Cryocooler Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Cryocooler Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Cryocooler Market size is estimated at USD 3.06 billion in 2023, and is expected to reach USD 4.18 billion by 2028, growing at a CAGR of 6.40% during the forecast period (2023-2028).

COVID-19 outbreak has impacted the global economy in 3 main ways: by directly affecting production and demand, by creating supply chain and market disturbance, and by its financial impact on firms and financial markets as well as on the healthcare industry further affecting the demand for cryocoolers.

Key Highlights

• Further, cryocoolers are used extensively in defense applications, majorly for the cooling of infrared focal planes. Quite specifically, cryocoolers are typically used to cool intrinsic semiconductor-type focal planes for mid-wave infrared (nominally 3-5-micron wavelength) and longwave infrared (nominally 9-12 micron) sensors.
• A significant number of improvements to cryocoolers have occurred in the past two decades, which, in turn, have allowed many more applications of cryogenics to flourish and find their way into the marketplace.
• Cooling of infrared and visible cameras continue to provide opportunities for small cryocoolers. While the recent years have witnessed a shift from cooled to un-cooled IR cameras, a market remains for high-performance infrared imagers cooled by small Stirling cycle cryocoolers.
• Developing spacecraft thermal management systems that depend on predictable cryocooler performance is one of the most challenging aspects of space thermal system design. Most of the developers rely on very sparse cryocooler performance data when conducting their system-level trade-offs.

Cryocooler Market Trends

Healthcare to be the Largest End-user Vertical

• Cryocoolers are in high demand in healthcare due to their widespread application in MRI systems, cryosurgery, and proton therapy. Cryocoolers are used to keep the superconducting magnets in this medical equipment cool. The continued study and development of cryocoolers have enhanced their acceptance in the healthcare industry for various applications. The high input power consumption of cryocoolers is claimed to be a limitation. However, the benefits of using cryocoolers in healthcare exceed the drawbacks. The use of cryocoolers in MRI and NMR equipment is increasing in the medical field. There are also technological advancements.
• The rise in medical machines would create an opportunity for the market studied to grow. According to the Organization for Economic Co-operation and Development (OECD), over 37.99 MRI units were available per million of the United States' population in 2021. In New Zealand, 16.62 MRI units were available per million of its population.
• Additionally, in November 2021, the Indian Council of Medical Research (ICMR) and Indian Institutes of Technology (IITs) cooperated in establishing ‘ICMR at IITs’ by establishing Centers of Excellence (CoE) for Make-in-India product development and commercialization in the medical devices space. According to IBEF, FDI inflows into the medical and surgical appliances sector totaled USD 2.71 billion from April 2000 to June 2022.
• In addition, cryocoolers also find use in cryopreservation, which is a process that preserves cells, tissues, organelles, or any other biological construct by cooling the samples to very low temperatures. The technologies and understanding of cell and tissue cryopreservation have developed rapidly. There is widespread application of cryobiology in many areas, including reproductive medicine, hematopoietic stem cell treatments in cancer, targeted immune cell therapies such as CAR T-cells, and animal and plant gene banks.
• According to the IARC’s World Cancer Report, despite constant progress in cancer prevention and treatment, the global cancer burden kept growing, as the number of new cases were anticipated to increase by 50% between 2018 and 2040. The IARC recognized 10.1 million new cancer cases in 2000 and 18.1 million in 2018 and expects 27 million new cases annually by 2040. Such factors are expected to drive the demand for cryocoolers.

North America is Expected to Hold the Largest Share

• North America is significantly driving the growth of cryocoolers in the market due to rising investment in the military and healthcare sectors. According to SIPRI, the United States led the ranking of countries with the highest military spending in 2021, with USD 801 billion dedicated to the military. That constituted 38% of the total army spending worldwide that year, which amounted to USD 2.1 trillion.
• Government space organizations in the United States have invested significant research and development funds in introducing innovative cryogenic cooling technology. This will help the space sector in the country grow in the coming years. According to the U.S. Congressional Budget Office, between 2013 and 2022, the United States spent USD 392 billion on nuclear weapons, USD 97 billion on missile defenses, and USD 100 billion on environmental and health costs.
• In the healthcare sector, the rising demand for cryocoolers in the region is attributed to their extensive utilization in proton therapy, cryosurgery, MRI systems, and the liquefaction of oxygen in hospitals. The region is a significant developer of new cancer drugs and rapidly evolving technologies, such as cryocooler devices, with the most prominent groups aimed at treating solid tumors, lung cancer, and leukemia.
• Proton therapy for lung and brain cancer has proven to be a reasonable treatment for patients whose cancer is limited to the local area. Brain tumors are the leading cause of cancer-related death among children ages 0–14. The expansion in the cases of the cancers mentioned above in the region may drive the growth of proton therapy, thereby driving the studied market growth. According to the National Association of Proton Therapy, 42 proton therapy centers are treating patients in the United States.
• Since cryocoolers are used to maintain cryogenic temperatures for IR sensors installed in night vision-based systems, satellite-based surveillance, and missile guidance, the growing demand for cryocoolers across North America's military and surveillance sectors has been boosting the cryocoolers market in the region.

Cryocooler Industry Overview

The cryocooler market comprises several players, such as Sumitomo and Barry Automation Inc., among others, vying for attention in a moderately fragmented market space. The companies are adopting powerful competitive strategies, such as product developments, investments, acquisitions, and partnerships, to remain relevant in the market. Overall, the intensity of competitive rivalry is moderately high during the study period.

• In March 2023, Cryomech Inc. introduced the industry-leading PT450 Pulse Tube Cryocooler and CP3000-Series Helium Compressor at the American Physical Society (APS) March 2023 Meeting.
• In February 2023, Bluefors (Cryomech Inc.), a manufacturer of cryogenic measurement systems, announced its intention to acquire Cryomech. This will help the company expand its expertise to Finland, Netherlands, and the United States.

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