The growing adoption of natural refrigerant-based industrial refrigeration systems is one of the major driving factors behind the growth of this market.
According to ResearchandMarkets.com, the global industrial refrigeration system market is expected to grow from $US19.3 billion in 2019 to $US24.8 billion by 2025, rising at a Compound Annual Growth Rate (CAGR) of 4.3%.
In its latest report, the research firm said another driver is rising demand for innovative and compact refrigeration systems.
“Moreover, increasing government support to strengthen cold chain infrastructure in developing countries is driving the growth of this market. However, high installation costs and other expenses has restrained the market,” the report said.
At a component level, the report said the industrial refrigeration system market for compressors is expected to grow at the highest CAGR during the forecast period.
“Many companies are focusing on cost reduction in the manufacturing of industrial refrigeration compressors. With the increase in the application areas of industrial refrigeration systems, companies are developing new compressors to meet the diverse needs of customers and explore this untapped market, which is expected to increase the demand for compressors.”
Based on application, cold storage is the fastest growing segment of the market.
ResearchandMarkets.com said the number of refrigerated warehouses globally has increased significantly in the past few years.
By region, APAC is expected to grow at the highest CAGR during the forecast period.
HyChill Australia Pty Ltd general manager, Mario Balen, agrees the use of natural refrigerants is growing worldwide, particularly hydrocarbons.
Just recently the International Electrotechnical Commission (IEC) increased the charge limit for A3 (flammable) refrigerants from 150g to 500g and increased the charge limit for A2 and A2L (low flammable) refrigerants from 150g to 1,200g in self-contained commercial refrigeration cabinets.
“This increase is good news, but there is still a long way to go, as this increase was too small,” he said.
“Unfortunately, there are plenty of unfounded fears around this refrigerant that are not justified. For example, a common concern is flammability.
“But R1234yf and hydrocarbons fall under the same Dangerous Goods code. The only difference is that R1234yf and R134a costs a lot more than hydrocarbons.”