Refrigeration and Air Conditioning Compressor Market Size, Share, Growth, and Industry Analysis, By Type (Less than 5 kW, 5 to 30 kW, 30 to 100 kW, 100 to 300 kW, 300 to 500 kW, 500 to 1000 kW and Above 1000 kW), By Application (Residential, Commercial and Industrial), Regional Insights and Forecast to 2032

Updated On: 22 April 2024

REFRIGERATION AND AIR CONDITIONING COMPRESSOR MARKET REPORT OVERVIEW

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global refrigeration and air conditioning compressor market size was USD 18019.87 million in 2021 and is projected to touch USD 26616.05 million by 2032, at CAGR of 3.61% during the forecast period.

Refrigeration and air conditioning compressors stand as essential components in various industries, playing a pivotal role in delivering effective cooling solutions. Their significance lies in providing refrigeration, heat pumping, and air conditioning for expansive facilities and equipment, thereby addressing the diverse cooling requirements of industrial processes and significantly boosting overall operational efficiency. The versatile applications of these compressors make them indispensable in maintaining optimal temperatures, creating controlled environments crucial for the seamless execution of a wide array of industrial operations.

A primary function of these compressors is the efficient removal of vapour from the evaporator, a critical step in the refrigeration cycle. By extracting heat from the designated space, these compressors contribute to the creation of controlled environments necessary for successful industrial processes. Additionally, their key role in raising the temperature of low-pressure gas facilitates the transformation of refrigerants from gaseous to liquid states, ensuring the proper functioning of refrigeration and air conditioning systems. This intricate process not only prevents malfunctions but also enhances the longevity of equipment, solidifying the compressors' integral role in supporting the efficiency and reliability of crucial industrial processes.

COVID-19 Impact: Pandemic has constrained market growth due to disruptions in the supply chain

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The sales and production of air conditioners and refrigerators have been adversely impacted by the COVID-19 pandemic. The closure of numerous non-essential stores has negatively influenced the market demand for refrigerant and air conditioner compressors. Consequently, there has been a notable decrease in the production and sales of air conditioners and refrigerators, accompanied by disruptions in the import and export of raw materials. The overall effect has been a significant downturn in the industry, with challenges arising from both decreased consumer demand and logistical complications in the supply chain due to the ongoing health crisis.

LATEST TRENDS

"Regulatory measures and innovation collectively drive a market committed to green construction"

The anticipated market expansion is attributed to supportive measures by authorities promoting the development of green buildings. Governments are implementing stringent measures and updated regulations to safeguard the environment, prompting manufacturers to prioritize the creation of inventive and eco-friendly cooling solutions, with green building initiatives being a notable example. The incorporation of Variable Refrigerant Temperature Technology in green constructions plays a pivotal role by customizing refrigerant temperatures according to individual and environmental needs. This not only enhances energy efficiency but also contributes to elevated comfort levels. The adoption of such technologies underscores a broader industry commitment to sustainable practices and highlights the growing importance of environmentally conscious solutions in the construction sector.

REFRIGERATION AND AIR CONDITIONING COMPRESSOR MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into Less than 5 kW, 5 to 30 kW, 30 to 100 kW, 100 to 300 kW, 300 to 500 kW, 500 to 1000 kW and Above 1000 kW.

Less than 5 kW: Compressors in this category cater to smaller-scale applications, offering efficient cooling solutions for residential spaces and compact commercial setups.

5 to 30 kW: Ideal for moderate-sized spaces, compressors in this range provide versatile solutions for both commercial and industrial settings, balancing efficiency and capacity effectively.

30 to 100 kW: Suited for larger commercial establishments, these compressors deliver robust cooling performance, making them integral for maintaining optimal temperatures in mid-sized facilities.

100 to 300 kW: Compressors within this range are tailored for substantial industrial applications, ensuring reliable and powerful refrigeration and air conditioning capabilities for larger facilities.

300 to 500 kW: Offering high-capacity cooling, compressors in this category are designed for extensive industrial setups, providing the necessary cooling power for large-scale operations.

500 to 1000 kW: With enhanced capacity, these compressors are well-suited for sizable industrial complexes, providing efficient refrigeration and air conditioning for expansive spaces and equipment.

Above 1000 kW: Tailored for heavy-duty industrial use, compressors in this range provide immense cooling power, meeting the demands of the largest facilities and ensuring optimal temperature control in extensive industrial environments.

• By Application

Based on application the global market can be categorized into Residential, Commercial and Industrial.

Residential: Compressors designed for residential applications offer efficient and reliable cooling solutions for homes. These systems are crafted for optimal performance, ensuring comfort and energy efficiency in household settings.

Commercial: In commercial settings, compressors play a crucial role in maintaining comfortable temperatures in offices, retail spaces, and other commercial establishments. These systems are tailored to meet the varying demands of diverse commercial environments, emphasizing efficiency and performance.

Industrial: Industrial applications demand robust refrigeration and air conditioning solutions, and compressors in this category are designed for heavy-duty use. These systems provide the necessary cooling power for large-scale industrial facilities, ensuring the optimal functioning of machinery and processes.

