USD 21.5 billion
Industrial Refrigeration Market Size, Share, and Growth Analysis
Industrial Refrigeration Market By Component (Compressor, Condenser), By Refrigerant Type (Ammonia, CO2), By Application (Refrigerated Warehouses, Fruit And Vegetable Processing), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45B2201 |
Region:
Global |
Published Date: January, 2025
Pages:
162
|Tables:
92
|Figures:
74
Format -
Industrial Refrigeration Market Insights
Global Industrial Refrigeration Market size was valued at USD 21.5 billion in 2023 and is poised to grow from USD 22.53 billion in 2024 to USD 32.79 billion by 2032, growing at a CAGR of 4.8% during the forecast period (2025-2032).
The industrial refrigeration market growth is primarily driven by the increased demand for new and small sizes of refrigeration systems; growing government support to strengthen cold chain infrastructure in developing economies; and more demand for eco-friendly refrigerant-based refrigeration systems due to strong regulatory policies. Increasing consumption of processed and packaged food & beverages along with the need to avoid spoilage is further boosting the industrial refrigeration market growth. Widespread concerns over global warming impacts have compelled manufacturers to prioritize natural refrigerants instead of harmful coolants. The forecast period is expected to be affected by the introduction of better and advanced cold chain systems worldwide.
This type of refrigeration is used for sectors like food & beverage, retailing, processing, and chemicals. This includes systems commonly used in applications, including cooling storage of cold food areas, beverage processing, dairy processing along with ice rinks as well as large industrial applications. It assists in heat extraction from materials as well as large-scale processes, whereby you can bring the temperature down to a specific level. Globally, online grocery sales are expanding at a speedier rate than traditional grocery market channels. Cold chains also address spoilage on the farm to decrease food loss at such an early stage, through solutions ranging from evaporator/passive coolers to absorption refrigerators. The market is also growing due to agro-climatic conditions, including extreme heat and high temperatures.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Compressor
Fastest Growth
Condenser
Growth Rate
4.8% CAGR
Global Industrial Refrigeration Market ($ Bn)
Country Share for North America Region (%)
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Industrial Refrigeration Market Segments Analysis
Global Industrial Refrigeration Market is segmented by Component, Refrigerant Type, Application and region. Based on Component, the market is segmented into Compressor, Condenser, Evaporator, Control, Vessel Pump, Valves and Auxiliary Equipment. Based on Refrigerant Type, the market is segmented into Ammonia, CO2 and Others. Based on Application, the market is segmented into Refrigerated Warehouses, Fruit And Vegetable Processing, Beverage Processing, Chemical, Petrochemical, and Pharmaceutical, Dairy And Ice Cream Processing, Meat, Poultry, and Fish Processing and Refrigerated Transportation. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Component
The compressor segment is dominating the market with largest industrial refrigeration market share. This is because it is a critical element, responsible for driving the efficiency and performance of cooling systems across different industrial applications. They are essential in circulating the refrigerant, compressing the gas to high pressure, and making it a step for them as part of its refrigeration cycle. The increasing number of food and beverage sectors, development in cold chain transportation, and a plethora of large manufacturing plants are driving the need for compressors. This is because it requires effective heavy-duty cooling machinery to sustain the properties of product or keep it within the safety/legal requirement range. The segment is also driven by the modern technological developments including energy-efficient variable-speed compressors and specialized designs that give lesser carbon footprint. To improve monitoring and predictive maintenance, companies are focused on R&D as well as integration of IoT-based solutions.
According to industrial refrigeration market analysis, the condenser market is witnessing the fastest growth. This is because the condensers plays a crucial role in allowing the heat to be dissipated from the cooling system, which directly impacts both the performance and lifespan of these equipment. A condenser works by removing heat and transforming it into a gas; the gas then returns to a liquid. So, it plays an important role in the refrigeration cycle. Demand is mainly driven by the pharmaceutical, petrochemical and large cold storage industries as all of these sectors need reliable, high density cooling systems. As the need for environmental sustainability increases, condenser technologies are evolving so that they consume less energy, have longer lifespans, and pose lower emission output.
