Semiconductor and Electronics

Refrigeration Compressor Market is Expected to Reach USD 29.56 billion by 2030

Aug 2023

Semiconductor and Electronics

As per the report published by Kings Research, the global Refrigeration Compressor Market was valued at USD 20.10 billion in 2022 and is projected to reach USD 29.56 billion by 2030, growing at a CAGR of 5.37% from 2023 to 2030.

The use of refrigeration compressors has become increasingly important in the export of food items augmenting the market growth. Food items require proper refrigeration to maintain their quality during transportation, and refrigeration compressors contribute largely to ensuring that food exports remain fresh and safe for consumption. The use of natural refrigerants in these compressors, such as carbon dioxide and propane, has also become more common due to the growing concern about reducing the environmental impact of refrigeration systems. Additionally, advancements in compressor technology have led to increased energy efficiency, resulting in a reduction of operational costs for refrigerated storage during transport.

A refrigeration compressor can benefit from several supporting factors such as routine maintenance, proper sizing for the applications, and the use of advanced control systems. Proper sizing of the compressor and refrigeration system for the specific application is important to ensure that the system can maintain the desired temperature and humidity levels efficiently without wasting energy. Advanced control systems such as digital inverter technology and variable speed drives save significant energy by adapting the compressor's speed to match the refrigeration load, reducing energy consumption during periods of low demand. Additionally, the use of eco-friendly and low global warming potential refrigerants can help businesses reduce their carbon footprint and contribute to sustainability efforts.

Key Insights

  • Based on the type, the reciprocating segment accounted largest market share of 39.94% in 2022
  • Based on the mechanism, the oil-free segment is anticipated to register a significant growth rate of 6.53% over the forecast period
  • Based on application, the food and beverages segment dominated the market share of 26.74% in 2022
  • On the basis of region, Asia-Pacific is expected to be the fastest-growing region acquiring a CAGR of 6.23% during the forecast period

Mitsubishi Electric Corporation Announced to Expand its Geographical Presence in India

January 2023: Mitsubishi Electric Corporation announced allocating approximately USD 222.5 million towards its subsidiary, Mitsubishi Electric India Pvt. Ltd., to set up a factory in India for the in-house manufacturing of room air conditioners and compressors. The production will be operational by October 2025 and is intended to meet the increasing demand for these units within the Indian market.

Danfoss has Launched Oil-Free Centrifugal Compressor for Heat Pumps and Chillers

November 2022: Danfoss has introduced a new oil-free centrifugal compressor that is specifically designed for oil-free heat pumps and chillers. This innovation further improves the efficiency and dependability of the systems, while also eliminating the need for oil.

Emerson has Introduced Fixed-Speed Scroll Compressors for Commercial Applications

January 2020: Emerson introduced a new range of Copeland fixed-speed scroll compressors which are specifically designed for commercial applications that use lower GWP refrigerants which helps to minimize applied costs and overall complexity.

Increasing Demand for Compressors in Different Applications to Augment Market Growth

The increasing deployment of refrigeration compressors across various industries such as healthcare, F&B, transportation, and retail food outlets is expected to drive demand for the market. This demand is being further fueled by the burgeoning pharmaceutical industry as well as the need for refrigeration compressors in the automobile industry to ensure optimal air quality in passenger vehicles. Additionally, the mushrooming of hypermarkets, supermarkets, and convenience stores has resulted in a surge in demand for proper refrigeration solutions including compressors.

Increased Investment in Infrastructure to Create New Opportunities for the Market

Several companies have increased their investment in refrigerant compressor manufacturing in response to the growing demand for sustainable and energy-efficient refrigeration systems. The companies are conducting research and development to design eco-friendly and efficient compressors. With the increasing demand for refrigeration systems across different industries, it is likely to be additional breakthroughs and innovations in the refrigerant compressor market in the future.

For instance, in March 2023, LG invested Rs 300 crore for the manufacturing of air conditioner components including Rs 100 crore for compressors under the production-linked incentive (PLI) program initiated by the Indian government. In another instance, in March 2022, Samsung has recently announced a significant investment of Rs 1,588 crore in setting up a new manufacturing plant in Tamil Nadu, India which will be focused on producing compressors for refrigerators and is expected to have an annual production capacity of 8 million compressors units.

North America is Expected to Secure as the Second Fastest Growing Region Exhibiting a CAGR of 5.09% 

The growing concerns about the environment and greater emphasis on using natural refrigerants, such as carbon dioxide and propane, in refrigeration systems.  The prominent presence of industrial and commercial spaces requiring refrigeration compressors is likely to propel the market. Moreover, the market is expected to be driven by the increasing demand for commercial transport systems with chilling facilities in the food and chemical sector, which requires a robust cold chain industry presence. Additionally, the expansion of cold storage warehouses in the region will further contribute to the growth of commercial refrigeration compressors. With established distribution channels of retail companies, growth opportunities abound in the U.S. retail market for retail providers of various sizes, from small to medium-sized franchise unit owners, individual or direct sellers, to large store operators. 

Market Players Focusing on Expanding Geographical Presence to Expand Product Portfolio

The global refrigeration compressor industry is fragmented with key players such as Danfoss A/S, Nidec Motor Corporation, Emerson Electric Co., GEA Group Aktiengesellschaft, Midea Group, Mitsubishi Electric Corporation, LG Electronics, Panasonic Corporation, FRASCOLD S.p.A., Kirloskar, Johnson Controls–Hitachi Air Conditioning, Carrier. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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