DRIVING FACTORS

"Rising demand for cold storage fueled by online grocery trends is driving the market"

The market is on a trajectory of expansion, propelled by increasing urbanization in emerging economies, the widespread growth of cold storage facilities, and the flourishing cold chain logistics industry. The demand of the global refrigeration and air conditioning compressor market growth, particularly driven by the escalating demand for freezer space in cold storage warehouses. This heightened demand is attributed to a surge in online grocery purchases during the pandemic, as consumers sought to stock refrigerators with frozen food. The strategic role of cold storage facilities is evident in significantly reducing the rate of food spoilage, providing an effective solution for food preservation. This becomes especially pertinent in contemporary consumer practices, emphasizing the crucial function of cold storage in enhancing food quality and shelf life.

"Urbanization boosts demand for HVAC systems helping to expand the market"

The uptick in urbanization is a driving force behind the heightened demand for HVAC (Heating, Ventilation, and Air Conditioning) systems, consequently amplifying the necessity for compressors in both residential and commercial structures. As urban areas expand, the demand for efficient temperature control solutions surges, reflecting the growing need for HVAC systems. This escalating urban demand is particularly pronounced in residential and commercial buildings, where these systems play a vital role in maintaining comfortable indoor environments. The integral component within these systems, compressors, becomes increasingly crucial, powering the circulation and regulation of conditioned air. This intricate relationship underscores the pivotal role of compressors as urbanization continues to shape the landscape and drive advancements in HVAC technologies for enhanced living and working environments.

RESTRAINING FACTORS

"Market is hindered by challenges in troubleshooting and high maintenance costs"

The market faces imminent challenges due to troubleshooting issues and high maintenance costs, potentially hindering its growth. However, the imperative to address refrigerator emissions emerges as a pivotal aspect not only for environmental sustainability but also for averting ozone layer depletion and mitigating carbon footprints. Despite the obstacles, these challenges underscore the industry's need for innovative solutions that strike a balance between technological advancements, economic considerations, and environmental stewardship. Proactive measures aimed at enhancing system reliability and efficiency, coupled with eco-friendly practices, will be essential for navigating these challenges and fostering long-term market resilience. As the industry grapples with these complexities, strategic approaches that prioritize sustainability are imperative for sustained growth and relevance in the dynamic market landscape.

REFRIGERATION AND AIR CONDITIONING COMPRESSOR MARKET REGIONAL INSIGHTS

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"North America to dominate the Market Is Thriving With Exports Increasing Consumer Awareness "

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America dominate the global refrigeration and air conditioning compressor market share is poised for significant growth, propelled by factors such as the expanding food export sector, increasing consumer awareness, and widespread adoption of cooling solutions in healthcare and commercial domains. The region's substantial presence in prominent industries, coupled with advancements in compressor technology and a robust retail sector, solidifies its position as a key player in the market. With a focus on efficient refrigeration solutions, North America is well-positioned for sustained expansion, emphasizing the importance of innovation and strategic advancements in meeting the diverse demands of industries and consumers alike. The region's trajectory underscores its potential to play a pivotal role in shaping the future landscape of the refrigeration and air conditioning compressor market.

KEY INDUSTRY PLAYERS

"Key players' strategic partnerships and fostering of synergies expand the market "

The establishment of strategic partnerships is a prevalent practice within the market, where companies engage in collaborations and form alliances with fellow industry players or technology providers. This strategic approach is undertaken with the goal of harnessing synergies that mutually benefit all parties involved. These partnerships often facilitate the exchange of knowledge, expertise, and resources, allowing companies to leverage collective strengths for enhanced innovation, market presence, and overall competitiveness. Through these collaborations, companies can access complementary capabilities, share risks and costs, and capitalize on shared objectives. Such strategic partnerships exemplify a proactive and dynamic approach, reflecting the industry's recognition of the value derived from cooperative efforts in navigating challenges and capitalizing on emerging opportunities.

List of Market Players Profiled

• Sullair (U.S.)
• Tecumseh (U.S.)
• Carlyle Compressors (U.S.)
• Emerson (U.S.)
• Gardner Denver (U.S.)
• Embraco (Brazil)
• GEA Bock (Germany)
• KAESER (Germany)
• Bitzer (Germany)
• FISCHER (Germany)
• Secop (Germany)
• BOGE (Germany)
• FRASCOLD (Italy)
• Atlas Copco (Sweden)
• Ingersoll Rand (Ireland)
• DOOSAN (South Korea)
• LG (South Korea)
• DOOSAN (South Korea)
• Samsung (South Korea)
• Elgi (India)
• RECHI Group (China)
• KAISHAN (China)
• Highly (China)
• Landa (China)
• Hongwuhuan (China)
• GMCC (China)
• Hanbell (Taiwan)
• Fusheng Industrial (Taiwan)
• Airman (Japan)
• Kobelco (Japan)
• Panasonic (Japan)
• Johnson Controls-Hitachi (Japan)

INDUSTRIAL DEVELOPMENT

May 2023: Mitsubishi Electric announced plans to invest Rs 1,891 crore in Tamil Nadu, establishing its inaugural manufacturing facility in India for room air conditioners and compressors. The state-of-the-art facility, located in Tiruvallur district, is scheduled for production commencement by October 2025, strategically positioned to meet the surging demand in the Indian market. The facility is expected to generate over 2,000 jobs and emphasizes Mitsubishi's commitment to gender diversity by pledging 60% of positions to women. This investment underscores Tamil Nadu's attractiveness to manufacturers, aligning with sustainable practices and championing carbon neutrality initiatives.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.