Industrial Refrigeration System Market - By Component, By Refrigerant Type, By Capacity, By End Use Industry, By Distribution Channel - Global Forecast, 2025 - 2034

Industrial Refrigeration System Market Size

The global industrial refrigeration system market was estimated at USD 19 billion in 2024. The market is expected to grow from USD 20 billion in 2025 to USD 34.4 billion in 2034, at a CAGR of 6.2%.
 

The global demand for perishable goods, including food and pharmaceuticals, has led to a significant expansion of cold chain logistics. This growth necessitates advanced industrial refrigeration systems to ensure product integrity during storage and transportation. In March 2025, Americold Realty Trust invested USD 127 million to acquire a 10.7-million-cubic-foot cold storage facility in Houston, Texas. This facility adds 35,700 pallet positions to Americold's portfolio and includes 16 acres for potential future expansion. The acquisition aligns with Americold's strategy to enhance its presence in the high-turn retail segment of the cold storage supply chain, particularly following a new contract with a prominent grocery retailer in Houston.
 

Environmental concerns and stringent regulations have accelerated the shift towards natural refrigerants like ammonia (NH?) and carbon dioxide (CO?), which have low or zero Global Warming Potential (GWP) and Ozone Depletion Potential (ODP). This transition aligns with global sustainability goals and offers long-term operational benefits. Unic Air, a Danish company, has pioneered the use of CO? as a refrigerant in its BLUE units. These units are not only sustainable but also economically advantageous and energy-efficient in operation. The adoption of CO? as a refrigerant reflects a commitment to reducing environmental impact and ensuring a more sustainable future.
 

Industrial Refrigeration System Market Trends

• The industrial refrigeration systems market is undergoing a transformative phase, driven by technological advancements and a global shift towards sustainability. Key trends include the adoption of low Global Warming Potential (GWP) refrigerants, integration of digital technologies, and the development of hybrid systems utilizing renewable energy sources. For instance, the HYCOOL project in Europe is pioneering a hybrid cooling system that combines solar thermal energy with traditional refrigeration methods, aiming to enhance energy efficiency and reduce carbon emissions. Additionally, the industry is witnessing a surge in the use of Internet of Things (IoT) and Artificial Intelligence (AI) for real-time monitoring and predictive maintenance, leading to optimized operations and reduced downtime.
   
• Governments worldwide are implementing initiatives to bolster the industrial refrigeration sector. In India, the National Centre for Cold-chain Development (NCCD) focuses on enhancing cold-chain infrastructure, promoting energy-efficient technologies, and building skilled human resources to minimize post-harvest losses. Similarly, Rwanda's establishment of the Africa Centre of Excellence for Sustainable Cooling and Cold Chain (ACES) underscores the importance of refrigeration in achieving food security and economic development. ACES serves as a hub for research, training, and innovation in sustainable cooling technologies. These initiatives reflect a global recognition of the critical role industrial refrigeration plays in supporting food supply chains, healthcare, and overall economic growth.
   

Trump Administration Tariffs

• Escalation of production costs and supply chain disruptions: The 25% tariffs on steel and aluminum imports have increased the cost of raw materials essential for manufacturing industrial refrigeration systems. These metals are critical components in compressors, condensers, and structural frameworks. The resultant price hikes have disrupted supply chains, leading to increased operational costs and potential delays in production schedules. Companies are compelled to reassess their sourcing strategies, often seeking alternative suppliers or materials, which may not always meet the required quality standards.
   
• Shift in global trade dynamics and market realignment: The tariffs have prompted a reevaluation of global trade relationships, leading to a realignment of markets. Countries affected by the U.S. tariffs have responded with their own trade barriers, creating a complex web of restrictions that hinder the free flow of goods. This environment has encouraged companies to consider nearshoring or reshoring manufacturing operations to mitigate tariff impacts. However, such transitions involve significant capital investment and time, potentially slowing down the responsiveness of the industrial refrigeration sector to market demands.
   
