Industrial Refrigeration Services in End-Use Industries

Refrigeration essentially refers to lowering the average temperature of a system or a substance. Industrial refrigeration, as the name suggests, thus, refers to the use of refrigeration mechanisms for industrial purposes. In industrial refrigeration, the temperature of a specified closed environment is brought down as compared to the surrounding temperature. This cooling of a closed environment is primarily done to store certain products or ease certain processes. Due to the important role played by industrial refrigeration in various end-use industries, several companies have come up in the market which offer such services. These companies are known as industrial refrigeration service companies.

Industrial refrigeration services have now become a preferred choice among industries

Industrial refrigeration services are in high demand owing to their widespread applications in different sectors. First and foremost, industrial refrigeration plays a pivotal role in the pharmaceutical and healthcare sectors. Most of the medications and pharmaceutical drugs need to be stored at cool temperatures which is why cold storage facilities in pharmaceutical manufacturing companies have become a must. The food processing industry, too, avails industrial refrigeration services for keeping the packaged and processed foods safe and free from contamination.

Another industry which has hugely benefitted from industrial refrigeration is the chemical manufacturing sector. Many chemicals tend to produce toxic fumes and gases when exposed to heat or sunlight. Hence, storing such chemicals at sub-zero temperatures becomes mandatory. With the expansion of the digital sector and cloud industry, the area of operation of industrial refrigeration services sector has also increased. Today, industrial refrigeration is widely used in data centers to maintain the efficiency of servers and avoid failures. Industrial refrigeration is also used in electricity production to maximize output.

Dynamics of the industrial refrigeration services market

The industrial refrigeration services market is one of the most vibrant sectors across the world. The sector is influenced due to the interplay of several factors and the actions of different stakeholders. The increasing volume of international trade is one of the primary growth drivers of the market. As trade increases, the use of industrial refrigeration services for transportation purposes rises exponentially. Moreover, growing consumption of packaged foods and beverages has a huge role to play in impacting the industrial refrigeration industry positively.

The industrial refrigeration services market is segmented on the lines of services and end-use industry. Based on services, the maintenance & repair segment is set to dominate the market with an absolute revenue growth of $2,505.0 million between the 2023-2032 period. On the other hand, the design segment is set to witness an absolute revenue growth of $185.8 million during the same period. By region, the market in Africa region is expected to have the fastest CAGR of 6.4% from 2023 to 2032.

Apart from these factors, strategic alliances among the leading companies in the industry have also widened the scope of the market. For instance, in March 2023, IR Pros announced the acquisition of Refrigerated Mechanical Solutions, an industrial refrigeration solutions provider.

This acquisition is expected to help IR Prose to increase its foothold in the sector in the next few years.
Akin to this move, Johnson Controls, in June 2023, announced the acquisition of M&M Carnot, a sustainable refrigeration solutions supplier. Johnson Control released a statement following this acquisition which said that this move will help the company to address the demands of the industry in a comprehensive manner.

The industrial refrigeration services market is, thus, on track to experience a massive surge due to the wide applicability of industrial refrigeration. Huge demand for these services in Africa and alliances among key players will further strengthen the position of the market.

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