PUBLISHER: SkyQuest | PRODUCT CODE: 1321939
PUBLISHER: SkyQuest | PRODUCT CODE: 1321939
Global Commercial Refrigeration Equipment Market size was valued at USD 37.25 billion in 2021 and is poised to grow from USD 39.11 billion in 2022 to USD 53.23 billion by 2030, growing at a CAGR of 5.1% in the forecast period (2023-2030).
The commercial refrigerator equipment market is poised for significant growth due to the rapid development of the hospitality and tourism industries and the increasing demand for takeout meals. Additionally, there is a rising focus on adopting refrigerants with lower global warming potential (GWP) in response to regulatory pressures, along with ongoing technological advancements, all of which contribute to the industry's promising prospects.
The surge in global food trade has led to a notable increase in the demand for refrigeration of frozen goods, processed foods, and seafood. This demand is further fueled by continuous technological breakthroughs like liquid-vapor compression and ammonia absorption systems. To gain a competitive edge, major manufacturers are dedicating efforts to research and development, aiming to improve the design and temperature control of their products in the commercial refrigeration equipment market.
As end-use sectors move towards sustainable and energy-efficient practices, manufacturers will need to increase their investment in research and product innovation. Utilizing energy-efficient technology to produce products with low global warming potential (GWP) and advanced features will be essential for securing long-term market share.
Top-down and bottom-up approaches were used to estimate and validate the size of Commercial Refrigeration Equipment and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Global Commercial Refrigeration Equipment Market Segmental Analysis
The global commercial refrigeration equipment market is segmented based on type, refrigerant type, application, and region. Based on type, the commercial refrigeration equipment market is segmented into refrigerator and freezer, transport refrigeration, refrigerated display cases, ice machines, and others. Based on refrigerant type, the commercial refrigeration equipment market is segmented into fluorocarbons, hydrocarbons, inorganics. Based on system type, the commercial refrigeration equipment market is segmented into self-contained and remotely operated. Based on application, the commercial refrigeration equipment market is segmented into food & beverage, retail stores, hotels & restaurants, chemicals & pharmaceuticals, and others. Based on region, the commercial refrigeration equipment market is categorized into North America, Europe, Asia-Pacific, and MEA.
Commercial Refrigeration Equipment Market Analysis by type
The refrigerators and freezers segment held a significant revenue share of over 27% in the commercial refrigeration equipment market during 2022. This can be attributed to the global growth in the travel and tourism sector, which has led to a surge in the number of eateries and restaurants being set up worldwide. Within this segment, blast chillers play a vital role as they are used to rapidly freeze or cool items at lower temperatures, preventing bacterial growth in the stored products. Moreover, the medical field extensively utilizes chillers to store vaccination tissue samples, conduct controlled testing, and preserve essential medications, contributing to the segment's growth.
The beverage refrigeration market is expected to witness a Compound Annual Growth Rate (CAGR) of over 8% in the foreseeable future due to the increasing adoption of medium-capacity beverage coolers among tourists and vacationers. Additionally, retail chains are embracing the "grab and go" and "drink and shop" trends to enhance the shopping experience for customers, further driving the demand for beverage refrigeration equipment.
The transport refrigeration segment is experiencing rapid expansion, primarily fueled by the growing export and import services facilitated through various transportation modes such as road, sea, and air transport. As a result of the swift delivery and efficient sales services, this category currently holds the largest market share.
Commercial Refrigeration Equipment Market Analysis by system type
In 2022, the self-contained sector dominated the commercial refrigeration equipment market, accounting for more than 88% of the market share. This was primarily due to the various advantages it offered, such as easy and cost-effective installation, low maintenance requirements, and affordable relocation of appliances. However, it's important to note that self-contained commercial refrigeration equipment was responsible for approximately 26% of global HFC emissions in 2020, as reported by the Environmental Protection Agency (EPA).
To adhere to stringent HFC emission standards, manufacturers are being compelled to transition from R-404A to R-448A, a refrigerant that significantly reduces the GWP (Global Warming Potential) of refrigeration equipment by almost 70%. As a result, many restaurants with limited kitchen space are adopting remotely operated refrigerators to mitigate excess heat production. It is predicted that the use of such refrigerators will experience a Compound Annual Growth Rate (CAGR) of approximately 4.9% by 2030.
