Market Trends of Industrial Refrigeration System Industry
This section covers the major market trends shaping the Industrial Refrigeration System Market according to our research experts:
Oil and Gas industry to witness significant growth in forecast period
The refrigerating systems are essential elements of the gas and oil manufacturing industry. There are used in various processes starting from the extraction of natural gas and oil from the reservoir rocks in the form of crude oil and natural gas to the transportation to end consumers. Refrigeration plants can be very lucrative pieces of equipment that cool natural gas to approximately -162 F and change it to a liquid form (natural gas liquids) that can be easily stored and transported through the pipelines.
- Due to the development of sophisticated equipment that provides extremely accurate and reliable information to track the oil reservoir such as GPR equipment, the oil and gas industry is still flourishing apart from the concerns regarding clean source of energy. Engineers rely upon them for the examination of geological bodies dangerous for drilling operations (carven load, bedded ices), detection of underground pipeline leakage.
- As per the IOGP’s Global Production report 2019, demand for oil and gas is at the peak, greater than ever before, with dramatic growth in Africa, Asia Pacific, the Middle East, and the Americas. This has fueled the investment in exploration and production of oil to meet the demand and supply. For instance, in 2019, Ecopetrol and Occidental Petroleum Corp agreed to form a joint venture for the development of unconventional reservoirs in approximately 97,000 acres of the Permian Basin in the State of Texas.
North America is expected to showcase significant market growth
Industrial refrigeration system market is expected to witness growth due to technological developments, convenience and aggressive marketing of frozen foods in a number of varieties, including skillet and oven meal kits, bowl meals, restaurant-quality pizza, by food producers which will drive the demand in the coming years. Fueling research and clinical testing to halt the spread of COVID-19 across North America is also driving the growth of the refrigeration system market in the pharmaceutical industry.
- Walmart, the giant retail player, in 2019 has launched its biggest expansion in Mexico, has opened 134 new stores in the top foreign market and increased its presence by nearly 5%. In Central America, it has opened 27 new stores to cater to the growing demand. It is also planning to enter the home delivery grocery market with a membership program at an introductory price of USD 19.95 a month. For this, it will require refrigerant transport vehicles in its supply chain to prevent any spoilage during delivery. Its distribution center utilizes the energy-efficient and environmentally friendly refrigerant ammonia. The 42,000-meter square distribution center uses 34,000 pounds (15,400 kg) of ammonia cooling the two million cases of cold and frozen foods shipped every month.
- Rapid spread of COVID -19 pandemic across the United States and Canada has speeded the research and tests to identify and put a hold on it. The United States and Canada have 4,35,000 and 19,4000 COVID-19 positive cases with more than 14,500 and 430 fatality respectively as of 9th April 2020. Research centers are collaborating with, academic institutions and biopharmaceutical companies to tackle the rapidly spreading viral disease.
- For instance, in March 2020, AbbVie, an academic institution, partnered with global authorities to determine the effectiveness of HIV drugs in treating COVID-19. It is supporting clinical studies and basic research with lopinavir (medication for the treatment and prevention of HIV/AIDS), and is working closely with European health authorities and the U.S. Food and Drug Administration (FDA), Centers for Disease Control and Prevention, National Institutes of Health and the Biomedical Advanced Research and Development Authority to coordinate its efforts.
