Industrial Refrigeration Equipment Market to Reach 7% CAGR by 2021
Previously valued at $24 billion in 2015, the industrial refrigeration equipment industry is expected to reach a revenue of $36.25 billion by the end of 2021, with a compound annual growth rate (CAGR) of roughly 7 percent between 2016 to 2021 (Zion Research).
Achrnews.com reported that industrial refrigeration equipment is primarily used in food and beverage production, warehousing, chemical and pharmaceutical, and cold storage industries. These industries require temperature-controlled management of raw materials and in-process materials. Along with the changing of food habits, improved international trade of food products also plays an important role in the growth of this market.
The industrial refrigeration equipment market is categorized based on different products that include heat exchangers, evaporators, compressors, and industrial racks. Last year, the market for compressors posted the largest revenue, followed by industrial racks and evaporators. When combined, these markets contributed more than 62 percent share of the global industrial refrigeration equipment market in 2015. Over the next few years, industrial racks are anticipated to be the fastest growing segment.
The key application segments of the industrial refrigeration equipment industry consist of logistics (storage-warehouses), petrochemicals, chemicals and pharmaceuticals, energy (gas production), food production and processing, and beverage production. The food production and processing segment posted the highest share and were the leading segment with more than 24 percent market share in 2015.
Industrial refrigeration equipment is speculated to increase exponentially due to worldwide trade of food and beverages. Rapid growth of the food and processing industry coupled with the expansion of refrigerated warehouses in developing countries is expected to increase the demand for industrial refrigeration during the forecast period.