The Global Centralized Refrigeration Systems Market size is expected to reach $43.6 billion by 2030, rising at a market growth of 5.4% CAGR during the forecast period. In 2022, the market attained a volume of 35,14,799 Units experiencing a growth of 5.2% (2019-2022).
F-Gas refrigerants have been a focal point in the market due to their environmental impact and regulatory implications. Therefore, F-Gas segment captured a $2,898.1 million revenue in the market in 2022. These refrigerants, primarily hydrofluorocarbons (HFCs), have a high global warming potential (GWP), contributing significantly to climate change when released into the atmosphere. As a result, there has been a concerted effort to phase out or reduce the use of F-Gas refrigerants in centralized refrigeration systems. Some of the factors affecting the market are rapid expansion of the food and beverages sector, technological advancements in centralized refrigeration and high initial and maintenance costs.
The global population's growing demand for food and beverages has led to increased production, storage, and distribution requirements. CRS is essential for preserving the quality and safety of perishable products, including fresh produce, dairy, meat, and frozen foods. Producing and storing beverages, including soft drinks, juices, and alcoholic beverages, require specialized refrigeration solutions. CRS systems are tailored to the specific needs of beverage manufacturers. The rise in the food and beverages industry substantially impacts the demand. Factors such as increasing consumption, food safety regulations, cold chain logistics, retail expansion, customization, energy efficiency, environmental concerns, technological advancements, food processing, pharmaceuticals, the beverage industry, and continuous innovation contribute to the growth within this sector. Additionally, New compressor designs, such as scroll and digital compressors, offer better efficiency and reliability than traditional reciprocating compressors. Digital compressors modulate capacity very efficiently, reducing energy consumption. Technological advancements collectively contribute to more sustainable, efficient, and reliable centralized refrigeration systems. As environmental concerns and energy efficiency standards evolve, further innovations will likely emerge, driving the growth of the market.
However, the upfront cost of purchasing and installing these systems can be substantial. This can be a substantial financial strain, particularly for small and medium-sized firms or organizations with limited resources. High energy consumption by inefficient or outdated centralized refrigeration systems results in elevated operating expenses. This ongoing cost strains the budgets of businesses, making it challenging to maintain profitability. Manufacturers and suppliers of these systems face the challenge of offering competitive pricing while maintaining product quality. The market has price-sensitive buyers who prioritize lower upfront costs over energy efficiency or advanced features.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include The Danfoss Group, Daikin Industries Ltd., Evapco, Inc., Carrier Global Corporation, GEA Group AG, Emerson Electric Co., Bitzer SE, Johnson Controls International PLC, Frigo Group and LU-VE S.p.A. (Finami S.R.L.)
F-Gas refrigerants have been a focal point in the market due to their environmental impact and regulatory implications. Therefore, F-Gas segment captured a $2,898.1 million revenue in the market in 2022. These refrigerants, primarily hydrofluorocarbons (HFCs), have a high global warming potential (GWP), contributing significantly to climate change when released into the atmosphere. As a result, there has been a concerted effort to phase out or reduce the use of F-Gas refrigerants in centralized refrigeration systems. Some of the factors affecting the market are rapid expansion of the food and beverages sector, technological advancements in centralized refrigeration and high initial and maintenance costs.
The global population's growing demand for food and beverages has led to increased production, storage, and distribution requirements. CRS is essential for preserving the quality and safety of perishable products, including fresh produce, dairy, meat, and frozen foods. Producing and storing beverages, including soft drinks, juices, and alcoholic beverages, require specialized refrigeration solutions. CRS systems are tailored to the specific needs of beverage manufacturers. The rise in the food and beverages industry substantially impacts the demand. Factors such as increasing consumption, food safety regulations, cold chain logistics, retail expansion, customization, energy efficiency, environmental concerns, technological advancements, food processing, pharmaceuticals, the beverage industry, and continuous innovation contribute to the growth within this sector. Additionally, New compressor designs, such as scroll and digital compressors, offer better efficiency and reliability than traditional reciprocating compressors. Digital compressors modulate capacity very efficiently, reducing energy consumption. Technological advancements collectively contribute to more sustainable, efficient, and reliable centralized refrigeration systems. As environmental concerns and energy efficiency standards evolve, further innovations will likely emerge, driving the growth of the market.
