Frost: Environmental Concerns Challenge Euro Refrigeration Compressor Market
January 12, 2008 // Published as a news serviceby IHS
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Energy savings and minimal environmental impact are two key areas of focus for the European refrigeration compressor market, according to Frost & Sullivan.
Analysts said manufacturers are advertising high efficiency compressors that offer 20% or more energy savings than their standard counterparts.
Besides improved energy efficiency, refrigeration compressors based on natural refrigerants are another technological innovation making inroads in the market.
Recent analysis from Frost & Sullivan of the European markets for refrigeration compressors found earned revenues of $520 million in 2006, with estimates to reach $568 million in 2013.
"In times of rising energy prices, end-users in the commercial and industrial markets are becoming progressively more aware of the high energy costs generated from inefficient refrigeration systems," said Frost & Sullivan research analyst Michael Meyer. "Manufacturers are now under growing pressure to reduce the energy consumption of their machines in order to help end-users lower their operational costs."
European countries are still committed to the Kyoto Protocol and incentives are being created to promote investments in more energy-efficient and environment-friendly technologies. As a result, analysts said old, inefficient systems are set to be replaced by new alternatives, with demand for upgraded compressors also set to rise.
Analysts said an ever-increasing concern about the environment, together with new legislation, has put the issue of natural refrigerants high on the agenda. End-users, especially large multinationals such as McDonalds and Coca-Cola, show an increasing interest in refrigeration solutions based on natural refrigerants.
"Having been high profile targets for green organizations in the past, these companies nowadays have a strong interest in being considered an environmentally friendly company," said Meyer. "The purchase of refrigeration systems based on natural refrigerants, such as CO2 [carbon dioxide], can clearly support their case."
Refrigeration systems and components based on natural refrigerants are increasingly available thanks to the rising interest of end-users and an increasingly proactive approach in leading the way in the development of more environmentally friendly technologies.
Analysts said it is a trend that is certain to gain significant momentum once a definite ban of hydrofluorocarbon (HFC), to date the most common synthetic refrigerant, is decided.
Source: Frost & Sullivan.