The global refrigeration compressor market size was valued at USD 24148.98 Million in 2025. The industry is expected to grow at a CAGR of 4.50% during the forecast period of 2026-2035 to reach a value of USD 37502.63 Million by 2035. The market is witnessing strong growth driven by the rising demand for energy-efficient systems across industrial, commercial, and residential sectors.
As energy prices surge and sustainability standards tighten, end users are increasingly prioritizing equipment that offers high performance with minimal power consumption. Manufacturers are responding by integrating advanced technologies such as inverter-based drives, optimized refrigerant flow control, and digital monitoring systems that enhance overall efficiency.
In May 2023, ELGi Equipments introduced the AR Premium Series of energy-saving cycling refrigerated dryers at the AICD Annual Conference, featuring advanced thermal mass control for superior energy optimization. This initiative aligns with the market’s growing inclination toward sustainable and cost-effective compressor solutions.
Such developments highlight the shift from conventional fixed-speed compressors to intelligent, adaptive systems capable of delivering precise cooling with lower energy usage. With global climate policies encouraging energy-efficient practices, investments in research and development and green refrigeration technologies are expected to intensify, further boosting refrigeration compressor market deployment.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
4.5%
Value in USD Million
2026-2035
*this image is indicative*
The growing emphasis on sustainable industrial refrigeration is driving significant adoption of natural refrigerants such as ammonia in large-scale cold storage systems in the refrigeration compressor market. Companies are increasingly upgrading existing facilities to improve energy efficiency and reduce carbon emissions. In July 2025, Star Refrigeration expanded NewCold’s United Kingdom cold storage facility with a 2.75MW ammonia-based system, exemplifying how eco-friendly refrigerants are becoming central to next-generation industrial refrigeration infrastructure and shaping global demand for high-capacity, low-impact compressors.
The growing demand for sustainable and high-performance cooling in transport and electric vehicle applications is driving innovation in mobile refrigeration compressors. In October 2025, Masterflux by Tecumseh announced the launch of its Nevada variable-speed rotary compressor, designed for natural refrigerants like R290 and A2L. Engineered for durability and efficiency in extreme environments, the Nevada series enhances energy-efficient cooling across mobile containers, solar-powered systems, and food transport applications, strengthening the market’s shift toward eco-efficient mobility solutions.
Ongoing research into compressor sequencing and design efficiency is unlocking new possibilities for energy optimization, propelling significant growth in the refrigeration compressor market. For instance, in March 2024, researchers at the University of Maryland's Center for Environmental Energy Engineering developed a near-isothermal compressor powered by a liquid piston, showcasing potential energy savings of up to 30%. Such innovations highlight the industry’s shift toward advanced thermodynamic systems that enhance performance, reduce operational costs, and support global sustainability goals in refrigeration and HVAC applications.
Companies are responding to evolving market dynamics through strategic expansions and product innovations aimed at maintaining competitiveness. A notable example is ELGi Equipments’ announcement in October 2025 of a major new business rollout and a INR 500 crore investment in a manufacturing campus to address the rising influx of low-cost Chinese imports in the low-kilowatt screw compressor segment. This initiative reflects the growing emphasis on localization, efficiency, and long-term competitiveness in global compressor manufacturing.
The global refrigeration compressor market is witnessing growth driven by the rising demand for high-temperature and hybrid HVAC/R applications across industrial and commercial settings. As industries focus on sustainable heating and refrigeration, manufacturers are developing compressors that deliver higher efficiency and operational reliability. In March 2025, Frascold introduced next-generation semi-hermetic compressors capable of reaching 165°C, expanding possibilities for heat pumps and industrial heating. This reflects the sector’s shift toward advanced, low-emission, and energy-optimized refrigeration technologies.
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The EMR’s report titled “Global Refrigeration Compressor Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insights: Reciprocating compressors continue to anchor commercial and industrial refrigeration for their reliability and adaptability in cold storage and supermarket systems. Screw compressors are gaining prominence in large-capacity setups for their consistent performance and energy efficiency. In September 2024, GEA Heating & Refrigeration Technologies launched its Grasso M open-type screw compressor series for industrial and marine use, offering up to 5% higher efficiency with natural refrigerant ammonia (R717). Meanwhile, scroll, centrifugal, and rotary vane compressors serve emerging HVAC, precision, and compact cooling needs.