However, the upfront cost of purchasing and installing these systems can be substantial. This can be a substantial financial strain, particularly for small and medium-sized firms or organizations with limited resources. High energy consumption by inefficient or outdated centralized refrigeration systems results in elevated operating expenses. This ongoing cost strains the budgets of businesses, making it challenging to maintain profitability. Manufacturers and suppliers of these systems face the challenge of offering competitive pricing while maintaining product quality. The market has price-sensitive buyers who prioritize lower upfront costs over energy efficiency or advanced features.
End-user Outlook
On the basis of end-user, the market is divided into commercial and industrial. In 2022, the industrial segment garnered a significant revenue share in the market. The expansion of the industrial CRS is expanded by factors like the development of the manufacturing sector, the demand for temperature-controlled solutions in chemicals and pharmaceuticals, the importance of waste heat recovery, environmental regulations, and a focus on resource conservation. As industrial processes become more sophisticated and demanding, the role of CRS in ensuring efficiency and reliability is increasingly significant. CRS plays a vital role in maintaining optimal conditions for these industries. As these sectors grow and evolve, there is a corresponding need for advanced and scalable centralized refrigeration systems.Refrigerant Outlook
Based on refrigerant, the market is classified into F-Gas, carbon dioxide, ammonia, and others. The carbon dioxide segment acquired a substantial revenue share in the market in 2022. CO2 is a natural refrigerant with a very low global warming potential (GWP) of 1, which makes it an environmentally friendly choice. Many industries and businesses seek to reduce their carbon footprint in light of worries regarding greenhouse gas emissions and climate change growth. The adoption of CO2 refrigeration systems aligns with these sustainability goals. The carbon dioxide segment is expected to grow in the market due to its environmental benefits, regulatory compliance, energy efficiency, cost savings potential, technological advancements, relevance in cold chain logistics, consumer preferences, and industry-wide efforts to promote sustainability.Component Outlook
By component, the market is categorized into compressors, controls, condensers, evaporators, and others. The compressors segment covered a considerable revenue share in the market in 2022. Compressors are at the heart of refrigeration systems, compressing and circulating refrigerant gases. Manufacturers are continuously developing more energy-efficient compressors to meet sustainability and regulatory requirements. High-efficiency compressors significantly reduce the energy consumption of centralized refrigeration systems, leading to cost savings for businesses and reducing their carbon footprint. As energy efficiency becomes a primary concern for many industries, adopting energy-efficient compressors drive market growth. As businesses increasingly prioritize sustainability and efficiency, innovative compressor solutions will remain a focal point for market expansion.Regional Outlook
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region led the market by generating the highest revenue share. The APAC region contains some of the world's fastest-growing economies, such as China, India, and Southeast Asian nations. As these economies expand, there is an increased demand for cold storage and refrigeration solutions to support various industries such as food and beverage, pharmaceuticals, and logistics. Rapid urbanization in APAC countries has led to many supermarkets, hypermarkets, convenience stores, and restaurants. These retail and food service establishments rely on CRS for refrigeration and storage, contributing to market growth. The market expansion in this region is driven by changing consumer habits, urbanization, food safety regulations, the growth of pharmaceutical and healthcare sectors, the expansion of the cold chain, environmental concerns, government initiatives, technological advancements, infrastructure development, and healthcare awareness. As these trends continue, APAC's market is expected to remain robust and dynamic.The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include The Danfoss Group, Daikin Industries Ltd., Evapco, Inc., Carrier Global Corporation, GEA Group AG, Emerson Electric Co., Bitzer SE, Johnson Controls International PLC, Frigo Group and LU-VE S.p.A. (Finami S.R.L.)
Strategies deployed in the Market
- Dec-2021: Daikin rolled out ATMOSPHERA with R-32 Refrigerant. The new system has an R-32 refrigerant from Daikin North America and is an excellent, new single-zone system that has a lower GWP, is more efficient, and may assist in reducing end-user electric bills compared to R-410A models.
- Sep-2021: Danfoss established a center of excellence for green refrigerants at its facility in Chennai, India. Through this, the company aimed to bolster the development and usage of low-GWP refrigerants in India, including CO2 (R744) and other natural refrigerants.
- May-2021: Johnson Controls took over Cool Solution, a prominent service provider of air conditioning and refrigeration with offices in Cardiff and Tewksbury. Through this acquisition, the company would expand its HVAC offering across various customer segments. Moreover, the company would also benefit from the design and project management capabilities of Cool Solution.
