According to Mordor Intelligence, the industrial refrigeration
system market is expected to grow at CAGR of six percent over the forecast period 2021-2026. One of the significant factors contributing to the market’s growth is the increased usage of processed and packaged food and beverages across the developing countries. Furthermore, accounting for 32 percent of the country’s total food market, the government of India has been instrumental in the growth and development of the food processing industry.
Owing to the rapid growth opportunities in cold-chain storage infrastructure, Asia Pacific - especially countries such as India, Japan, and China - is projected to be the most attractive regional market. For instance, India is the second-largest vegetable and fruit producer across the globe. Moreover, the growing government support to strengthen the cold chain infrastructure and rising demand for compact and innovative refrigeration systems is expected to drive demand further in the near future. The recent lockdown situation to contain the COVID-19 pandemic has created a trend to purchase perishable products online, thus creating demand for advanced temperature monitoring systems that would maintain the safety of fresh food products.
Several government initiatives to strengthen the cold chain infrastructure and attract investment in the cold chain industry are also significantly aiding the market’s growth; creating a significant demand for industrial refrigeration systems in Indian sub-continent. For instance, to grant the financial support for setting up the integrated cold chain infrastructure to avoid post-harvest losses, the Ministry of Food Processing Industries of India has implemented the scheme of value addition, cold chain, and preservation infrastructure.
Increasing Demand from E-commerce Segment
Also, the fast delivery supplies associated with the e-commerce-based meat, poultry, and
fish processing products, and the increasing demand for perishable products has led to a significant boost in cold chain operations across Indian regions. Therefore the increased adoption of e-commerce and rising trend of buying packaging products has drastically augmented the demand for refrigerated transportation and warehouse. Furthermore, the growth of the organized retail sector in India has also been accelerating the demand for packaged food even further which directly originates from the demand for industrial refrigeration. For instance, by investing USD 515 million in the next five years, Amazon is also planning to enter the Indian food retailing sector, as per the IBEF 2019 report.
Changing Market Trends and Consumer Behaviour
Understanding consumer behavior, food consumption behaviour, societal trends, and consumer accessibility would help the manufacturers to develop the products to attract the customer. Adoption of new technologies and keeping track of current trends to tap into the potential market is what the players in the Indian Industrial Refrigeration Systems market need to do.
Increasing Demand from Healthcare Segment
Another space which has been fueling the growth of the refrigeration system market across the world is Healthcare Industry, wherein, the increasing demand for the safe storage of blood, blood derivatives, temperature-sensitive medicines from hospitals, pharmacies, clinics, and diagnostic centers are driving market’s growth. The replacement of older medical refrigerators with advanced cold storage devices are also growing with the rise in the rate of research activities for the treatment of chronic and infectious diseases.
Rising Demand for Compressors
The Industrial Refrigeration market has been segmented into compressors, controls, evaporators, condensers, and others, wherein, the compressors product segment has been witnessing quite significant growth as it takes in low-temperature and low-pressure refrigerant from the evaporator. Also, it also compresses the refrigerant into high-temperature and high-pressure gaseous state. Thus, the increasing number of refrigerated warehouses has been driving the compressor’s market growth. While, several market players are also concentrating on cost reduction in the manufacturing of compressors to increase profitability. Market players are also developing new compressors to meet the diverse requirements of end-users with the increase in the application industries of industrial refrigeration equipment. There are also foraying in new avenues to explore the untapped market.
Increasing Use of Refrigeration in Chemical Industry
As chemical, petrochemical, and oil refining industries need refrigeration to condense gases, dehumidify air, and preserve compounds, it forms a very critical part of the operations. Furthermore, the need for advanced refrigeration for maintaining the temperature of certain raw materials and semi-finished and finished products in the chemical industry is also a significant factor in the industrial refrigeration market’s growth bandwagon in the near future.