$25.1 billion, that's the estimated growth for the industrial refrigeration system market by the year 2026, growing from 19.4 billion USD back in 2021. The causes for this rapid rise are fairly simple. The first and the most predictable reason, of course, is demand. The demand for innovative and compact refrigeration systems has been on the rise. Second, is the increase in government support to strengthen cold chain infrastructures in developing countries. And last but not least, is the growing inclination toward eco-friendly refrigerant-based refrigeration systems due to stringent regulatory policies.
In developing countries, food wastage is one of the primary reasons for the shortage of food. Each year, food products worth billions of dollars get wasted due to the lack of proper cold chain infrastructure including collection centers, refrigerated transport, pack houses, and cold storage facilities, which are required to keep food products fresh and safe.
Let's take India for example. India is among the leading producers of food products and other perishable goods, including milk products, fruits, and vegetables. The shelf life of fruits, vegetables, fish, and dairy products decreases dramatically due to factors such as improper handling, insufficient infrastructure, no access to cold chains, and deficient energy resources to power these cold chain facilities. Thus the lack of efficient cold chain infrastructure is the primary cause of food wastage and food loss.
The solution is the adoption of compact and innovative refrigeration systems across cold storage and cold chain infrastructure to ensure uninterrupted temperature-controlled transport and storage of perishable food products, beverages, chemicals, medicines, and pharmaceuticals, among others and that's exactly what many developing countries like China and India are doing.
In China, the demand for better and fresher products amongst the middle-class population is rising. As well as the need to utilize more advanced cold chain technologies to implement better regulations. Thus, strong government initiatives toward developing and improving cold storage warehouses and refrigerated transportation systems are on the rise.
The drawback is high installation costs and other expenses like the cost of needed components such as compressors, condensers, evaporators, and the control systems used in these refrigeration systems. All of which are expensive and increase the installation cost. Another cost culprit that is required is safety equipment. Refrigerants such as ammonia and certain hydrocarbons are flammable and corrosive. Also, exposure to high concentrations of ammonia is toxic and life-threatening if inhaled as well as equipment to avoid leakage as it may cause serious health hazards and suffocation.
Along with the installation cost, other expenses such as regular maintenance, staff training, and the high cost of energy also increase the overall operational costs, thereby restraining the market growth.
The good news, is companies like ours, Genemco. We are a used refrigeration and food processing equipment company. Purchasing from us not only cuts out lengthy lead times, but it also saves you 50% or more off of the price of new. Also, we house the largest in-stock inventory of preowned ammonia refrigeration equipment in the world. And with these cold chain predictions, we are remaining committed to housing an immense and selective inventory to maintain the needs of our global customers.
Consider preowned. Choose Genemco.
