India Refrigerator Compressor Market Set to Reach Valuation of USD 3,499.9 Million By 2032: Astute Analytica
The Indian refrigerator compressor market is driven by factors such as economic growth, price sensitivity, demographic shifts, climatic conditions, market trends, technological advancements, government policies, infrastructure development, competitive landscape, and consumer behavior.
New Delhi, May 14, 2024 (GLOBE NEWSWIRE) -- According to the recent Astute Analytica study, the India refrigerator compressor market was valued at US$ 1,780.3 million in 2023 and is projected to surpass market size of US$ 3,499.9 million by 2032 at a CAGR of 7.8% during the forecast period 2024–2032.
In 2022, the Indian refrigerator market saw sales exceeding 13.8 million units and is projected to surpass 27 million units by 2025, with LG and Samsung leading the pack. This booming market, however, reflects a shift in consumer preferences beyond just brand names. Indian consumers are becoming more environmentally conscious, prioritizing energy-efficient appliances like refrigerators with higher star ratings. This focus on cost-saving benefits and environmental impact is driving demand for features like remote control and energy monitoring, powered by the Internet of Things (IoT) and smart technology with compressors having 100% copper.
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The primary refrigerator compressor market lies in urban areas, fueled by a growing middle class with rising incomes. This segment is particularly interested in energy-efficient models, with the average household expected to own 0.05 refrigerators by 2024. Apart from this, manufacturers are being increasingly attracted to e-com sites as specialty stores have traditionally dominated refrigerator sales, but e-commerce platforms are rapidly changing the landscape. Online retailers are expected to grow at a significant rate, driven by factors like free delivery, discounts, and government incentives.
*Regional Variations and Market Leaders:*
South India, known for its hot weather, is the biggest consumer of India’s refrigerator compressor market due to higher sales of refrigerators with Tamil Nadu leading the pack. North India, with its large population and scorching summers, is also expected to witness significant growth.
Within the refrigerator market itself, the Top Freezer segment reigns supreme due to its affordability and space efficiency. However, the French Door segment, packed with advanced features and smart technology, is poised for significant growth. When it comes to cooling technology, Direct Cool refrigerators remain popular for their lower energy consumption, while Frost Free models are gaining traction in urban areas.
*Key Findings in India Refrigerator Compressor Market *
Market Forecast (2032) US$ 3,499.9 Million
CAGR 7.8%
By Type Reciprocating Compressor (36.7%)
By Component Compressor (61.2%)
By Application Domestic (72.9%)
By Cooling Capacity Less than 100 kW (56.5%)
By Construction Hermetic Compressors (71.0%)
By Refrigerant Propane (42.2%)
By End User OEMs (81.2%)
Top Trends · Increasing preference for smaller, single-door refrigerators in urban households.
· Government initiatives like "Make in India" promoting domestic production of compressors and energy-efficient refrigerators.
Top Drivers · Growing demand for refrigerators driven by economic growth and increasing consumer purchasing power.
· Price sensitivity of Indian consumers favoring affordable refrigeration units
· Rising energy costs and the need for energy-efficient appliances, leading to the demand for compressors with lower power consumption.
Top Challenges · High initial cost associated with purchasing refrigerators, especially technologically advanced models.
· Fragmented market with the presence of large-sized companies, mid-sized and small-sized companies, and start-ups, leading to intense competition and pricing pressures.
*Strong Dominance of Single Door Refrigerators Drives Demand for Compressor with Less Than 100 KW Cooling Capacity *
India's burgeoning demand for refrigerator compressors market with less than 100 KW cooling capacity is a multifaceted phenomenon, deeply rooted in the nation's economic growth, demographic shifts, and unique climatic challenges. As India's GDP continues to rise, a burgeoning middle class with increased purchasing power is investing in household appliances, particularly refrigerators. This economic uptick, however, is juxtaposed with a widespread price sensitivity that steers consumers towards more affordable refrigeration units, which typically incorporate compressors of smaller capacity. Additionally, the high cost of electricity has amplified the call for energy-efficient appliances, a niche that compressors under 100 KW fill quite effectively.
The demographic landscape of India refrigerator compressor market, with its 1.3 billion-strong population, is rapidly urbanizing, leading to a proliferation of nuclear families who favor compact, single-door refrigerators that align with their space constraints and lifestyle. These smaller units, equipped with sub-100 KW compressors, are also in sync with the Indian culinary tradition of daily fresh food preparation, negating the need for bulk refrigeration. India's tropical climate further escalates the necessity for food preservation, a need that becomes acute during seasonal heatwaves, thus spurring refrigerator sales. The market trends reflect a clear preference for smaller refrigerators in urban households, a trend supported by the expansion of organized retail that has made such appliances more accessible.
Technological advancements, such as the adoption of inverter technology in refrigerators, have bolstered the demand for smaller compressors, which are not only energy-saving but also increasingly cost-effective to produce locally, thanks to manufacturing innovations. The government's 'Make in India' initiative and the Bureau of Energy Efficiency's star-rating system have incentivized the production and adoption of energy-efficient refrigerators.
India's cold chain development and improved logistics have further facilitated the distribution of refrigerators, particularly those with compressors under 100 KW, suitable for both urban and rural markets. The competitive landscape, characterized by lower barriers to market entry, has fostered a focus on cost-effective compressor solutions, while the availability of better after-sales service has reinforced consumer confidence.
