Industrial Refrigeration Market Size, Share, By Equipment (Compressor, Condenser, Evaporator, Controls, Vessels, Pumps, Valves, and Auxiliary Equipment), Capacity (Less Than 100kW, 100-500kW, 500-1000kW, 1000-5000kW, and More Than 5000 kW), Refrigerant Type (Ammonia, CO2, HFC, and Others), Application (Fruit and Vegetable Processing, Beverage, Refrigerated Warehouse, Chemicals, Petrochemicals, Pharmaceuticals, Dairy and Ice-Cream Processing, Meat, Poultry, Fish Processing, and Others), and Region - Trends, Analysis, and Forecast till 2035

• Industrial refrigeration market size is approximated to grow at a valuation of USD 37.5 Billion, by 2035.
• In 2024, the target market valuation was USD 22.0 Billion.
• The market is growing at a CAGR 5.4%.

Industrial refrigeration refers to the specialized field and technology focused on cooling and removing excess heat from large-scale industrial processes and facilities, ensuring proper temperature control and product preservation. Industrial refrigeration offers numerous advantages, including maintaining product quality, extending shelf life, improving operational efficiency, ensuring food safety and regulatory compliance, and potentially reducing energy costs and waste.

The industrial refrigeration market is experiencing growth due to factors such as the rising demand for cold chain solutions, expansion of food and beverage industries, increased industrialization in developing economies, and the growing need for energy-efficient refrigeration systems. In addition to this, the stringent environmental regulations, increased demand for frozen and processed food, growing number of cold stores, and rapid urbanization in emerging economies, are also contributing in the market growth.

Industrial refrigeration is increasingly integrating advanced technologies for improved efficiency, sustainability, and safety, including IoT, predictive analytics, and energy-efficient systems such as heat recovery and cogeneration. Innovations in refrigeration systems, such as compact designs, improved efficiency, and the use of natural refrigerants, are further fueling the target market growth.

Impact of Generative AI on Industrial Refrigeration Market:

Through the optimization of system design, energy efficiency, and predictive maintenance, generative AI is revolutionizing the industrial refrigeration market.  It lowers operating costs and the impact on the environment by facilitating the development of sophisticated cooling models.  AI-powered simulations improve defect detection and performance forecasts while reducing downtime.  Further increasing efficiency, generative AI automates quality control and optimizes supply chain management.  Manufacturers thus obtain a competitive advantage with sustainable refrigeration systems and data-driven decision-making.

Key Drivers:

The Rising Demand for Cold Chain Solutions is Skyrocketing the Market Expansion

The need for cold chain solutions to protect perishable items during storage and transportation is driving the growth of the industrial refrigeration market due to the increasing demand for cold chain solutions.  Effective refrigeration technologies are being used at a faster rate due to the increased international traffic in temperature-sensitive goods including food and medications.  Further driving market demand are stricter food safety laws and the growth of online grocery delivery services.  Therefore, in order to satisfy the expanding demands of the cold chain business, manufacturers make investments in cutting-edge, energy-efficient refrigeration technologies.

• For instance, in September 2024, according to the data published by Thermal Control Business Update, consumer preferences for convenience and ready-to-cook meals, fueled by eCommerce and online grocery shopping, are driving the growth of the cold chain business.  Increased spending on refrigerated transportation, cold storage facilities, and cutting-edge temperature monitoring equipment has resulted from this.  The need for cold chain solutions is growing as a result of urbanization and hectic lives that need for quick, wholesome meal alternatives.

Restraints:

Environmental Impact of Industrial Refrigeration is limiting the Market Growth

The environmental effects of refrigerant leaks, which produce greenhouse gasses and destroy the ozone layer, are a significant drawback of the industrial refrigeration sector.  Hydrofluorocarbons (HFCs), a common refrigerant, are a major contributor to global warming.  Furthermore, inefficient systems use a lot of energy, which raises carbon emissions.  Manufacturers are further compelled by regulatory constraints to lessen its environmental impact to use eco-friendly procedures and refrigerant substitutes, necessitating a large investment in R&D to meet changing environmental regulations.

• Counterbalance Statements: Manufacturers should use natural refrigerants with reduced global warming potential, such as CO? and ammonia, to lessen its effects on the environment.  Emissions may be decreased by using energy-efficient technology, routine maintenance, and leak detection systems.  Regulation adherence and environmentally friendly refrigeration will be supported by investigating cutting-edge refrigerant mixes and encouraging sustainable practices.

Opportunities & Trends:

Amalgamating Internet of Things (IoT) with Industrial Refrigeration is Unlocking Growth Opportunities for the Impending Years

IoT integration improves real-time monitoring and control, lowers operating costs, and increases energy efficiency in industrial refrigeration systems.  By detecting problems before it becomes problems, IoT-enabled predictive maintenance reduces downtime.  IoT also makes it easier to adhere to strict food safety laws by managing temperatures precisely.  By providing smarter, more dependable, and more affordable solutions to satisfy the growing needs of companies dependent on temperature-sensitive products, these developments propel the industrial refrigeration market's expansion.

• For instance, according to the data published by IoTLabs, industrial refrigeration service is designed to help businesses optimize its refrigeration systems and reduce energy consumption. By deploying IoT sensors throughout the refrigeration infrastructure, it is possible to collect real-time data on temperature, humidity, and other environmental factors, providing with valuable insights into the performance of the refrigeration equipment.

The industrial refrigeration market is segmented into equipment, capacity, refrigerant type, application, and region.

By Equipment:

Appertaining from equipment, the market is divided into compressor, condenser, evaporator, controls, vessels, pumps, valves, and auxiliary equipment. The compressor segment is attributed to dominate the industrial refrigeration market share. This is due to its fundamental role in the refrigeration cycle, driving the movement of refrigerant and ensuring efficient cooling. Additionally, compressors are essential for increasing refrigerant vapor pressure, which is crucial for the operation of refrigeration systems.

The controls segment is the second-most dominating equipment in the target market. This is due to the increasing importance of control systems and software for improving energy efficiency and optimizing refrigeration processes.

By Capacity:

According to capacity, the market is categorized into less than 100kW, 100-500kW, 500-1000kW, 1000-5000kW, and more than 5000 kW. The 500-1000kW segment is holding the superior position in the target market. This is due to its use in mid-sized cold storage facilities and distribution centers for food and beverage, pharmaceuticals, and chemicals, and the need for reliable and energy-efficient refrigeration systems.

1000-5000kW segment is the fastest growing segment in the industrial refrigeration market. This is due to the need for large-scale cooling solutions in sectors such as food processing, chemical plants, and large warehouses.

By Refrigerant Type:

By refrigerant type, the market is pigeonholed into ammonia, CO2, HFC, and others. Ammonia is the refrigerant type which is leading the industrial refrigeration market. This is due to its superior cooling capacity and energy efficiency, making ammonia-based systems more cost-effective and environmentally sustainable. Moreover, ammonia itself is a natural refrigerant that is increasingly favored for its environmental benefits and high efficiency.

The CO2 refrigerant type is the segment holding the second largest position in the target market. This is due to its increasing adoption in the food and beverage industry, a major application area of industrial refrigeration systems, and growing research and development efforts for CO2 refrigerants.

By Application:

On the basis of application, the market is sub-segmented into fruit and vegetable processing, beverage, refrigerated warehouse, chemicals, petrochemicals, pharmaceuticals, dairy and ice-cream processing, meat, poultry, fish processing, and others. The refrigerated warehouse segment is the governing application in the target market. This is due to the increasing demand for cold storage solutions for food and other temperature-sensitive goods.

The fruit and vegetable processing is the application which is growing with the highest CAGR, in the target market. This is due to the growing demand for convenience and processed foods, the need for efficient cold chain infrastructure, and the perishable nature of these products requiring refrigeration for preservation and storage.

Regional Insights:

Geographically, the market is analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific: This is the region which holds the largest industrial refrigeration market share by 37% in the recent years. This is due to the growth in food processing and logistics sectors in the countries of this region, rapid urbanization and the expansion of infrastructure in the region, the increasing application of refrigeration systems in the chemical industry, the development of cold storage facilities and the increasing number of refrigerated warehouses, and government initiatives and investments in refrigeration technologies.

• China Industrial Refrigeration Market Insights:

The industrial refrigeration market in China has the most influencing market in the recent years. This is due to this country’s enormous manufacturing capacity, which allows for economies of scale in producing commercial refrigerators at low prices, and rapid growth of the food service and retail industries in Chin. Additionally, China is also a hub for innovation and technological advancements in refrigeration systems, enabling the production of energy-efficient and environmentally compliant solutions, and strong government initiatives in China are also promoting its market growth.

Europe: This is the region where the industrial refrigeration market grows with the fastest growth rate, during the forecast period. This is due to Europe’s well-established industrial base, with a high concentration of food and beverage, chemical, and pharmaceutical companies that rely on industrial refrigeration systems, and a high focus on energy efficiency due to European regulations and consumer preferences. Furthermore, Europe is a hub for technological innovation in refrigeration, with advancements in areas such as cryogenic cooling and sustainable refrigerants.

• Germany Industrial Refrigeration Market Insights:

The industrial refrigeration market in Germany is growing rapidly, in the recent years, in the forecast period. This growth is driven by the strong economy of Germany and its well-developed consumer electronics and home appliances market. In addition to this, Germany has a strong manufacturing base, and its focus on innovation, energy efficiency, and sustainability, which drives demand for advanced and energy-efficient refrigeration technologies.

North America: The region which is growing with the significant amount of growth rate, in the recent years. This is this region’s rise of online grocery shopping and e-commerce platforms necessitates efficient cold chain logistics, a strong need for cold storage and food processing facilities, and the pharmaceutical industry's reliance on maintaining temperature-sensitive products. Moreover, Government policies and incentives, such as those promoting natural refrigerant-based systems, encourage the adoption of sustainable and efficient refrigeration technologies.

