US Industrial Refrigeration Systems Market Valued at $2 Billion
BERKSHIRE, United Kingdom — Industrial refrigeration systems in the U.S. were valued at $2 billion, according to a report by BSRIA. The increase, which is up 6.9% from 2017, is fueled by market drivers, such as U.S. tax cuts, the country’s increasing population, and an increase in industrial construction — particularly the cold storage and warehouse segments.
BSRIA study details the quantitative and qualitative assessment of the industrial refrigeration market in U.S., which includes the cooling and refrigeration of industrial processes, like distribution, food & beverage storage, production and energy, and consists of bare compressors, compressor units, compressor racks, industrial packages, remote condensers, evaporators, fluid to fluid heat exchangers and other products, such as starters and drives, pressure vessels, refrigeration controls, hygienic air-handling units, and compressor motors.
Because of tariffs levied by the U.S. government on steel and aluminum, which have affected the cost of components, many manufacturers increased their pricing in 2017-2018. Added to this, stringent regulations against HCFCs and HFC refrigerants have seen users retrofitting their old equipment with alternative refrigerants or natural refrigerants, such as ammonia or CO2.
Contracting companies also have an important role to play when it comes to industrial refrigeration, as the equipment in this industry is often custom-made. As well as the traditional companies working in the commercial refrigeration market, new international entrants have entered the light industrial sector in the last few years with products like compressor units, racks, and packages.
Overall, the outlook for the market remains positive in the short term given the state of the economy and the growth in industrial spending. The market is forecast to increase to $2.2 billion by 2023. For more information, visit www.bsria.com.