The industrial cooling systems market is projected to have a significant CAGR of 6.1% by 2033. According to FMI, the market is expected to expand from USD 20.98 billion in 2023 to USD 37.92 billion by 2033. Historically, the market showed significant growth with a CAGR of 5.5% from 2018 to 2022.
As energy-efficient cooling systems grow more popular and as technology progresses, there is likely to be a greater need for industrial cooling systems. The market growth is aligned with the expansion of multiple industries.
The industrial sector has also experienced remarkable growth, which has been very advantageous for the lubricants business and helped the market as a whole. The industrial cooling systems market adoption trends are anticipated to continue rising sharply.
Moreover, industrial cooling systems are experiencing a surge in demand across all major developing nations as a result of growth in the industrial manufacturing sector. Chemical processes need these systems to maintain the necessary temperature.
Strict environmental regulations, rising investments in the chemical industry, and rising demand for energy-efficient systems provide a fresh outlook to the industrial cooling system market. Also, facilities using nuclear and thermal energy are observing an increase in demand for industrial cooling systems.
Additionally, macroeconomic factors including increasing urbanization and industrial activity, as well as developments in HVAC technology, are helping to drive up sales of industrial cooling systems.
| Attributes | Details |
|---|---|
| Industrial Cooling Systems Market CAGR (2023 to 2033) | 6.1% |
| Industrial Cooling Systems Market Size (2023) | USD 20.98 billion |
| Industrial Cooling Systems Market Size (2033) | USD 37.92 billion |
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Manufacturers recognized a lot of potential in the market as a result of an increase in demand for industrial cooling systems from numerous industries, including the food and beverage, chemical, and pharmaceutical sectors.
The market for industrial cooling systems increased from USD 15.66 billion in 2018 to USD 19.77 billion in 2022, with a CAGR of 5.5% between 2018 and 2021.
A major factor propelling the market expansion includes the rising adoption of industrial cooling systems in the power and energy sectors, the increased emphasis on the use of green technologies, and the adoption of Industrial Internet of Things (IIoT) solutions.
Short Term (2023 to 2026): The vehicle industry is concentrating on replacing outdated cooling systems through various imaginative and technical advancements, as well as ongoing cooling system enhancements.
Medium Term (2026 to 2029): The petrochemical processing industry is anticipated to expand gradually during the projection period as a result of the rise in fuel oil consumption for large commercial vehicles.
Long-term (2029 to 2033): It is projected that as industrial users become more aware of the benefits of temperature control systems, demand for industrial cooling systems is likely to rise.
During the forecast period, the global industrial cooling system market is anticipated to grow from USD 20.98 billion in 2023 to USD 37.92 billion by 2033, with a CAGR of 6.1%.
Principal Consultant
The demand for industrial cooling systems faces significant challenges since industrial cooling systems are pricey and have high installation and maintenance costs. The greater operating expenses are caused by improper infrastructure for industrial cooling system installation and operation.
Moreover, due to their high CO2 emissions, industrial cooling systems have a substantial negative influence on the environment. Industrial cooling systems' limited technological capabilities make it difficult for the market share to advance.
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Evaporative cooling systems dominated the market by product type in 2021. Compared to refrigerated systems, they are more efficient and valuable economically. This segment holds a 35% share of the industrial cooling system market.
However, the air-cooling category is predicted to develop at the highest CAGR of 6.50% over the forecast period due to rising government efforts in emerging nations like India and an increase in demand for industrial air-cooling systems.
The transport cooling segment is anticipated to experience the highest CAGR of 5.9% over the projection period, due to the expansion of the food processing industry and the requirement for strict temperature control when transporting pharmaceutical and biopharmaceutical items.
In 2021, more than 2/3rd of the market share for industrial cooling systems was accounted for by the stationary cooling segment, which continued to hold the majority of the market. To create a productive manufacturing system and take advantage of the cost and efficiency benefits, the automotive industry uses top-notch cooling equipment.
Moreover, the development of several innovative technological innovations, along with ongoing cooling system improvements, is being encouraged to replace outdated cooling systems in the automotive industry.