Market Breakup by Construction
Key Insights: Open-type refrigeration compressor market dominate heavy-duty industrial and marine refrigeration applications due to their superior serviceability and adaptability to various refrigerants. Hermetic compressors, fully sealed and maintenance-free, are increasingly integrated into household and light commercial systems where compactness and noise reduction are essential. Semi-hermetic compressors bridge both ends of the spectrum, offering easy maintenance with better efficiency for medium to large refrigeration setups. Their versatility, combined with improved cooling efficiency, makes them a preferred choice for evolving cold-chain and supermarket refrigeration systems.
Market Breakup by Refrigerant
Key Insights: Propane-based compressors are becoming a sustainable choice, fueling demand in the refrigeration compressor market, valued for their high efficiency and low environmental impact. Carbon dioxide technology is advancing rapidly in supermarket and industrial setups, supported by innovations in trans critical systems. Ammonia continues to anchor large-scale refrigeration for its unmatched cooling efficiency and zero GWP. Hydrofluorocarbon alternatives such as R-454B are gaining traction, with manufacturers like LG introducing advanced scroll compressor series in July 2025, designed to ensure energy efficiency and regulatory compliance across global applications.
Market Breakup by Capacity
Key Insights: Less than 100 kW compressors are primarily driven by rising demand for compact and energy-efficient systems in residential, small commercial, and retail refrigeration applications. The 100–400 kW segment benefits from expanding use in supermarkets, hospitals, and data centers where medium-capacity systems ensure reliable cooling with optimized energy performance. The refrigeration compressor market from the above 400 kW compressors is gaining traction in large-scale industrial, manufacturing, and district cooling projects, supported by advancements in high-capacity, low-emission technologies designed for continuous heavy-duty operations.
Market Breakup by End Use
Key Insights: Domestic refrigeration growth is driven by the demand for compact, energy-efficient compressors with quiet and sustainable operation. Commercial refrigeration emphasizes reliability and efficiency for retail, hospitality, and foodservice sectors, with innovations improving performance and compliance. Industrial applications focus on large-capacity, variable-speed systems that enhance process stability and energy management, supported by developments such as Burckhardt Compression’s acquisition of Arkos Field Services in early 2023. Other end uses, including medical and transport refrigeration, prioritize precision and reliability.
Market Breakup by Region
Key Insights: North America is advancing its transition toward low-GWP refrigerants and high-efficiency compressor systems across HVAC and industrial sectors. Europe is driving progress through the widespread adoption of natural refrigerants and sustainability-focused innovation. In Asia Pacific, rapid cold-chain expansion is underway, supported by initiatives such as Copeland’s REFCOLD 2025 launch of A2L-optimised CF and ZB compressors in India. Latin America continues modernizing its refrigeration infrastructure, while the Middle East and Africa invest in durable, energy-efficient systems for food, retail, and healthcare applications.
By type, strong demand is observed for reciprocating compressors
Reciprocating compressors are evolving toward compact, efficient, and quieter designs as the refrigeration industry emphasizes sustainability and space optimization. A notable example is Nidec Global Appliance’s 2025 launch of the Embraco Atom, a breakthrough in miniaturized variable-speed technology. Weighing just 2.5 kg and standing under 110 mm, it enables significant energy savings and design flexibility for residential refrigeration. Beyond household use, such innovations signal a broader transformation in reciprocating compressors, toward lightweight, high-performance systems that redefine modern cooling efficiency.
Centrifugal compressors hold a significant global refrigeration compressor market share as industries move toward high-efficiency, sustainable, and oil-free cooling systems for large-scale operations. This shift came in effect in March 2024 when Copeland introduced its oil-free centrifugal compressor with Aero-lift™ bearing technology, purpose-built for large air- and water-cooled chillers. Supporting low-GWP refrigerants and delivering up to 40% better part-load efficiency, the innovation showcases how aerodynamic precision and oil-free engineering are reshaping next-generation refrigeration performance in action.
