World Refrigeration Market worth over $US 31 billion in 2012

World refrigeration market, value US$ m in 2012, by product group

BSRIA's specialist consultancy, Worldwide Market Intelligence (WMI), has estimated the World Refrigeration market at over $US 31 billion in 2012 and expected to rise to $US 40 billion by 2016.

This is the finding from BSRIA’s recently published World Refrigeration Reports that focus on the market for commercial and industrial refrigeration in nine key countries: China, Brazil, France, Germany, India, Italy, Russia, the UK and the US.

Leading countries are driven by the need to improve energy performance and to replace refrigerants, together with tackling issues such as noise and recyclability.

In Europe, EU actions to control F-gases as part of its policy to combat climate change will have a serious impact for the compressor manufacturers particularly for heavy commercial and industrial applications. Legislation was passed in 2006, 2012 and 2013 to cut F-gas emissions by two-thirds of today's levels by 2030.

In the UK the F-Gas regulations are driving the market. The key movers are the supermarkets who are driving the demand for reduced costs for power consumption. Asda, for example, has achieved significant energy reductions adopting Honeywell’s R407F refrigerant at its Hunts Cross store.

World refrigeration market 2012 by country

The German market for domestic refrigeration has moved towards hydrocarbon refrigerants. The market for commercial applications remains dominated by R404A and R134A, mainly for cost reasons, but there is a gradual switch occurring towards natural refrigerants such as carbon dioxide and hydrocarbons. Germany’s main discount chains Aldi, Lidl and Netto continue to expand with greater focus on compressor racks.

The French and UK markets are heavily impacted by the large supermarket chains (such as Auchan, Carrefour and Casino in France and Tesco, Sainsbury’s and Marks & Spencer in the UK). More recently, smaller convenience type/express stores are having their effect, frequently in cooperation with petrol stations. They are tending towards natural refrigerants. Supermarkets realise that they will gain Green credentials by using such methods and become popular with their customers.

In Russia too, in line with the global trend, international agreements and applicable regulations in Russia, the increase in the use of ammonia as a refrigerant is one of the main ways of developing the refrigeration sector. There is still an installed base of R22 in the country which will be gradually replaced with other refrigerants as R22 is now officially banned for import.

In less developed markets, such as China and India, continued growth is being fuelled by stricter food legislation and changes in food retailing, the latter also affecting the Western world. These countries are keen to avoid food wastage by better distribution chains. In India, a major part of the efforts to improve the cold chain and food processing in India is the federal government’s scheme of establishing large ‘food parks’.

World refrigeration market CAGRs (Compound Annual Growth Rates) by country 2012-2016

China has by far the largest share of the world market which is estimated at 10.94 US$ billion.

In Brazil, the refrigeration market is characterized by the presence of many companies supplying different parts and components. The total market size, including compressors, condensing units, packs and racks, heat exchangers and other refrigeration units is estimated at US$ 3.79 billion in 2012.

Also on the agenda is the uptake of new materials such as aluminium micro-channel heat exchangers to replace traditional copper. However, there has not been the same level of shift from reciprocating compressors towards scroll seen in AC.

India has the highest CAGR (Compound Annual Growth Rate) at 15%, followed by Brazil and Russia on 9%.

New global report now available by BSRIA

BSRIA has recently published its new World Refrigeration Reports focussing on the market for commercial and industrial refrigeration in nine key countries: China, Brazil, France, Germany, India, Italy, Russia, UK and the US.

Each report examines segmentations of compressors, condensing units, packs and racks, evaporators and refrigeration units as well as heat exchangers. The Worldwide Market Intelligence reports provide details on: