Condensing Unit Market Surge Towards USD 74.66 Billion by 2032, Owing to High Demand for Energy-Efficient HVAC and Refrigeration Systems | Research by SNS Insider
The rapid expansion of the condensing unit market is driven by the increasing demand for energy-efficient refrigeration and HVAC systems across various sectors, alongside significant technological advancements enhancing system performance and sustainability.
Austin, April 22, 2025 (GLOBE NEWSWIRE) — According to the SNS Insider report, the condensing unit market size was estimated at USD 40.30 billion in 2023 and is projected to reach USD 74.66 billion by 2032, exhibiting a CAGR of 7.09% over the forecast period 2024-2032.
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The condensing unit market is experiencing a transformative phase, propelled by the escalating need for efficient cooling solutions in commercial and industrial applications. Innovations in compressor technology and the adoption of eco-friendly refrigerants are further augmenting market growth, positioning condensing units as pivotal components in modern HVAC and refrigeration systems.
The U.S. condensing unit market is anticipated to grow from USD 6.74 billion in 2023 to USD 12.89 billion by 2032, registering a CAGR of 7.48%. This growth is driven by the increasing demand for energy-efficient refrigeration and HVAC systems across commercial and industrial sectors. The rising adoption of sustainable cooling solutions and technological advancements further fuels market expansion.
Key Players:
- Emerson Electric Co. (Copeland Scroll Condensing Units)
- Frigogas (Refrigeration Condensing Units)
- Danfoss (Optyma Condensing Units)
- Mayekawa Mfg. Co. (Mycom Condensing Units)
- Carrier Global Corporation (AquaForce and AquaSnap Condensing Units)
- Mitsubishi Heavy Industries (Commercial Refrigeration Condensing Units)
- Baltimore Aircoil Company (Evaporative Condensing Units)
- Trane Technologies Plc (Trane Split Condensing Units)
- BITZER SE (Ecoline and Ecostar Condensing Units)
- GEA Group Aktiengesellschaft (GEA Bock Condensing Units)
- EVAPCO, Inc. (Evaporative Condensers)
- SCM Frigo S.p.A. (CO2 Condensing Units)
- Daikin Applied (ZEAS and Conveni-Pack Condensing Units)
- Johnson Controls International Plc (YORK Condensing Units)
- Tecumseh Products Company (AE and AK Series Condensing Units)
- Heatcraft Worldwide Refrigeration (Quantum and Hypercore Condensing Units)
- Panasonic Corporation (CO2 and R290 Condensing Units)
- Lennox International Inc. (L Series Condensing Units)
- Frascold S.p.A. (P Series and Z Series Condensing Units)
- Bitzer Kühlmaschinenbau GmbH (Octagon and VARISPEED Condensing Units)
Condensing Unit Market Report Scope:
| Report Attributes | Details |
| Market Size in 2023 | USD 40.30 Billion |
| Market Size by 2032 | USD 74.66 Billion |
| CAGR | CAGR of 7.09% From 2024 to 2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Type (Peristaltic Pumps, Diaphragm Pumps, Piston/Plunger Pumps, Others) • By End-use (Pharmaceutical, Water & Wastewater, Food & Beverage, Oil & Gas, Chemical, Others) |
| Key Drivers | • The rising demand for commercial refrigeration in supermarkets, cold storage, and food processing industries is driving the growth of energy-efficient and eco-friendly condensing units. |
Air-Cooled Systems, Air Conditioning Applications, and Reciprocating Compressors Lead Market Dominance in 2023
By Type: The air-cooled segment led the market in 2023, accounting for more than 65% of the total share. These customer benefits drive their dominance with several key advantages, such as being more affordable than water-cooled systems, requiring no additional infrastructure like a cooling tower, while being easy to install and having low maintenance requirements. The small footprint and flexible installation of air-cooled systems have made them a popular choice for urban and space-limited situations and have led to widespread adoption in residential, commercial, and light industrial applications.
