BSRIA study shows US industrial refrigeration market worth US$2bn

Demand for industrial refrigeration systems in the US has resulted in the market being worth US$2bn in 2018, which is a 6.9% increase from 2017. This was fuelled by market drivers such as US tax cuts, increasing population and an increase in industrial construction, particularly the cold storage and warehouse segments.

BSRIA has just published a new refrigeration study providing detailed quantitative and qualitative assessment of the industrial refrigeration market in the US. This includes the cooling and refrigeration of industrial processes such as distribution, food and beverage storage, and production and energy, and consists of:

• Bare compressors
• Compressor units
• Compressor racks
• Industrial packages
• Remote condensers
• Evaporators
• Fluid-to-fluid heat exchangers
• 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 have 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 which include 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 US$2.2bn 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.

[edit] About this article

This article first appeared in September 2019 on the BSRIA website and can be accessed HERE. To find out more about the study, call BSRIA on 01344 465 540 or email [email protected]bsria.co.uk.

BSRIA is a non-profit distributing, member-based association, providing specialist services in construction and building services. More information at www.bsria.co.uk.

BSRIA Test is a leading UK independent laboratory for testing, validation and performance of HVAC products and systems. As a UKAS (1053)-accredited laboratory to ISO 17025 with over 60 years' experience, it offers standard testing to BS, EN and ISO for CE approval and compliance with local schemes and global markets.

BSRIA's Worldwide Market Intelligence (WMI) division is a leading provider of a regularly released authoritative portfolio of published market reports and hot topics, in addition to bespoke studies and management consultancy. A wide range of off-the-shelf solutions includes HVAC, energy service and smart homes, renewable technology, refrigeration, structured cabling, lighting, security, fire detection and building controls.

BSRIA WMI also offers a market consultancy to the building and HVAC&R market stakeholders, building on its comprehensive data base of information, its expertise of the market’s competitive environment, its technical knowledge and analytical power.

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--BSRIA