Commercial Refrigeration Compressors Market Trends [2031]

Report Description

Commercial Refrigeration Compressors Market Outlook 2031

The global commercial refrigeration compressors market size was USD 188.82 Million in 2022 and is likely to reach USD 268.75 Million by 2031, expanding at a CAGR of 4.0% during 2023–2031. The market growth is attributed to the rising number of hypermarkets and supermarkets across the world.

Increasing number of hypermarkets and supermarkets across the world is expected to boost the demand for commercial refrigeration compressors. Supermarkets and hypermarkets use commercial refrigerators to store frozen foods, vegetables, milk, meat, dairy, and other grocery items. It also reduces bacterial growth in these food items, which enhances their adoption in hypermarkets and supermarkets. Therefore, the rising number of supermarkets and hypermarkets is propelling the market.

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A compressor is the heart of a commercial refrigerator that draws the refrigerant from the evaporator at relatively low pressure, compresses it, and then discharges it to the condenser where it is cooled. It is specifically designed to raise a refrigerant vapor's pressure, temperature, and energy level.

Reciprocating, rotary, scroll, screw, and centrifugal are some types of commercial refrigeration compressors that are placed at the bottom of the refrigerator. It is used in refrigerators & freezers, refrigerated display cases, and beverage coolers.

The COVID-19 pandemic hampered the demand for commercial refrigeration compressors. The abrupt rise in COVID-19 infection encouraged people to reduce and avoid frozen and chilled products, such as ice creams, cooldrinks, and others, which hindered the market, as commercial refrigeration compressors are required to store frozen food items.

Moreover, the severity of the pandemic led governments to impose lockdowns and suspend all non-emergency activities and close down stores, such as restaurants, hotels, and bars, impeding the demand for commercial refrigeration compressors, as it is widely placed in these spaces to protect food & beverages from bacteria.

Impact of Artificial Intelligence (AI) on Commercial Refrigeration Compressor

Evolution of Industry 4.0 and the introduction of IoT, big data, artificial intelligence, and cloud computing creates an immense opportunity in the market. AI-enabled commercial refrigeration compressors predict upcoming system failures and inform users about them. It also informs users about the maintenance or service date of the compressor. AI-powered commercial refrigerators alert the user about leakages in compressors during extremely hot climates. AI in commercial refrigeration compressors helps in designing the compressors, as it involves several mathematical problems.

Commercial Refrigeration Compressor Market Dynamics

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Major Drivers

Increasing consumption of frozen and processed food across the globe is expected to boost the demand for commercial refrigeration compressors. Refrigerators are needed to keep frozen food safe from bacteria, as they hamper the shelf life of food.

Commercial refrigerators reduce the risk of bacterial growth in processed food by lowering the moisture and temperature. This encourages restaurants, hypermarkets, hotels, and retail shops to adopt commercial refrigeration, which increases the demand for commercial refrigeration compressors. Therefore, the rising consumption of frozen food is propelling the market. For instance,

• The global frozen foods market is expected to increase by over 40% and reach USD 366.3 billion in 2026.

Growing adoption of commercial refrigeration systems in the pharmaceutical industry is projected to drive the market. The pharmaceutical industry utilizes commercial refrigeration to prevent pharmaceutical materials from getting ruined by contamination. Refrigerators ensure that the stored drugs remain stable, which increases their adoption in the pharmaceutical industry. This enhances the demand for commercial refrigeration compressors.

Existing Restraints

High cost of commercial refrigeration compressors is expected to restrict the market. Commercial refrigerator compressors are large in size to handle cooling, which makes them expensive as compared to normal compressors. Moreover, liquid slugging and lack of lubrication cause the failure of commercial refrigeration compressors, which encourages users to reduce their adoption.

Emerging Opportunities

Increasing investment in R&D activities by major players in the market to develop and introduce energy-efficient refrigerant compressors for commercial application creates an immense opportunity in the market.

For instance, on March 14, 2023, Tecumseh Products Company LLC, a manufacturer of hermetic compressors for air conditioning and refrigeration products, announced the launch of the TC Series compressor platform with R-290 refrigerant for commercial refrigeration. It is designed to operate in voltage and high ambient conditions, making it ideal for commercial refrigeration systems, such as deep freezers and bottle coolers.

Scope of the Commercial Refrigeration Compressor Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Commercial Refrigeration Compressors Market Segment Insights

Product Type Segment Analysis

Based on product type, the commercial refrigeration compressor market is segregated into reciprocating, rotary, scroll, screw, centrifugal, and others. The reciprocating segment held a large market share in 2022, due to the growing oil & gas industry.

Reciprocating compressors are widely used in the oil & gas industry to compress and transport gases efficiently. It has quick start-up capabilities, allowing them to start and stop quickly. Moreover, reciprocating compressors have low maintenance costs, which increases their adoption in commercial refrigeration.

The rotary segment is expected to grow at a robust pace during the forecast period, owing to economic growth and rising demand for industrial treatment plants. Rotary compressors run long and produce large volumes of air continuously, making them ideal for industrial processes that require a constant air supply. Moreover, rotary compressors provide less vibration and less noise, which enhances their demand in commercial refrigeration.  

Cooling Capacity Segment Analysis

In terms of cooling capacity, the global market is divided into up to 1 kW, 1-15 kW, 15-100 kW, and above 100 kW. The 1-15 kW segment dominated the market in 2022 and is projected to continue its dominance throughout the assessment period, due to increasing adoption of reciprocating compressors and a rising number of restaurants across the world.

Restaurants and hypermarkets indicate strong interest in compressors with low cooling capacities, owing to their reasonable pricing and easy availability, which increases the demand for 1-15 kW compressors.

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Application Segment Analysis

Based on application, the commercial refrigeration compressor market is categorized into refrigerator & freezer, transport refrigeration, refrigerated display cases, beverage coolers, and others. The transport refrigeration segment registered significant growth in 2022, due to the increasing highway network for quick road freight transport and rising demand for frozen foods.

Compressors are needed in transport refrigeration to keep the stored items fresh and safe. A compressor is mounted near the vehicle's engine to generate energy from the engine to circulate the refrigerant throughout the vehicle to keep items safe from bacteria.

The refrigerator & freezer segment is anticipated to grow at a quick pace during the projection period, owing to the high emphasis on food preservation and changing consumer lifestyles. A refrigerator and freezer need compressors to operate, as compressors compress gas at high pressure and temperature to turn it into a liquid state. This enhances the demand for commercial refrigeration compressors in refrigerators & freezers.

Regional Outlook

In terms of region, the commercial refrigeration compressor market is segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a major share of the market in 2022, due to rising consumption of processed and frozen foods and the presence of key players in the market, such as Carrier, Copeland LP, and Tecumseh Products Company LLC.

Moreover, the rising number of grocery stores and supermarkets in the region is propelling the demand for commercial refrigeration compressors, as they are utilized in supermarkets and grocery stores to keep vegetables and other perishable items safe from bacteria. For instance,

• As per a report, approximately 63000 grocery store businesses and supermarkets are located in the US in 2022.

The market in Asia Pacific is projected to expand at a high CAGR in the coming years, owing to rising consumer purchasing power, changing lifestyles, and increasing cold storage warehousing. Moreover, the growing popularity of refrigeration equipment and refrigerated solutions in the hotel, restaurant, and canteen sector is estimated to boost the demand for commercial refrigeration compressors, as hotels and restaurants keep refrigeration to offer quality and healthy food to the guests. For instance,

• The hotel industry in Asia is estimated to expand at a CAGR of 6.17% and is projected to reach USD 183.00 billion by 2027.

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