Global Condensing Unit Market - 2024-2031

Global Condensing Unit Market Overview

The global condensing unit market size was worth US$ 28.2 billion in 2023 and is estimated to reach US$ 55.05 billion by 2031, growing at a CAGR of 8.7% during the forecast period (2024-2031).

Refrigeration is a cooling process that involves compression, condensation, expansion and evaporation in a cyclic pattern. A condensing unit is an assembly that cools and condenses the refrigerant vapor, transforming the refrigerant into liquid form. The main components are the condenser, compressor, fan motor, mounting plate and other controls.

The temperature control devices condense a substance from its gaseous to liquid condition by chilling it into condensing units. The unit can be either a heat pump or an air conditioner. Condensing units are commonly used in refrigerators, air conditioners, heat pumps and chillers for condensing reasons. Compressors are used in three condensing units: air-cooled, water-cooled and fan-cooled.

Condensing units of the scroll type and hermetic type are the most commonly used, with the latter suitable for low to high-temperature applications. Condensing units are employed in residential, commercial and industrial sectors, with food service applications particularly prevalent in commercial and industrial sectors. The growth of the global refrigeration market is likely to drive the growth of the global condensing unit market during the forecast period.

Global Condensing Unit Market Dynamics

Various end-use industries, like retail stores and food production & services, are predicted to grow strongly in developing nations in the next few years, increasing the global condensing unit market. On the other hand, government controls are projected to stifle market expansion.

Rising infrastructure development in developing countries

Rising infrastructure spending, particularly in Asia-Pacific's developing countries, will likely propel the worldwide condensing unit market forward during the forecast period. Several infrastructure projects, including metro rail and airports, are in India's planning and development stages.

In recent years, the Airport Authority of India (AAI) spent US$2.32 billion to expand existing terminals and construct 15 new ones. Furthermore, the airport business has been expanded to include private participation, with six PPP (Public-Private Partnership) airports built in key cities. Furthermore, India's airport infrastructure is set to receive investments worth several billion dollars.

Growing end-use industries

The market is being driven by the rise of end-user industries in emerging countries and the improved shelf life of these units. The rising demand from commercial & industrial sectors, including food production industries, food retail, commercial refrigeration and others, is driving the expansion of the condensing unit market. In addition, growing development of commercial complexes, banqueting suites, and office spaces are some of the factors that are likely to fuel market growth in the next few years.

Stringent Government Regulations

The stringent rules surrounding refrigerants in condensing units have been cited as a major barrier in the condensing unit business. U.S. DOE (Department of Energy) has released many regulations affecting HVACR equipment manufacturers in recent years. They must adjust to these regulatory changes that affect efficiency and refrigerant needs. For example, the European Union (EU) Commission updated the F-gas (HFCs, PFCs, and SF6) rule in 2015 to limit growing emissions that could stifle the condensing unit market.

COVID-19 Impact Analysis

The outbreak of the COVID-19 epidemic has severely altered the global market for industrial condensing units. COVID-19 has affected the operations of numerous condensing unit manufacturers and their suppliers and distributors.

In the medium term, the decline in export shipments, project delays and slow domestic demand for condensing units in contrast to pre-COVID-19 levels are likely to impact negatively and slightly stagnant demand for condensing units.

Global Condensing Unit Market Segment Analysis

By application, the condensing unit market is segmented into commercial, industrial and transportation.

The industrial segment dominates due to the rising demand from various end-use industries.

Due to increased demand from various application areas such as retail stores, power plants, hospitals, dairy cabinets, cooling systems and cryogenic containers, the industrial segment is expected to maintain its dominance over the forecast period. Constantly rising demand for natural refrigerants, such as ammonia, carbon dioxide and hydrocarbons, leads to a shift in preference for natural refrigerants over traditional refrigerants, and is likely to drive global revenue growth.

Other key factors driving the demand for condensing units that use new technologies and improved regulations include the growing middle-class population and their rising need for better and fresher products.

Global Condensing Unit Market Geographical Analysis

The largest share is to be held by Asia-Pacific.

In the global condensing unit market, Asia-Pacific is expected to emerge as one of the major regions. Due to the growing population, expanding food products & services markets, and increasing investments in chemicals & petrochemicals, the market is estimtaed to rise at a strong CAGR. Growth in the chemical and electricity industries contributes to the region's development.

In addition, the growing demand for food processing and storage facilities is fueling market expansion in the region. China is anticipated to have the lion's share of the regional condensing unit market. Chinese government is promoting the use of natural refrigerants in various applications.

Russia-Ukraine War Impact

The Russia-Ukraine war has significantly impacted the global condensing unit market by disrupting supply chains and increasing costs. The conflict has exacerbated existing supply chain issues, leading to delays and higher logistics costs. Key materials for manufacturing condensing units, such as semiconductor-grade neon from Ukraine and palladium and nickel from Russia, have become scarce, resulting in production challenges and increased prices.

Additionally, the war has driven up the costs of raw materials and energy, particularly natural gas and crude oil, which are essential for manufacturing processes. This has further increased the prices of condensing units. Businesses are being forced to recalibrate their supply chain strategies, seeking alternative suppliers to mitigate risks, which can lead to temporary shortages and extended lead times.

By Type

• Air-cooled
• Water-cooled
• Evaporative

By Application

• Commercial
• Industrial
• Transportation

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In February 2024, Panasonic Europe introduced a new 20HP CO2 outdoor condensing unit to the European market, adding to its existing lineup of 2HP, 4HP, and 10HP CO2 outdoor systems. This unit is designed specifically for supermarkets and industrial process cooling, suitable for various applications such as walk-in cold rooms, freezers, low-temperature display cases, and blast chillers for food retail and process cooling.
• In February 2023, Daikin Germany released the inverter-controlled CO2-ZEAS refrigeration condensing unit, which is tailored for low and medium-temperature applications. This system incorporates three Daikin double-swing compressors and intelligent capacity control, making it ideal for various normal and low-temperature refrigeration needs.
• In September 2021, Emerson Electric Co. launched the Copeland CO2 scroll compressors with smart electronics and integrated dynamic vapor injection (DVI) technology. According to Emerson, this technology offers a new CO2 booster system solution that reduces system complexity and costs while maintaining high efficiency in any environment.

Why Purchase the Report?

• Visualize the composition of the condensing unit market segmentation by type, application and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the condensing unit market by analyzing trends and co-development deals.
• Excel data sheet with thousands of condensing unit market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global condensing unit market report would provide access to an approx. 53 market data table, 42 figures and 180 pages.

Target Audience 2024

• Condensing Unit Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Condensing Unit Manufacturers