Centralized Refrigeration Systems Market By System Type (Direct Expansion Systems, Secondary Coolant Systems, Multiplexed Systems, Others [e.g., cascade systems, CO2-based systems]); By Refrigerant Type (Ammonia, CO2, Hydrofluorocarbons [HFCs], Hydrochlorofluorocarbons [HCFCs], Others [e.g., natural refrigerants, hydrofluoroolefins (HFOs)]); By Component (Compressors, Condensers, Evaporators, Controls, Others [pumps, valves, tubes]); By Application (Food Processing Industries, Cold Storages & Warehouses, Supermarkets & Hypermarkets, Chemical & Pharmaceutical, Others [hospitality, floral storage]); By Geography, Segment revenue estimation, Forecast, 2024-2032.

The centralized refrigeration systems market was worth USD 5.4 billion in 2023 and will be worth USD 8.93 billion by 2030, growing at a CAGR of 6.5% during the forecast period.

 

The market for centralized refrigeration systems is driven by the expanding incentives for energy conservation and centralization of refrigeration in food retail outlets such as supermarkets, food processing units, and industrial freezing. Such systems provide efficient energy control and minimal operational expenses, key aspects as organizations attempt to constrain electricity consumption and fulfill sustainability objectives. For example, supermarkets with a very low-profit margin and high overall energy consumption for refrigerated storage can significantly improve energy efficiency through the integration of centralized systems, which are claimed to save 20-30% compared with conventional systems. Modern development can be subdivided by smarter IoT technologies that are now implemented to manage energy and predict necessary maintenance. Such innovations not only boost system effectiveness and efficiency but also help in improving equipments life cycle and minimizing their downtime; thereby, helping in further promotion of centralized refrigeration systems in different fields.

 

The market for centralized refrigeration systems remains promising because the need for better and more energy-efficient equipment is constantly growing against the background of rising average world temperatures and energy costs. Finally, there is a marked trend towards natural refrigerants such as CO2 and ammonia, the GWP of which is much lower in comparison to HFCs. These changes are due to increased regulatory requirements across the world for environmental compliance and concerns for sustainable practices with operation bases in Europe and North America. Further, many novel sophisticated technologies for predictive maintenance and energy efficiency as AI and IoT integrated are emerging quickly to become essential elements of centralized systems. These advancements do not only increase functionality within the system but equally assures adaptive flexibility in terms of demand load pressure. In addition, the increasing use of the cold chain in developing lands due to the development of food retail and pharmaceutical markets is introducing new opportunities for upgraded central refrigeration systems to minimize the risk associated with product spoilage and to provide better medical storage systems.

 

 

Centralized Refrigeration Systems Market Segmentation

By System Type

• Direct Expansion Systems

• Secondary Coolant Systems

• Multiplexed Systems

• Others (e.g., cascade systems, CO2-based systems)

 

By Refrigerant Type

• Ammonia

• CO2

• Hydrofluorocarbons (HFCs)

• Hydrochlorofluorocarbons (HCFCs)

• Others (e.g., natural refrigerants, hydrofluoroolefins (HFOs))

 

By Component

• Compressors

• Condensers

• Evaporators

• Controls

• Others (pumps, valves, tubes)

 

By Application

• Food Processing Industries

• Cold Storages & Warehouses

• Supermarkets & Hypermarkets

• Chemical & Pharmaceutical

• Others (hospitality, floral storage)

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

Segment Analysis for Centralized Refrigeration Systems Market

By System Type:

Leading Segment: Direct Expansion Systems

Direct expansion (DX) systems dominate the market with a share exceeding 40%, as they are widely used in applications requiring straightforward & cost-effective cooling solutions. These systems are popular in cold storages and supermarkets due to their ability to provide efficient cooling with minimal energy consumption. For example, Walmart has implemented DX systems across several of its stores to maintain consistent refrigeration while optimizing operational costs. The segment is expected to grow steadily at a CAGR of 6.5% due to its broad applicability.

Fastest-Growing Segment: Multiplexed Systems

Multiplexed systems are witnessing a CAGR of 8.5%, driven by their ability to cool multiple zones with a single refrigeration unit, offering significant energy efficiency. These systems are increasingly adopted in large-scale supermarkets & hypermarkets where diverse temperature requirements are needed for different sections. Tesco has upgraded its refrigeration infrastructure to multiplexed systems, ensuring optimal cooling for its perishable goods sections.

