Condensing Unit Market Outlook (2023 to 2033)

The global condensing unit market is likely to be valued at USD 40.607 billion in 2023 and is estimated to garner USD 76.944 billion. From 2023 to 2033, the market is likely to exhibit a CAGR of 6.6%. The major factor strengthening the market growth for condensing units is its increasing demand for food production and services.

Growing demand for the replacement of industrial refrigeration systems owing to the demand for energy-efficient, low-operating-cost condensing units is a significant factor anticipated to strengthen the market growth for condensing units further.

The rising infrastructure expenditure, increasing demand for condensing units from several sectors like cold storage and food and beverage processing, and refrigerated warehouses are a few other vital factors likely to expand the growth of the global condensing unit market during the forecast period.

Condensing Unit Industry (From 2018 to 2022)

Attribute Details
CAGR 5.6%
Market Size - 2018 USD 30.923 billion
Market Size - 2022 USD 38.454 billion

Condensing Unit Industry (From 2023 to 2033)

Attribute Details
CAGR 6.6%
Market Size - 2023 USD 40.607 billion
Market Size - 2033 USD 76.944 billion

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From Growth to Boom: Contrasting the Condensing Unit Business from 2018 to 2022 and 2023 to 2033

From 2018 to 2022, the condensing unit market expanded significantly, owing to rising demand for energy-efficient cooling solutions and technical improvements. During this time, the condensing unit business expanded significantly, with increased installations in a variety of sectors including commercial, residential, and industrial.

Moreover, the condensing unit manufacturers focus on innovation, producing smart and connected condensing units to meet the changing needs of customers.

The condensing unit industry is predicted to shift from a growth phase to a booming phase between 2023 and 2033. Moreover, stringent energy-efficiency standards, rising environmental concerns, and the adoption of sustainable cooling solutions may surge demand for condensing units. Emerging markets and technological improvements in refrigeration systems may spur market expansion, opening up new potential for condensing unit manufacturers.

What are the Factors Boosting the Global Condensing Unit Market?

Growing Demand for Condensing Units in Business and Industrial Sectors to Boost the Market

The expansion of end-use sectors in developing countries, such as supermarkets and retail chains, owing to the increase in per capita disposable income of consumers and their changing lifestyles is expected to make a significant contribution to the expansion of the market during the forecast period. There are a few key factors anticipated to strengthen the development of the global condensing unit market in the coming time including:

  • The growing infrastructure expenditure.
  • Rising demand for condensing units from several sectors like cold storage and food and beverage processing, and refrigerated warehouses.

Manufacturers are taking various initiatives to expand the market size. For instance,

  • In August 2021, 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 announced the launch of a new portfolio of refrigeration condensing units in Japan built for the market needs of Japan.
Nikhil Kaitwade
Nikhil Kaitwade

Principal Consultant

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What are the Factors Impeding the Global Condensing Unit Market?

Implementation of Stringent Environment Laws on Refrigerants to Hamper the Market Growth

Increasing usage of refrigerants has contributed to global warming and ozone layer depletion. As per a few studies, by 2050, about 25% of global warming may be caused by air conditioning. Thus, to regulate the growing air pollution, various countries have deployed rules to control it.

Under Section 608 of the Clean Air Act, EPA prohibits individuals from knowingly venting refrigerants containing ozone-depleting refrigerants (including HCFC-22) as well as their substitutes (such as HFCs, including R-410A), while maintaining, servicing, repairing, or disposing of AC and refrigeration equipment. Such factors are expected to hamper the market growth in the coming time.

What are the Prevailing Opportunities in the Global Condensing Unit Market?

Ongoing Technological Development in Condensing Units to Offer Remunerative Opportunities

Growing demand for condensing units owing to technological development is likely to offer remunerative opportunities to the market during the forecast period. The introduction of advanced models such as the Copeland Scroll XJ Series for outdoor applications is likely to make the market interactive.

Also, the advent of efficient condensing units may lead to a reduction in their replacement requirements, thus acting as a key contributor to the growth of the condensing unit market.

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Category- Wise Outlook

Segment Product Type
Segment Name Air-cooled
Market Share - 2023 65.00%
Segment Refrigerant Type
Segment Name R404A
Market Share - 2023 22.90%

What is the Contribution of the Air-Cooled Segment in Driving the Global Condensing Unit Market?

Low Maintenance of Air-Cooled Condensing Units to Increase their Demand

The air-cooled condensing units segment is expected to dominate the global condensing unit industry during the forecast period. This can be attributed to the easy installation and low maintenance features. Additionally, rapid industrialization offers significant opportunities for the use of high-performance air-cooled condensing units in developing regions.

