Demand for Industrial Refrigeration System and Impact of COVID-19……..Posted by Mrudula Anil Karmarkar on February 12th, 2021 The global industrial refrigeration system market size is expected to reach USD 26.90 billion by 2027, expanding at a CAGR of 4.6% over the forecast period, according to a study conducted by Grand View Research, Inc. Growing demand for innovative and compact industrial refrigeration equipment and the government initiatives to strengthen cold chain infrastructure is projected to fuel the market growth. Furthermore, the expansion of food retail chains across the globe is likely to spur the demand in the forthcoming years. Retailers are focusing on developing long-term strategic planning to withstand the increasing intensity of the retail competition and shifts in customer needs. The critical challenge of food processing applications currently is to make sure the freshness of perishable goods by taking into consideration that they have a less adverse impact on the environment. Moreover, the growing production and consumption of processed food in the food processing industry of the developing economies are predominantly driving the market growth. The market is presently depending on cold storage infrastructure to efficiently and effectively store surplus build-up of food. At the same time, also deliver and store essential medication and pharmaceutical products effectively. In the outbreak of COVID-19 pandemic, increased demand for pharmaceutical and medical products worldwide is projected to boost the overall market growth. Since most pharmaceutical and medical products such as vaccines, blood bags, drugs, and others are enormously temperature-sensitive, they must be preserved in constant temperature places to prevent spoiling. The factors mentioned above are driving the storage refrigeration market growth. North America dominated the market in 2020. This is due to the surge in demand for online grocery shopping in North America, with continuously growing application areas of natural refrigerant-based industrial refrigeration systems, which are anticipated to drive the overall market growth. Further, strict regulations for the supply and processing of perishable food products, coupled with the increasing number of technologically advanced refrigerated warehouses in the region, are likely to facilitate the development in exports and imports of perishable products. The demand for sophisticated warehousing, cold storage, transportation, and distribution facilities is gaining traction, thus, creating opportunities for regional as well as foreign companies to enter the market for the industrial refrigeration systems. It is also expected to generate business through various means such as mergers, acquisitions, alliances, and distribution partnerships. Industrial Refrigeration System Market Report Highlights
This trend has led to new opportunities, thereby creating demand for advanced temperature monitoring systems that would maintain the safety of fresh food products. Also, the increasing demand for perishable products and fast delivery supplies associated with the e-commerce-based meat, poultry, and fish processing products and fresh food and beverage delivery market has led to a significant boost in cold chain operations. These factors are expected to aid in market growth. Additionally, understanding consumer behavior, attitude towards food consumption, understanding societal trends, and consumer access to food would help the company develop the products to attract the customer. Increasing consumer trends towards diet have urged the food manufacturers to keep track of current trends and adopt new technologies to tap the potential market. The rising trend of buying packaging products and increasing adoption of e-commerce has augmented the demand for refrigerated transportation and warehouse. Further, the increasing penetration of the organized retail sector in the emerging economies has propelled the demand for packaged food. These are several key factors behind the growing demand for industrial refrigeration systems. The refrigerant is a substance that is used in a refrigeration cycle to cool a particular space. Most refrigerants harm the environment as they contribute to ozone layer depletion and global warming. Greenhouse gases, such as emissions from some refrigerants and carbon dioxide, contribute to global warming as they absorb infrared radiation and retain it in the atmosphere. Therefore, the adoption of natural refrigerant-based equipment owing to stringent regulatory policies is another factor driving the industrial refrigeration system market growth. Have a Query? Ask Our Expert: https://www.grandviewresearch.com/inquiry/450823/ibb Moreover, several governments are taking initiatives to strengthen the cold chain infrastructure and attract investment in the cold chain industry. This, in turn, is creating demand for industrial refrigeration systems across the globe. For instance, the Ministry of Food Processing Industries of India implemented the scheme of the cold chain, value addition, and preservation infrastructure. The program offers financial support for setting up the integrated cold chain infrastructure to avoid post-harvest losses. These factors are likely to aid in market growth over the forecast period. The key players that dominated the global market in 2020 include Johnson Controls; Emerson Electric Co.; GEA Group Aktiengesellschaft; DAIKIN INDUSTRIES, Ltd.; and Danfoss Industries Pvt. Ltd. Industry players emphasize strategic collaborative initiatives for technology development in the market and increase their profitability and market share. End-use industries are using the industrial refrigeration system for several applications have diverse requirements based on specific processes and level of in-house expertise, product type, and environment. The market player continuously undertakes strategic initiatives such as new product launches, inaugurating new plants, agreements and contracts, and partnerships to sustain their market position. For instance, in April 2020, Danfoss Industries Pvt. Ltd. launched the electronic liquid-level switches that play an essential role in refrigeration equipment's safety. Further, In April 2020, Danfoss Editron inaugurated a new in-house testing laboratory in Lappeenranta, Finland. Some of the prominent players in the industrial refrigeration systems market include:
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