 

By Refrigerant Type:

Leading Segment: Ammonia

Ammonia is the leading refrigerant, holding over 35% of the market share, as it is highly efficient & environmentally friendly with zero global warming potential (GWP). Ammonia-based systems are extensively used in food processing and cold storage industries. For example, companies like Nestlé rely on ammonia systems in their processing plants due to their low energy consumption and sustainable properties.

Fastest-Growing Segment: CO2 (Carbon Dioxide)

CO2-based refrigerants are growing rapidly at a CAGR of 9.5%, driven by stricter environmental regulations and the push for sustainable refrigeration solutions. CO2 systems are particularly popular in Europe, where regulations like the F-Gas Regulation promote the use of low-GWP refrigerants. Aldi has adopted CO2 transcritical systems across its European stores to reduce its carbon footprint.

 

By Component:

Leading Segment: Compressors

Compressors hold more than 30% of the market share because they are crucial in the refrigeration process. They are used in many areas, from food processing to chemical storage. New developments, like variable-speed compressors, have made them more energy-efficient and flexible to operate. Companies like Danfoss provide advanced compressors with better cooling capabilities & lower energy use, which are widely adopted in the industry.

Fastest-Growing Segment: Controls

Controls are growing at a CAGR of 10%, driven by advancements in IoT & smart technologies for refrigeration systems. Smart controls enable real-time monitoring & predictive maintenance, which are essential for energy optimization & reducing downtime. For example, Emerson’s control systems are widely used in supermarkets & warehouses, providing precise temperature regulation & energy efficiency.

 

By Application:

Leading Segment: Cold Storages & Warehouses

Cold storages & warehouses dominate the market, holding a 35% share, spurred by the increasing need for efficient refrigeration of perishable goods. The increase in online grocery delivery worldwide has significantly boosted the demand for cold storage facilities. Amazon, in particular, has made substantial investments in refrigerated warehouses with centralized systems to support its fresh food delivery services.

Fastest-Growing Segment: Chemical & Pharmaceutical

The chemical & pharmaceutical segment is growing at a CAGR of 11%, fueled by the increasing need for precise temperature control for sensitive materials like vaccines & biologics. During the COVID-19 pandemic, Pfizer & Moderna relied on centralized refrigeration systems to maintain vaccine efficacy during storage & transportation.

 

By Region:

Leading Region: North America

North America dominates the market with over 40% share, driven by the robust presence of food processing industries & large-scale supermarkets. The U.S. leads the region with significant investments in energy-efficient refrigeration systems. For example, Kroger has implemented centralized refrigeration solutions across its stores, focusing on reducing energy consumption & meeting environmental standards.

Fastest-Growing Region: Asia Pacific

APAC is the fastest-growing region, with a projected CAGR of 10.5%, due to rapid industrialization & the expansion of cold storage facilities. Countries like India & China are witnessing a surge in demand for centralized refrigeration systems in food processing & pharmaceutical industries. India’s government-backed cold chain development programs have encouraged investments in advanced refrigeration systems to reduce food wastage.

 

Centralized Refrigeration Systems Market Key Players 

• Danfoss

• Emerson Electric Co.

• Carrier Commercial Refrigeration

• Daikin Industries, Ltd.

• Johnson Controls

• Baltimore Aircoil Company

• BITZER

• Hussmann Corporation

• EVAPCO, Inc.

• LU-VE Group

 

Centralized Refrigeration Systems Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 5.4 billion
Revenue Forecast in 2030	USD 8.93 billion
Overall Growth Rate	CAGR of 6.5%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By System Type, By Refrigerant Type, By Component, By Application, By Region
By System Type	Direct Expansion Systems, Secondary Coolant Systems, Multiplexed Systems, Others (e.g., cascade systems, CO2-based systems)
By Refrigerant Type	Ammonia, CO2, Hydrofluorocarbons (HFCs), Hydrochlorofluorocarbons (HCFCs), Others (e.g., natural refrigerants, hydrofluoroolefins [HFOs])
By Component	Compressors, Condensers, Evaporators, Controls, Others (pumps, valves, tubes)
By Application	Food Processing Industries, Cold Storages & Warehouses, Supermarkets & Hypermarkets, Chemical & Pharmaceutical, Others (hospitality, floral storage)
By Region	North America, Europe, Asia-Pacific, LAMEA
Country Scope	US, Canada, Mexico, UK, Germany, France, China, Japan, India, South Korea, Australia, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.