Europe Industrial Refrigeration Market - By Refrigeration Type (Ammonia (NH3), Freon (CFCs, HCFCs, HFCs), CO2 (Carbon Dioxide)), By End-Use (F&B Industry, Chemical & Petrochemical Industry, Pharma Industry, Logistics & Cold Chain), By Capacity & Forecast, 2024 – 2032

Europe Industrial Refrigeration Market Size

Europe Industrial Refrigeration Market was valued at USD 9.1 Billion in 2023 and is anticipated to register a CAGR of over 3.3% between 2024 and 2032. As consumer demand for diverse and high-quality food products continues to rise, food and beverage manufacturers are expanding their production capacities. This growth necessitates advanced and efficient refrigeration solutions to meet the industry's evolving needs. Industrial refrigeration systems play a critical role in maintaining optimal temperatures and preserving the freshness of raw materials, ingredients & finished products.
 

The cost-effectiveness of below 500 KW systems makes them a preferable choice for businesses with more modest cooling needs. Investment costs play a crucial role in decision-making for businesses of all sizes. Below 500 KW systems generally involve lower upfront costs compared to their larger counterparts.

The 0.5-1 MW will have highest growth in forecast timeframe owing to increasing numbers of medium-sized enterprises in the region. Industrial refrigeration systems are major energy consumers, accounting for up to 40% of the total energy usage in some industries.
 

Europe Industrial Refrigeration Market Trends

The expansion of cold chain logistics is a significant factor propelling the industrial refrigeration market growth in Europe. The cold chain, which encompasses the storage and transportation of temperature-sensitive products, plays a pivotal role in preserving the quality & safety of perishable goods, particularly in sectors such as pharmaceuticals, food & beverages, and chemicals. With the rise of international trade and the globalization of supply chains, there is a growing demand for efficient and reliable cold storage & transport solutions.
 

Europe Industrial Refrigeration Market Analysis

Based on refrigerant type, Ammonia (NH3), Freon (CFCs, HCFCs, HFCs), and CO2 (Carbon Dioxide). The Ammonia (NH3) segment held around USD 2.8 Billion in 2023. The European market is a complex landscape shaped by a myriad of factors, including environmental regulations, technological advancements, and economic considerations. Freon dominated the market with a share of around 42%. This can be attributed to the legacy systems that were built using Freon-based refrigerants before the implementation of stringent regulations. Retrofitting existing systems to accommodate ammonia or carbon dioxide can be a costly endeavor for industrial facilities.
 

Based on the end-use, the market is categorized into food and beverage industry, chemical and petrochemical industry, pharmaceutical industry, and logistics and cold chain. The food and beverage industry segment held around USD 3.7 Billion in 2023. The Food and Beverage Industry has emerged as the largest market, surpassing the market shares of the Chemical and Petrochemical Industry, Pharmaceutical Industry, Logistics and Cold Chain, and other sectors. Unlike products from other industries, food items are highly perishable and require precise temperature control throughout the entire supply chain, from production to consumption. Refrigeration plays a crucial role in maintaining the quality, freshness, and safety of food products, extending their shelf life and preventing spoilage.
 

Based on capacity by temperature, the market is categorized into Below 500KW, 0.5 – 1MW, 1-5 MW, and above 5MW. The Below 500KW segment held around USD 4.1 Billion in 2023. The European industrial refrigeration market is characterized by a diverse range of cooling solutions catering to various capacities. Below 500 KW capacity type has the largest market share attributed to the economic landscape within which businesses operate. Smaller industrial facilities, such as local food processing units, small-scale manufacturing plants, and retail establishments, often have cooling requirements that fall within or below the 500 KW range.
 

Germany dominated the Europe industrial refrigeration market in 2023, accounting for a major share of around 22%. Germany's robust industrial base, particularly in the manufacturing sectors including chemicals and pharmaceuticals, is a key factor driving the industrial refrigeration market growth. The nation's commitment to sustainability and environmental responsibility is steering the market toward energy-efficient & eco-friendly refrigeration solutions. Companies in Germany are investing in cutting-edge technologies to meet stringent environmental regulations while enhancing operational efficiency in their refrigeration processes.
 

Europe Industrial Refrigeration Market Share

Europe industrial refrigeration industry is highly fragmented owing to the presence of several market players. Major companies operating in the market are Johnson Controls International, Emerson Electric Co, Danfoss A/S, accounting over 36% market share in the year 2023. The major market players are focusing on mergers & acquisitions, facility expansion, and strategic partnerships to expand their product offerings, customer reach, and enhance market presence. Companies are also focusing on acquisition strategy.
 

Government support to boost the adoption of low GWP refrigerant and the geographical expansion of key players are anticipated to intensify the market competition over the forecast timeframe. An acquisition strategy enables a company to enter new markets and product lines instantaneously with a recognized brand having a good reputation and an existing client base. An acquisition can overcome market entry barriers that were previously challenging.
 

Europe Industrial Refrigeration Market Companies

Major players operating in the Europe industrial refrigeration industry include:

• Johnson Controls International
• Emerson Electric Co
• Danfoss A/S
• Carrier Global Corporation
   

Europe Industrial Refrigeration Industry News

• In March 2023, Emerson Electric Co. expanded its CO2 compression lineup. This expansion includes the industry's inaugural trans critical CO2 screw compressor, specifically engineered to meet the demanding requirements of high-pressure industrial CO2 refrigeration.
   
• In March 2023, Danfoss acquired BOCK GmbH, a manufacturer of CO2 compressors, from NORD Holding GmbH. The acquisition solidified Danfoss' standing as a provider of environmentally friendly cooling & heating solutions.
   

Europe industrial refrigeration market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Refrigerant Type

• Ammonia (NH3)
• Freon (CFCs, HCFCs, HFCs)
• CO2 (Carbon Dioxide)
• Others

Market, By Capacity

• Below 500KW
  • Industrial Process Cooling (10°-25°)
  • Cold Room (0°-10°)
  • Freezer (-10° -0°)
  • Deep Freezer (below-10°)  
• 0.5 – 1MW
  • Industrial Process Cooling (10°-25°)
  • Cold Room (0°-10°)
  • Freezer (-10° -0°)
  • Deep Freezer (below-10°)
• 1-5 MW
  • Industrial Process Cooling (10°-25°)
  • Cold Room (0°-10°)
  • Freezer (-10° -0°)
  • Deep Freezer (below-10°)
• Above 5MW
  • Industrial Process Cooling (10°-25°)
  • Cold Room (0°-10°)
  • Freezer (-10° -0°)
  • Deep Freezer (below-10°)

Market, By End-Use

• Food and Beverage Industry
• Chemical and Petrochemical Industry
• Pharmaceutical Industry
• Logistics and Cold Chain
• Others

The above information is provided for the following countries:

• Germany
• UK
• France
• Spain
• Italy
• Netherlands
• Belgium
• Sweden
• Poland
• Switzerland
• Austria
• Denmark
• Norway
• Finland