Refrigeration Compressor Market

Market Perspective

The global Refrigeration Compressor Market was valued at USD 20.01 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.

Refrigeration compressors are a critical component in numerous industries, including food and beverage, food retail, transportation, chemical, and healthcare sectors. The efficient preservation of food is essential for many companies and refrigeration compressors play a vital role in this process. Businesses can choose from a variety of compressors based on their specific applications such as HVAC, chemical, and automotive requirements. Overall, refrigeration compressors are a crucial investment for companies that rely on refrigeration for their operations. However, some refrigeration compressors produce harmful gases as by products which can pose a challenge for the market. The compressors that use ammonia as a refrigerant produces ammonia gas, which is toxic and can pose health risks if not handled and maintained properly. Therefore, it is important to carefully manage the selection and use of refrigerants and refrigeration compressors to minimize harm to the environment and human health.

Analyst’s Review on Refrigeration Compressor Market

The major trends in the refrigeration compressor market include a focus on energy efficiency, the use of natural refrigerants, digital transformation, size reduction, and noise reduction. Energy efficiency is an important trend given the emphasis on reducing energy consumption and operating costs. The use of natural refrigerants, such as CO2, ammonia, or hydrocarbons, is also growing and can offer significant environmental benefits.

Digital transformation is another trend in the refrigeration compressor market. This includes the use of Internet of Things (IoT) technology to monitor and control the operation of refrigeration systems, as well as the use of artificial intelligence (AI) and machine learning (ML) techniques to optimize system performance and predictive maintenance.

Market Definition

A refrigeration compressor is a mechanical device that raises the pressure, temperature, and energy level of a refrigerant vapor. The compressor compresses low-pressure, vapor refrigerant to convert it into high-pressure, high-temperature refrigerant vapor. In a refrigeration system, the compressor is responsible for circulating the refrigerant throughout the system and is often referred to as the backbone of the refrigerator. The primary function of the device is to utilize an electric motor to harness kinetic energy and increase the pressure of the refrigerant gas. As a result, the temperature and pressure of the refrigerant increase, allowing it to release heat, and cool the surrounding air or space where it is used.

A refrigeration compressor provides several benefits for businesses allowing for the efficient circulation of refrigerant throughout the system, and enabling the release of heat in order to cool the surrounding air or space. One of the advantages of using variable-speed compressors is their ability to provide significant environmental benefits by reducing energy consumption, which can lead to cost savings. Additionally, digital inverter compressors can offer advantages by adjusting their speed depending on the cooling demands of a refrigerator, resulting in greater energy efficiency and a longer lifespan for the compressor. Compressor refrigeration systems also offer the flexibility of being able to use different types of refrigerants, enabling the companies to adjust their refrigerant choice to suit their needs. Overall, a well-functioning refrigeration compressor is crucial for businesses that rely on refrigeration in their daily operations, as it helps to maintain the freshness and quality of perishable goods while also reducing energy costs.

Market Dynamics

The growing awareness of the importance of energy conservation is a significant driver for the refrigeration compressor market. This driver is due to the increased demand for energy-efficient systems that can minimize energy consumption and reduce the environmental impact of refrigeration and HVAC systems. As businesses and consumers alike become more aware of the importance of sustainability and energy conservation, the demand for energy-efficient compressors and parts is expected to continue to grow. This trend is expected to lead to the development of new technologies and the expansion of the global market for energy-efficient HVAC and refrigeration compressors.

The concerns pertaining to the huge amount of electricity consumed by the refrigerator compressor are likely to hamper the market growth. In 2020, according to United Nations Industrial Development Organization, the refrigeration systems in a supermarket account for between 30% and 60% of the electricity consumption, whereas lighting accounts for between 15% and 25%. However, fluorocarbon leakage results in significant global warming impacts contributing to 20% of the total impact. Indirect emissions from energy consumption for running refrigeration systems contribute to the remaining 80%. Fluorinated gases, particularly hydrofluorocarbons (HFCs), are commonly utilized in air conditioning and refrigeration systems. However, these gases have the potential to be discharged during routine maintenance or due to faulty equipment. As a result, the market growth of refrigerant compressors may face obstacles during the forecast period if stringent regulations are imposed to prevent the release of contaminated effluents.

