Industrial Refrigeration Market To Have 7% CAGR Increase in 2020
According to a report from P&S Market Research, the global industrial refrigeration market is expected to soar high in the next five years, giving much emphasis on the possible compound annual growth rate (CAGR) of seven percent. The said market is anticipated to increase its overall revenue from $22.57 billion in 2014 to $33.90 in 2020.
Positive Forecast for the Industrial Refrigeration Market
The global industrial refrigeration industry has seen the promising growth of the industry in the Latin America, Asia-Pacific, and the Middle East in the past few years. Most of the industrial refrigeration system is established in the food processing industry, and the North American food processing industry, although experienced lower growth revenues in the past years, is also expected to hit a remarkable increase in sales in 2020. According to the report, this is mainly due to the statute laws on the energy efficient machinery that are being implemented and are continuously improved over the years.
64 percent of the industrial refrigeration system in 2014 globally is made up of industrial racks, evaporator units, and compressors. During the forecast period, an increase in the demand for the industrial refrigeration is anticipated, especially since countries like China, India, and Brazil are having an expansion of their warehouses. Developed countries also contribute to the growth of the industry by the outsourcing of the pharmaceutical manufacturing and, therefore, increased the demand in the pharmaceuticals cold chain.
The energy consumption rating of the industrial refrigeration industry is forecasted to improve due to product innovations and as mentioned before, new and existing government regulations that aim to create machinery that are more energy efficient and environment-friendly.
Knowing The Industrial Refrigeration System
Most of the time, customers who require an industrial refrigeration system need custom-based design specifications to fit their business requirements and needs. The majority of the industrial refrigeration parts are sold through wholesalers and industrial contractors, which made up an estimated 80 percent of the industrial refrigeration industry last year.
This system plays a major role in different manufacturing facilities in the chemicals, and oil and gas industries. The system is an effective mix of various mechanical and electrical components that may be in specific parts from one or more manufacturers. The different parts such as the evaporators, compressors, and heat exchanger units are then put together under a custom-engineered system by the installation service suppliers.
The industrial refrigeration market is divided by type that includes industrial racks, evaporator units, open screw, compressor, heat exchangers, brazed plate, shell and tube, among others. The industrial racks type is the segment expected to undergo fast growth because of the increasing trend for variable refrigerant flow (VRF) technology. On the other hand, the heat exchanger type has the highest increase among all industrial refrigeration segments, thanks to the heightened capital investment in Asia Pacific’s pharmaceuticals, food processing, and chemical industries.