Is R404A the Dominant Refrigerant Type Driving Demand in the Condensing Unit Industry?

R404A has been the popular refrigerant in the condensing unit industry. Due to its effective cooling capabilities, R404A is widely utilized in refrigeration and air conditioning systems. In response to environmental concerns, there is a significant shift toward green refrigerants.

Green refrigerants such as R134a, R407A/R407C/R407F, and R22 replacements are gaining popularity due to their low global warming potential (GWP) and ozone depletion potential (ODP). As sustainability becomes important, demand for green refrigerants is projected to rise, potentially changing the condensing unit market in the future years.

What Sets the Industrial Sector Apart as the Leading Consumer of Condensing Units?

Industrial end-use applications have emerged as the key demand driver in the condensing unit industry. Further, condensing units are in high demand due to the industrial sector's need for dependable and effective cooling solutions to ensure optimal working conditions in factories, warehouses, and manufacturing facilities.

Large-scale cooling requirements in industrial applications frequently necessitate large-capacity units. Moreover, the need to minimize operating costs, manage energy consumption, and provide constant cooling performance in industrial settings has positioned this sector as a significant growth driver in the condensing unit market.

Regional Outlook

Country Market CAGR (From 2023 to 2033)
China 6.10%
India 6.70%
The United Kingdom 5.80%

What is the Contribution of North America in Developing the Global Unit Market?

The Presence of Established Players in the Region benefits the Market

According to the analysis, North America is expected to dominate the global condensing unit market during the forecast period. The United States is likely to make the maximum contribution to strengthening the industry. In 2023, the region is expected to secure 27.4% of global revenue. Domination of the region can be attributed to the presence of established players in the region taking various initiatives.

  • In March 2018, KeepRite Refrigeration launched a new generation of condensing units. The products are KEZ SCROLL Condensing Units, KEH HERMETIC Condensing Units, and KES SEMI-HERMETIC Condensing Units.

This product launch has helped the company to widen its product portfolio across the region. Such factors are expected to aid market expansion in the forecast period.

What is the Role of Europe in Expanding the Global Condensing Unit Market?

Increasing Demand for Condensing Units in Commercial and Industrial Sectors to Escalate the Market in Europe

According to the analysis, Europe is likely to be the second-largest market during the forecast period. In 2023, the region is anticipated to claim 20.5% of the global revenue. This can be attributed to the growing demand for condensing units in commercial and industrial sectors.

The players in the region are taking various initiatives to expand their reach in the region which is likely to benefit the regional industry in the coming time.

  • In September 2019, BITZER SE announced the expansion of the production capacity of its Rottenburg-Hailfingen plant, located in Germany. The plant started the production of CRF, CXP, CXP, and McDEW condensers.

It was expected to offer direct-expansion evaporators as of January 2020. The expansion helped the company meet the rising demand for condensing units in Europe.

How is Asia Pacific Expected to Strengthen the Global Condensing Unit Market?

Increasing Demand for Ready-to-Cook Food to Spur the Market

As per the analysis, Asia Pacific is anticipated to be a significantly-growing market during the forecast period. This can be attributed to the presence of various developing countries experiencing a rise in disposable income, resulting in enhanced demand for ready-to-cook food.

Developing countries like India, China, Japan, and others, are likely to make the most significant contribution to strengthening the regional market.

Country Market Share (2023)
The United States 25.50%
Germany 7.80%
Japan 9.10%
Australia 7.10%

What Marketing Tactics Can Manufacturers Utilize To Promote Condensing Unit Market?

  • To attract environmentally sensitive clients, emphasize energy efficiency and cost savings.
  • Showcase the dependability and long-term durability of condensing units.
  • To develop trust and confidence in the product, provide complete technical support.
  • Provide customization choices to meet the demands of unique customers.
  • Use digital marketing channels to reach out to a large audience and generate leads.
  • Work with reputed distributors to broaden your market reach.
  • Participate in trade exhibitions to display condensing units and keep up to date on market developments.
  • To attract price-conscious customers, offer competitive pricing tactics and promotions.
  • Highlight adherence to industry safety and quality assurance norms and standards.

How are Start-ups Contributing to the Development of Condensing Unit Market?

CleverHeat (Philippines), Alaz Arima (Spain), Fenagy (Denmark), Reftronix (Denmark), and Delta Development Team (USA), among others, are some of the emerging entities in the global condensing unit industry.

New condensing unit manufacturers adopt modern technologies, which are expected to strengthen the industry in the assessment period.

  • Alas, Arima, a Spanish startup offers phase cooling technology. The startup’s thermosyphon-based solutions transfer heat from one place to another with better equivalent thermal conductance than any other element.

The lack of any moving parts in the system increases its efficiency and removes the effects of friction. Alas, Arima’s technology finds applications in the cooling of electrical equipment such as inverters and charging stations.

Key Segmentation

By Type:

  • Air-Cooled
  • Water Cooled
  • Fan Cooled

By Refrigerant Type:

  • R404A
  • R134a
  • R407A/R407C/R407F
  • R507A or R22
  • Green Refrigerants

By Compressor Technology:

  • Reciprocating
  • Hermetic
  • Semi-Hermetic
  • Open
  • Rotary
  • Scroll
  • Rotary Vane
  • Screw
  • Centrifugal

By Application:

  • High-Temperature
  • Medium Temperature
  • Low Temperature

By End Use:

  • Residential
  • Commercial
  • Industrial

By Region:

  • North America
  • Europe
  • Asia Pacific
  • Latin America

Frequently Asked Questions

Why is the China market witnessing higher growth?

The growing demand for air conditioning systems in China is driving the growth of the Condensing Unit Market in the region. The FGD (Fluorinated Greenhouse Gases) phasedown policy in China is also driving the demand for more efficient air conditioning systems, which require condensing units.

Why are the sales of Condensing Units surging in Germany?

The increasing demand for energy-efficient buildings in Germany is driving the demand for condensing units. The HJK (High Efficiency Kilowatt) standard for air conditioning systems in Germany is also driving the demand for more efficient condensing units.

What is driving the adoption of Condensing Unit?

The booming IT sector is necessitating the adoption of condensing units to cool data centers. The increasing demand for energy-efficient buildings is also driving the adoption of condensing units.

What is the contribution of the United States in Condensing Unit Market?

The United States held 25% of the global market share in 2022.

Which region presents lucrative growth opportunities?

The Asia Pacific region is projected to witness a CAGR of 6.6% through 2033.

Table of Content
  • 1. Executive Summary
  • 2. Market Overview
  • 3. Market Background
  • 4. Global Analysis 2018 to 2022 and Forecast, 2023 to 2033
  • 5. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type
    • 5.1. Air-Cooled
    • 5.2. Water Cooled
    • 5.3. Fan Cooled
  • 6. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Refrigerant Type
    • 6.1. R404A
    • 6.2. R134a
    • 6.3. R407A/R407C/R407F
    • 6.4. R507A or R22
    • 6.5. Green Refrigerants
  • 7. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Compressor Technology
    • 7.1. Reciprocating
    • 7.2. Hermetic
    • 7.3. Semi-Hermetic
    • 7.4. Open
    • 7.5. Rotary
    • 7.6. Scroll
    • 7.7. Rotary Vane
    • 7.8. Screw
    • 7.9. Centrifugal
  • 8. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
    • 8.1. High-Temperature
    • 8.2. Medium Temperature
    • 8.3. Low Temperature
  • 9. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use
    • 9.1. Residential
    • 9.2. Commercial
    • 9.3. Industrial
  • 10. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
    • 10.1. North America
    • 10.2. Latin America
    • 10.3. Western Europe
    • 10.4. Eastern Europe
    • 10.5. South Asia and Pacific
    • 10.6. East Asia
    • 10.7. Middle East and Africa
  • 11. North America Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 12. Latin America Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 13. Western Europe Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 14. Eastern Europe Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 15. South Asia and Pacific Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 16. East Asia Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 17. Middle East and Africa Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
  • 18. Key Countries Analysis
  • 19. Market Structure Analysis
  • 20. Competition Analysis
    • 20.1. Emerson Electric Co.
    • 20.2. Danfoss
    • 20.3. Daikin Applied
    • 20.4. Tecumseh Products Company
    • 20.5. Hussmann Corporation
    • 20.6. Voltas Limited
    • 20.7. Patton Ltd
    • 20.8. BITZER KÜHLMASCHINENBAU GMBH
    • 20.9. Rivacold Value (USD Million) & Volume (Units)ed Kingdom Ltd
    • 20.10. JINAN RETEK INDUSTRIES INC.
    • 20.11. GEA Group
    • 20.12. Blue Star Limited
    • 20.13. Heatcraft Worldwide Refrigeration
    • 20.14. Embraco LLC
  • 21. Assumptions & Acronyms Used
  • 22. Research Methodology
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