The refrigerator compressor market in the United States is projected to experience modest growth over the next decade. Analysts forecast a compound annual growth rate (CAGR) of 0.6% in volume and 1.9% in value between 2024 and 2035. This steady increase is driven primarily by rising demand, with market volume expected to reach 32 million units and total value climbing to approximately $4.2 billion by 2035.
Market Trends and Consumption Patterns
In 2024, U.S. consumption of refrigerator compressors rose by 4.7% to 30 million units, marking the first increase since 2020 and ending a three-year decline. Despite this rebound, consumption remains below its peak of 39 million units recorded in 2017. Revenue for the market reached $3.4 billion in 2024, a 4.5% increase from the previous year. This revenue figure includes producer and importer sales but excludes logistics, retail, and marketing costs. Between 2013 and 2024, the market value increased at an average annual rate of 1.5%, with fluctuations observed throughout this period. The market is expected to sustain this positive trend in the near term.
Production Overview
Domestic production of refrigerator compressors in the U.S. declined to 11 million units in 2024, representing an 8.9% decrease from 2023. Production peaked in 2020 with 21 million units, following a 48% surge that year. However, production has since contracted steadily. In value terms, production fell to $2.2 billion in 2024, down from a peak of $4.6 billion in 2020 when production value grew by 73%. Since then, growth has remained subdued.
Imports and Their Key Origins
Imports of refrigerator compressors into the U.S. increased by 7.3% in 2024 to approximately 24 million units. Import volumes peaked at 27 million units in 2022 but have slightly declined since. Import values expanded significantly to $2.8 billion in 2024, growing at an average annual rate of 3.5% since 2013. Notably, 2021 saw a 24% surge in import value.
Major suppliers include Mexico (6.6 million units), China (4.5 million units), and Japan (3.1 million units), collectively accounting for 64% of total imports. Other notable contributors are South Korea, Thailand, Brazil, Taiwan, Malaysia, and Singapore, together making up an additional 27%. Taiwan’s imports have grown fastest over the last decade, with a CAGR of 33.9%. In value terms, Mexico leads with $880 million, followed by Japan ($544 million) and South Korea ($396 million), making up 69% of total import value. Taiwan also recorded the highest value growth at a CAGR of 29.4%.
Average import prices rose 14% to $119 per unit in 2023, up from previous years’ steady growth of 3.3% annually. Japan commanded the highest average price at $175 per unit, while Singapore had one of the lowest at $44 per unit. Malaysia experienced the fastest price increase over the last decade, with a 5.8% annual rise.
Export Market Dynamics
Exports of refrigerator compressors from the U.S. declined sharply by 12.7% to 5.4 million units in 2024, ending three years of growth. The export volume remains below the peak of 8 million units reached in 2015. Export value modestly increased to $1.3 billion in 2024, maintaining a relatively flat trend. The highest export value was $1.5 billion in 2015.
Mexico remains the largest export destination, accounting for 57% of volume with 3.6 million units shipped in 2024. Exports to Canada (1.5 million units) and Germany (389,000 units) trail behind. From 2013 to 2023, exports to Mexico grew at an average annual rate of 1.6%, while exports to Canada declined by 1.9% annually and those to Germany increased by 11%. In value terms, Mexico accounted for half of total exports ($628 million), followed by Canada ($233 million) and Germany.
Average export prices stabilized at $202 per unit in 2023 after a peak of $221 in 2020. Export prices have grown modestly at 1.3% annually over the past decade. Saudi Arabia commanded the highest export price at $473 per unit, while Canada’s average was $154 per unit. Prices for exports to Saudi Arabia grew fastest at 8% annually.
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