Global Condensing Unit Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In September 2021, Emerson Electric Co. launched a new component for condensing units called the Copeland CO2 scroll compressors. This innovation features smart electronics and integrates dynamic vapor injection (DVI) technology. Emerson claims this technology provides a streamlined CO2 booster system solution, reducing complexity and costs while ensuring high efficiency across diverse environments.

In this report, the Condensing Unit Market has been segmented by Type, Function, Compressor Type, Refrigerant Type, Application, and Geography.

Condensing Unit Market, Segmentation by Type

The Condensing Unit Market has been segmented by Type into Air-Cooled Condensing Unit, Water-Cooled Condensing Unit and Evaporative Condensing Unit.

Air-Cooled Condensing Unit

Air-cooled condensing units account for approximately 62% of the global market due to their cost-effectiveness, easy installation, and low maintenance requirements. These systems are extensively used in residential buildings, retail stores, and small commercial refrigeration applications.

Water-Cooled Condensing Unit

Water-cooled condensing units represent around 27% of the market and are preferred in applications requiring efficient heat exchange and compact installations. These units are ideal for industrial facilities, commercial buildings, and areas with limited ventilation space.

Evaporative Condensing Unit

Evaporative condensing units hold a smaller share of nearly 11%, but are gaining popularity due to their energy efficiency and ability to operate under high ambient temperatures. These systems are commonly used in large-scale refrigeration plants and HVAC systems in arid climates.

Condensing Unit Market, Segmentation by Function

The Condensing Unit Market has been segmented by Function into Air Conditioning, Refrigeration and Heat Pumps.

Air Conditioning

Air conditioning is the dominant function, accounting for nearly 48% of the global condensing unit market. These units are essential in residential, commercial, and industrial cooling systems, providing reliable temperature control and climate regulation in varied environments.

Refrigeration

Refrigeration holds approximately 37% of the market, with extensive use in cold storage, supermarkets, and food processing units. Condensing units in this segment offer efficient cooling performance and help maintain the integrity of perishable goods.

Heat Pumps

Heat pumps represent about 15% of the market and are gaining traction due to their energy efficiency and ability to provide both heating and cooling functions. These systems are increasingly adopted in sustainable building projects and green energy initiatives.

Condensing Unit Market, Segmentation by Compressor Type

The Condensing Unit Market has been segmented by Compressor Type into Reciprocating Compressors, Screw Compressors, Rotary Compressors, and Others.

Reciprocating Compressors

Reciprocating compressors dominate the segment with around 42% market share, due to their cost-effectiveness and suitability for low-to-medium capacity applications. These compressors are widely used in commercial refrigeration and small-scale air conditioning systems.

Screw Compressors

Screw compressors hold nearly 28% of the market and are valued for their high efficiency and continuous operation. They are primarily used in industrial refrigeration systems and large HVAC setups where performance and reliability are critical.

Rotary Compressors

Rotary compressors account for about 20% of the global market, favored in residential air conditioning and light commercial units. Their compact design, quiet operation, and energy efficiency contribute to their rising demand.

Others

The “Others” category, comprising less common compressor types, contributes around 10% to the market. These include centrifugal and scroll compressors, used in specialized applications that require precise cooling performance and low vibration levels.

Condensing Unit Market, Segmentation by Refrigerant Type

The Condensing Unit Market has been segmented by Refrigerant Type into Flurocarbons, Hydrocarbons and Inorganics.

Fluorocarbons

Fluorocarbons dominate the condensing unit market with a share of around 55%, primarily due to their high cooling efficiency and compatibility with a wide range of commercial and industrial applications. However, rising environmental concerns regarding ozone depletion and global warming potential (GWP) are driving regulatory shifts.

Hydrocarbons

Hydrocarbons account for approximately 28% of the market and are increasingly preferred due to their low GWP and natural refrigerant properties. They are commonly used in domestic refrigerators, supermarket systems, and chillers for eco-friendly cooling solutions.

