Condensing Unit Market size was over USD 41.29 billion in 2024 and is poised to exceed USD 94.77 billion by 2037, witnessing over 6.6% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of condensing unit is evaluated at USD 43.47 billion.
The reason behind the growth is the rising retail sector globally where the appeal for refrigeration is increasing. In line with the UK Parliament Research released on 24 May 2024, the UK's retail industry generated USD 143 billion in economic activity in 2023, up 2.4% from 2022 and accounting for 4.9% of the country's overall economic output.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.6% |
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Base Year Market Size (2024) |
USD 41.29 billion |
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Forecast Year Market Size (2037) |
USD 94.77 billion |
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Regional Scope |
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Type (Air Cooled, Water Cooled, Evaporating Condensing Unit)
Air-cooled segment is projected to account for condensing unit market share of around 56% by 2037. This segment growth can be impelled by the rising demand for air-cooled condensing units in air conditions and refrigeration.
According to the International Energy Association (IEA, 2018), almost 20% of the power used in buildings worldwide is used by people using electric fans and air conditioners to remain cool. In many nations, the growing need for space cooling is simultaneously severely taxing the electrical grid and increasing emissions.
AC usage is expected to skyrocket over the next thirty years, ranking among the main factors driving the world's need for electricity. According to recent research, new guidelines can assist the globe to avoid experiencing a similar "cold crunch" by promoting efficiency while maintaining temperature.
Function (Air Conditioning, Refrigeration, Heat Pumps)
In condensing unit market, air conditioning segment is estimated to account for revenue share of more than 60% by the end of 2037.
The air conditioning segment is set to garner a notable revenue share of around 60% in the coming years. This expansion will be noticed due to the increasing consumption of air conditioning by the people.
In line with IEA (2018), in comparison to the Reference Scenario, the Efficient Cooling Scenario demonstrates how smart policies may cut cooling energy consumption by 45% and double the average AC efficiency.
End-User (Industrial, Commercial, Transportation)
By 2037, industrial segment is likely to dominate condensing unit market share of over 60%. There has been a rising demand for condensing units in the industrial sectors for example food and beverages, pharmaceuticals, and many more sectors.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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Function |
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Refrigerant Type |
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Technology |
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End-User |
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Compressor Type |
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APAC Market Statistics
Asia Pacific industry is set to hold largest revenue share of 37% by 2037. The rising demand for frozen meat in the APAC region will drive the market of condensing units in this region. According to the United States Department of Agriculture Foreign Agricultural Service (USDA) published in April 2024, Asia's imports of poultry, pork, and beef are expected to be 3 million metric tons less in 2024 than they were in 2020. It is anticipated that Asia's proportion of the world's exports of beef, pig, and poultry will drop from 25% at their peak in 2020 to just 17% overall.
Condensing units are especially in actual demand in China, driven by the rising industrialization and demand for industrial refrigeration in this region. According to Oxford Academics released in 2019, Chinese manufacturing has expanded at a pace of more than 9 % per year for almost a century.
In Japan, condensing units will encounter massive growth because of the rising pharmaceutical manufacturing sector. According to ITA published in November 2022, Japan is a vital export market for medicines made in the United States and the third-largest pharmaceutical market in the world.
The condensing units sector will also be huge in Korea due to the rising urbanization in this country. In fact, South Korea's proportion of the population living in cities, at 81.43 percent in 2022, was essentially stable.
North American Market Analysis
North America condensing unit market is anticipated to witness substantial growth rate till 2037. This growth will be noticed mainly due to the rising demand for cooling agents for instance ACs and refrigerators in commercial sectors. According to the Department of Energy released in September 2019, by 2030, building energy use in North America could be cut by more than 20% using technologies known to be cost-effective recently and by more than 35% if research goals are met.
The market for condensing units has expanded in the U.S. as a result of the presence of the dominant key players in this region. For instance, February 27, 2024, Emerson Electric Co., a multinational technology and software company known for its innovation leadership, is set to revolutionize industrial manufacturing with Boundless Automation, a next-generation automation architecture that will liberate data, eliminate data silos, and unleash the potential of software.
The Canadian condensing unit sector will grow mainly due to the rising demand for packaged food, and refrigerating it for a longer period. According to the Government of Canada, at current pricing, packaged food retail sales in Canada reached a total of USD 77.6 billion in 2023.
To keep a competitive advantage, the major competitors in the condensing unit market are continuously involved in strategic efforts. Among the major participants in the industry are:
Author Credits: Dhruv Bhatia
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