Driven by rising demand for compressors in refrigeration equipment, China’s refrigerator compressor market is projected to experience steady growth over the next decade. Market analysts forecast a compound annual growth rate (CAGR) of approximately 1.5% in volume and 1.8% in value from 2024 to 2035. By the end of this period, the market volume is expected to reach 63 million units, while market value is projected to climb to $2.6 billion, based on nominal wholesale prices.
Market Consumption Trends
In 2024, compressor consumption for refrigeration equipment in China fell sharply to 53 million units—a significant decline of 36.7% compared to 2023. Despite this sharp drop, overall consumption over the years has shown a relatively flat trend. The market volume peaked at 84 million units in 2023 before experiencing this recent downturn.
Financially, the refrigerator compressor market contracted to $2.1 billion in 2024, down 35.6% from the previous year. This figure reflects the combined revenues of producers and importers, excluding logistics, retail marketing, and retailers’ margins. The market value had peaked at $3.3 billion in 2023 before declining notably in 2024.
Production Insights
China’s production of refrigerator compressors declined modestly by 1.7% to 209 million units in 2024 compared to 2023. Over the longer term, however, production has demonstrated resilience, highlighted by a rapid 26% increase in 2021, when production reached its highest level of 220 million units. From 2022 to 2024, growth moderated to a more subdued pace.
In terms of value, production totaled an estimated $8.4 billion in export price terms in 2024. The overall production value has grown at an average annual rate of 4.8% over the past eleven years, despite fluctuations within this period. Production in 2024 showed a slight 0.2% decrease compared to 2022, after peaking at $8.4 billion in 2022.
Import Market Overview
China’s imports of refrigeration compressors continued to decline for the third consecutive year in 2024, dropping 6.8% to 5.3 million units. Imports have generally trended downward since reaching a record 13 million units in 2013. The most significant import growth occurred in 2017 with a 9.6% rise.
Value-wise, imports shrank to $846 million in 2024. Although imports peaked at $1.2 billion in 2021 following a 26% increase, subsequent years saw a slowdown in growth.
Key Import Suppliers
Japan, Thailand, and South Korea remain China’s primary sources for imported refrigerator compressors, accounting for 56% of total imports by volume. Japan leads with 1.5 million units, followed by Thailand with 933,000 units and South Korea with 787,000 units. Other notable suppliers include Slovakia, Germany, India, Austria, Brazil, and Singapore, which collectively make up 24% of imports.
Austria recorded the fastest growth among these suppliers, with a compound annual growth rate (CAGR) of 86.3% from 2013 to 2023 in terms of volume. In value terms, Japan ($265 million), Thailand ($166 million), and South Korea ($67 million) together represent 55% of the import market. Austria also saw the highest growth in import value, at a CAGR of 64.7%.
Import Price Dynamics
The average import price per refrigerator compressor unit declined by 4.9% in 2023, settling at $159. However, prices have generally increased over the last decade, rising by an average of 5.8% annually since 2013. The peak import price of $167 per unit was reached in 2022 before a slight decrease the following year.
Price variation by country was significant: Japan recorded the highest import price at $179 per unit, while Austria’s price remained among the lowest at $31 per unit. South Korea experienced the most notable price increase over the decade, averaging 6.7% annual growth.
Export Market Growth
Exports of refrigerator compressors from China surged by 20% in 2024 to reach 161 million units, marking strong growth over the period analyzed. The most rapid increase occurred in 2021, with exports rising 27% compared to the previous year. Export volume reached its peak in 2024 and is expected to continue growing moderately.
In value terms, exports climbed sharply to $5.8 billion in 2024. Export revenues have increased at an average annual rate of 5.9% since 2013, despite periodic fluctuations. The highest growth rate of 37% was recorded in 2021. Exports are projected to sustain growth in the coming years.
Major Export Destinations
India, Thailand, and Turkey were the leading markets for China’s refrigerator compressor exports in 2024, receiving 19 million, 15 million, and 14 million units respectively. These three countries together accounted for 35% of total exports. Other significant destinations include South Korea, Mexico, Indonesia, the United States, Brazil, Japan, Russia, and Poland, making up an additional 32%.
Mexico showed the strongest growth in export volumes between 2013 and 2023, with a CAGR of 23.2%. In terms of export value, India ($582 million), Thailand ($492 million), and South Korea ($413 million) were the largest markets, representing 29% of total export revenue. Mexico again led growth in export value with a CAGR of 22.4%.
Export Price Trends
The average export price per unit dropped by 4.7% in 2023, settling at $39. Overall, export prices have declined since peaking at $51 per unit in 2013. The highest price was recorded in Japan at $72 per unit, while exports to Indonesia had among the lowest prices at $22 per unit. Prices for exports to Russia increased modestly by 1.6% annually from 2013 to 2023, while other major markets saw mixed trends.
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