Inorganics

Inorganic refrigerants hold a share of nearly 17%, gaining traction for their non-flammable and highly stable properties. Ammonia and carbon dioxide are key examples, used widely in industrial refrigeration and cold storage applications where natural alternatives are favored.

Condensing Unit Market, Segmentation by Application

The Condensing Unit Market has been segmented by Application into Commercial, Industrial and Transportation.

Commercial

The commercial segment holds the largest market share at approximately 47%, driven by growing demand for retail refrigeration, HVAC systems, and cold chain logistics. Condensing units in this segment are widely used in supermarkets, restaurants, and office buildings to maintain consistent cooling performance.

Industrial

Industrial applications account for about 36% of the condensing unit market. These systems are vital for process cooling in sectors like food processing, pharmaceuticals, and chemical manufacturing, where continuous and high-capacity refrigeration is essential.

Transportation

The transportation segment comprises nearly 17% of the market and includes refrigerated trucks, containers, and rail cars. Condensing units play a critical role in maintaining the cold chain for perishable goods across long-distance logistics networks.

Condensing Unit Market, Segmentation by Geography

In this report, the Condensing Unit Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Condensing Unit Market Share (%), by Geographical Region

North America

North America holds approximately 29% of the global condensing unit market, supported by strong demand in HVAC and cold storage applications across the U.S. and Canada. The region emphasizes energy-efficient technologies and is a major adopter of low-GWP refrigerants.

Europe

Europe commands a market share of around 24%, led by countries such as Germany, France, and the UK. The region is witnessing increased use of natural refrigerants and stringent emission regulations that promote eco-friendly condensing units.

Asia Pacific

Asia Pacific dominates the market with a share of about 33%, driven by rapid industrialization, urbanization, and expansion of the retail cold chain. Major contributors include China, India, and Japan, where demand for air conditioning and commercial refrigeration is surging.

Middle East and Africa

The Middle East and Africa region accounts for nearly 8% of the market. Increasing infrastructure development and the need for temperature control solutions in hot climates are driving the adoption of advanced condensing units in this area.

Latin America

Latin America holds a market share of around 6%, supported by growing demand in the retail, transportation, and food processing sectors. Countries like Brazil and Mexico are investing in cold chain logistics and energy-efficient HVAC systems.

This report provides an in depth analysis of various factors that impact the dynamics of Global Condensing Unit Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers

• Energy efficiency regulations
• Growth in food retail sector
• Demand for frozen & chilled storage

• Technological advancements in refrigeration systems: The global condensing unit market has been experiencing significant growth, driven by the increasing demand for efficient refrigeration systems across various industries such as food and beverage, retail, and healthcare. Condensing units, which are crucial components of air conditioning and refrigeration systems, are responsible for condensing refrigerant vapors and converting them into liquid form, thus facilitating the cooling process. With the rising focus on energy efficiency and sustainability, manufacturers are continuously innovating to develop advanced condensing units that offer superior performance, reduced energy consumption, and minimal environmental impact.

  Technological advancements in refrigeration systems have played a pivotal role in the evolution of the condensing unit market. Modern condensing units are now equipped with advanced features such as variable speed drives, electronic expansion valves, and microchannel heat exchangers, which enhance their efficiency and reliability. Variable speed drives allow the compressor to operate at varying speeds, optimizing energy usage based on cooling demand, while electronic expansion valves ensure precise refrigerant flow control, leading to improved system performance. Additionally, microchannel heat exchangers offer better heat transfer capabilities, reducing the size and weight of condensing units without compromising their efficiency. These innovations are not only helping businesses reduce operational costs but also aligning with global sustainability goals by lowering greenhouse gas emissions.