• Implications for global competitiveness and innovation: The increased costs and trade barriers have implications for the global competitiveness of U.S.-based industrial refrigeration manufacturers. Higher production costs may lead to increased prices for end-users, potentially reducing demand in price-sensitive markets. Furthermore, resources diverted to manage tariff impacts could limit investments in research and development, stifling innovation in energy efficiency and environmentally friendly technologies. This scenario may allow international competitors, operating in more favorable trade environments, to capture greater market share.
   

Industrial Refrigeration System Market Analysis

The industrial refrigeration system industry by refrigerant type is segmented into Ammonia (NH3), Freon (CFCs, HCFCs, HFCs), CO2 (Carbon Dioxide), and others. The Ammonia (NH3) segment generated a revenue of USD 7.9 billion in 2024 and is anticipated to reach USD 15.9 billion by 2034.
 

• Ammonia (NH?) continues to dominate the industrial refrigeration systems market primarily due to its superior thermodynamic properties and low environmental impact. As a refrigerant, ammonia has a high latent heat of vaporization and excellent energy efficiency, which allows systems using NH? to achieve substantial cooling with lower power consumption. These characteristics make it particularly well-suited for large-scale industrial applications such as food processing, cold storage, and chemical manufacturing.
   
• Moreover, ammonia is zero ozone depletion potential (ODP) and global warming potential (GWP) of zero align with global regulatory trends pushing for sustainable and eco-friendly refrigerants. This environmental advantage is increasingly critical, especially as industries aim to comply with international agreements like the Kigali Amendment to the Montreal Protocol and regional regulations such as the EU F-Gas Regulation.
   

The industrial refrigeration system market by end use industry is segmented into food and beverage industry, chemical and petrochemical industry, pharmaceutical industry, logistics and cold chain, and others. The food and beverage industry were the leading segment in this market in 2024 with a revenue of USD 9 billion and has a market share of around 47.6%.
 

• The food and beverage industry dominates the industrial refrigeration systems market due to its continuous, large-scale need for precise and hygienic temperature control across multiple stages of the supply chain from production and processing to packaging and distribution.
   
• Temperature-sensitive products like dairy, meat, seafood, frozen foods, and beverages require uninterrupted cold storage to prevent spoilage, maintain quality, and ensure compliance with stringent food safety standards. Industrial refrigeration systems offer the necessary reliability, scalability, and energy efficiency to manage these complex demands.
   
• Furthermore, regulatory mandates from bodies such as the U.S. Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) compel food producers to implement rigorous temperature control systems to prevent bacterial growth and contamination. These regulations have driven investments in modern refrigeration technologies that use natural refrigerants, offer real-time monitoring, and optimize energy use.
   

The U.S. industrial refrigeration system market was valued at around USD 3.3 billion in 2024 and is anticipated to register a CAGR of 5.1% between 2025 and 2034.
 

• The U.S. dominates the industrial refrigeration systems market in North America due to its expansive and technologically advanced food processing, cold chain logistics, and pharmaceutical infrastructure. The U.S. is home to some of the world’s largest food and beverage companies, including PepsiCo, Tyson Foods, and Kraft Heinz, all of which rely heavily on industrial-scale refrigeration to maintain product safety and shelf life. The country also has a vast network of refrigerated warehouses and distribution centers which are critical for a robust cold chain system, especially as e-commerce demand for perishable goods continues to rise. According to the Global Cold Chain Alliance, the U.S. leads the world in refrigerated warehouse capacity, further illustrating its market dominance in this domain.
   
• Moreover, the U.S. government's supportive regulatory and innovation environment has played a pivotal role in advancing refrigeration technologies. Agencies such as the Department of Energy (DOE) and Environmental Protection Agency (EPA) have introduced initiatives like the Better Plants Program and GreenChill Partnership, which encourage industrial players to adopt energy-efficient and environment friendly refrigeration systems.
   
• Europe: Europe witnessed promising demand in the industrial refrigeration system market with a share of around 19% in 2024 and is expected to grow at a robust CAGR of 6.3% during the forecast period.
  • The adoption of industrial refrigeration systems in Europe is experiencing significant growth, driven by the expansion of cold chain logistics, stringent environmental regulations, and technological advancements. The food and beverage industry is witnessing increased reliance on advanced refrigeration solutions to maintain product quality and safety. For instance, the UK's largest automated cold storage warehouse, operated by Dutch company NewCold in Corby, ensures efficient and large-scale storage of frozen foods. This facility utilizes automated robots to store and retrieve pallets of food, drastically reducing the need for human labor and playing a crucial role in the cold chain by holding extensive quantities of supermarket-bound food.
     
  • Technological innovations are reshaping the European industrial refrigeration system market landscape. There is a notable shift towards eco-friendly refrigerants like ammonia (NH?) and carbon dioxide (CO?), aligning with the EU's environmental objectives. Additionally, the integration of automation, IoT, and AI-driven monitoring systems is enhancing operational efficiency and predictive maintenance capabilities. These advancements not only reduce energy consumption but also ensure compliance with evolving regulatory standards. Furthermore, the expansion of cold chain logistics, propelled by the globalization of supply chains and increased demand for perishable goods, is necessitating the development of efficient and reliable cold storage and transport solutions.
    
     
• Asia Pacific: In 2024, the industrial refrigeration system market revenue for the Asia Pacific was around USD 7.7 billion and is expected to reach USD 14.8 billion by 2034.
   
  • The Asia-Pacific region is witnessing a significant surge in the adoption of industrial refrigeration systems, primarily driven by the rapid expansion of cold chain logistics and the food processing industry. Countries like China, India, and Japan are at the forefront, investing heavily in cold storage infrastructure to meet the growing demand for perishable goods. For instance, China, being the world's largest producer of fruits and vegetables, is enhancing its cold storage capacity to support both domestic consumption and international trade. Similarly, India's burgeoning middle class and increasing urbanization have led to a spike in demand for processed and frozen foods, necessitating the development of advanced refrigeration facilities. These developments underscore the region's commitment to strengthening its cold chain capabilities to ensure food safety and quality.
     
  • Technological advancements and environmental considerations are also shaping the industrial refrigeration landscape in Asia-Pacific. There is a noticeable shift towards eco-friendly refrigerants like ammonia (NH?) and carbon dioxide (CO?), aligning with global sustainability goals and regulatory frameworks. Additionally, the integration of automation, IoT, and AI-driven monitoring systems is enhancing operational efficiency and predictive maintenance capabilities.
     

Industrial Refrigeration System Market Share

• The top 5 companies in the market, such as Danfoss, Johnson Controls, GEA, MAYEKAWA Mfg. Co., LTD., and Emerson hold a market share of 20%.
   
• Danfoss has significantly expanded its industrial refrigeration portfolio through strategic acquisitions and partnerships. The acquisition of Bock GmbH has enhanced its compressor offerings, particularly in natural refrigerants like CO? and ammonia. Collaborations with tech giants like HPE and Google have led to the integration of Danfoss Turbocor oil-free compressors into data centers, improving energy efficiency by up to 30%. These initiatives, coupled with substantial investments in R&D and digitalization, have solidified Danfoss's position as a leader in sustainable and innovative refrigeration solutions.
   
• Johnson Controls maintains a competitive edge through a diverse product portfolio and substantial investments in research and development. With over 3,000 unique product offerings and 48 global R&D centers, the company focuses on building technologies and sustainability solutions. Strategic partnerships, such as the collaboration with Accenture, have enabled Johnson Controls to develop advanced building management systems, enhancing energy efficiency and customer experiences. These efforts have contributed to the company's significant presence in the industrial refrigeration system market.
   
• GEA Group specializes in providing comprehensive industrial refrigeration solutions, particularly for the food and beverage, marine, and oil and gas industries. The company's focus on developing energy-efficient and environmentally friendly technologies has positioned it as a key player in the market. GEA's commitment to innovation and sustainability ensures its continued relevance and competitiveness in the industrial refrigeration sector.
   

