Commercial Refrigeration Compressors Market - Key Research Findings
- The commercial refrigeration compressors market size in 2018 was US$ 3,077 Mn.
- The commercial refrigeration compressors market is expected to grow at a moderate rate, with a value CAGR higher than 4% over 2019-2029, and is projected to reach a market value of around US$ 5 Bn by the end of the forecast period.
- Various government agencies and organizations are focusing on the reduction of HCFC emissions from refrigerants, which is expected to be the prime factor for the growth of the global commercial refrigeration compressors market.
For an instance:
Under the Title VI of the Clean Air Act, implemented by the Environment Protection Agency (EPA), the U.S. was mandated to reduce the consumption of HCFCs (R-22) by 90% below the baseline by January 1, 2015.
According to EPA guidelines, the consumption of HCFCs is required to drop 99.5% by 2020, and be replaced by alternative natural refrigerants. Prominent players in the market have already launched upgraded products to meet these standards, while some tier-III category players are striving to achieve compatible technologies through various activities such as R&D and partnerships.
Various government and non-government organizations offer rebates to refrigeration system and equipment manufacturers, and foodservice providers for energy-efficient products and services.
Energy Star, a U.S. Environmental Protection Agency (EPA) voluntary programme, offers business and individual rebates, and also helps in protecting the environment by specifying superior energy-efficient norms.
- From a regional perspective, East Asia is expected to hold a significant share in the global commercial refrigeration compressors market, owing to the increasing demand for beverage vending refrigeration systems, refrigerated display cases, etc., in the region, thus generating an increased demand of efrigeration compressors for commercial refrigeration system.
- With the growing demand for commercial refrigeration compressors due to the growing number of retail stores in South Asia and North America, these regions are expected to present substantial growth opportunities in the commercial refrigeration compressors market.
- By type, the reciprocating compressors segment is expected to be a lucrative market in the commercial refrigeration compressors market, with a value share of around 35% in 2019. The growing demand for refrigeration compressors for commercial refrigeration equipment is expected to drive the global market.
Top Three Factors Shaping the Commercial Refrigeration Compressors Market
Introduction of Sustainable Compressors for Commercial Refrigeration Applications
Manufacturers of commercial refrigeration compressors are focusing on their efforts to produce more efficient applications to satisfy the need for reducing the operating cost of the refrigeration equipment installed in restaurants and supermarkets, where energy saving has become a topic of major concern. A perfect design and correct selection of components such as compressors, fan motors, cabinet walls, etc., are key to reduce the overall energy consumption of the application. This is expected to drive the demand for new and more efficient commercial refrigeration compressors over the forecast period.
Replacement of R-22 Refrigerants in Commercial Refrigeration Compressors
Manufacturers of refrigeration compressors are replacing R-22 refrigerants in commercial refrigeration compressors, as R-22 refrigerants and associated refrigerated equipment are being phased out in the next few years as a part of the Montreal Protocol Regulations, to reduce their effect on the atmospheric ozone.
For instance, as per the US Environment Protection Agency, R22 can no longer be manufactured or imported into the U.S., and will be illegal in the United States from January 1, 2020.
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Introduction of Packaged Solutions and Other Value-Added Services for Commercial Refrigeration Compressors
Manufacturers and distributors of commercial refrigeration compressors are focusing on the development of packaged systems for these compressors. Packaged systems are all-in-one cooling and heating solutions with various components housed in a single cabinet. Packaged systems are a popular choice for homes with limited space, as they take up less room than split systems.
Global Commercial Refrigeration Compressors Market: Structure Analysis
The global commercial refrigeration compressors market is a fragmented market, wherein, tier one market players hold around 20-25% of the total market share.
- Top companies in the commercial refrigeration compressors market are The Danfoss Group and Huayi Compressor Co., Ltd., among others.
- Following a business stratify, well-established commercial refrigeration compressor market players are focusing on increasing their market shares in East Asia and North America, as these two regions have a significant commercial market for refrigeration equipment.
- Other commercial refrigeration compressor market players are also focusing on increasing their geographical presence in South Asia and Middle East & Africa, due to increasing urbanization and growing food & beverages industry, which is projected to provide numerous growth opportunities to commercial refrigeration compressor players.
- As a differentiating strategy, commercial refrigeration compressor market players are focusing on producing more efficient products to reduce the operating cost of refrigeration equipment.
Commercial Refrigeration Compressors Outlook 2019 - 2029
This global report offers a panoramic view of the commercial refrigeration compressors landscape along with key elements pushing demand. The research study also provides an extensive analysis and profiling of key companies operating in the commercial refrigeration landscape.
Commercial Refrigeration Compressors – Redefining Refrigeration Quotient
Commercial refrigeration compressors play an indispensable role for ensuring healthy performance of refrigeration systems. The commercial refrigeration landscape is estimated to see a strong Y-O-Y growth through 2029, given that demand for remedial and preventive maintenance of refrigeration systems across multiple industries is on a continual rise. Demand for sustainable compressors is gathering significant momentum, which implies that a new wave of growth is on the horizon for commercial refrigeration market.
Cooling Capacity Remains a Crucial Factor of Consideration, ‘2-6 kW’ to Witnesses Incremental Growth
End users are estimated to show strikingly noticeable preferences for compressors with lower cooling capacities i.e. up to 1 kW owing to their reasonable pricing and easy availability. However, sales of compressors with cooling capacities in the range of 2-6 kW is likely to intensify over the forecast period, on account of their ability to perform amid voltage fluctuations.
The Broader Perspective
Manufacturers in the commercial refrigeration compressors market will continue to focus on enhancing energy efficiency via use of natural refrigerants, such as R290 and R600a. In addition, leading companies are also paying attention to development of variable speed compressors having minimum energy consumption, to attain impressive growth and profitability.
What to Expect from Commercial Refrigeration Compressors Landscape Through 2029?
The commercial refrigeration landscape is set to witness a significant uptake in demand, owing to ever-evolving need for effective refrigeration from diverse end use applications. Expansion of cold chain capacities in the food & beverage processing ecosystems to ensure quality storage and effective transportation of products is providing a fillip to market revenues.
COMMERCIAL REFRIGERATION COMPRESSORS MARKET TAXONOMY
The global Commercial Refrigeration Compressor market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach in front of the reader.
By 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
By 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
- Others (R600A, etc.)
- North America
- Latin America
- South Asia
- East Asia
- Middle East & Africa