  The impact of these technological advancements extends beyond just operational efficiency and cost savings. They are also driving the adoption of eco-friendly refrigerants, which have a lower global warming potential (GWP) compared to traditional refrigerants. The integration of smart technologies, such as IoT and remote monitoring systems, is further enhancing the functionality of condensing units, allowing for real-time diagnostics, predictive maintenance, and remote control. This connectivity ensures that potential issues are addressed promptly, minimizing downtime and extending the lifespan of the equipment. Looking ahead, the condensing unit market is expected to continue its upward trajectory, fueled by ongoing innovations and increasing regulatory pressure to adopt sustainable refrigeration solutions. The continued focus on energy-efficient and environmentally friendly technologies will be instrumental in shaping the future landscape of the global condensing unit market.

Restraints

• High initial investment costs
• Environmental regulations on refrigerants
• Maintenance and operational costs

• Competition from traditional cooling methods: The global condensing unit market is experiencing significant growth driven by the rising demand for refrigeration and cooling systems across various industries such as food & beverage, pharmaceuticals, and chemicals. Condensing units play a crucial role in these sectors by efficiently condensing refrigerant vapors into liquid form, facilitating effective cooling processes. This market's expansion is also fueled by technological advancements, such as the development of energy-efficient units that comply with environmental regulations and reduce operational costs for end-users.

  Despite the advancements in condensing units, they face competition from traditional cooling methods, such as air-cooled and water-cooled systems. Air-cooled systems, for instance, use ambient air to dissipate heat from the refrigerant, making them simpler in design and installation compared to condensing units. Water-cooled systems, on the other hand, utilize water as a coolant, offering high efficiency but requiring access to water sources and more complex maintenance.

  Condensing units offer several advantages over traditional methods that contribute to their competitive edge. They are typically more compact, making them suitable for installations where space is limited. Moreover, condensing units are often easier to maintain and repair due to their modular design, which allows for quick replacement of components. Additionally, advancements in refrigeration technology have enhanced the energy efficiency of condensing units, making them a preferred choice for industries aiming to reduce energy consumption and operational costs over the long term.

Opportunities

• Increasing demand in emerging economies
• Development of eco-friendly refrigerants
• Integration of IoT in refrigeration systems

• Expansion in pharmaceutical storage solutions: The global condensing unit market is witnessing significant growth, driven particularly by expanding applications in pharmaceutical storage solutions. Condensing units play a crucial role in maintaining precise temperature control necessary for storing pharmaceuticals and vaccines, where temperature stability is paramount for preserving efficacy and safety. With stringent regulatory requirements and the need for reliable cold chain logistics, pharmaceutical companies are increasingly investing in advanced condensing units that offer superior cooling efficiency and temperature management capabilities.

  In recent years, there has been a notable shift towards environmentally friendly refrigerants in condensing units used for pharmaceutical storage. This shift is largely driven by regulations aimed at reducing greenhouse gas emissions and enhancing sustainability across the supply chain. Manufacturers are focusing on developing condensing units that not only meet stringent regulatory standards but also improve energy efficiency and operational reliability. These advancements are crucial in pharmaceutical storage facilities where uninterrupted cooling is essential to safeguard sensitive medications and vaccines from spoilage.

  The COVID-19 pandemic has underscored the importance of robust cold chain infrastructure, further accelerating the demand for reliable condensing units in pharmaceutical storage solutions. The rapid development and distribution of vaccines highlighted the critical role of temperature-sensitive storage and transportation equipment. As pharmaceutical companies continue to scale up their production capacities and expand distribution networks globally, the demand for high-performance condensing units capable of maintaining precise temperature conditions throughout the cold chain is expected to grow significantly.

Key players in Global Condensing Unit Market include:

• Emerson Electric Co
• Danfoss Group
• Carrier Global Corporation
• BITZER Kühlmaschinenbau GmbH
• GEA Group AG
• Baltimore Aircoil Company
• Johnson Controls International plc
• LU-VE Group
• Mitsubishi Electric Corporation
• Heatcraft Worldwide Refrigeration

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis