NEW YORK, Sept. 29, 2020 /PRNewswire/ -- In 2019, $340 billion worth of medical drugs and other biotech products were bought around the world. As an efficient cold chain is imperative for drug supply, the growth in the worldwide cold chain is driving the demand for refrigeration solutions. As a result, the global industrial refrigeration systems market size, which valued $26.8 billion in 2019, is set to grow to $41.1 billion by 2030, at a 5.0% CAGR between 2020 and 2030, according to P&S Intelligence.
Apart from the utility of such equipment in the pharmaceutical and biotechnological sector, their importance in the storage and supply of agricultural products, seafood, and frozen food is also helping in the industrial refrigeration systems market advance. As all these products are perishable, adequate coolness needs to be maintained in order to prevent their natural decomposing by microbial action.
The industrial refrigeration systems market is witnessing the ill-effects of the coronavirus pandemic. As a large number of manufacturers in the industry rely on China for components and raw materials, the lockdown in the country has hurt refrigeration equipment manufacturing. On the demand side, the demand for numerous products for which refrigeration is essential has dropped, which has led to low equipment sales.
In the years to come, the compressors category will dominate the industrial refrigeration systems market, on the basis of equipment type. The compressor is the most essential component of refrigerators, which is why they also cost the most. Almost 35% of the purchase price of a complete industrial refrigeration system could be for just the compressor.
Ammonia was the highest-revenue-generating category in the industrial refrigeration systems market in the past, based on refrigerant type. Ammonia-based refrigeration equipment is 20–30% less costly to manufacture than those using other types of gases. In addition, ammonia is also a 3–10% more-efficient refrigerant than other gases, which is why it is popular.
In the immediate future, the highest value CAGR, of 6.1%, in the industrial refrigeration systems market is predicted to be experienced by the chemicals and pharmaceuticals category, under segmentation by application. On account of the increasing prevalence of many diseases, the pharmaceutical cold chain is expanding around the world. Similarly, refrigeration is deployed in the chemical, oil, and petrochemical sectors to dehumidify air, condense gases, and preserve compounds.
Asia-Pacific (APAC), which held the largest share in the industrial refrigeration systems market in the past, would continue doing so in the future. Some of the most industrialized and populated countries are located in APAC, which automatically leads to a high demand for products supplied via the cold chain. Moreover, in order to give a boost to their manufacturing sector, many regional countries are investing in the cold chain. For instance, the Indian government approved a funding of $67.1 million (INR 743 crore) for 27 integrated cold chain projects in September 2020.
Companies Looking at Mergers and Acquisitions for Higher Growth Potential
Players in the industrial refrigeration systems market are signing merger and acquisition agreements to give themselves more chances of growth, with the idea behind several of these strategic moves being:
Expansion of their product portfolio
Catering to a wider customer base
Offering a full range of servicing and maintenance solutions
Targeting food and beverages, packaging, automotive assembly, and medical equipment companies
Increasing their presence across countries
The major companies in the global industrial refrigeration systems market are Carrier Global Corporation, Trane Technologies plc, Dover Corporation, Hussmann Corporation, Johnson Controls International PLC, Daikin Industries Ltd., Industrial Frigo SRL, Midea Group Co. Ltd., Emerson Electric Co., GEA Group Aktiengesellschaft, Danfoss A/S, BITZER Kühlmaschinenbau GmbH, Mayekawa Mfg. Co. Ltd., and Star Refrigeration Ltd.
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APAC Industrial Refrigeration Systems Market
APAC industrial refrigeration systems market forecasted to reach $10,696.1 Million by 2023, according to P&S Intelligence. The market has been witnessing considerable growth, mainly due to factors such as growing food and beverage processing industry and increasing cold chain market.
Middle East & Africa Industrial Refrigeration Systems Market
Middle East & Africa (MEA) industrial refrigeration systems market is expected to reach $2,406.8 Million by the end of 2023, according to P&S Intelligence. Countries, predominantly Gulf Cooperation Council (GCC) in the MEA region are poised for growth in industrial refrigeration systems market owing to rapid commercialization of cold-chain logistics as well as increasing adoption of environment friendly refrigerants.
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