Global Condensing Unit Market - 2022-2029
The global condensing unit market size was worth US$ XX million in 2020 and is estimated to reach US$ XX million by 2028, growing at a CAGR of XX % during the forecast period (2021-2028).
Refrigeration is a cooling process that involves compression, condensation, expansion and evaporation in a cyclic pattern. A condensing unit is an assembly that cools and condenses the refrigerant vapor, transforming the refrigerant into liquid form. The main components are the condenser, compressor, fan motor, mounting plate and other controls.
The temperature control devices condense a substance from its gaseous to liquid condition by chilling it into condensing units. The unit can be either a heat pump or an air conditioner. Condensing units are commonly used in refrigerators, air conditioners, heat pumps, and chillers. Compressors are used in three condensing units: air-cooled, water-cooled and fan-cooled.
Condensing units of the scroll type and hermetic type is the most commonly used, with the latter suitable for low to high-temperature applications. Condensing units are employed in the residential, commercial and industrial sectors, with food service applications particularly prevalent in the commercial and industrial sectors. With the rise in the global refrigeration market, the global condensing unit market is likely to develop throughout the forecast period.
Various end-use industries, like retail stores, food production & services, are predicted to grow strongly in developing nations in the next years, increasing the global condensing unit market. On the other hand, government controls are projected to stifle market expansion.
Rising infrastructure development in developing countries
Rising infrastructure spending, particularly in Asia-Pacific's developing countries, will likely propel the global condensing unit market forward in the next years. Several infrastructure projects, including metro rail and airports, are in India's planning and development stages.
In 2018–19, the Airport Authority of India (AAI) spent US$2.32 billion to expand existing terminals and construct 15 new ones. Furthermore, the airport business has been expanded to include private participation, with six PPP (Public-Private Partnership) airports built-in key cities. Furthermore, India's airport infrastructure is set to receive investments ranging from US$ 5.99 billion to US$ 6.41 billion between fiscal years 2018 and 2023.
Growing end-use industries
The market is being driven by the rise of end-user industries in emerging countries and the improved shelf life of these units. The rising demand from commercial & industrial sectors, including food production industries, food retails, commercial refrigeration and others, is driving the expansion of the condensing unit market. In addition, rising commercial complexes, banqueting suites, office space and other factors are likely to fuel market growth in the future years.
Stringent Government Regulations
The stringent rules surrounding refrigerants in condensing units have been cited as a major barrier in the condensing unit business. U.S. DOE (Department of Energy) has released many regulations affecting HVACR equipment manufacturers in recent years. They must adjust to these regulatory changes that affect efficiency and refrigerant needs. For example, the European Union (EU) Commission updated the F-gas (HFCs, PFCs and SF6) rule in 2015 to limit growing emissions that could stifle the condensing unit market.
COVID-19 Impact Analysis
The outbreak of the COVID-19 epidemic has severely altered the global market for industrial condensing units. Various stakeholders acquire the firms' industrial refrigeration components for various applications. COVID-19 has affected the operations of numerous condensing unit manufacturers and their suppliers and distributors.
In the medium term, the decline in export shipments, project delays and slow domestic demand for condensing units in contrast to pre-COVID-19 levels are likely to impact negatively and slightly stagnant demand for condensing units.
By application, the condensing unit market is segmented into commercial, industrial and transportation.
The industrial segment dominates due to rising demand from various end-use industries.
Due to increased demand from various application areas such as retail stores, power plants, hospitals, dairy cabinets, cooling systems and cryogenic containers, the industrial segment is expected to maintain its dominance over the forecast period. Constantly rising demand for natural refrigerants, such as ammonia, carbon dioxide and hydrocarbons, leads to a shift in preference for natural refrigerants over traditional refrigerants, likely to drive global revenue growth.
Other key factors driving condensing units that use new technologies and improved regulations include the growing middle-class population and their rising need for better and fresher products.
The lion's share is to be held by Asia-Pacific.
In the global condensing unit market, Asia-Pacific is expected to emerge as one of the major regions. Because of the growing population, expanding food products & services and increasing investments in chemicals & petrochemicals, the market is estimated to rise at a healthy CAGR. Growth in the chemical and electricity industries contributes to the region's development.
In addition, the growing demand for food processing and storage facilities is fueling market expansion in the region. China is anticipated to have the lion's share of the regional condensing unit market. China's government is promoting the use of natural refrigerants in various applications. Heat pumps, room air conditioners and commercial sand industrial refrigeration systems use refrigerants.
The global market for condensing units is fiercely competitive. The players have used new product releases, expansions, collaborations, acquisitions, contracts, joint ventures and divestments to improve their market position. For instance, Emerson Electric Company, based in U.S., purchased General Electric's Intelligent Platforms in February 2019. The latter's programmable logic controller technologies will likely increase Emerson Electric Company's already wide product line and strengthen its machine control capabilities.
Major global condensing unit market companies include Emerson Electric Co., Carrier Global Corporation, Danfoss, GEA Group Aktiengesellschaft, Heatcraft Refrigeration Products LLC, Voltas Limited, Bitzer SE, Advansor A/S, Baltimore Aircoil Company, SCM Frigo S.p.A. and Evapco Inc.
Emerson Electric Co.
Overview: Emerson, a maker of electric motors and fans, was founded in 1890 in St. Louis, Missouri, with over 100 years of experience. Emerson is at the forefront of the next generation of refrigeration technology development. Automation and commercial & residential solutions are the company's two main business platforms. The company creates new solutions in heating, ventilation, air conditioning & refrigeration (HVACR), professional tools, cold chain monitoring and food waste management, all of which have a long history. Simultaneously, the company is expanding the residential and commercial solutions to include new, complementary areas like air quality, food sustainability and smart-home technology.
Product Portfolio: The company has the most comprehensive assortment of interior, outdoor, and transportation condensing units on the market. Copeland uses the latest compressor technology, components and electronics to obtain optimum performance benefits.
Key Development: The Copeland Indoor Modular Solution and the Copeland Scroll Digital Outdoor Refrigeration Unit X-Line Series are two new pieces of foodservice equipment that Emerson Electric Co. will introduce in 2020. The Copeland Indoor Modular Solution is an all-in-one refrigeration system that requires no maintenance. The company redefines refrigeration with the X-Line Digital condensing units, which help relieve pressures through greater energy savings, reliability and cheaper maintenance & installation costs.
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Target Audience 2022
Condensing Unit Service Providers/ Buyers
Industry Investors/Investment Bankers
Education & Research Institutes
Condensing Unit Manufacturers
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