The global condensing unit market is likely to be valued at USD 40.607 billion in 2023 and is estimated to garner USD 76.944 billion. From 2023 to 2033, the market is likely to exhibit a CAGR of 6.6%. The major factor strengthening the market growth for condensing units is its increasing demand for food production and services.
Growing demand for the replacement of industrial refrigeration systems owing to the demand for energy-efficient, low-operating-cost condensing units is a significant factor anticipated to strengthen the market growth for condensing units further.
The rising infrastructure expenditure, increasing demand for condensing units from several sectors like cold storage and food and beverage processing, and refrigerated warehouses are a few other vital factors likely to expand the growth of the global condensing unit market during the forecast period.
Condensing Unit Industry (From 2018 to 2022)
| Attribute | Details |
|---|---|
| CAGR | 5.6% |
| Market Size - 2018 | USD 30.923 billion |
| Market Size - 2022 | USD 38.454 billion |
Condensing Unit Industry (From 2023 to 2033)
| Attribute | Details |
|---|---|
| CAGR | 6.6% |
| Market Size - 2023 | USD 40.607 billion |
| Market Size - 2033 | USD 76.944 billion |
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From 2018 to 2022, the condensing unit market expanded significantly, owing to rising demand for energy-efficient cooling solutions and technical improvements. During this time, the condensing unit business expanded significantly, with increased installations in a variety of sectors including commercial, residential, and industrial.
Moreover, the condensing unit manufacturers focus on innovation, producing smart and connected condensing units to meet the changing needs of customers.
The condensing unit industry is predicted to shift from a growth phase to a booming phase between 2023 and 2033. Moreover, stringent energy-efficiency standards, rising environmental concerns, and the adoption of sustainable cooling solutions may surge demand for condensing units. Emerging markets and technological improvements in refrigeration systems may spur market expansion, opening up new potential for condensing unit manufacturers.
Growing Demand for Condensing Units in Business and Industrial Sectors to Boost the Market
The expansion of end-use sectors in developing countries, such as supermarkets and retail chains, owing to the increase in per capita disposable income of consumers and their changing lifestyles is expected to make a significant contribution to the expansion of the market during the forecast period. There are a few key factors anticipated to strengthen the development of the global condensing unit market in the coming time including:
Manufacturers are taking various initiatives to expand the market size. For instance,
Principal Consultant
Implementation of Stringent Environment Laws on Refrigerants to Hamper the Market Growth
Increasing usage of refrigerants has contributed to global warming and ozone layer depletion. As per a few studies, by 2050, about 25% of global warming may be caused by air conditioning. Thus, to regulate the growing air pollution, various countries have deployed rules to control it.
Under Section 608 of the Clean Air Act, EPA prohibits individuals from knowingly venting refrigerants containing ozone-depleting refrigerants (including HCFC-22) as well as their substitutes (such as HFCs, including R-410A), while maintaining, servicing, repairing, or disposing of AC and refrigeration equipment. Such factors are expected to hamper the market growth in the coming time.
Ongoing Technological Development in Condensing Units to Offer Remunerative Opportunities
Growing demand for condensing units owing to technological development is likely to offer remunerative opportunities to the market during the forecast period. The introduction of advanced models such as the Copeland Scroll XJ Series for outdoor applications is likely to make the market interactive.
Also, the advent of efficient condensing units may lead to a reduction in their replacement requirements, thus acting as a key contributor to the growth of the condensing unit market.
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| Segment | Product Type |
|---|---|
| Segment Name | Air-cooled |
| Market Share - 2023 | 65.00% |
| Segment | Refrigerant Type |
|---|---|
| Segment Name | R404A |
| Market Share - 2023 | 22.90% |
Low Maintenance of Air-Cooled Condensing Units to Increase their Demand
The air-cooled condensing units segment is expected to dominate the global condensing unit industry during the forecast period. This can be attributed to the easy installation and low maintenance features. Additionally, rapid industrialization offers significant opportunities for the use of high-performance air-cooled condensing units in developing regions.
R404A has been the popular refrigerant in the condensing unit industry. Due to its effective cooling capabilities, R404A is widely utilized in refrigeration and air conditioning systems. In response to environmental concerns, there is a significant shift toward green refrigerants.
Green refrigerants such as R134a, R407A/R407C/R407F, and R22 replacements are gaining popularity due to their low global warming potential (GWP) and ozone depletion potential (ODP). As sustainability becomes important, demand for green refrigerants is projected to rise, potentially changing the condensing unit market in the future years.
Industrial end-use applications have emerged as the key demand driver in the condensing unit industry. Further, condensing units are in high demand due to the industrial sector's need for dependable and effective cooling solutions to ensure optimal working conditions in factories, warehouses, and manufacturing facilities.