• U.S. Industrial Refrigeration Market Insights:

The industrial refrigeration market in U.S. is growing considerably, in the recent years. This is due to its well-established and reliable supply chain, large investments in infrastructure and technology, and a wide range of industries, including food processing, pharmaceuticals, and petrochemicals, rely on industrial refrigeration. In addition to this, continuous innovation and development efforts address industry challenges and drive market growth.

Industrial Refrigeration Market Report Scope:

Attribute	Details
Market Size 2025	USD 23.3 Billion
Projected Market Size 2035	USD 37.5 Billion
CAGR Growth Rate	5.4% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Billion & CAGR from 2025 to 2035
Regional scope	North America - U.S. and Canada Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia, Malaysia, South Korea, and Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, and Rest of Latin America Middle East & Africa – GCC, Israel, South Africa, and Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Equipment:

• Compressor
  • Reciprocating Compressors
  • Screw Compressors
• Condenser
  • Air-Cooled Condensers
  • Water-Cooled Condensers
  • Evaporative Condensers
• Evaporator

• Air-Cooling Evaporators
• Liquid-Cooling Evaporators

• Controls
• Vessels
• Pumps
• Valves
• Auxiliary Equipment

By Capacity:

• Less Than 100kW
• 100-500 kW
• 500-1000 kW
• 1000-5000 kW
• More than 5000kW

By Refrigerant Type:

• Ammonia
• CO2
• HFC
• Others

By Application:

• Fruit and Vegetable Processing
• Beverage
• Refrigerated Warehouse
• Chemicals
• Petrochemicals
• Pharmaceuticals
• Dairy and Ice-Cream Processing
• Meat Poultry
• Fish Processing
• Others

 By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the market include, Danfoss, Frick India Limited, Johnson Controls, and others. These key players are developing energy-efficient systems, integrating smart technologies, adopting natural refrigerants, reducing the use of high-GWP refrigerants, establishing a strong regional presence, targeting specific industries, and forming strategic alliances and partnerships, for driving Industrial Refrigeration Market growth.

Industrial Refrigeration Market Companies:

• Danfoss
• Frick India Limited
• Johnson Controls
• Emerson Electric Co.
• Daikin Airconditioning India Pvt. Ltd.
• BITZER Kühlmaschinenbau GmbH
• EVAPCO
• GEA Group Aktiengesellschaft
• MAYEKAWA MFG. CO., LTD.
• Kirloskar
• Star Refrigeration
• CCR
• Metalex Cryogenics Limited
• Zanotti S.p.A.

View an Additional List of Companies in the Industrial Refrigeration Market

• In April 2025, AHT Cooling Systems expanded its product line with an emphasis on environmental responsibility and energy efficiency by introducing a new CO? version of its well-known VENTO multideck cabinet.  In accordance with current legislative trends and environmental objectives, the new model employed CO? (R744) as a refrigerant.  It worked with both the Daikin ZEAS system and conventional CO? compressors.
• In March 2025, in order to celebrate CO? Refrigeration Technology, Refindustry encouraged refrigeration industry professionals and businesses to participate in a special issue of its industry publication, Refrigeration industry.  The business was gathering real-world case studies that demonstrated how using natural refrigerants, especially CO?, could promote creativity, sustainability, and energy efficiency.
• In February 2025, the newest model of Star Refrigeration's acclaimed Azanechiller was introduced, and the company was still setting the standard for sustainability, durability, efficiency, and safety in the industry.  The recently unveiled Azanechiller 3.0 was a cutting-edge, industrial air-cooled ammonia chiller that was made to operate better and had less of an adverse effect on the environment.
• In February 2024, Agricultural and horticultural facilities expert CambridgeHOK was growing its business by introducing CambridgeHOK Refrigeration into the industrial refrigeration systems market.  The new company's focus was on designing, installing, maintaining, and servicing custom refrigeration and HVAC systems for cold stores, packhouses, process cooling facilities, and clean rooms for companies in the food, beverage, and pharmaceutical sectors.
• In September 2023, In order to provide clients with a cutting-edge Refrigeration-as-a-Service (RaaS) solution, Carrier Commercial Refrigeration, a top provider of high-efficiency refrigeration systems and services in the food retail and cold storage sectors, partnered with Relayr, Inc.  Food retailers no longer had to spend up front in infrastructure and refrigeration equipment thanks to the collaboratively created RaaS solution.

Analyst View:

A number of reasons are driving the growth of the industrial refrigeration market, including the requirement for energy-efficient refrigeration systems, the expansion of the food and beverage sectors, the growing need for cold chain solutions, and the expanding industrialization of developing nations.The market is also expanding as a result of stricter environmental laws, rising demand for processed and frozen foods, an increase in the number of cold shops, and the quick urbanization of emerging economies.

Advanced technologies such as IoT, predictive analytics, and energy-efficient systems such as heat recovery and cogeneration are being used into industrial refrigeration more and more in order to increase efficiency, sustainability, and safety.The target market is expanding due to advancements in refrigeration systems, including smaller designs, more efficiency, and the use of natural refrigerants.

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Company Name	Danfoss
Headquarter	Nordborg, Denmark
CEO	Mr. Kim Fausing
Employee Count (2024)	42,000 Employees