By construction, hermetic compressors maintain noteworthy market interest
Hermetic compressors are gaining strong traction across light commercial and household refrigeration applications due to their sealed design, low maintenance, and compact size. Growing emphasis on noise reduction and energy efficiency is encouraging manufacturers to develop advanced, eco-friendly variants. In February 2025, Tecumseh launched its AL Series fixed-speed hermetic compressor at ACREX India, offering ultra-low noise and up to 25% higher efficiency with R-290 compatibility for display cabinets and reach-in coolers.
Semi-hermetic compressors continue to bridge the gap between durability and serviceability, making them a preferred choice in industrial and commercial refrigeration systems, contributing to the refrigeration compressor market revenue. Their design enables easier maintenance while maintaining superior performance in high-demand environments. In April 2024, Danfoss introduced the BOCK HGX56 CO₂ T semi-hermetic compressor, a 6-cylinder model optimized for industrial cold storage and heat-pump systems using CO₂ (R744), offering higher capacity and a smaller footprint to support low-GWP transitions
By refrigerant, carbon dioxide category registers notable growth
Carbon dioxide compressors are gaining strong momentum as industries transition toward sustainable, climate-friendly refrigeration technologies. Known for its ultra-low GWP and high efficiency, CO₂ is increasingly being adopted in commercial and industrial cold-chain systems. Reflecting this shift, Copeland partnered with CRK in August 2024 to co-develop integrated CO₂ compression systems aimed at advancing sustainable cold-chain infrastructure. This collaboration underscores how innovation in transcritical CO₂ technology is reshaping trends in the global refrigeration compressor market.
Propane compressors are rapidly emerging as a sustainable alternative in the global refrigeration industry, favored for their low GWP and exceptional thermodynamic performance. Strengthening this trend, MIRAI Intex achieved a major milestone in May 2024 with the successful completion of stress testing for the world’s first propane turbo-compressor. The new MT230 and MT350 models mark a technological breakthrough, offering high efficiency for chillers and heat pumps while reducing operating costs and supporting low-carbon industrial refrigeration.
By capacity, the above 400 kW category represents significant market share
The above 400 kW segment is driven by increasing demand for large-scale refrigeration and HVAC systems in industrial complexes, manufacturing facilities, and district cooling projects. Manufacturers are innovating high-capacity compressors that support sustainability goals through low-GWP refrigerants and superior load management. In 2025, Daikin launched its EWWH-VZ chiller and heat pump series using R-1234ze, delivering up to 1,900 kW capacity, highlighting the industry’s move toward powerful yet eco-conscious refrigeration solutions for heavy-duty applications.
The 100–400 kW capacity range is witnessing rapid growth in the refrigeration compressor market as industries prioritize mid-sized, energy-efficient cooling systems for commercial and light-industrial applications. These compressors balance power and efficiency, making them ideal for supermarkets, hospitals, and data canters. In April 2024, Daikin expanded its air-cooled scroll chiller lineup to include 180–400 kW models with enhanced evaporator options, reinforcing the shift toward high-performance, modular cooling solutions that ensure operational flexibility and regulatory compliance across diverse environments
By end-use, commercial usage generates significant revenue
Commercial refrigeration systems are evolving with a focus on energy efficiency, low-GWP refrigerants, and system reliability to meet the rising demand from supermarkets, restaurants, and retail chains. Tecumseh’s 2023 launch of its Tauri condensing-unit platform reflects this shift toward high-performance, medium-duty refrigeration with integrated compressors that deliver improved durability and operational stability. Such innovations are redefining the refrigeration compressor market trends by enabling compact, efficient, and long-lasting cooling systems ideal for dynamic commercial environments
The industrial refrigeration segment continues to advance with the integration of intelligent controls and next-generation compressor technologies to support large-capacity operations in cold storage and processing plants. AAON’s April 2025 partnership with Copeland highlights this momentum, combining variable-speed compressor and injection technologies to enhance performance and sustainability. The focus on scalability, reliability, and lower emissions positions industrial refrigeration as a cornerstone for efficient, future-ready cooling infrastructure.
By Region, North America leads the market growth
In North America, the refrigeration compressor industry is evolving rapidly as manufacturers embrace sustainable technologies and regulatory reforms promoting low-GWP refrigerants. The push for energy-efficient systems is reshaping compressor design for HVAC and cold-chain applications. Reflecting this shift, Hitachi Scroll Compressor entered the North American market in February 2025 with a new low-side scroll compressor compatible with R-454B and R-32 refrigerants, signaling the region’s growing alignment with global sustainability and next-generation cooling standards.