Analysis by End-Use
According to end use, the food & beverage segment is dominating the market in terms of revenue in the market and is likely to lead the market during the industrial refrigeration market forecast. With rise in disposable income and swelling number of working professionals, demand for frozen and processed food products has never been higher. As global food consumption continues to increase, the industry now requires industrial refrigeration systems capable of consistently processing large quantities of food in an efficient and effective manner. Hence, organizations are designing enhanced industrial refrigeration systems that can cater to the specific requirements of food and beverage industry.
Refrigerated warehouse segment is witnessing the fastest growth with a rapidly increasing industrial refrigeration market size. This is because the world population has increased and the requirement for more frozen and processed goods has risen in recent decades, numerous refrigerate warehouses around the globe have been erected fitted with modern equipment. The global cold chain alliance (GCCA) states that there are 616 million cubic meters of refrigerated warehouse space in the world. India government promotes cold chain facility construction through its Value Addition and Preservation Infrastructure, Mega Food Park as well as Scheme for Cold Chain programs. Due to these cold storage and warehouse infrastructure development initiatives in developing nations, industrial refrigeration systems utilized for refrigerated warehouse applications are anticipated to rise throughout the forecast period.
Global Industrial Refrigeration Market Analysis by Component
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Industrial Refrigeration Market Regional Insights
As per the industrial refrigeration market analysis, North America is dominating the global market. The contribution of different types of businesses and industries is one reason why North America is considered an important market globally for industrial refrigeration systems. They include food and beverage, pharmaceuticals, chemicals, and cold storage plants. Along with the strict regulations regarding food safety and quality, the robust infrastructure of the region significantly contributes to high demand for industrial refrigeration in this region. This is due to the contribution of industrial refrigeration systems to regional demand, supported by vibrant infrastructure in the region.
The Asia-Pacific region is expected to witness the fastest growth during the industrial refrigeration market forecast. The market in this region is growing at a rapid pace thanks to the expansion of cold chain storage infrastructure in Japan, India, and China. China is the largest producer of fruits and vegetables worldwide while India ranks second. Agricultural products in both China and India are exported to different regions of the globe. Government bodies are also implementing several programs to enhance cold storage management along with refrigeration and refrigerated warehouse management system within their countries. The requirement for refrigeration across several industries such as pharmaceuticals, food & beverages and cold chain logistics has led to the growth in the size of industrial refrigeration systems market in China. Moreover, the increasing number of cold storage centers and growing need for effective refrigeration technologies are driving the growth of the industrial refrigeration systems market in India.
Global Industrial Refrigeration Market By Geography
- Largest
- Fastest
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Industrial Refrigeration Market Dynamics
Drivers
- Increasing Adoption of Variable Speed Compressors
One of the primary market drivers is the increasing use of variable speed compressors, which help improve energy efficiency and match the suction generators with different cooling demands. Typically, the conventional industrial fixed-speed compressors will continue to function at a constant speed all through causing energy wastage during low-demand periods. In contrast, variable speed compressors respond dynamically to the system load/actual cooling needs leading to superior energy savings, bottom-line temperature control, and better reliability.
- Shift towards Eco-Friendly Refrigerants
Another crucial driver in the industrial refrigeration market is the speedier shift towards environmentally-friendly refrigerants. With regulatory changes and consumer pressures forcing a re-evaluation of traditional synthetic refrigerants with high-GWP used by industrial refrigeration systems, industrial refrigeration is in the cusp of change. Natural refrigerants like ammonia, carbon dioxide and hydrocarbons are gaining more importance providing environmental benefits and compliance with stringent regulations.
Restraints
- High Energy Consumption and Operating Expense
The high capital and operational cost associated with industrial refrigerators acts as a major restraint in the growth of industrial refrigeration market. Adoption of comprehensive refrigeration requires substantial capital outlay, which includes costs of the machinery, installation, and synchronization with existing processes. In addition, these systems cost a lot to operate, mostly because they consume a lot of energy. The maintenance and repairing cost is also high, increasing operational expenses. These costs can be especially daunting for small and medium sized enterprises (SMEs), restricting access to modern, more efficient refrigeration systems.
