Writer, researcher & analyst, Aashi Misra, identifies opportunities in the industrial refrigeration market.
The advent of Industrialization 4.0 is compelling market players to incorporate the latest technological innovations to expand their business.
Industrial refrigerators are one such scientific marvel that a plethora of market players are using. In this article, we will delve deep into the various aspects of the Industrial Refrigeration Market, its growth and identify opportunities for investment.
Chemical/petrochemical industry
In the year 2023, the production capacity of the petrochemical reached almost 2.41 billion metric tonnes.
With the increasing requirement of petrochemical compounds around the globe, market players are increasing the efficiency of refrigeration plants.
Here are some of the major applications of refrigeration in petrochemical as well as chemical plants:
- Process gas handling
- Dew point control
- Gas sweetening
- Flare gas recovery
- Gas liquefaction
- Boil off the recovery package
- Gas gathering
- Recycle gas handling
Pharmaceutical industry
Data published by the World Health Organization in 2020 states that up to 50 per cent of vaccines are wasted globally every year. Plenty of safety and regulatory issues exist for various companies involved in developing pharmaceutical products.
On the back of a surge in demand for refrigeration from pharmaceutical firms, market players are taking the leap into business. They are adopting different types of refrigeration storage. They include:
Room temperature: Numerous pharmaceutical processes are conducted at room temperature of almost 20 degrees Celsius to 25 degrees Celsius. For instance, certain antibiotics such as amoxicillin capsules and cephalexin are stored in controlled room temperature by pharmaceutical industries.
Cool storage conditions: Some substances that make drugs degrade at room temperature are stored at cool storage of almost 8-15 degrees Celsius.
Cold storage conditions: Drugs that are highly degradable such as vitamins, drugs, and chemicals are stored in cold conditions ranging from 2-8 degree Celsius. Low temperature decreases microbial growth as well as chemical reactions. Some of the medications that are stored by pharmaceutical industries at cold temperatures are:
Insulin dosage: A report published by the National Institutes of Health states that the most populous region, the Western Pacific, currently has 138 million people are suffering from diabetes. Also, the number might rise to 200 million by the year 2035.
Typhoid Vaccine: According to data published by the World Health Organization almost 9 million people are diagnosed with typhoid fever globally.
Food industry
In recent years, the advancement in refrigeration has demonstrated how innovation can be used for sustainability to benefit mother Earth as well as business.
The food industry is adopting sustainable technologies in refrigeration to conserve essential foods such as fruit and meat.
Research Nester estimates that in the year 2023, almost 350 million metric tonnes of meat were produced globally. Meat is a source of diet for numerous people globally. However, conserving the meat at an appropriate temperature is necessary to eradicate bacteria proliferation.
Refrigeration at slaughterhouse: During the 1st step of meat production in the slaughterhouses, industrial refrigeration was utilised to decelerate the growth of bacteria. Meat is required to quickly cool down to prevent unwanted growth of bacteria.
In the cutting and packaging rooms: Industrial refrigeration plays a crucial role in packaging and cutting rooms for meat as it raises the shelf life. It has been estimated that at -18 degree Celsius, for up to 15 months, its properties can be maintained. Additionally, in the vacuum-packed pouches, meat can last for 2-3 years frozen.
At distribution places: In order to preserve freshness and quality, meat cooling is done at almost -30 degree Celsius in supermarkets. However, it is recommended to not keep meat for more than 3 days on supermarket shelves.
Refrigeration of fruits: Organisations continue to invest in refrigeration to preserve fruit. This is necessary to slow ripening, prevent attacks from microorganisms, and minimize qualitative and quantitative losses.
Additionally, in the rising sustainability focused fruit market, industrial refrigeration demand is constantly evolving.
For instance, these modern refrigerators are able to adjust speed according to demand, lessening energy consumption and raising the lifespan of equipment.
Cold storage
With the surge in production of vegetables such as potatoes, demand for refrigerated cold storages is projected to rise in future. In the Asia Pacific region, governments are relying on cold storage. Below are a number of cold storage and warehouse capacities in some of the countries:
- Australia - Refrigerated warehouse capacity of 0.4 cubic meters per urban resident
- Japan - 37 million cubic meters in 2022
- India - Presence of almost 394 lakh MT capacity
- China - 0.13 cubic meters per capita cold storage capacity
- New Zealand - 0.50 per capita cold storage capacity
Various market players are providing top notch industrial refrigerants keeping sustainability, safety, and environment in mind. The most common types used for industrial cold storage refrigeration systems are Carbon dioxide, Ammonia, and HFC/HFO.
Moreover, governments are working to strengthen cold chains and reduce waste.
Here are key figures taken from the European Fluorocarbon Technical Committee report are:
- 13% of all food lost globally on the back of lack of refrigeration
- An enhanced cold chain could feed 950 million people each year
- Of all the food losses, 63% come from developing countries
Refrigeration in Vehicles
Refrigerated trucks are useful in cold chain logistics in transporting flowers, food, and pharmaceuticals. Some of the benefits of these trucks are:
- Better shipping rates
- Expanded market access
- Preservation of sensitive cargo
- Enhanced customer satisfaction
Industrial Refrigeration Market Analysis:
The industrial refrigeration market garnered USD 20 billion in the year 2023. Furthermore, the market is projected to reach 38 billion by the end of the year 2036, exhibiting a CAGR of 4.9%. Some of the growth-propelling factors are:
- Rising number of cold chain warehouses
- Rising food wastage
- Increase in the production of perishable goods
- High demand for energy-efficient industrial refrigeration systems
- Consumers preference for ready-to-eat and frozen food products
- Stringent FMGC policies
However, factors such as the high initial installation cost of industrial refrigeration systems and the fluctuating process of refrigerants are some of the factors hindering growth during the forecasted period.
Some of the prominent companies in the domain are M & M Systems Inc, Johnson Control, Ingersoll Rand, United Technologies Corporation, EVAPCO Inc, Bitzer, Industrial Frigo SRL, Frick India Limited, GEA, Emersion, Daikin Industries Ltd, Dorin, etc.
Additionally, the industrial refrigeration system is projected to witness significant growth in Asia Pacific on the back of technological developments and huge marketing of frozen foods. Also, there is a surge in demand for processed and frozen products from region fuelling growth.
In July 2023, Advansor, which is a manufacturer of CO2 climate solutions, revealed 2 new sustainable refrigeration systems called Low Superheat and Value Pack Light. These state-of-the-art systems endeavor to increase energy efficiency and meet specific demands of the food retail market.
Conclusion
The above discussion illustrates that the market is offering lucrative opportunities during the forecasted period. There is a growing attempt to save food, leading to increased demand for industrial refrigeration.
However, in the world of fierce competition, market players are apprehensive to invest. It has become crucial for both new and established market players to understand the intricacies of the market. This is where market research comes in.
Market research reports amalgamate economic trends to improve business ideas. It also helps to mitigate risk.
Source:
https://www.researchnester.com/reports/industrial-refrigeration-market/4970