The industrial refrigeration market is showing substantial growth

The increase in food demand, growth in the cold storage market, and rise in the number of refrigerated warehouses in the Asia-pacific region have fuelled the growth of the industrial refrigeration market due to expanding cold-chain industries and technological advancements.

The expansion of the industrial refrigeration market is predominantly influenced by several factors, including the growth of the food and beverage and pharmaceutical sectors, the expansion of cold-chain industries, and the surge in industrialisation across developing economies. The global size of the industrial refrigeration market, valued at $24.7 billion in 2022, is forecasted to attain $41.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.2 percent between 2023 and 2032. Industrial refrigeration systems find widespread application across diverse industries such as food and beverage processing, cold storage facilities, chemicals, pharmaceuticals, and other sectors that require controlled temperatures for storing and transporting products. By utilising these systems, industries can uphold the quality, freshness, and durability of perishable goods, thus ensuring smooth industrial operations.

The escalating pace of global trade is also expected to drive the demand for cold-chain industries. The World Trade Organization reports that the overall value of international trade involving physical goods reached $25.3 trillion in 2022, with projected growth of 1.7 percent in 2023 and a substantial expansion of 3.2 percent in 2024. A notable portion of this trade involves perishable goods necessitating specific temperature conditions to maintain their integrity and prevent spoilage. Sectors like pharmaceuticals, frozen and non-frozen food and beverages, and chemicals, among others, are particularly reliant on such temperature-controlled transportation.

However, stringent environmental regulations imposed by governments worldwide on refrigerants with harmful ecological impacts could impede market growth. For instance, the U.S. government plans to prohibit high GWP refrigerants like R134a, R410A, and R407C in new chillers starting January 1, 2024. Despite these challenges, opportunities for market growth lie in technological advancements within refrigeration systems. Technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and cloud connectivity are integrated into industrial refrigeration, enhancing efficiency and design. For example, Danfoss’s iMCHE technology enables multiple circuits to utilise a single coil’s heat transfer area, leading to an efficiency increase of over 20%. The CO2 Adaptive Liquid Management (CALM) Solution also enhances Danfoss’s Refrigeration offerings.

In 2022, the ammonia segment held the largest share in the industrial refrigeration market in terms of revenue, while the carbon dioxide segment is predicted to exhibit higher growth with a promising CAGR during the forecast period. The Asia-Pacific region dominated the global market revenue in 2022 and is projected to maintain its lead. Conversely, the LAMEA region (Latin America, Middle East, and Africa) is anticipated to emerge with significant growth potential in the coming years. The industrial refrigeration market in Asia-Pacific is rapidly advancing due to heightened food demand, an expanding cold storage market, and the proliferation of refrigerated warehouses, especially in countries like China and Japan. Meanwhile, the increased demand for frozen and processed foods in the LAMEA region has fueled the industrial refrigeration market’s growth.

Reference: https://www.alliedmarketresearch.com