Product Code: 69193
The industrial refrigeration system market is expected to grow at CAGR of 6% over the forecast period 2021-2026. Increased use of packaged and processed food and beverages in the developing are accelerating the demand of industrial refrigeration systems to prevent the spoilage of fully and semi-processed food and drinks.
- The government of India has been instrumental in the growth and development of the food processing industry which accounts for 32% of the country's total food market. The Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business also it has approved proposals for joint ventures (JV), foreign collaborations, industrial licenses, and 100% export-oriented units. As per IBEF 2019 report, Amazon, a global e-commerce giant, is planning to enter the Indian food retailing sector by investing USD 515 million in the next five years.
- The rapid increase in demand for the safe storage of blood, blood derivatives, temperature-sensitive medicines from hospitals, pharmacies, clinics, and diagnostic centers are also fueling the growth of the refrigeration system market across the world.
- Rising research activities for the treatment of chronic and infectious diseases has led to the replacement of older medical refrigerators with newer and more advanced energy-efficient cold storage devices. For instance, in 2019, the UK MRC and the Japan Agency for Medical Research and Development AMED collaborated to conduct research on infectious diseases to provide bi-lateral support to biomedical and health researchers in the UK and Japan.
- COVID-19 outbreak has outspace the hospitals supply and people are dying due to the lack of medical equipments. The United States have 4,35,000 COVID-19 positive cases with more than 14,500 fatality as of 9th April 2020. Refrigerator trucks have been brought into the New York city (USA epicenter) to store bodies of deceased coronavirus patients. The U.S. Federal Emergency Management Agency (FEMA) has announced to send 85 more refrigerated trucks to New York to cope with the increasing number of victims.
Key Market Trends
Oil and Gas industry to witness significant growth in forecast period
The refrigerating systems are essential elements of the gas and oil manufacturing industry. There are used in various processes starting from the extraction of natural gas and oil from the reservoir rocks in the form of crude oil and natural gas to the transportation to end consumers. Refrigeration plants can be very lucrative pieces of equipment that cool natural gas to approximately -162 F and change it to a liquid form (natural gas liquids) that can be easily stored and transported through the pipelines.
- Due to the development of sophisticated equipment that provides extremely accurate and reliable information to track the oil reservoir such as GPR equipment, the oil and gas industry is still flourishing apart from the concerns regarding clean source of energy. Engineers rely upon them for the examination of geological bodies dangerous for drilling operations (carven load, bedded ices), detection of underground pipeline leakage.
- As per the IOGP's Global Production report 2019, demand for oil and gas is at the peak, greater than ever before, with dramatic growth in Africa, Asia Pacific, the Middle East, and the Americas. This has fueled the investment in exploration and production of oil to meet the demand and supply. For instance, in 2019, Ecopetrol and Occidental Petroleum Corp agreed to form a joint venture for the development of unconventional reservoirs in approximately 97,000 acres of the Permian Basin in the State of Texas.
North America is expected to showcase significant market growth
Industrial refrigeration system market is expected to witness growth due to technological developments, convenience and aggressive marketing of frozen foods in a number of varieties, including skillet and oven meal kits, bowl meals, restaurant-quality pizza, by food producers which will drive the demand in the coming years. Fueling research and clinical testing to halt the spread of COVID-19 across North America is also driving the growth of the refrigeration system market in the pharmaceutical industry.
- Walmart, the giant retail player, in 2019 has launched its biggest expansion in Mexico, has opened 134 new stores in the top foreign market and increased its presence by nearly 5%. In Central America, it has opened 27 new stores to cater to the growing demand. It is also planning to enter the home delivery grocery market with a membership program at an introductory price of USD 19.95 a month. For this, it will require refrigerant transport vehicles in its supply chain to prevent any spoilage during delivery. Its distribution center utilizes the energy-efficient and environmentally friendly refrigerant ammonia. The 42,000-meter square distribution center uses 34,000 pounds (15,400 kg) of ammonia cooling the two million cases of cold and frozen foods shipped every month.