*Positive Impact of "Make in India" Campaign on India Refrigerator Compressor Market *
The "Make in India" campaign has had a significant impact on the refrigerator compressor market in India. It has encouraged local firms and small manufacturers to increase domestic manufacturing in the electronics sector. The campaign has also been associated with a policy called ‘Zero defect, zero effect’, which aims to ensure that production mechanisms result in products with no defects and no adverse environmental and ecological effects. The government's backing of local firms through the "Make in India" initiative has led to a growing push towards domestic manufacturing and reduced dependence on imports. This is evident in the growth of companies like Kirloskar Brothers Limited, which are leveraging the campaign to enhance their business and create new growth opportunities.
Foreign Direct Investment (FDI) has played a crucial role in the electronics sector, with a significant increase observed. Foreign Direct Investment equity inflow in the manufacturing sector increased by 55% to reach $148.97 Bn compared to $96 Bn in the previous nine years (2005-2014). The FDI policy for the electronics sector allows up to 100% FDI under the automatic route in the Electronic System Manufacturing (ESM) industry, including for defense electronics, subject to industrial licensing. The "Make in India" campaign is likely to propel the supply of refrigerators, as manufacturers are on a localization drive, with significant investments made for capacity expansion and new capacity development. This localization is partly a response to the previous importation of completely built units and components for refrigerators from countries like China.
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*Hermetic Compressor Leads the Charge with Over 71% Market Share of India Refrigerator Compressor Market *
Dominating India's refrigerator compressor market, hermetic compressors are a goldmine for manufacturers seeking cost-effective and eco-friendly solutions. Energy efficiency is king, and hermetic compressors significantly reduce energy consumption, translating to lower operating costs for consumers in a market sensitive to energy bills. Additionally, their low carbon footprint aligns perfectly with the growing demand for sustainable products. The market is booming. A burgeoning middle class, rapid urbanization, and evolving lifestyles are driving the demand for refrigerators, and consequently, hermetic compressors. These compressors are champions of affordability, making them ideal for residential applications. Their simple design translates to effortless installation, further reducing costs for manufacturers. Leak prevention is another win, with fewer external connections minimizing the risk of malfunctions and ensuring system integrity.
The future is bright. The refrigerator compressor market is poised for steady growth as consumers prioritize energy-efficient appliances. Leading companies are reaping the rewards, with substantial sales figures reported. Hermetic compressors are versatile workhorses, finding application not only in refrigerators but also across industries like pharmaceuticals and food processing. The dominance extends geographically, with the Asia-Pacific region, particularly India and China, leading the charge due to rapid industrialization and urbanization.
While limitations exist in handling high heat loads for larger systems, and semi-hermetic compressors offer advantages in specific situations, hermetic compressors remain the undeniable leader in the consumer goods sector. They deliver exceptional value with a compelling combination of affordability, energy efficiency, and environmental responsibility. For manufacturers seeking a lucrative path in India's refrigerator market, hermetic compressors are a strategic choice.
*Leading Producers of Refrigerator Compressors in India *
The Indian refrigerator compressor market is highly competitive, with a mix of domestic and international players. Key brands with a strong presence include LG, Samsung, Whirlpool, and Godrej, which are known for sourcing high-quality compressors to enhance the efficiency and longevity of their refrigerators. These companies are among the leading producers in the Indian market. Additionally, companies like Kirloskar Brothers Limited have been identified as major players in the refrigeration compressor manufacturing sector, both in India and globally. Other notable manufacturers and suppliers in India include SAI Cool Services, Supreme Refcon, Dalton India Refrigeration Compressor Co., Metro Refrigeration PVT.LTD., Ramco India, Shravan Joshi Engineering PVT.LTD., and Metalex Process Equipment (I) PVT.LTD.
Manufacturers across India refrigerator compressor market are adopting various strategies to stay competitive, including mergers, collaborations, revenue offshoring, R&D, and development plans. They are also releasing models with distinctive features such as rapid cooling, energy-saving modes, voice command responsiveness, and smartphone connectivity. Moreover, technological advancements are a significant factor in the competition, with companies investing heavily in R&D to introduce innovative compressor solutions. The market now includes a variety of compressor types, such as reciprocating, rotary, and centrifugal, catering to different applications.
*India Refrigerator Compressor Market Key Players*
· A.S Refrigeration Company
· Swati Engineering Enterprise
· Trucool Ltd.
· LG Electronics Refrigeration Co., Ltd Company
· Huayi Compressor Co., Ltd
· Hubei Donper Electromechanical Group Co., Ltd.
· Hangzhou Qianjiang Compressor Co., Ltd.
· Beijing Embraco Snowflake Compressor Co., Ltd
· Secop Compressors (Tianjin) Co., Ltd. Company
· Guangzhou Wanbao Group Co., Ltd
· GMCC
· Zanussi Elettromeccanica Tianjin Compressor Co., Ltd).
· Hitachi Ltd
· Emerson
· Tecumseh
· Other Prominent Players
*Market Segmentations:*
*By Component*
· Compressor
· Condenser
· Valves
· Evaporator
· Others
*By Type*
· Reciprocating
· Rotary Vane
· Scroll
· Screw
· Centrifugal
· Other
*By Cooling Capacity*
· Less than 100 kW
· 100-400 kW
· Above 400 kW
*By Refrigerant*
· Propane
· Carbon Dioxide
· Hydrofluorocarbons
· Ammonia
· Others
*By Construction*
· Open
· Hermetic
· Semi Hermetic
*By Application*
· Domestic
· Commercial
· Industrial
· Others
*By End User*
· OEMs
· Aftermarket
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*About Astute Analytica*
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
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