Large-scale cooling requirements in industrial applications frequently necessitate large-capacity units. Moreover, the need to minimize operating costs, manage energy consumption, and provide constant cooling performance in industrial settings has positioned this sector as a significant growth driver in the condensing unit market.
| Country | Market CAGR (From 2023 to 2033) |
|---|---|
| China | 6.10% |
| India | 6.70% |
| The United Kingdom | 5.80% |
The Presence of Established Players in the Region benefits the Market
According to the analysis, North America is expected to dominate the global condensing unit market during the forecast period. The United States is likely to make the maximum contribution to strengthening the industry. In 2023, the region is expected to secure 27.4% of global revenue. Domination of the region can be attributed to the presence of established players in the region taking various initiatives.
This product launch has helped the company to widen its product portfolio across the region. Such factors are expected to aid market expansion in the forecast period.
Increasing Demand for Condensing Units in Commercial and Industrial Sectors to Escalate the Market in Europe
According to the analysis, Europe is likely to be the second-largest market during the forecast period. In 2023, the region is anticipated to claim 20.5% of the global revenue. This can be attributed to the growing demand for condensing units in commercial and industrial sectors.
The players in the region are taking various initiatives to expand their reach in the region which is likely to benefit the regional industry in the coming time.
It was expected to offer direct-expansion evaporators as of January 2020. The expansion helped the company meet the rising demand for condensing units in Europe.
Increasing Demand for Ready-to-Cook Food to Spur the Market
As per the analysis, Asia Pacific is anticipated to be a significantly-growing market during the forecast period. This can be attributed to the presence of various developing countries experiencing a rise in disposable income, resulting in enhanced demand for ready-to-cook food.
Developing countries like India, China, Japan, and others, are likely to make the most significant contribution to strengthening the regional market.
| Country | Market Share (2023) |
|---|---|
| The United States | 25.50% |
| Germany | 7.80% |
| Japan | 9.10% |
| Australia | 7.10% |
CleverHeat (Philippines), Alaz Arima (Spain), Fenagy (Denmark), Reftronix (Denmark), and Delta Development Team (USA), among others, are some of the emerging entities in the global condensing unit industry.
New condensing unit manufacturers adopt modern technologies, which are expected to strengthen the industry in the assessment period.
The lack of any moving parts in the system increases its efficiency and removes the effects of friction. Alas, Arima’s technology finds applications in the cooling of electrical equipment such as inverters and charging stations.
The growing demand for air conditioning systems in China is driving the growth of the Condensing Unit Market in the region. The FGD (Fluorinated Greenhouse Gases) phasedown policy in China is also driving the demand for more efficient air conditioning systems, which require condensing units.
The increasing demand for energy-efficient buildings in Germany is driving the demand for condensing units. The HJK (High Efficiency Kilowatt) standard for air conditioning systems in Germany is also driving the demand for more efficient condensing units.
The booming IT sector is necessitating the adoption of condensing units to cool data centers. The increasing demand for energy-efficient buildings is also driving the adoption of condensing units.
The United States held 25% of the global market share in 2022.
The Asia Pacific region is projected to witness a CAGR of 6.6% through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Air-Cooled 5.2. Water Cooled 5.3. Fan Cooled 6. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Refrigerant Type 6.1. R404A 6.2. R134a 6.3. R407A/R407C/R407F 6.4. R507A or R22 6.5. Green Refrigerants 7. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Compressor Technology 7.1. Reciprocating 7.2. Hermetic 7.3. Semi-Hermetic 7.4. Open 7.5. Rotary 7.6. Scroll 7.7. Rotary Vane 7.8. Screw 7.9. Centrifugal 8. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. High-Temperature 8.2. Medium Temperature 8.3. Low Temperature 9. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 9.1. Residential 9.2. Commercial 9.3. Industrial 10. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. Eastern Europe 10.5. South Asia and Pacific 10.6. East Asia 10.7. Middle East and Africa 11. North America Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Western Europe Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Eastern Europe Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. South Asia and Pacific Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. East Asia Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Middle East and Africa Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Key Countries Analysis 19. Market Structure Analysis 20. Competition Analysis 20.1. Emerson Electric Co. 20.2. Danfoss 20.3. Daikin Applied 20.4. Tecumseh Products Company 20.5. Hussmann Corporation 20.6. Voltas Limited 20.7. Patton Ltd 20.8. BITZER KÜHLMASCHINENBAU GMBH 20.9. Rivacold Value (USD Million) & Volume (Units)ed Kingdom Ltd 20.10. JINAN RETEK INDUSTRIES INC. 20.11. GEA Group 20.12. Blue Star Limited 20.13. Heatcraft Worldwide Refrigeration 20.14. Embraco LLC 21. Assumptions & Acronyms Used 22. Research Methodology
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Condensing Unit Market