By End-Use: In 2023, the air conditioning segment dominated the end-use category with over 48% of the market share. This is primarily because of the high usage of air conditioning systems in residential, commercial, and industrial applications. This is a trend spurred by factors like rising global temperatures, urbanization, and the growing demand for indoor comfort. The need for efficient climate control systems in commercial sectors such as offices, shopping malls, and hospitals has vastly increased as well. Fueling this trend are increasing disposable incomes coupled with changing lifestyles , especially in the residential air conditioning segment. The air conditioning segment is growing as development is focused on energy-efficient and smart devices, as they meet users’ demand for performance and sustainability.
By Application: The commercial segment held the largest market share in 2023, with over 53%, primarily due to increasing refrigeration needs across various commercial sectors. An effective cooling system is essential for supermarkets, restaurants, convenience stores, and cold storage facilities to preserve food and maintain product quality. The increasing usage of frozen and ready-to-eat food items has increased the need for dependable commercial refrigeration. In addition, the rapid growth of the global retail and hospitality industries has also driven this demand. Thermal insulation in commercial refrigeration systems needs to be high on durability, efficient, and low on maintenance, thus making it a crucial investment for businesses. These factors together have led to the growth and dominance of the commercial application segment in the refrigeration and cooling systems market.
By Compressor Type: In 2023, the reciprocating compressor segment dominated with more than 72% of the market share. Reciprocating compressors have the unique advantage of being able to operate at high pressure and under variable loads. They also require very little maintenance and are relatively easy to repair, which makes them economical for long-term use. Their small footprint enables incorporation into a variety of equipment, from compact refrigeration systems to large-scale HVAC installations. Industries like them for what they do because they help achieve accurate temperature control, which is a significant requirement for food processing, pharmaceuticals, and manufacturing, thus fueling their strong market presence.
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Asia-Pacific Leads Global Condensing Unit Market Share, While North America Emerges as the Fastest-Growing Region
In 2023, the Asia-Pacific region held the largest share of the global condensing unit market, accounting for over 45%. But this dominance comes largely as a result of the fast industrialization of countries like China, India , and Southeast Asian countries. The growth of the manufacturing industry has led to a considerable increase in the demand for industrial refrigeration systems. Furthermore, the expanding food processing industry, which relies on dependable and energy-efficient refrigeration systems for storage and transportation, has also propelled market expansion. There is also an expansive development on the commercial side, including supermarkets, convenience stores, and hospitality, creating an enormous demand for advanced cooling. Additionally, increasing government initiatives to support infrastructure development, as well as the favorable economic conditions, enhance the regional growth in the global condensing unit market.
North America emerged as the fastest-growing region in the condensing unit market, fueled by rising awareness and adoption of energy-efficient refrigeration systems. Driven by sustainability and carbon reduction initiatives, investments in environmentally friendly HVAC and refrigeration technologies are growing throughout North America. For instance, regulatory agencies like the U.S. Environmental Protection Agency (EPA) are promoting low-global warming potential (GWP) refrigerants, which leads to innovations in condensing unit design. Moreover, commercial infrastructure, such as cold storage facilities and retail chains, has witnessed a surge in demand for efficient cooling systems with lower energy consumption, and this also bodes well for the market. The region’s focus on green building standards and energy efficiency is a hotbed for growth in the market.
Table of Contents – Major Key Points
1. Introduction
2. Executive Summary
3. Research Methodology
4. Market Dynamics Impact Analysis
5. Statistical Insights and Trends Reporting
6. Competitive Landscape
7. Condensing Unit Market Segmentation, By Type
8. Condensing Unit Market Segmentation, By End Use
9. Condensing Unit Market Segmentation, By Application
10. Condensing Unit Market Segmentation, By Compressor Type
11. Regional Analysis
12. Company Profiles
13. Use Cases and Best Practice
14. Conclusion
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