The refrigeration and air conditioning compressors market is estimated to secure a CAGR of 3% during the forecast period. The market registered a valuation of USD 35.1 billion in 2023 and reached USD 47.2 billion by 2033.
Which Factors Boosting the Refrigeration and Air Conditioning Compressors Market?
Rapid Expansion of the Food and Beverage Industry to Push Sales of Refrigeration and Air Conditioning Compressors
There has been a substantial increase in the demand for packaged and processed food products during the last few decades. To cater to this rising demand, food and beverage manufacturers are increasing their production capacity, establishing new facilities, and integrating modern technologies. Such as refrigeration and air conditioning compressors.
Refrigeration and air conditioning compressors have become ideal solutions for preserving and extending the life of food products. They are being increasingly employed by food and beverage manufacturers to maintain an appropriate temperature inside facilities.
An increase in food manufacturing units, cold storage facilities, and food & beverage outlets is anticipated to boost the sales of refrigeration and air conditioning compressors. Similarly, the robust growth of retail sectors such as convenience stores, hypermarkets, and supermarkets is generating huge demand in the refrigeration and air conditioning compressors market.
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During the past few years, there has been a significant rise in the food export business worldwide. The countries like the United States and China export food products worth billions of dollars annually.
Exporting these food products over long distances has become a tough challenge for food manufacturers and transportation companies. They employ many refrigeration and air conditioning compressors across the supply chains and food processing units to address this issue.
It provides a strong thrust to the growth of the global market. Various food products, such as seafood and meat, are frozen using refrigeration compressors and transported to their destinations.
Ever-increasing food export trade across the world is thus anticipated to boost the refrigeration and air conditioning compressors market during the assessment period.
Eco-friendly Refrigerants to Gain Immense Traction in Refrigeration and Air Conditioning Compressors Market
Refrigeration and air conditioning compressors are among the leading sources of greenhouse gases, such as HCFCs. As a result, various government and regulatory bodies are enforcing regulations on using high-GWP refrigerants.
For instance, the Department of Energy (DOE) ordered manufacturers to reduce energy consumption by 30 to 50% in the upcoming stand-alone commercial refrigeration equipment.
Manufacturers operating in the refrigeration and air conditioning compressor market are shifting their focus toward developing innovative, greener cooling solutions.
Various new and advanced technologies are being integrated into modern refrigeration and air conditioning compressors to improve efficiency and reduce the emission footprint. Hence, low global warming potential (GWP) refrigerants are gaining immense traction worldwide.
The growing consumer awareness of environmental safety, climate change, and energy savings is boosting the demand for efficient compressor technologies.
| Attributes | Details |
|---|---|
| Market CAGR (2023 to 2033) | 3% |
| Market Valuation (2023) | USD 35.1 billion |
| Market Valuation (2033) | USD 47.2 billion |
Principal Consultant
As per Future Market Insights, the global market registered a CAGR of 2.4% between 2018 and 2022. The growth of the market is attributed to the robust expansion of the food & beverage industry, advancements in compressor technology, and growth of the frozen food export business. Moreover, rising adoption of refrigeration compressors in logistics and supply chains.
Refrigeration and air conditioning compressors have become cooling solutions across diverse industries. They provide air conditioning, heat pumping, and refrigeration for large-scale facilities and equipment. These compressors are also used to raise the temperature of a low-pressure gas and remove vapor from the evaporator.
Refrigeration and air conditioning compressors are extensively used in many applications such as residential, food & beverages, transportation, chemical healthcare, and retail food outlets. They provide a suitable temperature that protects sensitive/perishable products from spoilage.
Increasing adoption of refrigeration and air conditioning compressors in residential, commercial, and industrial applications is projected to boost the growth of the market.
Rising food insecurity has become a crucial concern across the world. Food produced worldwide gets wasted due to insufficient storage and transportation facilities. According to the Food and Agriculture Organization of the United Nations, an estimated 1.3 billion tonnes of food produced globally is lost or goes to waste.
This growing food insecurity issue encourages end users and customers to use proper refrigeration and air conditioning compressors to store and transport food products.
Further, the rapid expansion of residential sectors coupled with favorable government initiatives for green building development generates growth opportunities for the market. The trend is likely to continue in the future.
Subsequently, the implementation of stringent regulations regarding the emission of greenhouse gases is prompting manufacturers to develop eco-friendly compressors. It positively impacts the growth of the global market during the forecast period.
Demand for 5 kW Compressors to Remain High Across Commercial and Retail Sectors
Based on cooling capacity, the 5 kW segment is projected to account for a maximum share of the global market, according to FMI. 5 kW refrigeration and air conditioning compressors are increasingly used for medium-temperature applications in the commercial and retail sectors.
