Commercial Refrigeration Compressors Market

Commercial Refrigeration Compressors Market Outlook – 2022-2029

[352 pages Report] The global commercial refrigeration compressors market is estimated to be worth around US$ 3.59 Bn in 2022. With surging demand from food and beverages industry, the overall market is projected to expand at a moderate CAGR of 4.5% between 2022 and 2029, reaching a valuation of US$ 4.87 Bn by 2029.

Regionally, East Asia will continue to dominate the global commercial refrigeration compressors market, accounting for a major share of 30.8% in 2022. Growth in the region is attributed to  increasing population, increasing need for advanced food storage, and the expansion of the commercial sector.

2014-2021 Commercial Refrigeration Compressors Market Outlook Compared To 2021-2029 Forecast

The global commercial refrigeration compressors market is set to register a steady CAGR of 4.5% between 2022 and 2029, in comparison to 3.5% CAGR registered from 2014 to 2021.

As per FMI, the global commercial refrigeration compressors market is driven by expanding food retail industry across the globe, advancements in refrigeration compressor technology and rising adoption of refrigeration compressors in logistics and supply chains.

Commercial refrigeration compressors are being extensively used in various applications such food & beverages, transportation, chemical, healthcare and retail food outlets. They provide a suitable temperature which protects sensitive/perishable foods and other chemical products from spoilage.

Increasing adoption of commercial refrigeration compressors to preserve food and other sensitive products across various industries is projected to boost the growth of global commercial refrigeration compressors market over the forecast period.

Annually, millions of tonnes of food get wasted due to lack of proper facilities. According to the Food and Agriculture Organization of the United Nations, an estimated 1.3 billion tonnes food produced globally is lost or goes to waste.

Growing food insecurity issues are compelling consumers to adopt better refrigeration solutions such as compressors across storage and transportation facilities. This, in turn, is  accelerating the growth of commercial refrigeration compressors market.

Amid rising environmental concerns and the implementation of stringent government regulations, key manufacturers are introducing ecofriendly compressors with excellent efficiency. This will positively impact the growth of commercial refrigeration compressors market during the forecast period.

Driven by the aforementioned factors, the commercial refrigeration compressors market is set to expand 1.3X through 2029.

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How Is The Expansion Of Retail Industry Influencing Sales?

Factors such as increasing disposable income, changing lifestyle and rapid urbanization are boosting the growth of the retail industry across the globe. Large investments are being made for developing the retail infrastructure to cater to the rising consumer demand. This is boosting the sales of commercial refrigeration compressors.

Rising number of retail industry sectors such as convenience stores, hypermarkets and supermarket across the globe is creating demand for better refrigeration solutions such as compressors. These places require proper refrigeration facilities for preserving food products.

 Moreover, growing need for transporting various food items from manufacturing industries to retail facilities is also positively impacting the growth in the market.

Country-Wise Insights

What is Driving the China Commercial Refrigeration Compressors Market?

“Rising Food Export is Boosting Refrigeration Compressor Sales”

As per FMI, China is poised to exhibit strong growth of the back of increasing demand for beverage vending refrigerating systems, strong presence of leading market players, rapid industrialization and urbanization, rising government support and growing export business.

Owing to the booming agricultural sector along with rising penetration of modern technologies, China’s food export business is growing at a significant pace. According to the World Integrated Trade Solutions (WITS), China food products export reached a massive valuation of around 32,685,325 thousand dollars in 2019.

As export of food products requires better cooling facilities, refrigeration compressors are being deployed in production facilities, distribution channels and transportation vehicles. This is fueling the growth of commercial refrigeration compressors market in China.

Moreover, the introduction of advanced products with low environment impact and cost-effective features will continue fueling sales in China. Based on the aforementioned factors, a market share of 30.8% has been predicted for East Asia commercial refrigeration compressors market, led by China in 2022.

How will the Growth Unfold in the U.S Commercial Refrigeration Compressors Market?

The U.S. will continue to dominate the North America commercial refrigeration compressors market, accounting for a major share in 2022. Sales are driven by heavy presence of prominent industries and commercial spaces requiring proper refrigeration, advancements in compressor technology and well-established retail sector.

Moreover, rising sales of frozen and packaged foods along with presence of well-established distribution channels is creating lucrative growth opportunities for the market players. According to the United States Department of Agriculture (USDA), the country’s 115,526 food stores sold around US$ 717 billion of retail food and nonfood products in 2019.

In addition to this, growing adoption of refrigeration compressors across the healthcare sector for blood storage and vaccine preservation will continue to boost the growth of commercial refrigeration compressors market in the U.S.

Amid increasing adoption of refrigeration compressors across diverse sectors, a healthy market share of 24% has been projected for North America dominated by the U.S in 2022.

Why is the Demand for Commercial Refrigeration Compressors Rising Across India?

“Expansion of Retail Industry Sectors is Spurring Demand for Commercial Refrigerators and Freezers”

Over the last few years, India has witnessed huge growth in the retail industry infrastructure. Rising population, changing lifestyle, and increasing purchasing power of consumers are spurring demand for packaged and frozen foods.

