Refrigeration Compressors Market Growth & Trends:
The global refrigeration compressors market size is anticipated to reach USD 28,389.3 million by 2030 and is projected to grow at a CAGR of 4.7% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market is primarily driven by the increasing demand for refrigeration in various sectors including food & beverages, pharmaceuticals, and chemicals, where it is crucial to maintain precise temperature controls to ensure product quality and safety.
The stringent government regulations regarding food safety and energy consumption are pushing companies to invest in advanced refrigeration systems, subsequently driving the compressor market forward. These regulations often encompass aspects such as energy efficiency standards, which require compressors to meet certain criteria before they can be marketed. For instance, in the U.S., the Department of Energy (DOE) sets efficiency standards for commercial refrigeration equipment, including compressors. In addition, environmental regulations, such as those governing the use of refrigerants with low global warming potential, impact the promotion of refrigeration compressors.
Refrigeration compressors are ideal in various applications, ranging from household refrigerators to large-scale industrial systems, due to their fundamental role in cooling and refrigeration processes. In residential applications, these compressors are integral to refrigerators and freezers, where they compress refrigerant, facilitating the removal of heat from the interior compartment to the outside, thus maintaining the desired low temperatures for food preservation. Similarly, air conditioning systems, both residential and commercial, rely on refrigeration compressors to cool indoor air, enhancing comfort levels during warmer seasons.
On a larger scale, refrigeration compressors serve critical functions in industries such as food processing and storage, pharmaceuticals, and chemical manufacturing. For instance, in the food sector, large commercial refrigeration systems use these compressors to maintain specific temperatures in cold storages and processing plants, essential for preserving the freshness and safety of perishable goods like fruits, vegetables, meats, and dairy products. In the pharmaceutical industry, precise temperature control enabled by refrigeration compressors is vital for storing sensitive products, including vaccines and medicines, ensuring they remain effective until they reach consumers. These aforementioned factors are expected to drive the market growth in the coming years.
The technological advancements in refrigeration compressors, such as the development of energy-efficient and environmentally friendly models, are catering to the growing consumer demand for sustainable and cost-effective solutions. For instance, Danfoss, recognizing a significant uptick in the demand for advanced cooling technologies within the U.S. market, announced in February 2023 its plan to establish a new manufacturing facility in Mexico. This new venture aims to produce medium & large scroll compressors, along with pressure and A2L leak detection sensors for HVAC/R applications tailored for both residential and commercial settings. Furthermore, the expansion of cold chain logistics, notably in developing countries, coupled with a surge in the consumption of processed and frozen foods, continues to propel market expansion.
Refrigeration Compressors Market Report Highlights:
- Based on compressor type, the reciprocating compressors segment led the market with the largest revenue share of 74.3% in 2023. The reciprocating compressors are widely used in HVAC systems for residential and commercial buildings, providing efficient air conditioning and heating. They are also essential in refrigeration applications, including household refrigerators, freezers, and commercial cooling units, where precise temperature control is crucial
- Based on compressor type, the scroll compressors segment are commonly employed in residential central air conditioning systems and commercial HVAC for their efficiency and quiet operation. They are also utilized in refrigeration applications, ranging from food storage to medical equipment cooling, due to their reliability and performance
- Based on compressor type, the screw compressors segment are predominantly used in large industrial and commercial refrigeration systems, including food processing and chemical plants, due to their high-capacity cooling and energy efficiency. They are also applied in air conditioning systems for large buildings and facilities, offering robust performance for extensive cooling requirements
- Based on capacity, the refrigerant compressors with a capacity of up to 5 Hp segment are typically utilized in a wide range of smaller-scale cooling applications. These include residential refrigerators and freezers, small commercial refrigeration units for restaurants and convenience stores, as well as window and portable air conditioning units. Their compact size and efficient cooling capability make them ideal for applications where space is limited and moderate cooling is required
- Based on application, the commercial segment is driven by the increasing demand for efficient cooling and refrigeration across various sectors, underpinning the functionality of a vast array of cooling and refrigeration systems crucial to various industries. In the realm of food & beverage, they are integral to the operation of commercial refrigerators and freezers, walk-in coolers, and refrigerated display cases, ensuring perishables such as produce, dairy, and meat remain at safe consumption temperatures. Beyond preservation, these compressors are also essential in the process cooling sector, used in breweries and soft drink manufacturing to maintain optimal temperatures during production, thus guaranteeing product quality and consistency
- Based on motor, the fixed speed compressors segment operate at a constant speed, delivering a consistent volume of air output without adjusting for fluctuating demand. This traditional type of compressor is best suited for applications with a constant need for air supply, providing a straightforward solution for continuous operation environments
- Asia Pacific dominated the market with the revenue share of 70.2% in 2023. The market is driven by increasing demand in air conditioning and refrigeration applications across both residential and commercial settings. This growth is further fueled by the economic expansion in countries like China and India, which are witnessing a surge in urbanization and industrialization, leading to higher standards of living and consequently, a greater need for cooling solutions
- In November 2023, Copeland increased its production capacities for CO2 compressors within the U.S., specifically at its facilities in Sydney, Ohio, and Rushville, Indiana. This expansion complements its existing CO2 compressor manufacturing operations in Mikulov, Czech Republic, and Cookstown, Ireland, bringing the production closer to the North American market. Copeland is optimistic about the rapid adoption of CO2 refrigeration technology in the U.S., driven by food retail companies committing to sustainability goals and the need to adhere to environmental regulations. In addition, there's been a notable increase in the development of cold storage infrastructure