The Asia Pacific Condensing Unit market size was valued at US$ 10.9 Billion in 2023 and is expected to reach US$ 18.4 Billion by 2030, grow at a compound annual growth rate (CAGR) of 8% from 2023 to 2030. A condensing unit is a device used in central air conditioning systems and refrigeration systems to cool down and condense refrigerant vapor into liquid. It is a vital component of any refrigeration system, providing the primary cooling required to remove heat from air or substances. The growing cold chain industry, expansion of food & beverage sector, rising pharmaceutical production, and growth of the automotive industry are key factors driving the condensing unit market growth in Asia Pacific.

The Asia Pacific Condensing Unit Market is segmented by product type, application, end-user industry, capacity, and region. By product type, the market is segmented into air-cooled condensing units, water-cooled condensing units, evaporative condensing units, and others. The air-cooled condensing units segment is expected to dominate the market owing to their lower maintenance costs and ability to operate efficiently in hot climates.

Asia Pacific Condensing Unit Market Drivers:

• Expanding cold chain and refrigeration industry: The rapidly growing cold chain and refrigeration industry in Asia Pacific is a major factor driving the condensing units market. Countries like China, India, Japan, Australia, and others are investing heavily in cold storage infrastructure and supply chains to reduce food wastage and meet export demand. Condensing units are integral for cold rooms, refrigerated warehouses, cold cargo transport and other applications. The launch of advanced solutions by players to serve this industry will propel the uptake of condensing units. For example, the Government of India has initiated Production Linked Incentive (PLI) scheme with an outlay of Rs. 10,900 crore for the food processing sector to promote domestic manufacturing and exports. This will attract significant investments in food processing infrastructure over the next 5 years. As per the recent report by United Nations Food and Agriculture Organization (FAO), India's food production is estimated to grow at an annual rate of 3.9% during 2020-2030. Increased agri output will propel growth of cold storage sector and correspondingly boost demand for condensing units from 2022 to 2025.
• Growth of pharmaceutical manufacturing sector: The pharmaceutical manufacturing sector across Asia Pacific regions has been witnessing significant expansion over the past few years. With major economies like China, India, Singapore and South Korea aggressively promoting domestic production of medicines through initiatives like 'Make in India' and increasing investments in R&D, the demand for industrial equipment capable of precision manufacturing has also risen substantially.
• As per IQVIA, Cold storage is critical for APIs, vaccines, biologics and other pharmaceuticals. Also, increasing clinical trials and R&D investments will drive the installation of high-precision condensing units in laboratories and research centers to facilitate proper sample storage. India's existing foreign direct investment (FDI) policy permits 100% FDIs in Greenfield pharmaceutical projects through the automatic route and allows 74% FDIs in brownfield projects via the automatic route. Any higher percentage can be considered through government approval.

Asia Pacific Condensing Unit Market Opportunities:

• Integration of VFD and IoT: The integration of variable frequency drives (VFD) and Internet of Things (IoT) sensors in condensing units can significantly improve energy efficiency, reduce power consumption and enable real-time performance monitoring. Key players can develop smart IoT-based condensers with remote access and predictive analytics for their Asia Pacific clients. This will give users enhanced control and visibility while cutting costs and emissions. By 2023, new installations of "smart" condensing units integrated with IoT are expected to rise substantially in the region according to projections by the International Energy Agency. This is mainly due to post-pandemic economic recovery programs focusing on building upgrades and smart infrastructure development. The Chinese government for example announced a USD 1.5 trillion investment plan in 2021 for green building projects with IoT-enabled HVAC systems. Such initiatives will drive massive demand for advanced condensing units in the Asia Pacific region.
• Growing demand for natural refrigerants: Regulatory interventions and shifting consumer preferences are driving the transition to natural refrigerant-based condensing units in Asia Pacific. Key opportunity exists in replacing synthetic refrigerants with ammonia, carbon dioxide, propane or other fluids with low GWP. Companies can collaborate with regional partners to manufacture environment-friendly modular condensing units for the commercial and industrial sectors in APAC.

Asia Pacific Condensing Unit Market Restraints:

• High installation and maintenance costs: The significant initial investment and high maintenance costs associated with industrial condensing units often deters end users in cost-sensitive APAC markets. Lack of trained technicians for installation and servicing also hampers adoption, especially in developing regions. Companies must develop cost-competitive solutions to improve affordability.
• Infrastructural challenges in remote areas: Inadequate power supply, lack of technical expertise and underdeveloped logistics in remote Asian regions like Mongolia, Cambodia etc. poses infrastructural hurdles. This can restrain market growth as end users face difficulties procuring and operating advanced condensing equipment in such areas. Players need robust distribution channels and provide backup services to tap these markets.