Industrial Refrigeration System Market Companies

Major players operating in the industrial refrigeration system industry are:

• Bitzer SE
• Danfoss
• Dorin S.p.A
• Emerson Electric Co.
• EVAPCO, Inc.
• Frick India Limited
• GEA
• Howden Group
• Ingersoll-Rand Plc
• Johnson Controls
• Kirloskar Pneumatic Co. Ltd.
• LEWA GmbH
• M&M Systems, Inc.
• MAYEKAWA Mfg. Co., LTD.
• Rivacold Srl
   

MAYEKAWA has established itself as a leader in natural refrigerant technologies, offering solutions that utilize ammonia and CO?. The company's emphasis on energy efficiency and environmental sustainability has resonated with industries seeking eco-friendly refrigeration options. MAYEKAWA's tailored solutions for various applications, including food processing and cold storage, have reinforced industrial refrigeration system market position and appeal to environmentally conscious customers.
 

Emerson has strengthened its market presence through a focus on automation and digital transformation. The company's Plantweb Digital Ecosystem and DeltaV control systems integrate advanced sensing technologies, analytics, and AI to optimize industrial processes. Strategic acquisitions, such as the purchase of National Instruments, have expanded Emerson's capabilities in industrial automation. These initiatives, along with a commitment to sustainability, have enhanced Emerson's competitiveness in the market.
 

Industrial Refrigeration System Industry News

• In April 2025, Thermo King, a strategic brand of Trane Technologies, unveiled its first Asia-manufactured trailer refrigeration unit—the LEGEND series—produced at a new smart facility in Wujiang, China. This initiative marks a significant step in Thermo King's localization strategy, enhancing supply chain stability and flexibility across the Asia-Pacific region. The LEGEND series is tailored for high-frequency road transportation, featuring precise temperature control, energy efficiency, and intelligent operation.
   
• Notably, it incorporates a "three-in-one" motor technology that integrates the motor, permanent magnet generator, and active rectifier, resulting in a 15% improvement in fuel efficiency and a 30% reduction in maintenance needs. Additionally, the system's smart control algorithms and electronic engine speed control contribute to up to 20% fuel savings in real-world scenarios. With features like an IP67-rated HMI, live fuel consumption data, and automated self-check functions, the LEGEND series exemplifies the industry's move towards more sustainable and intelligent refrigeration solutions.
   
• In September 2024, Mitsubishi Electric introduced the Climaveneta EW-HT-G05 high-temperature water-to-water heat pump, marking a pivotal development within the industrial refrigeration system market. Engineered for commercial and industrial settings, this system delivers water temperatures up to 78?°C and incorporates R513A, a low-GWP refrigerant aligned with global sustainability goals. Its dual-circuit configuration and digital control interface enhance operational efficiency, particularly in partial load scenarios. By supporting integration with 4-pipe systems for simultaneous heating and cooling, this launch exemplifies the industry’s shift toward multifunctional, energy-efficient refrigeration technologies tailored for evolving environmental and process requirements.
   
• In September 2024, Johnson Controls introduced an industry-first Refrigerant Detection System (RDS) Calculator within its Ducted Systems Solutions (DS Solutions) mobile app. This innovative tool assists contractors and distributors in determining the necessity of refrigerant detection systems for residential and light commercial HVAC projects by evaluating factors such as space dimensions and refrigerant volume. The calculator aligns with Johnson Controls' broader initiative to transition to environmentally sustainable refrigerants like R-454B, which have a lower global warming potential compared to traditional options. By providing immediate compliance assessments with standards like UL/CSA-60335-2-40 and offering step-by-step installation guidance, the RDS Calculator simplifies adherence to varying building codes and enhances safety in HVAC installations. This development underscores Johnson Controls' commitment to innovation and sustainability in the market.
   

The industrial refrigeration system market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) and volume (Thousand Units) from 2021 to 2034, for the following segments:

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Market, By Component  

• Compressor
  • Rotary screw compressor
  • Centrifugal compressor
  • Reciprocating compressors
  • Diaphragm compressors
  • Others
• Condenser
• Evaporator
• Controls
• Others 

 Market, By Refrigerant Type  

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

Market, By Capacity  

• Below 500KW
• 0.5 – 1MW
• 1-5 MW
• Above 5MW

Market, By End Use Industry  

• Food and beverage industry
• Chemical and petrochemical industry
• Pharmaceutical industry
• Logistics and cold chain
• Others

Market, By Distribution Channel  

• Direct
• Indirect

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa