Demand for industrial refrigeration systems in the USA fuelled by market drivers such as US tax cuts, increasing population and increase in industrial construction, particularly the cold storage and warehouse segments, resulted in the market being worth USD 2.0 Billion in 2018 which is a 6.9% increase from 2017.
BSRIA has just published a new refrigeration study providing detailed quantitative and qualitative assessment of the industrial refrigeration market in USA. This includes the cooling and refrigeration of industrial processes like distribution, food & beverage storage, production and energy, and consists of bare compressors, compressor units, compressor racks, industrial packages, remote condensers, evaporators, fluid to fluid heat exchangers and other products such as starters and drives, pressure vessels, refrigeration controls, hygienic air handling units and compressor motors.
Because of tariffs levied by the US Government on steel and aluminium which have affected the cost of components manufacturers increased their pricing in 2017-2018. Added to this, stringent regulations against HCFCs and HFC refrigerants has seen users retrofitting their old equipment with alternative refrigerants or natural refrigerants such as ammonia or CO2.
In a competitive landscape, Johnson Controls, Emerson, GEA and Mayekawa remain some of the large players, thanks to their extensive product ranges including compressors, compressor units to packages, controls and heat exchangers.
Contracting companies also have an important role to play when it comes to industrial refrigeration as the equipment in this industry is custom made. As well as the traditional companies working in the commercial refrigeration market, new international entrants have entered the light industrial sector in the last few years with products like compressor units, racks and packages.
Overall, the outlook for the market remains positive in the short term given the state of the economy and the growth in industrial spending. The market is forecast to increase to USD 2.2 Billion by 2023. The economy is expected to slow down compared to 2018, but will still show decent growth as revenue received from the equipment will grow faster than the number of units sold.
BSRIA’s unrivalled study combines market forecasts methodology and analysis of proprietary data. Interviews with suppliers and the channel remain the core source to assesses the current situation.