The global refrigeration compressor market size reached USD 40,353.6 million in 2024. Worldwide demand for refrigeration compressor recorded Y-o-Y growth of 3.1% in 2024, and thus, the market is expected to reach USD 41,806.3 million in 2025. Over the projection period 2025 to 2035, global refrigeration compressor sales are predicted to rise swiftly at 3.6% CAGR and total a market size of USD 59,544.2 million by 2035-end.
The strengthening cold chain capabilities, expanding FMCG packaging industry, and increasing retail outlets are anticipated to boost demand for refrigerators and refrigeration compressors during the forecast period. Refrigeration is the process of removing heat from a substance or an enclosed space to lower the temperature and provide a cooling effect.
The refrigerant compressor, a key component of refrigeration systems, circulates the refrigerant throughout the system while facilitating heat dissipation into the environment. By regulating the refrigerant's flow and applying pressure, it increases the refrigerant's temperature, enabling effective heat transfer.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2025 | USD 41,806.3 million |
| Projected Size, 2035 | USD 59,544.2 million |
| Value-based CAGR (2025 to 2035) | 3.6% |
Refrigeration compressors are being increasingly used in a multitude of applications such as residential, transportation, healthcare, food & beverages, chemical, and retail food outlets. They provide a suitable temperature that protects sensitive/perishable products from spoilage. Hence, increasing adoption across various industries will generate high demand for refrigeration compressors.
Similarly, increasing export of food products and rising food insecurity are creating lucrative growth prospects for the global commercial refrigeration compressor industry. Most of the food produced globally gets wasted due to a lack of adequate storage and transportation facilities.
For instance, as per the Food and Agriculture Organization of the United Nations, an estimated 1.6 billion tons of food produced globally is lost or goes to waste. This growing food insecurity is prompting people to use cooling systems like refrigeration compressors for storing and transporting food products.
To carry perishable food goods from one location to another, refrigeration systems are frequently employed in the transportation sector. The market for refrigeration compressors is expanding significantly in the transportation sector as a result of the sharp rise in demand for frozen goods, packaged foods, etc.
The development of bacteria and harmful pathogens is slowed down by refrigeration, hence reducing the risk of foodborne illnesses. Because of this development, the industry for refrigeration compressors is anticipated to expand quickly. The global market for refrigeration compressors represents around 55-60% of the overall refrigeration and air conditioning compressors market.
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The table below presents the annual growth rates of the global refrigeration compressor market from 2025 to 2035. With a base of 2024 and extended to the current year 2025, the report studied how the industry growth trajectory moves from the first half of the year-that is, January to June, (H1)-to the second half comprising July to December, (H2). This is an absolute comparison to offering the stakeholder's idea of how the sector has performed over time, with hints on developments that may possibly emerge.
These figures indicate the growth of the sector in each half-year, between the years 2024 and 2025. The market is expected to grow at a CAGR of 3.3% in H1-2024. In H2, the growth rate increases.
| Particular | Value CAGR |
|---|---|
| H1 2024 | 3.3% (2024 to 2034) |
| H2 2024 | 3.5% (2024 to 2034) |
| H1 2025 | 3.5% (2025 to 2035) |
| H2 2025 | 3.6% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2025, the CAGR is projected to slightly decrease to 3.5% in the first half and relatively increase to 3.6% in the second half. In the first half (H1), the sector saw an increase of 20 BPS while in the second half (H2), there was a slight increase of 10 BPS.
Growing Demand for Fast-Moving Consumer Goods Boosting Market
Key factors such as rising demand for FMCG goods worldwide, increasing consumption of processed foods, and expansion of cold chain infrastructure will continue to boost the sales of refrigeration compressors during the forecast period.
Many FMCG goods require cold-temperature storage because of their perishable nature. Similarly, packaged beverages and foods need proper refrigeration systems for storage. During the last few decades, there has been a growth in demand for fast-moving consumer goods items and the trend is likely to continue during the coming years.
