Market to post CAGR of close to 7% during the forecast period
A report on the global industrial refrigeration systems market from Technavio provides an analysis of the most important trends expected to impact the market outlook through 2020. The firm defines an emerging trend as a factor that has the potential to significantly affect the market and contribute to its growth or decline.
According to Technavio’s report, the global industrial refrigeration systems market is expected to grow moderately during the forecast period, posting a compound annual growth rate (CAGR) of close to 7%. This growth is mainly attributed to the increasing demand from end-users such as the food processing industry and the oil and gas industry. Consolidation of market vendors, as well as increased focus on total cost of ownership by the operators, will positively impact the growth of the market.
The top three emerging trends driving the global industrial refrigeration systems market according to Technavio’s research analysts are:
- Increasing pressure requirements for components.
The report states that there is a definite preference for refrigeration system components that can handle higher pressure conditions, to facilitate the use of higher efficiency systems such as the transcritical CO2 systems. The use of higher pressure systems will also eliminate the need for backup systems. For instance, use of 90 bar components in a CO2 system will eliminate the need for a backup cooling system as it will ensure that the pressure will not exceed the maximum working pressure during stand-still.
Technavio’s lead engineering tools research analyst Anju Ajaykumar said, “Manufacturers need to develop strategies regarding investment to develop higher pressure components, with a focus on the particular market or application they are catering to. For instance, the actual need for valves with PS 65 bar for ammonia heat pumps offer limited potential. However, if this potential is combined with the need for high-pressure CO2 valves, then it would become profitable to design valves for this pressure rating.”
- Increase in factory packaged industrial refrigeration systems.
Factory packaged systems are gaining popularity as they provide substantial cost, space, and time advantages. Factory packaging of all individual systems in-factory, as opposed to industrial refrigeration systems that are completed onsite, requires only electrical and piping services. As the fabrication of these systems is completed even before the site is ready to receive the equipment, they are helpful in reducing the overall project timeline.
Packaged industrial refrigeration systems are manufactured in a controlled environment, which helps to ensure higher standards of quality control. These systems are easy to customize with respect to the required application and it can be manufactured in almost all sizes, requiring minimal on-site connections, thus leading to their high adoption. End-users can save substantially on initial investment as well as operating and maintenance costs by choosing these packaged industrial refrigeration systems.
- Outsourcing of pharmaceutical manufacturing by developed countries.
The third trend impacting the growth of the industrial refrigeration systems market is increased outsourcing of pharmaceutical manufacturing to developing countries such as China and India. The prominent reasons for this trend are the high cost of raw ingredients, increasing costs, and intense competition among market players. In addition, the need to reduce time-to-market, encourage drug discovery, and increase profit margins have further forced companies to outsource pharmaceutical manufacturing activities.