Condensing Unit Market Size, Share & Trends Analysis Report By Type (Air-cooled, Water-cooled), By Technology, By End-use (Air Conditioning, Refrigeration), By Application (Commercial, Industrial) By Compressor Type, By Region, And Segment Forecasts, 2024 - 2030

Condensing Unit Market Size & Trends

The global condensing unit market size was estimated at USD 38.51 billion in 2023 and is anticipated to grow at a CAGR of 6.3% from 2024 to 2030. The market demand is attributed to the increasing need for refrigeration and air conditioning systems across various industries, such as food & beverage, pharmaceuticals, and commercial facilities. As these industries continue to grow, there is a greater requirement for reliable and energy-efficient condensing units to support refrigeration and cooling processes. Moreover, with a growing emphasis on sustainability and energy conservation, businesses and consumers are seeking condensing units that can provide optimal performance while minimizing environmental impact.

Furthermore, the expanding food retail sector and rise in online food delivery services have bolstered the demand for commercial refrigeration equipment, including condensing units. This trend is further fueled by changes in consumer lifestyles and an increasing preference for convenience foods, which require reliable cold storage and transportation solutions.

Condensing units play a crucial role in various applications across different industries due to their ability to provide effective refrigeration and temperature control. In commercial refrigeration, condensing units are widely used in supermarket display cases, walk-in coolers, and refrigerated warehouses to maintain the desired temperature for preserving perishable goods, such as fresh produce, dairy products, and frozen foods. In addition, in industrial settings, condensing units are utilized in food processing facilities for freezing and chilling equipment, ensuring the safety and longevity of a wide range of food products. Furthermore, condensing units are an integral part of the HVAC systems in commercial and residential buildings, where they are used for air conditioning and heat pump applications.

The demand for condensing units is on the rise across various industries, driven by the increasing need for efficient refrigeration solutions. For instance, in the pharmaceutical industry, the demand for precise and reliable cooling systems powered by condensing units has significantly increased for storing and transporting temperature-sensitive medicines and vaccines. Moreover, as the food processing industry continues to expand globally, the demand for condensing units in freezing and chilling equipment to ensure the safety and quality of food products is also increasing. In addition, the growing emphasis on energy efficiency and environmental sustainability has led to a higher demand for advanced condensing units that offer improved performance while minimizing environmental impact.

Drivers, Opportunities & Restraints

Market growth is being driven by several factors, including the rapid growth of the global food and beverage industry, which is leading to an increased demand for refrigeration equipment. Moreover, the expansion of cold chain logistics, particularly in the pharmaceutical and healthcare sectors, creates a significant market driver for condensing units used in temperature-sensitive storage and transportation applications. Furthermore, the growing awareness of energy efficiency and environmental sustainability is leading to the adoption of advanced condensing units that offer improved performance and reduced environmental impact.

However, the condensing unit market also faces restraints, such as increasing raw material costs, which can impact condensing units' overall manufacturing and production costs. In addition, stringent regulations and standards related to refrigerants and environmental protection present challenges for condensing unit manufacturers. Despite these restraints, there are opportunities for growth in the market, particularly with the rising demand for cold storage solutions in the e-commerce sector and increasing focus on precision cooling in data centers. Furthermore, developing environmentally friendly refrigerants and integrating IoT and smart technologies in condensing units present opportunities for innovation and market expansion.

Type Insights

“The demand for air-cooled type segment is expected to grow at a significant CAGR of 6.5% from 2024 to 2030 in terms of revenue”

The air-cooled type segment led the market and accounted for a share of 61.8% in 2023. The market is experiencing a steady rise in demand due to its energy-efficient and cost-effective cooling solutions. With industries and commercial sectors focusing on sustainable and eco-friendly practices, the adoption of air-cooled condensing units has risen significantly. For instance, in the food & beverage industry, there is a growing reliance on air-cooled condensing units to maintain the freshness and quality of products while reducing energy consumption and operating costs. As a result, the demand for air-cooled condensing units is poised to continue on an upward trajectory as businesses across various sectors prioritize environmental responsibility and operational efficiency.

The water-cooled condensing unit market is witnessing substantial demand driven by its high efficiency and suitability for large-scale cooling applications. Industries, such as data centers, are increasingly opting for water-cooled condensing units to efficiently manage heat loads and maintain optimal operating temperatures. For instance, data centers rely on water-cooled condensing units to effectively dissipate heat generated by servers and other equipment, ensuring the reliability and performance of critical infrastructure. As a result, the demand for water-cooled condensing units is expected to see continued growth as industries prioritize energy efficiency and sustainable cooling solutions.