Similarly, the need for refrigeration systems is predicted to rise as a result of the expansion of current facilities and the opening of retail stores in new locations. The market for retail stores is growing with the rising population and rising consumer preference for retail stores in developing countries. This is estimated to create the demand for commercial refrigerators which in turn will positively influence the refrigeration compressors industry.
Expansion of Cold-Chain Infrastructure to Elevate Demand Through 2035
The rapid expansion of the cold chain infrastructure across the world is fueling the demand for refrigeration compressors and the trend is expected to continue during the projected period. Food trade is rising rapidly in emerging nations thanks to a robust cold chain infrastructure and warehouses, which is driving up demand for refrigeration compressors.
The demand for small cold storage systems for frozen and perishable food delivery services is growing, which will open up new business prospects for the refrigeration compressor industry.
Similarly, with increasing consumer preference for eco-friendly refrigerant compressors, more energy-efficient appliances are expected to generate new opportunities for compressor manufacturers.
The global market for home appliances is changing at an accelerating rate due to several factors including expanding middle-class population, increased consumer purchasing power, sustainability, and digitalization. Hence, growth in the demand for consumer appliances across the globe will continue to create significant opportunities for refrigeration compressor manufacturers.
Growth in Residential and Commercial Air Conditioning
Rising global temperatures and rapid urbanization are significantly increasing the demand for air conditioning in both residential and commercial sectors. According to the International Energy Agency (IEA), the number of air conditioners worldwide is projected to grow from 1.6 billion in 2020 to 5.6 billion by 2050. This surge in demand for cooling systems drives the need for refrigeration compressors used in HVAC (Heating, Ventilation, and Air Conditioning) systems.
In regions experiencing extreme heat waves, such as parts of Asia, the Middle East, and North America, air conditioning has become a critical necessity for comfort and productivity. Urbanization further exacerbates this trend, as cities with higher population densities require more air-conditioned spaces for homes, offices, and commercial establishments.
These factors are contributing to the increased adoption of energy-efficient and advanced compressors designed to meet the growing cooling demand while minimizing environmental impact. As a result, refrigeration compressors are becoming an integral part of HVAC systems across residential, commercial, and industrial sectors worldwide.
Impact of Raw Material Price Fluctuations on Refrigeration Compressor Production
The cost of raw materials such as steel, copper, and aluminum, which are essential for manufacturing refrigeration compressors, can fluctuate significantly. These materials are critical components in the production of compressors, affecting everything from the compressor's structural integrity to its functionality. Price volatility in these raw materials directly impacts the overall production costs, as manufacturers are forced to adjust prices in response to changing material costs.
For instance, fluctuations in copper prices, a key material for electrical components in compressors, can lead to unexpected cost increases. Similarly, rising steel and aluminum prices can affect the fabrication of compressor components, adding to the cost burden.
This uncertainty can pose challenges for manufacturers, especially those operating on tight margins, as they struggle to maintain consistent pricing for end consumers. Consequently, manufacturers may face difficulties in forecasting production costs, leading to price instability in the refrigeration compressor industries. This unpredictability can ultimately hinder growth and innovation within the industry.
Tier 1 companies include industry leaders with annual revenues exceeding USD 1000 - 2000 million. These companies are currently capturing a significant share of 40-45% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. They provide a wide range of products to meet regulatory standards. Prominent companies within Tier 1 include: Nidec Corporation, Emerson Electric Co, GEA Group AG, The Danfoss Group, Midea Group, Tecumseh Products Company LLC, and others.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 500 - 1000 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, while they may not always possess the latest cutting-edge technologies or maintain an extensive global reach. Noteworthy entities in Tier 2 include Mitsubishi Electric Corporation, LG Electronics, Changhong Huayi Compressor Co., Ltd, Panasonic Corporation Ltd.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 100 - 500 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 3 Frascold S.p.A., Johnson Controls–Hitachi Air Conditioning, Carrier Corporation and others.
