Industrial Refrigeration Systems Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Type of Refrigerant (Ammonia-based Refrigeration Systems, Carbon Dioxide (CO2) Refrigeration Systems, Hydrofluorocarbon (HFC) Refrigeration Systems, Hydrochlorofluorocarbon (HCFC) Refrigeration Systems), By Equipment Type (Compressors, Condensers, Evaporators, Controls, Heat Exchangers, Others), By End-User Industry (Food Processing, Pharmaceuticals, Manufacturing, Chemical and Petrochemical, Cold Chain Logistics, Others), By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 21.04 Billion
CAGR (2026-2031)	5.87%
Fastest Growing Segment	Pharmaceuticals
Largest Market	North America
Market Size (2031)	USD 29.63 Billion

Market Overview

The Global Industrial Refrigeration Systems Market will grow from USD 21.04 Billion in 2025 to USD 29.63 Billion by 2031 at a 5.87% CAGR. Industrial refrigeration systems consist of large cooling infrastructures designed to extract heat from materials in settings such as food processing plants, cold storage warehouses, and chemical refineries. The growth of this market is chiefly supported by the expanding global cold chain logistics network and the increasing necessity for rigorous preservation standards in the pharmaceutical sector. These fundamental drivers ensure consistent demand for reliable thermal management equipment across various heavy industries, distinct from temporary technological shifts.

Nevertheless, a significant impediment to market expansion involves the high capital investment required to comply with evolving environmental regulations concerning refrigerant emissions and energy efficiency. According to the Global Cold Chain Alliance, in 2025, the total temperature controlled capacity managed by its members reached 231 million cubic meters. This figure illustrates the substantial scale of the sector even as operators navigate the financial difficulties associated with transitioning to sustainable cooling technologies.

Key Market Drivers

The Expansion of Global Cold Chain Logistics Infrastructure is fundamentally accelerating the industrial refrigeration market, driven by the critical need to ensure product integrity across complex supply chains. As logistics networks densify, the construction of new temperature-controlled warehouses necessitates substantial procurement of large-scale cooling systems to manage increased throughput. This growth trajectory is illustrated by the capacity surges among leading logistics providers who are actively adding infrastructure to meet rising demand. According to the Global Cold Chain Alliance, April 2025, in the '2025 Global Top 25 List', the collective capacity of the top 25 international operators increased by 640 million cubic feet compared to the previous year. Underscoring this massive operational scale, according to Americold Realty Trust, in 2025, the company’s global network comprised 239 temperature-controlled warehouses with a total volume of approximately 1.4 billion cubic feet.

Concurrently, the Adoption of Energy-Efficient and Sustainable Refrigeration Technologies is reshaping specifications, propelled by stringent environmental regulations and the imperative to lower operational costs. Industrial operators are rapidly transitioning toward natural refrigerants such as ammonia and carbon dioxide, necessitating advanced equipment upgrades to ensure compliance and efficiency. This strategic pivot toward sustainability has become a decisive factor for equipment manufacturers, directly impacting their financial success. According to GEA Group, March 2025, in the 'Fiscal year 2024' report, the company recorded an order intake of EUR 5.55 billion, a performance management attributed to the competitive advantage provided by its sustainable cooling solutions.

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Key Market Challenges

The primary impediment to the growth of the industrial refrigeration systems market is the substantial capital investment required to comply with increasingly stringent environmental regulations. As regulatory bodies enforce tighter controls on greenhouse gas emissions and refrigerant toxicity, facility operators are compelled to retire legacy equipment in favor of sustainable alternatives. This transition frequently necessitates a complete overhaul of existing infrastructure rather than simple component replacements. Consequently, the high upfront costs associated with purchasing and installing compliant low-global warming potential systems can delay facility expansions and deter necessary capital projects, particularly among smaller market participants with limited liquidity.

Furthermore, the financial strain is compounded by mandates focused on energy consumption, which demand the integration of advanced, high-efficiency technologies. The scale of this operational requirement is vast, making compliance a costly endeavor for heavy industry. According to the International Institute of Refrigeration, in 2024, the refrigeration sector consumed approximately 20 percent of the total electricity used worldwide. This magnitude of energy usage drives the rigor of efficiency standards, forcing companies to allocate significant financial resources toward expensive upgrades to avoid penalties, thereby diverting funds that could otherwise support organic market growth.

Key Market Trends

The Integration of IoT-Enabled Remote Monitoring and Predictive Diagnostics is rapidly advancing as facility operators seek to minimize unplanned downtime and optimize energy consumption. By embedding smart sensors and utilizing cloud-based analytics, industrial refrigeration systems can now transition from reactive maintenance schedules to condition-based strategies, where anomalies in compressor vibration or temperature are detected in real-time. This digital transformation allows for immediate adjustments that enhance operational efficiency and extend equipment lifespan. According to Johnson Controls, November 2024, in the 'Fourth Quarter Fiscal 2024 Results', the company reported that organic sales in its Industrial Refrigeration and Controls segments achieved double-digit growth year-over-year, reflecting the surging demand for these connected building technologies.

