueled innovations in this field. Energy-efficiency requirements are expected to influence energy guidelines and have a strong impact on the growth of the industrial refrigeration equipment market.
As these regulations continue to evolve, stakeholders in the current market landscape are highly focused on the development of new industrial refrigeration equipment with minimum energy consumption and high levels of efficiency. For instance, in November 2019, Danfoss India launched six new products that are anticipated to revolutionize the standard of applications for cooling industry and industrial refrigeration. The new line of Cold Chain products is developed in accord with the government’s prospective plans to improve safety, reliability, and energy efficiency by increasing the usage of natural refrigerants and leveraging the benefits of state-of-the-art technologies.
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Industrial Refrigeration Equipment Market: Overview
- According to Transparency Market Research’s latest report on the global industrial refrigeration equipment market for the period 2019–2023 (wherein 2019 to 2023 is the forecast period and 2018 is the base year), the refrigerated warehouses segment of the industrial refrigeration equipment market is expected to expand at the highest CAGR. This segment is significantly influenced by the growing investment in cold storage technologies across the globe.
- In the report, revenue generated in the global industrial refrigeration equipment market is provided in terms of volume (Thousand Units), and value (US$ Mn) for the forecast period
Exponential Growth in Cold Chain Industry: Key Driver of Industrial Refrigeration Equipment Market
- The cold chain industry is transforming rapidly, and this transformation can be attributed to evolving consumer expectations in terms of convenience, and fresh and just-in-time delivery. The industry has been making noteworthy investment in technological advancements as well as in geographical expansion in order to meet consumer preferences. This trend is projected to have substantial impact on the growth of the industrial refrigeration equipment market.
- Asia Pacific, North America, and Europe are expected to be key contributors to the market. The Asian market is anticipated to remain promising in terms of growth, due to the presence of countries such as India and China.
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Shortage of Skilled Labor: Key Restraint
- Despite the growing demand for refrigerated warehouses, the market faces a critical challenge of labor shortage. The industry is likely to spend significant amounts on training and development of the labor force due to constant upgrade in refrigeration technologies, which would add to the total operation cost of the new system installation/retrofitting. This factor is most likely to hinder the growth of the market in the coming years.
Industrial Refrigeration Equipment Market: Competition Landscape
- Detailed profiles of manufacturers of industrial refrigeration equipment have been provided in the industrial refrigeration equipment market report to evaluate their financials, key product offerings, recent developments, and strategies.
- Key players operating in the global industrial refrigeration equipment market include
- Ingersoll Rand
- Johnson Control
- Mayekawa Manufacturing Company
- EA Group Aktiengesellschaft
- Emerson Electric Co.
- LENNOX International Inc.
- Parker Hannifin Corp
- LU VE Group
Industrial Refrigeration Equipment Market: Key Developments
Some of the key developments in the global industrial refrigeration equipment market are as follows:
- In November 2019, the cooling segment of Danfoss Industries Pvt. Ltd. introduced six new innovative products at RefCold India 2019 that was held in Hyderabad. These products by the company are projected to bring significant changes to the standard of applications for the industrial refrigeration and cooling industry.
- In April 2019, Ingersoll Rand announced plans to spin off its industrial unit and merge it with Gardner Denver Holdings Inc., which is an industrial pumps and compressors producer.
- In January 2018, Johnson Controls introduced YORK® YZ Magnetic Bearing Centrifugal Chiller, equipped with next generation low-global warming potential (GWP) refrigerant.
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