- Mar-2021: Carrier Transicold formed a partnership with AddVolt, an engine-agnostic technology company that develops sustainable transport refrigeration solutions for European customers. Under this partnership, the two companies would work towards the wide-scale adoption of electric trailer refrigeration systems across Europe, which eventually assist in developing a viable pathway for customers to shift from diesel-powered units to more sustainable solutions.
- Nov-2020: Emerson Electric Co. unveiled a new series of Copeland scroll compressors for commercial comfort applications created for the refrigerant R32. The new compressor series will help manufacturers meet demand from the Ecodesign directive and the F-Gas phasedown.
- Oct-2020: Daikin Singapore, a regional division of Daikin Industries Ltd. signed an agreement with SP Group, a leading utilities group in the Asia Pacific, strengthening the future of energy with low-carbon. This agreement consists of joint research and development, product innovation and marketing opportunities in Tengah, and future collaborative opportunities in Singapore and the region.
- Sep-2020: Daikin introduced Conveni-Pack with the natural refrigerant CO2. Daikin's Conveni-Pack cooling system is an all-in-one solution that combines food refrigeration, heat recovery, heat pump, and air conditioning in one unit. The new swing compressor specially designed for CO2 refrigerant with two-stage compression and efficiency of 69.5% uses the most performing hermetic compression currently available.
- Feb-2020: Emerson Electric introduced two new pieces of foodservice equipment: the Copeland Indoor Modular Solution and the Copeland Scroll Digital Outdoor Refrigeration Unit X-Line Series. The Copeland Indoor Modular Solution is a low-maintenance, all-in-one refrigeration system. It combines Copeland Scroll variable-speed compressors with Emerson’s ProAct Connect enterprise management software and lifecycle services. The Copeland Scroll Digital Outdoor Refrigeration Unit X-Line Series provides refrigeration for medium-temperature walk-in coolers and display cases.
- Dec-2019: Daikin teamed up with Honeywell International, a multinational conglomerate company. Under the collaboration, the former company aimed to distribute Honeywell’s lower GWP alternative refrigerant Solstice N40 (R448A) in Japan. Daikin has been selling the product under its Creard brand name. With a GWP of 1273, R448A is a non-flammable replacement for legacy HFCs such as R404A and R22 used in supermarket refrigeration systems.
- Nov-2019: Danfoss India unveiled six new products namely Danfoss Intelligent Purging System (IPS)/Air Purger, Danfoss Gas Detector, Danfoss Plate Heat Exchanger, EKE 400, IFCD Defrost Module, and ICSH 2 Step Solenoid Valve.
- Nov-2019: Johnson Controls acquired the EasyIO Building and Energy Management System (BEMS) product line. The acquisition generated significant growth opportunities as Johnson Controls has been using the EasyIO products in the Americas, Europe, Middle East, and APAC building automation markets, as well as the global HVAC and refrigeration markets.
- Aug-2019: Danfoss came into partnership with master distributor Motors & Armatures Inc. (MARS). Under this partnership, MARS has been serving all HVACR wholesalers throughout North America with the sale and support of aftermarket Danfoss products for air-conditioning and refrigeration applications.
Scope of the Study
Market Segments Covered in the Report:
By End-user (Volume, Units, USD Million, 2019-2030)- Industrial
- Refrigerated Warehouse
- Food Processing
- Healthcare
- Others
- Commercial
- Hotel, Restaurant, & Catering
- Retail
- Ammonia
- Carbon dioxide
- F-Gas
- Others
- Condensers
- Compressors
- Controls
- Evaporators
- Others
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- The Danfoss Group
- Daikin Industries Ltd.
- Evapco, Inc.
- Carrier Global Corporation
- GEA Group AG
- Emerson Electric Co.
- Bitzer SE
- Johnson Controls International PLC
- Frigo Group
- LU-VE S.p.A.(Finami S.R.L.)
Unique Offerings
- Exhaustive coverage
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- Assured post sales research support with 10% customization free
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 5. Global Centralized Refrigeration Systems Market by End-user
Chapter 6. Global Centralized Refrigeration Systems Market by Refrigerant
Chapter 7. Global Centralized Refrigeration Systems Market by Component
Chapter 8. Global Centralized Refrigeration Systems Market by Region
Chapter 9. Company Profiles
Companies Mentioned
- The Danfoss Group
- Daikin Industries Ltd.
- Evapco, Inc.
- Carrier Global Corporation
- GEA Group AG
- Emerson Electric Co.
- Bitzer SE
- Johnson Controls International PLC
- Frigo Group
- LU-VE S.p.A. (Finami S.R.L.)
Methodology
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