Concurrently, the Deployment of Industrial Waste Heat Recovery Systems for Circular Energy Use is gaining traction as a critical method for decarbonizing thermal processes. Instead of rejecting heat into the atmosphere, modern architectures utilize high-temperature heat pumps to capture and upgrade waste thermal energy for use in facility operations such as water pasteurization, cleaning, or space heating. This approach significantly reduces reliance on fossil-fuel boilers, thereby lowering Scope 1 emissions and operational utility costs. According to GEA Group, November 2024, in the 'Quarterly Statement Q3 2024', the Heating & Refrigeration Technologies division recorded an organic order intake growth of 6.6 percent compared to the previous year, driven by the increased uptake of these sustainable energy solutions.

Segmental Insights

The Pharmaceuticals segment is emerging as the fastest-growing vertical in the Global Industrial Refrigeration Systems Market due to the increasing requirement for strict thermal management. This growth is primarily fueled by the rising global production of temperature-sensitive biologics and vaccines that necessitate consistent cold chain conditions to maintain efficacy. Furthermore, stringent compliance mandates from organizations such as the U.S. Food and Drug Administration regarding storage safety are driving significant investments in upgraded cooling infrastructure. As a result, pharmaceutical manufacturers are rapidly adopting reliable refrigeration solutions to minimize product loss and ensure regulatory adherence.

Regional Insights

North America maintains a leading position in the Global Industrial Refrigeration Systems Market, primarily driven by its extensive and established cold chain infrastructure. The region experiences sustained demand from the robust food and beverage processing sector and a growing pharmaceutical industry, both requiring precise temperature control. Furthermore, the rapid expansion of online grocery platforms has necessitated increased refrigerated warehouse capacity. This market dominance is reinforced by a rigorous regulatory framework, where the U.S. Environmental Protection Agency (EPA) and its Significant New Alternatives Policy (SNAP) actively promote the transition toward environmentally sustainable, natural refrigerants.

Recent Developments

• In June 2025, Bitzer showcased its Ammonia Compressor Packs (ACPs) at the Industrial Refrigeration Network Conference held in Rottenburg-Ergenzingen, Germany. These screw compressor packages are specifically developed for use with ammonia, a natural refrigerant widely utilized in industrial cooling due to its zero global warming potential. During the event, the company highlighted the energy efficiency and sustainability benefits of the ACPs, which are designed to meet the rigorous demands of large-scale industrial refrigeration applications. The presentation aligned with the industry's increasing focus on reducing carbon footprints and adopting environmentally friendly technologies for process cooling and food storage.
• In October 2024, Danfoss launched NeoCharge, a new electronic control solution specifically engineered for industrial refrigeration systems. This technology is designed to optimize the performance of existing ammonia refrigeration plants by managing liquid feed to evaporators more effectively. The solution reportedly enables facility owners to increase refrigeration capacity by up to 40 percent and reduce energy costs by approximately 20 percent. By minimizing liquid recirculation and eliminating superheat, the system improves operational efficiency and reduces the ammonia charge required, offering a retrofit option for managing thermal loads in industrial environments.
• In October 2024, DSI Dantech acquired the North American freezing business of GEA Group, a significant strategic move within the industrial food processing market. This acquisition included the transfer of intellectual property for new freezing machines and the integration of relevant staff into DSI Dantech’s global team. The collaboration enhances DSI Dantech’s portfolio of mechanical freezing and thermal treatment solutions, strengthening its position as a key supplier for the food industry in North America. The transaction allows GEA to streamline its operations while ensuring continued service and support for its existing freezer customers through the new ownership.
• In July 2024, Copeland received industry recognition for its 4MTLS transcritical CO2 semi-hermetic compressor, a product designed to support the adoption of natural refrigerants in the industrial sector. The compressor features a large displacement that allows for greater flexibility in system design, potentially reducing the number of required compressors and lowering applied costs for CO2 booster systems. This development addresses the growing demand for sustainable refrigeration solutions that comply with tightening environmental regulations. The product aims to simplify the implementation of CO2 refrigeration in industrial applications while delivering high efficiency and reliability.

Key Market Players

• Johnson Controls
• Emerson Electric Co.
• GEA Group Aktiengesellschaft.
• Danfoss
• MAYEKAWA MFG Co. Ltd
• BITZER Kuhlmaschinenbau GmbH
• DAIKIN Industries Ltd
• EVAPCO Inc
• LU-VE S.p.A
• Guntner GmbH & Co. KG

By Equipment Type	By End-User Industry	By Region
Compressors Condensers Evaporators Controls Heat Exchangers Others	Food Processing Pharmaceuticals Manufacturing Chemical and Petrochemical Cold Chain Logistics Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Industrial Refrigeration Systems Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Industrial Refrigeration Systems Market, By Equipment Type:

• Compressors
• Condensers
• Evaporators
• Controls
• Heat Exchangers
• Others

• Industrial Refrigeration Systems Market, By End-User Industry:

• Food Processing
• Pharmaceuticals
• Manufacturing
• Chemical and Petrochemical
• Cold Chain Logistics
• Others

• Industrial Refrigeration Systems Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE