The petrochemical, oil refining, and chemical sectors deploy industrial refrigeration systems to preserve compounds, condense gases, and dehumidify the air. Pharmaceutical companies use these systems for cold sterilization of biologics, tissues, and medical devices. Whereas, chemical companies need advanced refrigeration systems to maintain the temperature of raw materials and semi-finished and finished products. As most of the vaccines, biologics, and bioengineered drugs derived from living cells need to be stored at stable temperatures to remain viable, the burgeoning demand for such pharmaceuticals will create a huge requirement for industrial refrigeration systems in the coming years.

Additionally, the expansion of the cold chain industry will fuel the industrial refrigeration systems market at a CAGR of 5.0% during the forecast period (2020–2030). The market revenue is expected to surge from $26.8 billion in 2019 to $41.1 billion by 2030. The growth of the cold chain industry can be attributed to the rising sales of biologic products and biotech drugs. Hospitals, clinics, and pharmacies require special logistics solutions to maintain the quality of such temperature-sensitive products during their transportation from manufacturing companies to end users. 

Get More Insights: Industrial Refrigeration Systems Market Segmentation Analysis Report

In recent years, industrial refrigeration system manufacturers have been focusing on partnerships and product launches to cater to the needs of end users. For example, in July 2019, Axima Refrigeration France entered into a partnership with The Chemours Company to use the Opteon XL A2L-class refrigerants for commercial refrigeration. As per the partnership agreement, this refrigerant will be used before the implementation of the next European F-Gas hydrofluorocarbon (HFC) cap. Likewise, in November 2019, Danfoss India introduced incompressible computational fluid dynamics (ICFD) defrost module to reduce energy consumption and improve defrost performance in industrial refrigeration applications. 

The refrigerant type segment of the industrial refrigeration systems market is categorized into hydrofluorocarbon (HFC), carbon dioxide (CO2), ammonia, and others. Among these, the CO2 category is expected to register the fastest growth throughout the forecast period due to the non-flammable and low toxicity properties of this gas. CO2 is designated as a 'natural refrigerant' and has a minimal effect on the environment. CO2 is being considered as a long-term refrigerant alternative as there is no impending legislation on the phasing out of this gas. 

Companies such as Trane Technologies plc, Industrial Frigo SRL, Hussmann Corporation, Emerson Electric Co., Daikin Industries Ltd., Danfoss A/S, Carrier Global Corporation, GEA Group Aktiengesellschaft, Dover Corporation, BITZER Kühlmaschinenbau GmbH, Johnson Controls International PLC, Star Refrigeration Ltd., Mayekawa Mfg. Co. Ltd., and Midea Group Co. Ltd. use the aforementioned refrigerants in the industrial refrigeration systems that they manufacture for the oil and gas, food and beverages, and chemical and pharmaceutical industries. The primary equipment in such systems are compressors, evaporators, controls, and condensers. 

According to P&S Intelligence, the Asia-Pacific (APAC) industrial refrigeration systems market will generate the highest revenue during the forecast period, due to the presence of a vast population and several industrialized nations in the region. Moreover, the hefty investments being made by APAC countries in the development of world-class cold-chain infrastructure will also augment the demand for industrial refrigeration systems in the region in the upcoming years. For instance, in September 2020, the Government of India approved the development of 27 new integrated cold chain projects, under its Pradhan Mantri Kisan Sampada Yojana (PMKSY).

Thus, the increasing requirement for cold chain systems and burgeoning demand for pharmaceuticals will fuel the deployment of industrial refrigeration systems in several end-use industries in the coming years.