The global refrigeration compressor industry recorded a CAGR of 3.1% during the historical period between 2020 and 2024. The growth of refrigeration compressor industry was positive as it reached a value of USD 40,353.6 million in 2024 from USD 35,714.7 million in 2020.
The global vibrating screen market has experienced significant growth from 2020 to 2024. This growth is attributed to the increasing demand across various industries, such as mining, construction, food processing, chemicals, and recycling, among others.
The market saw significant growth driven by the rising demand for energy-efficient and eco-friendly refrigeration compressors. Technological advancements such as variable-speed compressors, and compressors using alternative refrigerants like CO2 and natural refrigerants (e.g., hydrocarbons) became more prominent.
From 2020 to 2024, the refrigeration compressor market saw steady growth driven by technological advancements, sustainability concerns, and rising demand for cold storage and industrial refrigeration. Looking ahead to 2025 to 2035, the market is poised to continue expanding, with key drivers including the growth of cold chain logistics, energy-efficient and sustainable technologies, and the increasing adoption of advanced refrigerants.
Manufacturers will need to focus on innovation, compliance with environmental regulations, and managing raw material costs to maintain competitiveness in a rapidly evolving market.
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The section below covers assessments of refrigeration compressor sales across key countries. Countries from East Asia, and Latin America, are anticipated to exhibit promising double-digit growth over the forecast period. All the below-listed countries are collectively set to reflect a CAGR of around 3.6% through the forecast period.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| India | 4.2% |
| China | 2.9% |
| USA | 3.0% |
| Germany | 2.6% |
| Japan | 2.5% |
Between 2025 and 2035, the overall demand for refrigeration compressors in Germany is estimated to grow at a CAGR of 2.6%. The rise of quick-service restaurants (QSR) and fast-food outlets is one of the key factors driving the refrigeration compressor industry forward in Germany.
Germany is the prominent market for food and beverages in Europe. According to Germany Trade and Invest (GTAI), total food retail sales in Germany increased significantly by 8.2%, reaching EUR 227 billion in 2020. This is positively influencing refrigeration compressor sales in the country and the trend is expected to continue during the forecast period.
Furthermore, the industry for refrigerator compressors in Germany will expand due to factors such as rising consumer purchasing power, changing lifestyles, growing demand for packaged and frozen foods, and an increase in the number of retail establishments.
In terms of volume, China's refrigeration compressor market is anticipated to grow at 2.9% CAGR between 2024 and 2034. Growth in the industry is driven by the rapid expansion of residential and commercial sectors and the subsequent usage of refrigeration compressors in these sectors.
A significant reason driving up sales of refrigeration compressors in China is the country's enormous growth in the residential and commercial sectors. Urbanization and rising disposable income will fuel demand for HVAC systems, which in turn will create prospects for refrigeration compressors.
Similarly, the rising export of food products is playing a key role in fostering sales of refrigeration compressors. Due to the robust development of the agriculture sector and the increasing adoption of modern technologies,
China's food export industry is expanding rapidly. Refrigeration compressors are being utilized in distribution centres, manufacturing facilities, and transportation vehicles in order to provide improved cooling storage facilities for exporting food items. This will continue to fuel the growth of the refrigeration compressors industry in China during the forecast period. The demand in China market to surpass revenues worth USD 10,531.6 Million by the end of 2035.
The USA refrigeration compressor market is expected to rise at nearly 3.0% CAGR over the forecast period, reaching a valuation of USD 10,713.4 Million by the end of 2035. This can be attributed to increasing food exports, improving consumer awareness, and growing adoption of cooling technologies in industrial and commercial settings.
The USA has become one of the top exporters of food products during the past few years and the trend is expected to continue during the upcoming decade. According to the World Atlas report, the country exported food products worth USD 72,682,349.79 in 2016.