- Lack of Accessibility
Purchasing and installing the refrigeration systems can be expensive and these costs will vary depending on the size, type, and complexity of your equipment. A small walk-in cooler may be less expensive compared to an industrial refrigeration system. Small businesses are especially discouraged by the upfront cost, which they might not be able to support without having to buy all of the equipment necessary for the refrigerator to run smoothly.
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Industrial Refrigeration Market Competitive Landscape
The industrial refrigeration industry is a volatile and competitive terrain characterised by several players competing for their share of the marketplace. These players are on constantly competing to mark their presence through means of promoting strategic schemes such as partnerships, mergers and acquisitions, along with political backing. The companies are concentrating on developing a new product line that has the potential to reach millions of people in various areas. This market is accustomed to quickly accelerating growth by means of mergers and acquisitions. Industry leaders can expand product offerings or tap into new markets through strategic alliances with other industry players or technology providers. All these methods are leading to competitive practices, innovation, and understand customer behavior. Industry leading are moving towards natural refrigerants like ammonia and CO2 with much less climate impact potential than traditional synthetic refrigerants.
Top Players in Industrial Refrigeration Market
- Danfoss (Denmark)
- Johnson Controls (Ireland)
- Emerson Electric (USA)
- GEA Group (Germany)
- Bitzer (Germany)
- Mayekawa (Japan)
- Frick (USA)
- Star Refrigeration (UK)
- Baltimore Aircoil Company (USA)
- Evapco (USA)
- Carnot Refrigeration (Canada)
- Parker Hannifin (USA)
- Alfa Laval (Sweden)
- Tecnofreddo (Italy)
- Vilter Manufacturing (USA)
- Guntner (Germany)
- Hansen Technologies (Canada)
- Witt (Germany)
- RefPlus (Canada)
- Arctica Technologies (Canada)
Recent Developments
- In February 2023, Frigoblock, a transport refrigeration manufacturer and a brand of Thermo King has already tested and started delivering energy-efficient electric multi-temperature vehicles which will become the first choice among the industry.
- In April 2024, combining evaporative liquid recirculation performance with the direct expansion (DX) design and technology to create low-charge ammonia systems is how Evapco describes its Ejet system, which it calls "the best of both worlds."
- In May 2024, Isuzu Commercial Truck of America has announced an all-electric NRR EV truck integrating the Thermo King e300 transport refrigeration unit. Presenting new ideas for EV powertrains this week at the Advanced Clean Transportation Expo in Las Vegas.
Industrial Refrigeration Key Market Trends
- Introduction of Green Refrigeration Technologies: One of the key areas where industrial refrigeration compressor market is witnessing wide transformation is the emergence of environmentally sustainable refrigeration technology. Green technology includes energy recovery systems, waste heat use and sustainable design principles. It also encompasses environmentally friendly refrigerants. This industrial refrigeration market trend is in accordance with the global transition towards sustainable development to reduce the environmental burden being imparted by industrial refrigeration systems, while also promoting circular economy practices.
- Incorporation of IoT for Smart Monitoring: One of the promising industrial refrigeration market trends is IoT powered smart monitoring and control. Advanced compressors with IoT capabilities can ensure real-time tracking of important parameters and predictive maintenance along with remote diagnostics. This trend increases system reliability, reduce downtime, enable industries using data-driven mechanisms for effective energy consumption and overall performance.
Industrial Refrigeration Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, industrial refrigeration industry growth is driven by rise in demand for cold storage facilities & refrigerated warehouse applications across various industries, including beverages, chemicals, petrochemicals and cold-chain logistics. The popularity of CO2 refrigeration is increasing as they are effective, environmentally friendly, and energy-efficient. Advanced industrial refrigeration is incorporating big data, artificial intelligence (AI) and machine learning to enhance their overall efficiency and functionality. Refrigerants, such as ammonia and carbon dioxide are commonly employed in the industrial refrigeration operations. The adoption of the variable speed drive, heat recovery system, and renewable energy sources like solar wind power to minimize carbon footprint together with operational costs allows energy-efficient industrial refrigeration in various industries.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 21.5 billion |
| Market size value in 2032 | USD 32.79 billion |
| Growth Rate | 4.8% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Industrial Refrigeration Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Industrial Refrigeration Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Industrial Refrigeration Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Industrial Refrigeration Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Industrial Refrigeration Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Industrial Refrigeration Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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