USA market players are significantly contributing to the demand for industrial cooling systems, with a CAGR of 5.9% during the forecast period.
During the projection period, it is predicted that the North American market for industrial cooling systems is likely to grow at a CAGR of more than 6%. The opportunities in the industrial cooling systems industry are expanding in North America as a result of rising processed food and beverage demand, as well as the existence of numerous important manufacturing sectors.
Additionally, growing demand from the commercial and residential sectors promotes long-lasting industrial cooling systems market trends.
China Outlook
China currently has one of the world's fastest-expanding markets for industrial cooling systems. From 2023 to 2033, this market is anticipated to expand at a CAGR of 8.5%.
In order to encourage the use of energy-efficient technology, the Chinese government has developed a number of programs.
One of these programs is the Energy Efficiency Network, which provides incentives and subsidies to companies that purchase energy-efficient cooling systems.
Korea Outlook
In Korea, the market for industrial cooling systems is anticipated to grow at a 6.1% CAGR from 2023 to 2033. The market is propelled by the rising adoption of sophisticated cooling solutions, and rising cooling system demand from the food and beverage and data center sectors.
In addition, the government's increasing investments in renewable energy sources and the growing usage of IoT-enabled cooling systems are anticipated to assist the expansion of the industrial cooling system market in Korea by 2033.
Japan Outlook
The market in Japan was projected to be worth 406.5 billion in 2020, per the FMI industrial cooling systems market research report. By 2024, this amount is anticipated to rise to 444.7 billion, indicating a 2.1% CAGR.
Additionally, Japan's industrial cooling system market was the second-largest in the Asia Pacific in terms of market size, after China. In 2020, it represented 18.5% of the overall market. The major key players in the Japanese market include Mitsubishi Heavy Industries, Air Water, Daikin Industries, Epson, and Mitsubishi Electric.
In the United Kingdom, the adoption of industrial cooling systems is rising quickly. In 2020, its value was USD 2.7 billion. The United Kingdom is anticipated to expand at a CAGR of 5.7% during the projected period and is expected to be worth D5.55 billion by 2033.
The United Kingdom's market for industrial cooling systems is anticipated to benefit from the government's efforts to reduce carbon emissions and promote the use of renewable energy sources.
The industrial cooling systems market is estimated to record a CAGR of 6.1% during the forecast period.
The industrial cooling systems market size is predicted to be valued at USD 37.92 billion by 2033.
The industrial cooling systems market share is valued at USD 20.98 billion in 2023.
Asia Pacific is anticipated to hold the largest industrial cooling systems market share.
The transport cooling segment is likely to dominate the industrial cooling systems market, with a CAGR of 5.9% by 2033.
1. Executive Summary | Industrial Cooling Systems Market
2. Market Overview
3. Market Background
4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032
5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Product Type
5.1. Air Cooling
5.2. Evaporative Cooling
5.3. Water Cooling
5.4. Hybrid Cooling
6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Function
6.1. Stationary Cooling
6.2. Transport Cooling
7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By End-user Industry
7.1. Food & Beverage
7.2. Chemical
7.3. Pharmaceuticals
7.4. Utility & Power
7.5. Oil & Gas
7.6. Others
8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region
8.1. North America
8.2. Latin America
8.3. Europe
8.4. Asia Pacific
8.5. Middle East and Africa (MEA)
9. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
10. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
11. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
12. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
13. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country
14. Key Countries Market Analysis
15. Market Structure Analysis
16. Competition Analysis
16.1. Airedale International Air Conditioning
16.2. Baltimore Aircoil Company
16.3. Brentwood Industries, Inc.
16.4. Emerson Electric Co.
16.5. GEA Group Aktiengesellschaft
16.6. Hamon Group
16.7. Johnson Controls International Plc
16.8. Schneider Electric SE
16.9. SPX Corporation
16.10. Star Cooling Tower Pvt Ltd
17. Assumptions & Acronyms Used
18. Research Methodology
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Industrial Cooling Systems Market