According to the India Brand Equity Foundation (IBEF), the Indian Retail Industry is projected to reach over US$ 1.8 trillion by 2030. This is anticipated to boost the growth of commercial refrigeration compressors in India.

Growing number of retail stores is creating lucrative prospects within the India commercial refrigeration compressors market. Numerous commercial refrigerators and freezers are being deployed across retail sector including supermarkets, convenience stores and hypermarkets.

Moreover, growing popularity of walk-in refrigeration solutions and refrigerating vending machines in the HoReCa sector is anticipated to drive the market over the assessment period.  

As per FMI, South Asia commercial refrigeration compressors market, spearheaded by India is set to account for a share of 15.7% by 2022.

Category-Wise Insights

Why are Reciprocating Compressors Preferred for Commercial Refrigeration?

“Increasing Preference for Reciprocating Compressors to Boost Sales”

Based on type, the global commercial refrigeration compressors market is segmented into reciprocating, rotary, scroll, screw and centrifugal. Among these, reciprocating segment accounts for a dominant market share on account of its wide usage in various commercial refrigeration equipment.

Reciprocating compressors offer various advantages including low cost, flexibility of use, high pressure generation and superior efficiency and low maintenance cost.

Rising adoption of reciprocating commercial compressors for commercial applications will continue to boost the sales of commercial refrigeration compressors during the forecast period.

Which Type of Cooling Capacity is Most Preferred?

Sales in the up to 1 kW segment are projected to remain high over the assessment period.  Rising adoption of reciprocating compressors falling under this category (upto 1 kW) due to their various advantages is a major factor driving the growth of this segment.

End users are showing a keen interest in compressors with lower cooling capacities i.e., up to 1 kW owing to their reasonable pricing and easy availability. However, the 2-6 kW segment is expected to have a higher CAGR growth as compared to the other segments.

Which End-Use Segment Dominates the Commercial Refrigeration Compressors Market?

“Growing Popularity of Walk in Refrigerators and Freezers to Spur Market Growth”

As per FMI, walk-in refrigerators and freezers segment is poised to grow at a faster pace during the forecast period. This is attributed to the rising adoption of commercial refrigeration compressors across the HoReCa sector.

Walk-in refrigerators and freezers are very large insulated and enclosed spaces used to store or display frozen and perishable foods. They are being extensively employed across hotels, restaurants, and other places where food preservation on a large scale is required.

They provide improved access and can be easily installed. Growing popularity of walk-in refrigerators and freezers for bulk storage of perishable food products will continue to boost the growth of commercial refrigeration compressors market.

However, with growing import and export business, transport-based refrigeration systems segment is anticipated to gain traction at a considerable pace over the assessment period.

Which Refrigerant Type Will Remain Dominant?

By refrigeration, the commercial refrigeration compressors market has been categorized into R290, R404A, R134A, R744, R410A, R407C, and others (R600A, etc.). Among these, the R290 remains the most preferred refrigerant, with sales projected to gain momentum over the assessment period, owing to its various advantages such as extended cooling capacity, better efficiency, and size reduction.

R290 has gained wider popularity during the last few years. It is a refrigerant grade propane used in majority of commercial refrigeration and conditioning units. It has low environmental impact and minimal global warming potential (GWP).

Rising adoption of R290 in commercial refrigeration compressors is anticipated to boost the growth of the market over the forecast period.

Competitive Landscape

The commercial refrigeration compressors market is highly competitive in nature. Leading market players are constantly upgrading their product portfolios. Besides this, they are adopting various organic and inorganic strategies such as mergers, partnerships, collaborations, and acquisitions to gain a competitive edge. For instance:

• In November 2020, Embraco, a global provider of refrigeration technology for the complete domestic and commercial cold chain, and part of the Nidec Global Appliance portfolio of brands, launched new compressor platform “NEX” for commercial applications such as food retail and food services
• In November 2020, Emerson launched a new line of Copeland scroll compressors for commercial applications specifically designed for the refrigerant R32. The new compressor range is an advanced ecofriendly product that will help the manufacturers to enhance their refrigeration process.

Scope Of The Report

Commercial Refrigeration Compressors Market By Category

Type :

• Reciprocating
• Rotary
• Scroll
• Screw
• Centrifugal

Cooling Capacity :

• Upto 1 kW
• 2-6 kW
• 7-10 kW
• 11-15 kW
• 16-20 kW
• 21-30 kW
• 31-40 kW
• Above 40 kW

End Use :

• Transport based Refrigeration System
  • Shipping Based
  • Truck & Trailer Based
• Walk-in-Refrigerators and Freezers
• Reach-in-Refrigerators and Freezers
• Beverage Vending Refrigeration System
  • Drinking & Soda Fountains
  • Beverage Cooling & Dispensing Equipment
  • Beer Dispensing Equipment
• Refrigerated Display Cases
• Ice Machines
• Refrigerated Vending Machines

Refrigeration :

• R290
• R404A
• R410A
• R744
• R134A
• R407C
• Others (R600A, etc.)

Region :

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East & Africa