Refrigeration compressors are used by logistical companies and transporters in the nation to preserve these food items. Hence, demand for refrigeration compressors is set to grow at a steady pace over the projected period.
The section explains the Value Share of the leading segments in the industry. In terms of Product Type, the Reciprocating Compressors will likely dominate and generate a share of around 53.0% in 2024.
| Segment | Reciprocating Compressors (product type) |
|---|---|
| Value Share (2024) | 53.0% |
Based on product type, the global market is segmented into reciprocating compressors, scroll compressors, rotary compressors, centrifugal compressors, and screw compressors. Among these, the reciprocating compressors segment holds the largest share and it is projected to create an absolute $ opportunity of more than USD 7,280.1 Million during the forecast period. This can be ascribed to the widespread usage of reciprocating compressors in numerous refrigeration applications.
Reciprocating compressors have several benefits, including greater efficiency, minimal maintenance costs, high-pressure generation, and flexibility in application. Sales of refrigeration compressors will rise throughout the projection period with its rapidly increasing application sector.
| Segment | R-134a (Refrigerant Type) |
|---|---|
| Value Share (2024) | 27.4% |
In terms of refrigerant types, R-134a is the refrigerant that records more demand from consumers. The reason R134a is used so extensively is due to its excellent thermal stability, critical temperature, and non-toxic, non-flammable, and non-corrosive qualities.
R-134a is considered to be non-toxic and non-flammable, which enhances its safety profile compared to other refrigerants like R-290 (propane), which is flammable. This is particularly important for applications such as automotive air conditioning and refrigeration in public or commercial settings.
R-134a has zero ozone depletion potential (ODP), making it a safer choice compared to older refrigerants like CFCs (chlorofluorocarbons) and HCFCs (hydrochlorofluorocarbons), which contributed to ozone layer depletion. This attribute made it the go-to refrigerant after the phase-out of these harmful substances under the Montreal Protocol.
R-134a is used in a variety of solutions. This refrigerant type is very safe to use, and easy to change. As a result, it is commonly used in residential, commercial, and industrial applications. FMI has predicted the R-134a refrigerant segment to grow at 2.2% CAGR during the forecast period.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the industry.
A few key players in the refrigeration compressor industry are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2035, thereby making it more competitive.
Industry Updates
In terms of Product Type, the industry is divided into Rotary, Scroll, Reciprocating, Screw, and Centrifugal
In terms of Refrigerant Type, the industry is divided into R410A, R407C, R404A, R134A, R290, R600a and Others
In terms of Capacity, the industry is divided into less than 5kW, 5 to 30 kW, 30 to 100 kW, 100 to 300 kW, 300 to 500 kW, 500 to 1000 kW, above 1000 kW
In terms of Application, the industry is divided into Residential, Commercial, Medical & Healthcare, Industrial and Transportation.
Key regions include North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, Middle East and Africa (MEA)
The global market was valued at USD 40,353.6 million in 2024.
The global market is set to reach USD 41,806.3 million in 2025.
Global demand is anticipated to rise at 3.6% CAGR.
The industry is projected to reach USD 59,544.2 million by 2035.
Nidec Corporation, Emerson Electric Com GEA Group AG, The Danfoss Group, Midea Group Tecumseh Products Company LLC, Mitsubishi Electric Corporation, LG Electronics, Changhong Huayi Compressor Co., Ltd. are prominent companies.
| Market CAGR (2023 to 2033) | 8.2% |
|---|---|
| Market Size (2023) | USD 3.12 billion |
| Market Size (2033) | USD 6.86 billion |
| Market Valuation (2023) | USD 35.1 billion |
|---|---|
| Market Valuation (2033) | USD 47.2 billion |
| Market CAGR (2023 to 2033) | 3% |
| Market Size (2023) | USD 38,687.2 million |
|---|---|
| Market Size (2033) | USD 58,940.03 million |
| Market CAGR (2023 to 2033) | 4.3% |
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