International. The size of the refrigeration compressor market exceeded US$61.8 billion in 2020 and will exhibit a compound annual growth rate of 4.8% from 2021 to 2027. Industry shipments are estimated to exceed 536.3 million units by 2027, analyst Global Markets Insights noted.
Rapid urbanization and increasing construction activities in emerging countries coupled with a growing demand for air conditioners and refrigeration appliances will escalate the growth of the industry.
New generation refrigeration appliances with improved efficiency improvements are gaining greater visibility in the market. Growing sales of new refrigeration appliances will significantly increase the penetration of refrigeration compressors. The growing need for air conditioners due to increased purchasing power and extreme heat conditions in emerging economies is positively contributing to further expansion of the industry.
Covid-19
The ongoing COVID-19 pandemic has affected sales and production of appliances, such as air conditioners, refrigerators, and others, led by strict social distancing rules and closures by various governments around the world and an increase in COVID-19 cases. The closure of several non-essential stores in all markets has had a negative impact on the market demand for refrigerant compressors.
In addition, consumer confidence has been affected amid recent lockdown measures taken by European countries to stop the third wave of the pandemic, which has further slowed the recovery of sales of compressor-based refrigeration products.
Increased use of positive displacement compressors in commercial applications
The positive displacement compressor segment is poised to generate more than $65 billion in revenue by 2027. A type of positive displacement compressor compresses the air by using a mechanical link to move it, thus reducing the volume. A positive displacement compressor is further subdivided into reciprocating and rotating. Reciprocating compressors are used in various applications, including commercial refrigerators and freezers. In addition, during the last few years, the use of reciprocating compressors in the application of food and beverages has increased substantially due to the discharge of a high pressure.
The open compressor market is expected to experience demand of around 135 million units by 2027. In an open-type compressor, energy is mainly received from an external power source along with an end of the crankshaft that runs from the crankcase to a direct transmission by motor or transmission by trapezoidal belt, gear or chain.
Increased demand for compressors with a capacity of less than 100 kW
The market for compressors with capacity below 100 kW is projected to grow at more than 4.5% CAGR through 2027. Refrigerant compressors with cooling capacity of less than 100 kW are used in low-temperature applications such as mobile freezers. There is a growing requirement for medium temperature applications, ranging from 15 to 50 kW, to cool energy products in the commercial and retail sectors. The simplified architecture, reduced footprint and energy efficiency of less than 100 kW will further improve industry statistics globally.
Growing demand for refrigeration appliances in the residential sector
Domestic application is projected to dominate the market with around 35% of revenue share by 2027. The adoption of domestic refrigerators has experienced considerable growth in recent years due to rapid economic growth, the growing need for consumer goods and refrigerated food products, easy consumer financing, growth of urbanization, and import and export activities in the food and beverage sector. The other additional factors contributing to growth are emerging marketing and changing lifestyles in line with the adoption of smart technologies.
Source: Global Markets Insights.
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