End-use Insights

“The demand for air conditioning end use segment is expected to grow at a significant CAGR of 6.3% from 2024 to 2030 in terms of revenue”

The air conditioning segment accounted for a share of 49.3% of the global market revenue in 2023. Condensing units play a pivotal role in air conditioning as they are responsible for cooling and condensing the refrigerant vapor into liquid. These units are essential components in air conditioning systems, working in tandem with evaporator coils to facilitate the heat transfer process. By effectively removing heat from the indoor air, condensing units enable the air conditioning system to maintain comfortable temperatures within enclosed spaces. Whether in residential, commercial, or industrial settings, condensing units are integral to the efficient and reliable operation of air conditioning systems, contributing to the overall comfort and productivity of occupants in various end-use applications.

Condensing units in refrigerators play a crucial role in the refrigeration process. These units are responsible for releasing heat from the refrigerant gas, allowing it to condense into a liquid state. This process is essential for maintaining the low temperature inside the refrigerator, as the condensation of the refrigerant allows it to absorb heat from the interior of the refrigerator, keeping the stored items cool. The condensing unit typically consists of a compressor, condenser coils, a fan, and various controls to regulate the refrigeration cycle. Overall, the condensing unit is integral to the efficient operation of a refrigerator, ensuring that it can maintain the desired low temperature for food storage.

Compressor Type Insights

“The demand for reciprocating compressor type segment is expected to grow at a significant CAGR of 6.3% from 2024 to 2030 in terms of revenue”

The reciprocating compressor type segment accounted for a share of 74.3% of the global revenue share in 2023. Reciprocating compressors are a type of positive displacement compressor commonly used for applications requiring high-pressure output. They use a piston within a cylinder to compress the air or gas. Reciprocating compressors are known for their high efficiency and ability to handle varying demands, making them suitable for use in industries, such as manufacturing, oil & gas, and petrochemicals. Their versatility and ability to deliver high-power output make them a popular choice for many commercial and industrial applications.

Screw compressors are a popular type of rotary compressor used in various industrial applications due to their high efficiency, continuous operation, and relatively low maintenance requirements. They operate by using interlocking helical rotors to compress air or gas. Screw compressors are well-suited for applications requiring a constant demand for compressed air, such as in large-scale manufacturing, automotive plants, and food & beverage processing facilities. Their ability to deliver a continuous flow of compressed air while maintaining high energy efficiency makes them an ideal choice for industrial processes that require reliable and constant air supply.

Application Insights

“The demand for commercial application segment is expected to grow at a significant CAGR of 7.1% from 2024 to 2030 in terms of revenue”

The commercial application segment accounted for a share of 52.6% of the global revenue in 2023. In commercial applications, condensing units are essential components in refrigeration and air conditioning systems. These units are responsible for removing heat from the system by condensing the refrigerant vapor into liquid, which allows the cycle to continue. Typically consisting of a compressor, condenser, and various controls, condensing units play a critical role in maintaining the desired temperature in commercial refrigeration systems. They are also used in various commercial cooling equipment, such as walk-in coolers, freezers, and display cases, ensuring that perishable items are stored at the appropriate temperatures for freshness and safety.

In industrial applications, condensing units are widely employed in large-scale refrigeration systems for processes, such as food processing, chemical manufacturing, and cold storage facilities. These units are instrumental in maintaining low temperatures required for industrial processes, ensuring the safe storage of perishable goods, and facilitating various manufacturing operations. Typically comprising compressors, condenser coils, and refrigerant controls, condensing units effectively dissipate heat from the system, allowing for the efficient conversion of refrigerant vapor to liquid. Their robust design and high capacity make them suitable for demanding industrial environments, where precise temperature control is essential for operational efficiency and product quality.

Regional Insights

“China to witness fastest market growth at 6.9% CAGR”

The condensing unit market in Asia Pacific is experiencing substantial growth due to increasing industrialization and urbanization in the region. The high demand for condensing units is driving the market, with a focus on energy-efficient and environmentally friendly solutions. Key players in the market are investing in research and development to offer innovative products and gain a competitive edge. Furthermore, the growing food & beverage industry, coupled with the rising need for cold storage facilities, is also contributing to market growth.

The condensing unit market in China is estimated to grow at a significant CAGR of 6.9% over the forecast period. China's condensing unit market is experiencing significant demand due to the country's growing industrial and commercial sectors. The increasing adoption of refrigeration and air conditioning systems in various applications, such as food & beverage, pharmaceuticals, and cold storage, is propelling the demand for condensing units in China. In addition, the emphasis on energy efficiency and environmental sustainability is driving the market towards more advanced and eco-friendly solutions. The rapid urbanization and expanding retail infrastructure in China are also contributing to the escalating demand for condensing units in the country.

North America Condensing Unit Market Trends

The North America condensing unit market is witnessing substantial growth driven by factors, such as technological advancements, increasing demand for frozen and chilled products, and emphasis on energy-efficient solutions. The region's robust food & beverage industry, coupled with a rising number of commercial spaces and cold storage facilities, is contributing to the demand for condensing units. Moreover, the focus on reducing greenhouse gas (GHG) emissions and enhancing energy efficiency is propelling the adoption of advanced condensing units in the region.

Europe Condensing Unit Market Trends

The refrigeration compressor market in Europe has been witnessing a trend of energy-efficient and environmentally friendly solutions. This shift is largely driven by stringent regulations aimed at reducing carbon emissions and the growing demand for sustainable refrigeration systems across industries, such as food & beverage, cold chain logistics, and pharmaceuticals.

Key Condensing Unit Company Insights

Some of the key players operating in the market include Emerson Electric Co., Danfoss, Carrier Global Corporation among others.

• Emerson Electric Co. is a renowned global technology and engineering company providing innovative solutions for customers in the industrial, commercial, and residential markets. The company offers a wide range of products and services, including condensing units for various applications. In the condensing unit market, Emerson Electric Co. is known for its high-quality, energy-efficient solutions that cater to the evolving needs of the industry. With a strong focus on innovation and sustainability, the company continues to be a key player in the condensing unit market, providing reliable and advanced solutions for customers worldwide

• Carrier is a globally renowned company that specializes in heating, air conditioning, and refrigeration solutions. As a leading provider of HVAC systems and building solutions, Carrier is committed to enhancing the comfort and efficiency of residential, commercial, and industrial environments. Furthermore, the company is a prominent player in the market, offering a wide range of solutions for various applications. With a strong focus on innovation and reliability, Carrier's condensing units cater to the diverse needs of commercial and industrial sectors. The company's offerings are known for their energy efficiency, advanced technologies, and robust performance, making Carrier a trusted name in the industry

SCM Frigo S.p.A., Frigogas, EVAPCO, Inc., are some of the emerging market participants in the condensing market.

• SCM Frigo S.p.A. is a well-established company known for its expertise in commercial and industrial refrigeration solutions. The company offers a diverse product portfolio in the market, including a wide range of high-quality and energy-efficient condensing units suitable for various applications. SCM Frigo S.p.A.'s condensing units are designed to meet the specific needs of customers in the food retail, hospitality, and industrial sectors, providing reliable and effective refrigeration solutions

• EVAPCO, Inc. is a recognized leader in the design and manufacturing of industrial heat transfer solutions. With a focus on sustainability and innovation, EVAPCO offers a comprehensive product portfolio for condensing units, including a diverse range of energy-efficient and reliable solutions tailored to meet the needs of various industries. The company's condensing units are designed to optimize thermal performance and maximize energy savings, making them ideal for commercial, industrial, and refrigeration applications

Recent Developments

• In February 2024, Panasonic Europe launched a new 20HP CO2 outdoor condensing unit in the European market, expanding its existing range of 2HP, 4HP, and 10HP CO2 outdoor systems. The unit is specifically tailored for supermarkets & industrial process cooling, catering to various applications including walk-in cold rooms, freezers, low-temperature display cases, and blast chillers for both food retail & process cooling

• In February 2023, Daikin Germany launched an inverter-controlled CO2-ZEAS refrigeration condensing unit tailored for low and medium-temperature applications. This system features three Daikin double-swing compressors and intelligent capacity control, making it suitable for various applications in normal & low-temperature refrigeration

Condensing Unit Market Report Scope

Global Condensing Unit Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the condensing unit market report on the basis of type, application, end-use, compressor type, and region:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Air-cooled

  • Water-cooled

• End Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Air Conditioning

  • Refrigeration

  • Heat Pumps

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Commercial

  • Industrial

  • Transportation

• Compressor Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Reciprocating Compressor

  • Scroll Compressor

  • Screw Compressor

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

  • U.S.

  • Canada

  • Mexico

  • Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Asia Pacific

  • Japan

  • China

  • India

  • Australia

  • South Korea

  • Latin America

  • Brazil

  • Argentina

  • Middle East & Africa

  • South Africa

  • Saudi Arabia

  • UAE