• Adoption of inverter compressors: The adoption of inverter compressors is having a major influence on the Asia Pacific condensing unit market. Inverter compressors provide significant energy savings compared to traditional fixed-speed compressors by varying the compressor speed according to load. This allows them to run more efficiently at partial loads and save up to 30% of energy. With rising electricity costs and growing focus on reducing carbon footprint across Asia Pacific, inverter compressors have become very popular. Government policies are further supporting this shift. According to IEA, countries like Japan and Australia have mandated minimum energy performance standards and energy labeling programs which make products with inverter technology more attractive for consumers. Several utility rebate programs and financial incentives are offered on the purchase of inverter air conditioners. For example, Japan's Top Runner Program that sets rolling efficiency standards saw the market share of inverter room ACs increase from 16% in 2015 to over 70% in 2020. This demonstrates how policies can drive significant technology adoption.
• CO2- and ammonia-based condensing units: CO2-based condensing units are gaining widespread acceptance as a substitute for traditional hydrofluorocarbon (HFC)-filled models. CO2 has innate properties making it more sustainable - it has zero ozone depletion potential and a global warming potential that is 1 unit, as opposed to HFCs which can be over 1000 units. This has led to significant policy support for CO2 technology across Asia Pacific nations. For instance, Japan introduced tax incentives in 2022 for businesses adopting CO2 condensing units, with the goal of avoiding over 380,000 tons of CO2 emissions per year according to the Ministry of Environment.
• Demand for tropicalized units: Manufacturers are producing special tropicalized units designed to operate optimally in hot and humid climates of Southeast Asia. These condensing units feature larger condenser surface areas, head pressure controls, moisture resistant coating and other features to facilitate efficient cooling despite soaring temperatures and high moisture levels. Countries like Indonesia, Malaysia, Thailand present key markets for tropicalized condensing units. The expanding food and beverage industry in the Asia Pacific region, including a focus on maintaining proper food preservation standards and developing cold chain logistics, requires high-performance refrigeration equipment. Tropicalized condensing units are ideal for these applications. A shift towards the adoption of inverter-based condensing units which are more energy-efficient and can operate reliably under varying load conditions, which is crucial in tropical climates. Partnerships between local distributors and international manufacturers to supply tropicalized condensing units to cater to the specific needs of the regional markets.

Figure . Asia Pacific Condensing Unit Market Share (%)

Asia Pacific Condensing Unit Industry Overview: The Asia Pacific condensing unit market is a significant segment within the global refrigeration industry. Condensing units play a crucial role in refrigeration systems, providing the cooling mechanism by compressing refrigerants and removing heat from a system. The market has shown robust growth due to various factors such as urbanization, industrialization, and the increasing demand for refrigeration and cooling systems across sectors like food and beverage, pharmaceuticals, and chemicals. There's a continuous evolution in technology, leading to more energy-efficient and environmentally friendly condensing units. Manufacturers are investing in developing units that comply with stringent environmental regulations and promote sustainability. Condensing units find applications across various industries, including food retail (supermarkets, convenience stores), cold storage, food processing, and HVAC systems in commercial and residential buildings.

Emerson Test Electric Co., Carrier Global Corp., Danfoss, GEA Group Aktiengesellschaft, Voltas Ltd., Bitzer SE, Dorin S.p.A., Tecumseh Products Company LLC, The Kirby Company, Reftech Engineering Pte Ltd.

New product launches

• In January 2021, Emerson launched its Copeland scroll outdoor condensing units designed for refrigeration applications. The new models offer high efficiency and reliability for commercial businesses.
• On Feb 2023, Daikin launched its new Zeas condensing units in India with energy-efficient inverter compressors. The units are well-suited for cold rooms, warehouses, and commercial establishments.
• In April 2020, Danfoss introduced its new Optyma condensing units supporting natural refrigerants for European customers seeking sustainable solutions. The units are aimed at industrial refrigeration and process cooling uses.

Acquisition and partnerships

• In December 2020, Johnson Controls completed the acquisition of NORESCO to leverage its energy-efficient solutions including upgrading of condensing units for institutional customers.
• In September 2019, Danfoss entered into a partnership with dk Teknik in Denmark to develop next-gen CO2 condensing units for supermarkets aiming at sustainable solutions.

• By Product Type:
  • Air-cooled Condenser
  • Water-cooled Condenser
  • Evaporative Condenser
• By Application:
  • High Temperature
  • Medium Temperature
  • Low Temperature
• By End-user Industry:
  • Industrial
  • Commercial
  • Transportaion
• By Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa