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Refrigerant Compressors Market 2021-2027

Refrigerant Compressors Market size exceeded USD 61.8 billion in 2020 and will exhibit 4.8% CAGR from 2021 to 2027. The industry shipments are estimated to cross 536.3 million units by 2027. Rapid urbanization and increasing construction activities in emerging countries along with rising demand for air conditioning & refrigeration appliances are likely to escalate the industry growth.

Refrigerant compressors utilized in air conditioning and refrigeration systems reduce the volume of gaseous refrigerants from the evaporator pressure to condenser pressure levels. New generation cooling appliances with enhanced improvements in efficiency are gaining higher visibility in the market. Growing sales of new cooling appliances will prominently escalate the refrigerant compressors penetration. Surging need for air conditioners owing to higher spending power and extreme heat conditions in emerging economies is positively contributing to an increased industry expansion.

Emerging trends that have a direct impact on the dynamics of the refrigerant compressors market include growing demand for refrigerants with low Ozone-Depleting Substances (ODS). Managing refrigerant emissions are important to address ozone layer depletion, protect human health & the environment, and reduce carbon footprints. Green buildings are carefully designed, built, and operated to reduce negative & increase positive impacts on surroundings and the environment. They deliver many benefits, ranging from the preservation of precious natural resources to improvements in the quality of life of their occupants.

Moreover, there is a rising use of Variable Refrigerant Temperature (VRT) technology in green buildings as VRT technology automatically regulates refrigerant temperatures to individual requirements, environmental requirements, and improve both comfort & energy efficiency. During cooling, the evaporating temperature is raised as close as possible to the condensing temperature. During heating, the opposite occurs due to which the compressor works less, reducing power consumption.

The ongoing COVID-19 pandemic has affected the sales and production of white goods, such as air-conditioners, refrigerators, and others, led by strict social distancing norms & lockdowns by various governments across the globe and a surge in COVID-19 cases. The shutdown of several non-essential stores across markets has negatively impacted the refrigerant compressors market demand. Furthermore, consumer sentiment has been hit amid the recent lockdown measures taken by the European countries to stop the third wave of the pandemic, which has further dampened recovery in the sales of compressor-based cooling products.

Rising usage of positive displacement compressors in commercial applications

The positive displacement compressor segment is poised to generate over USD 65 billion revenue by 2027. A positive displacement type of compressor compresses air by the use of mechanical linkage to displace, thus reducing the volume. A positive displacement compressor is further subdivided into reciprocating and rotary. Reciprocating compressors are used in various applications including commercial refrigerators and freezers. Moreover, during the past few years, the use of reciprocating compressors in food & beverage application has substantially increased on account of the discharge of a large pressure.

Open construction refrigerant compressors market is expected to witness demand of around 135 million units by 2027. In an open-type compressor, energy is mainly received from an external power source along with one end of the crank shaft ranging through the crank case to either a direct motor drive or a V-belt, gear, or chain drive. With such a design, it is necessary to seal the crank case. Open-type compressors are suitable for low-temperature and industrial refrigeration applications. They are designed to operate with halocarbons ammonia, and other refrigerants and are ideally fit for continuous duty and process refrigeration.

Rising demand for below 100kW capacity compressors

The below 100 kW capacity refrigerant compressors market is projected to grow at more than 4.5% CAGR through 2027. Below 100 kW cooling capacity refrigerant compressors are used in low-temperature applications such as mobile freezers. There is an increasing requirement for medium-temperature applications, ranging from 15 to 50 kW, to cool power products in the commercial & retail sectors. The simplified architecture, reduced footprint, and energy efficiency of below 100 kW will further improve industry statistics globally.

The domestic application is predicted to dominate the market with around 35% of the revenue share by 2027. The adoption of domestic refrigerators has been witnessing considerable growth in recent years owing to rapid economic growth, increasing need for consumer good and refrigerated food products, easy consumer finance, growth in urbanization, and import & export activities in the food & beverage sector. The other additional factors contributing to the growth is the emerging commercialization and changing lifestyles in line with the adoption of smart technologies.

Asia Pacific is anticipated to account for above USD 20 billion in refrigerant compressors market by 2027. A substantial need for ACs, refrigerators, biomedical refrigerators, and cold storage facilities, especially in essential goods, fueled by the rising disposable income and standard of living will essentially contribute to the high revenue generation. APAC has seen substantial growth in the AC & refrigerator industry impelled by increasing consumer inclination toward a comfortable lifestyle, which results in growing demand for refrigerant compressors.

However, due to the ongoing COVID-19 pandemic, AC and refrigerators have observed a significant drop in production and sales by failing consumer requirement, government lockdown measures, and disruptions in raw material imports that are necessary for AC & refrigerator production.

Product development is one of the major strategic outlooks

Some of the key refrigerant compressors market participants include Emerson, Gree Electric Appliances, Inc., Huayi Compressor Barcelona S.L., Secop GmbH, Italia Wanbao-ACC S.r.l, LG Electronics, Johnson Controls, Kirloskar Pneumatic Company Limited, Embraco, Daikin Industries, Ltd., Hitachi Ltd., and Mitsubishi Electric Corporation, among others.

Manufacturers majorly focus on the expansion and development of new technologies to enhance business capabilities and to cater to the rising demand. The global market is highly competitive. Companies are adopting various strategies such as product differentiation & development, diversification of distribution network, expansion of production capacity, etc. Such initiatives will help them to explore the untapped market potential and strengthen their position.

 

Source: https://refindustry.com/news/market-research/refrigerant-compressors-market-2021-2027/

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