Segmentation Analysis

The global refrigeration compressor market is segmented based on type, mechanism, application, and geography.

Based on the type, the market is categorized into reciprocating, rotary screw, scroll, and centrifugal. The reciprocating segment held the largest market share of 39.94% in 2022. Reciprocating compressors are commonly used in industrial refrigeration applications and can produce pressures of up to 5,000 PSIG. These compressors can contain anywhere from two to six pistons housed in individual cylinders, and some models are hermetically sealed for large operations. Overall, reciprocating compressors are a versatile option for refrigeration systems that require high cooling capacity with minimal energy requirements.

Based on the mechanism, the refrigeration compressor market is divided into standard and oil-free. The oil free segment witnessed the fastest CAGR of 6.53% during the forecast period from 2023 to 2030. Oil-free refrigerant compressors have been gaining popularity in recent years due to their environmental benefits and maintenance advantages. Oil-free refrigerant compressors do not require oil for lubrication and use alternative methods, such as magnetic bearings, to increase efficiency and reduce maintenance needs. However, oil can be harmful to the environment and can also contaminate the refrigerant, reducing the efficiency of the system.

In addition to environmental benefits, it offers advantages such as longer lifetimes, reduced maintenance needs, and reduced energy consumption is creating the demand for refrigeration compressors. Overall, the use of oil-free refrigerant compressors is expected to continue to grow as environmental concerns drive the development of more sustainable refrigeration solutions.

By application, the refrigeration compressor market is categorized into food and beverages, pharmaceuticals, chemical, HVAC, automotive, and others. The food and beverages segment accounted largest market share of 26.74% in 2022 owing to a wide range of applications including food processing, cold storage, and dispensing equipment. In addition, refrigerant compressors are used in commercial ice machines and beverage cooling systems. To ensure food safety and quality, it is important to have reliable and efficient refrigeration systems in place.

Geographical Analysis

Based on regional analysis, the global refrigeration compressor market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Asia Pacific is anticipated to emerge as the fastest-growing region at 6.23% over the forecast period owing to the significant investments in refrigerant compressor manufacturing in recent years. These investments have been driven by the growing demand for refrigeration and air conditioning systems as well as by government initiatives aimed at promoting energy efficiency and reducing environmental pollution. For instance, in June 2021, Nidec Global Appliance invested USD 70 million to increase efficiency in condensing units and Embraco refrigeration compressor factories in China. Overall, the growing investments in the refrigerant compressor market in China reflect the increasing demand for refrigeration and air conditioning systems in the country, as well as growing awareness of the need for more sustainable and energy-efficient solutions.

Competitive Landscape

The global refrigeration compressor industry study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization. The major manufacturers in the market are

• Danfoss A/S
• Nidec Motor Corporation
• Emerson Electric Co.
• Midea Group
• Mitsubishi Electric Corporation
• LG Electronics
• Panasonic Corporation
• Kirloskar
• Johnson Controls–Hitachi Air Conditioning
• Carrier
• GEA Group Aktiengesellschaft
• FRASCOLD S.p.A.

Key Developments

• March 2023 (Acquisition): Danfoss has completed the acquisition of BOCK GmbH, a company that specializes in manufacturing COâ‚‚ and low-GWP compressors. The acquisition is part of Danfoss' strategy to speed up decarbonization efforts by offering efficient cooling and heating solutions that are environmentally friendly.
• October 2022 (Supply): GEA Group, a global technology supplier, has contributed to the district heating supply for Tallinn, the capital city of Estonia, through the delivery of four large screw compressor heat pumps. This initiative included the provision of a new high-efficiency unit which is enhancing the overall efficiency of the system.
• May 2021 (Expansion): Nidec has expanded its aftermarket HVACR solutions by incorporating products from its Embraco and U.S. MOTORS brands to expand their product portfolio and the distribution of the wide range of solutions to customers in North America, with a focus on high environmental performance and energy efficiency.

The global Refrigeration Compressor Market is segmented as:

By Type

• Reciprocating
• Rotary Screw
• Scroll
• Centrifugal

By Mechanism

• Standard
• Oil Free

By Application

• Food and Beverages
• Pharmaceuticals
• Chemical
• HVAC
• Automotive
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America