Industrial Condensing Units Market to Record CAGR of 5.1% Increase in Revenue by 2028

Author: Nishant Mishra

Industrial Condensing Units Market - Key Research Findings

Global industrial condensing units market size in 2018 – Nearly US$ 9.5 Bn

The industrial condensing units market revenue is expected to grow at nearly 5.1% CAGR over 2018-2028.

South Asia and East Asia are poised to have substantial growth potential in the industrial condensing units market.

Population growth, market development, and a strong trend towards healthy food are the cited factors influencing the demand for industrial condensing units in these regions.

The retail markets in most emerging economies such as Indonesia and Malaysia are developing at a rapid pace of around 10%–15% annually. This trend is anticipated to boost the demand for industrial condensing units over the forecast period.

Government Regulatory Scenario -

Inefficient and inadequate supply chains are the reason for around 94% of all wasted food in the Middle East & Africa. Food franchisees have been increasingly focusing on long-term expansion goals and investments for the same in the Middle East.

For improved cold chain development to meet the demand for fresh food, in 2014, the government of Brazil laid down dietary guidelines for the use of fresh food over processed food.

Europe and North America are expected to remain prolific regional markets for industrial condensing units.

North America is considered as one of the most developed markets in the global industrial condensing units market.

In new industrial condensing units, the most preferred type of compressors are scroll compressors.

Scroll compressors boast of excellent individual part-load and full-load efficiency, fewer moving parts, very low vibration, and a continuous compression process with almost no vibration/pulsation. These aspects make this a lucrative segment in the industrial condensing units market.

  • Price Competitiveness and Product Innovation Set to Play a Pivotal Role

Energy efficiency and compliance with new regulations are important factors to be considered while manufacturing industrial condensing units. Besides, to offer low-priced, supreme industrial condensing units, market stakeholders must invest significantly in their R&D and develop new cost-effective products. High reliability, energy-saving technology, and unique design are the factors that manufacturers need to focus on.

Danfoss has equipped Intermediate Discharge Valves (IDVs) in compressors, which avoid over-compression caused by the motor during part-load operations, thus reducing their energy consumption.

Many companies have set up their production plants in India. From India, these companies are exporting industrial condensing units to the rest of the world, including Latin America, Southeast Asia, and countries/regions such as Australia, New Zealand, and Africa.

Distributors and suppliers possess important competitive advantages in the industrial condensing units market. Subsequently, the ability to offer cutting-edge technical assistance related to industrial condensing units will act as an important competitive advantage for manufacturers and distributors to increase the number of buyers for their products.

  • High Demand for Commercial Construction to Propel Market Pace

When the construction industry is down, companies emphasize on the retrofit market to boost the sales of industrial condensing units. Moreover, the increased bargaining power of consumers has certainly pushed the demand for superior quality, fresh food products.

The transportation of food products to the processing units with minimal loss in freshness is thus the need of the hour. Subsequently, these factors are boosting the demand for industrial condensing units.

Industrial Condensing Units Market Structure Analysis

  • The global industrial condensing units market is a fragmented landscape, with the tier 1 players holding almost 45% revenue share.

  • Leading players in the industrial condensing units market are primarily concentrating on the ASEAN and India markets, where cost competitiveness will remain a strong differentiation strategy.

  • While most of the key participants in the market are maintaining strategic focus on China, North America, and Europe, this report states that environment-friendly products and new technology assessment will be relatively important developmental strategies for companies.