It has been estimated that the global Industrial Refrigeration market is set to boom, reaching $29.19 billion by 2028. The market across LAMEA is expected to experience the biggest growth with a CAGR of 6.3% from 2020 to 2028. This may come as a surprise as, like many other industries, the Industrial Refrigeration industry did not escape the impact of the COVID19 pandemic as it experienced a severe decrease in demand.
In 2020, the global Industrial Refrigeration industry sat at $19.30 billion, so as you can see, quite a significant increase is expected over the coming years.
‘Rise in consumption of FMCG products, surge in adoption of energy-efficient & eco-friendly refrigerants, and upgrading cold storage infrastructure across developing countries drive the growth of the global industrial refrigeration market.’
However, despite this positive outlook, it should be noted that strict regulations around the use of refrigerants coupled with high energy costs of operation and maintenance, could ‘hamper’ market growth.
The global market is analysed using several regions: Europe, North America, Asia-Pacific, and LAMEA. As mentioned above, LAMEA is set to see the highest increase in demand and growth with a CAGR of 6.3%. However, in 2020, the highest share was held across the Asia-Pacific market, contributing to over two-fifths of the market.
How Has COVID19 Affected the Industry?
- As the manufacturing industry – where industrial refrigeration is majorly required – closed its doors during the worldwide pandemic, the Industrial Refrigeration industry pretty much came to a standstill.
- As well as the above, the leisure and tourism industry was also affected, which too impacted the requirement for industrial refrigeration units.
- The prices of raw materials increased during the pandemic due to the disruption in supply chains, and transport and logistics were impacted by lockdowns and social distancing rules.
Despite these impacts, it looks as though there is finally some light at the end of the tunnel for the Industrial Refrigeration market, as the world now slowly begins to resume some sense of normality.
Remember, if you need some Industrial Refrigeration – or even some service and maintenance for your existing equipment – we’re here to help. Get in touch with us today to discuss your requirements.