They feature a simple design with a reduced carbon footprint. However, the 30 to 100 kW segment is estimated to record a higher CAGR over the forecast period.
Rotary Vane Compressors Remain Highly Sought-after Due to Their Simple Design and Compact Dimensions.
By product, the rotary vane segment is estimated to hold significant shares of 67.8% in the global market over the forecast period. Rotary vane compressors are increasingly used for many applications, including transportation, due to their various attractive features. These compressors are simpler, more durable, and highly efficient.
The growing adoption of rotary vane compressors across various industries is anticipated to boost growth in the future.
Non-toxic and Ecofriendly Nature of R290 to Boost their Sales in the Market
By refrigeration, the R290 segment is estimated to remain the highly preferred refrigerant and is expected to grow at a high pace. Owing to its various advantages, such as extended cooling capacity, better efficiency, and size reduction of the compressor.
R290 has gained wider popularity during the last few years due to its non-toxic and zero ozone-depleting properties. It has a low environmental impact and minimal global warming potential (GWP).
The rising adoption of R290 in refrigeration and air conditioning compressors is anticipated to accelerate the growth of the refrigeration and air conditioning compressors market over the forecast period.
Sales of Refrigeration and Air Conditioning Compressors in the Residential Sector to Increase
As per FMI, the residential segment is expected to account for a maximum share of 69.2% in the global market throughout the forecast period. Factors such as rapid urbanization are spurring the growth of this segment.
The adoption of refrigerators and air conditioners has witnessed considerable growth in recent years due to increasing disposable income. Besides this, changing lifestyles and the rising need for preserving food products at home. However, the commercial segment is anticipated to thrive at a faster CAGR during the forecast period.
Rising Need for Food Storage to Propel Sales of Refrigeration Compressors
By end use, the refrigeration segment is estimated to hold a substantial market share through 2029. Expansion of the food transportation industry is a key factor triggering sales of refrigeration compressors. These compressors play an imperative role in safeguarding the quality of food products.
Amid the rapid growth of the food industry and rising food export business worldwide, demand for refrigeration compressors is anticipated to increase significantly over the forecast period.
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| Countries | Projected Share |
|---|---|
| United States | 18.2% |
| Germany | 4.9% |
| Japan | 3.2% |
| Australia | 2.1% |
| China | 3.4% |
| India | 3.7% |
| United Kingdom | 2.1% |
Robust Growth of the Food and Beverage Industry Trigger the Sales of Refrigeration Compressors
As per FMI, the United Kingdom is estimated to remain lucrative globally, accounting for 2.1% of the share in 2022. The United Kingdom is considered to have significant food and beverage industry and manufacturing sector. The Food and Drink Federation (FDF) manufactured food and drink and contributed around 29 billion euros to the country's economy in 2018.
Furthermore, the food and drink industry had a turnover of over 104.4 billion euros in 2019. This robust growth of the food and beverage industry is the key factor driving the United Kingdom refrigeration and air conditioning compressors market.
Food manufacturers and logistic firms nationwide increasingly employ refrigeration and air conditioning compressors. To control the temperature inside facilities, warehouses, and vehicles.
Burgeoning Food Export to Fuel the Sales of Refrigeration Compressors in the United States
As per FMI, the United States market is poised to exhibit strong growth. Due to rising food export business, growing consumer awareness, and surging adoption of cooling solutions in healthcare and commercial applications. The United States is securing a share of 18.2% in the global market by 2033.
As per the report by FMI, the United States market is driven by the heavy presence of prominent industries and commercial spaces requiring proper refrigeration. Advancements in compressor technology, and a well-established retail sector.
Various food products are more sensitive to temperature change, and transporting them without proper cooling systems can lead to their spoilage. As a result, transporters and logistic firms employ refrigeration and air conditioning compressors to preserve these products.
In addition, the growing adoption of refrigeration compressors across medical applications, such as blood storage and vaccine preservation, boosted the market in the United States.
Growing Demand for HVAC Systems from Residential and Commercial Sectors to Drive Sales
The rapid growth of residential and commercial sectors is emerging as a key factor boosting the sales of refrigeration and air conditioning compressors in China. Surging demand for HVAC systems due to rapid urbanization and increasing disposable income is estimated to boost the market.
The adoption of refrigeration and air conditioning compressors for household purposes is becoming more common. Due to advancements in compressor technology and the availability of economical products.
Hence, leading players in China are increasingly introducing energy-efficient and eco-friendly, and low-cost products to increase their sales. Moreover, increasing retail stores and food outlets is estimated to further aid the market's growth during the forecast period. China is capturing a share of 3.4% in the global market by 2033.