- Rapid spread of COVID -19 pandemic across the United States and Canada has speeded the research and tests to identify and put a hold on it. The United States and Canada have 4,35,000 and 19,4000 COVID-19 positive cases with more than 14,500 and 430 fatality respectively as of 9th April 2020. Research centers are collaborating with, academic institutions and biopharmaceutical companies to tackle the rapidly spreading viral disease.
- For instance, in March 2020, AbbVie, an academic institution, partnered with global authorities to determine the effectiveness of HIV drugs in treating COVID-19. It is supporting clinical studies and basic research with lopinavir (medication for the treatment and prevention of HIV/AIDS), and is working closely with European health authorities and the U.S. Food and Drug Administration (FDA), Centers for Disease Control and Prevention, National Institutes of Health and the Biomedical Advanced Research and Development Authority to coordinate its efforts.
The industrial refrigeration system market is competitive and consists of few major players such as Ingersoll Rand plc, United Technologies Corporation, Emerson Electric Co., Danfoss, GEA Group, Daikin Industries Ltd, and Dover Corporation. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability.
- April 2020 - Danfoss has launched the liquid level switches that play a critical role in the functional safety of refrigeration systems and are used to prevent liquid from slugging in compressors. The new LLS 4000 for ammonia and HFCs provides a system with better safety measures. It comes with an optional SIL2 rating for enhanced reliability while providing easier installation and commissioning compared to float valve technology. Danfoss has also opened an in-house testing facility in Lappeenranta, Finland that will conduct electromagnetic compatibility and environmental tests on Danfoss Editron's systems and machines.
- March 2020 - Ingersoll Rand merged with Gardner Denver to provide a stronger, broader portfolio of mission-critical industrial, energy, medical and specialty vehicle products and services. The merger has positioned the new Ingersoll Rand as a global leader in mission-critical flow creation and industrial technologies. It has also partnered with Ace Group of Manchester, England and manufactured 26 Gardner Denver compressors for a London hospital during COVID -19 pandemic.
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TABLE OF CONTENTS
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Rising food and beverages processing industry
- 4.2.2 Introduction of advanced technologies such as innovative IoT-enabled monitoring solutions
- 4.3 Market Restraints
- 4.3.1 High cost of development
- 4.4 Value Chain / Supply Chain Analysis
- 4.5 Porter's Five Force Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of Impact of Covid-19 on the Industry
5 MARKET SEGMENTATION
- 5.1 Equipment
- 5.1.1 Compressors
- 5.1.2 Condensers
- 5.1.3 Evaporators
- 5.1.4 Controls
- 5.1.5 Others
- 5.2 Refrigerant
- 5.2.1 Ammonia
- 5.2.2 CO2
- 5.2.3 HFC
- 5.3 Application
- 5.3.1 Food & Beverages
- 5.3.2 Chemicals & Pharmaceuticals
- 5.3.3 Oil & Gas
- 5.4 Geography
- 5.4.1 North America
- 22.214.171.124 US
- 126.96.36.199 Canada
- 5.4.2 Europe
- 188.8.131.52 Germany
- 184.108.40.206 France
- 220.127.116.11 UK
- 18.104.22.168 Rest of Europe
- 5.4.3 Asia Pacific
- 22.214.171.124 China
- 126.96.36.199 India
- 188.8.131.52 Japan
- 184.108.40.206 Rest of Asia Pacfic
- 5.4.4 Latin America
- 5.4.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
- 6.2 Investment Analysis
- 6.3 Company Profiles
- 6.3.1 Ingersoll Rand Plc.
- 6.3.2 United Technologies Corporation
- 6.3.3 Emerson Electric
- 6.3.4 Danfoss
- 6.3.5 Industrial Frigo SRL
- 6.3.6 GEA Group Aktiengesellschaft
- 6.3.7 BITZER Kuhlmaschinenbau GmbH
- 6.3.8 Star Refrigeration Ltd
- 6.3.9 Daikin Industries Ltd
- 6.3.10 Dover Corporation
- 6.3.11 Johnson Controls International Plc
7 MARKET OPPORTUNITIES AND FUTURE TRENDS