Europe holds a substantial revenue share of the global refrigeration compressor market thrives on collaboration, innovation, and regulatory commitment to sustainability. Stricter EU climate goals continue to accelerate the adoption of eco-efficient refrigeration systems across industrial and commercial sectors. A notable example is the July 2023 joint venture between Epta S.p.A. and Viessmann Refrigeration Solutions, which strengthened their collective footprint across Central and Northern Europe, underscoring how strategic partnerships are shaping a greener, more connected European refrigeration ecosystem.
Leading refrigeration compressor market players are focusing on innovation and sustainability to strengthen their global presence. Mitsubishi Electric Corporation and Carrier Global Corporation are investing in R&D to develop energy-efficient HVAC and refrigeration systems using low-GWP refrigerants. Their strategies aim to enhance performance, reduce carbon footprints, and align with global energy-efficiency and decarbonization targets.
Emerson Electric Co. and Kirloskar Brothers Limited are expanding their smart and connected product lines through digital transformation. Emerson integrates IoT-enabled monitoring systems for optimized performance, while Kirloskar focuses on efficient manufacturing and service solutions. Both the refrigeration compressor companies emphasize partnerships, automation, and capacity expansion to strengthen market competitiveness and meet rising demand for sustainable industrial solutions.
Based in located in Tokyo, Japan, Mitsubishi Electric Corporation is a global leader in the manufacture of electrical and electronic equipment, since 1921. It supplies advanced solutions in HVAC systems, factory automation and energy-efficient technologies to create new value for customers in industrial and consumer markets.
Established in 1915 and based in Palm Beach Gardens, Florida, USA, Carrier Global Corporation is the leading innovator in heating, ventilation and air conditioning solutions. Carrier is a worldwide leader in sustainable cooling technologies and intelligent climate solutions for residential, commercial and industrial customers, solidifying its position in the refrigeration compressor market landscape.
Emerson Electric Co. is headquartered in St. Louis, Missouri, USA and was founded in 1890. Emerson Electric Co. is a global technology and engineering company. With a focus on automation solutions, climate technologies, and industrial systems, the company provides products and services that improve the efficiency, reliability, and sustainability of its customers' operations in a wide range of industries.
Founded in 1888 and headquartered in Pune, India, Kirloskar Brothers Limited is an engineering company specializing in fluid management solutions. The company designs and manufactures pumps, valves and hydro turbines for customers in industrial, agricultural and infrastructure markets around the world.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other notable players in the market include Johnson Controls International plc, among others.
Explore the latest trends shaping the Global Refrigeration Compressor Market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on global refrigeration compressor market trends 2026.
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The market is projected to grow at a CAGR of 4.50% between 2026 and 2035.
Key strategies driving the market include product innovation, expansion into energy-efficient and low-GWP compressor technologies, strategic acquisitions, and capacity enhancement across emerging markets.
The key industry trends augmenting the market’s expansion are the increasing demand by FMCG products and retail stores, and the rise in awareness of energy efficient refrigeration.
The major regions in the industry are North America, Latin America, Europe, Middle East and Africa, and Asia Pacific with Asia Pacific accounting for the largest share in the market.
On the basis of type, refrigeration compressor can be divided into reciprocating, rotary vane, scroll, screw, and centrifugal, among others.
Refrigeration compressor can be segmented on the basis of construction into open, hermetic, and semi hermetic.
On the basis of refrigerant, refrigeration compressor industry can be divided into propane, carbon dioxide, hydrofluorocarbons, and ammonia, among others.
On the basis of capacity, refrigeration compressor can be classified into less than 100 kW, 100-400 kW, and above 400 kW.
The end-uses are domestic, commercial, and industrial, among others.
The key players in the market include Mitsubishi Electric Corporation, Carrier Global Corporation, Emerson Electric Co., Kirloskar Brothers Limited, Johnson Controls International plc, and several others.
In 2025, the global refrigeration compressor market reached an approximate value of USD 24148.98 Million.
The Asia-Pacific region holds the largest share, driven by rapid industrialization, urban growth, and expanding cold chain infrastructure.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Construction |
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| Breakup by Refrigerant |
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| Breakup by Capacity |
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| Breakup by End Use |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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