The market is highly competitive, with leading players constantly upgrading their product portfolios. Besides this, they have adopted various organic and inorganic strategies such as mergers, partnerships, collaborations, and acquisitions to dominate the market.
Recent Developments in the Global Market are:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | The United States, The United Kingdom, Japan, India, China, Australia, Germany |
| Key Segments Covered | Product Type, Cooling Type, Refrigerant Type, Application, End Use, Region |
| Key Companies Profiled | Emerson Electric Co.; Danfoss Group; Huayi Compressor Co., Ltd.; Mitsubishi Electric Corporation; Nidec Corporation; Midea Group; Panasonic Corporation; LG Electronics, Inc.; United Technologies Corporation; MAYEKAWA MFG. CO., LTD.; GEA Group AG; Daikin Industries Ltd.; CAREL Industries S.p.A |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Innovation of unique products may provide growth prospects for the market players.
The rotary vane segment holds 67.8% of the global market share.
The market is projected to register a CAGR of 3% through 2033.
Robust growth of the food and beverage industry is driving the market in the United Kingdom.
Danfoss Group, Nidec Corporation, and GEA Group AG are the essential players in the market.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Market Background 6. Global Market Demand Analysis 2014 to 2021 and Forecast, 2022 to 2029 7. Global Market - Pricing Analysis 8. Global Market Demand (in Value or Size in USD Million) Analysis 2014 to 2021 and Forecast, 2022 to 2029 9. Global Market Analysis 2014 to 2021 and Forecast 2022 to 2029, by Cooling Capacity 9.1. Less than 5 kW 9.2. 5 to 30 kW 9.3. 30 to 100 kW 9.4. 100 to 300 kW 9.5. 300 to 500 kW 9.6. 500 to 1000 kW 9.7. Above 1000 kW 10. Global Market Analysis 2014 to 2021 and Forecast 2022 to 2029, by Product Type 10.1. Rotary Vane 10.2. Scroll 10.3. Reciprocating 10.4. Screw 10.5. Centrifugal 11. Global Market Analysis 2014 to 2021 and Forecast 2022 to 2029, by Refrigerant Type 11.1. R410A 11.2. R407C 11.3. R404A 11.4. R134A 11.5. R290 11.6. R744 11.7. Others 12. Global Market Analysis 2014 to 2021 and Forecast 2022 to 2029, by Application 12.1. Residential 12.2. Commercial 12.3. Medical & Healthcare 12.4. Industrial 12.5. Transportation 13. Global Market Analysis 2014 to 2021 and Forecast 2022 to 2029, by End Use 13.1. Refrigeration 13.2. Air Conditioning 14. Global Market Analysis 2014 to 2021 and Forecast 2022 to 2029, by Region 14.1. North America 14.2. Latin America 14.3. Europe 14.4. East Asia 14.5. South Asia 14.6. Oceania 14.7. Middle East and Africa (MEA) 15. North America Market Analysis 2014 to 2021 and Forecast 2022 to 2029 16. Latin America Market Analysis 2014 to 2021 and Forecast 2022 to 2029 17. Europe Market Analysis 2014 to 2021 and Forecast 2022 to 2029 18. South Asia Market Analysis 2014 to 2021 and Forecast 2022 to 2029 19. East Asia Market Analysis 2014 to 2021 and Forecast 2022 to 2029 20. Oceania Market Analysis 2014 to 2021 and Forecast 2022 to 2029 21. Middle East and Africa Market Analysis 2014 to 2021 and Forecast 2022 to 2029 22. Market Structure Analysis 23. Competition Landscape 23.1. The Danfoss Group 23.2. LG Electronics 23.3. Mitsubishi Electric Corporation 23.4. Panasonic Corporation 23.5. GEA Group AG 23.6. MAYEKAWA MFG. CO., LTD. 23.7. Daikin Industries Ltd. 23.8. CAREL INDUSTRIES S.p.A. 23.9. Huayi Compressor Co., Ltd. 23.10. Midea Group 23.11. Emerson Electric Co. 23.12. Nidec Corporation 23.13. United Technologies Corporation 23.14. BITZER SE 23.15. Frascold S.p.A. 23.16. Fusheng Co., Ltd. 23.17. Officine Mario Dorin S.p.A. 23.18. Tecumseh Products Company LLC 23.19. Johnson Controls - Hitachi Air Conditioning 23.20. MAYEKAWA MFG. CO., LTD. 24. Assumptions and Acronyms Used 25. Research Methodology
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Refrigeration and Air Conditioning Compressors Market