Remotely operated refrigerators have an advantage over self-contained models as they are placed outside the kitchen, making them quieter. However, they are less energy-efficient, which is a drawback. Moreover, their installation requires professional expertise, leading to higher installation costs. This factor is currently hindering the growth of the commercial refrigeration equipment market.
Commercial Refrigeration Equipment Market Analysis by application
The food and beverage distribution market is projected to experience a substantial Compound Annual Growth Rate (CAGR) of approximately 7% from 2023 to 2030. This growth is primarily driven by advancements in cold channel logistics, which enhance the transportation of temperature-sensitive goods. Moreover, there is a rising demand for high-quality temperature-controlled refrigerators designed for various transport vehicles. These refrigerators enable the reliable distribution of beverages, alcoholic beverages, fish, biopharmaceuticals, and other perishable items, contributing to the expansion of the commercial refrigeration equipment industry.
Furthermore, the food and beverage distribution sector is expected to witness accelerated growth in the coming years due to the increasing preference for sectional refrigerated trailers among capital-intensive customers. This preference will fuel the expansion of this market segment. As of 2022, the food service industry held a significant revenue share of around 35% in the overall market. This notable share can be attributed to the growing popularity of food trucks and Quick-Service Restaurants (QSRs) in the food service sector.
Global Commercial Refrigeration Equipment Market Regional Insights
In 2030, North America is expected to retain a substantial revenue share of more than 36% in the global commercial refrigeration equipment market. This dominance can be attributed to the developed U.S. retail market, which has contributed significantly to the sector's growth. The region boasts a strong presence of top producers in the industrial refrigeration equipment industry, including Excellence Industries, Illinois Tool Works Inc., Lennox International Inc., True Manufacturing Co., and Standex International Corporation. Additionally, the adoption of smart equipment in commercial kitchens has played a vital role in boosting the local economy.
In the Asia-Pacific region, the commercial refrigeration equipment market is predicted to witness a Compound Annual Growth Rate (CAGR) of over 6% until the end of 2028. This growth is fueled by various factors, such as improving economic conditions, stable employment rates, increasing gross disposable income, and a rising trend in spending on leisure activities like travel and dining out. Notably, China and India show significant market potential due to the widespread use of vaccine storage units in academic institutions and biopharmaceutical firms. Furthermore, the booming travel and tourist sectors in Malaysia, Indonesia, and Singapore are expected to contribute to the region's market expansion.
Global Commercial Refrigeration Equipment Market Dynamics
Commercial Refrigeration Equipment Market Driver
Rising investments in food and beverage industry to drive market growth
The food and beverage industry plays a significant role in the global economy, consistently generating substantial annual revenue and being ranked among the leading sectors worldwide. With approximately 680,000 retail stores and food service outlets, this industry efficiently transforms raw farm commodities from over 2 million farms into consumer food products. This not only boosts production and consumption rates but also contributes to the increased global sales of commercial refrigeration equipment.
According to the Food and Agriculture Organization (FAO) research, the food sector achieved sales of USD 1.4 trillion in 2017, and within this sector, the food and beverage segment alone contributed an impressive US $164 billion in value-added revenue. Moreover, the use of commercial refrigeration equipment has been on the rise due to the growing demand for convenient consumer and ready-to-eat food and beverage products.
Adoption of advanced magnetic refrigeration technology to boost market growth
The newly introduced magnetic refrigeration technique is based on the magneto-caloric phenomenon, wherein applying a reversible magnetic field results in a temperature variation. By subjecting the refrigerant to a strong magnetic field, the alignment of multiple magnetic dipoles occurs, leading to a reduction in the internal temperature of the equipment. This magnetic refrigeration innovation can be seamlessly incorporated due to its cost-effectiveness, eco-friendliness, durability, safety, and overall energy efficiency, rendering it a viable choice for commercial refrigeration systems worldwide.
Commercial Refrigeration Equipment Market Restraint
Higher purchasing and maintenance costs and stringent regulations against the use of fluorocarbon refrigerants to hinder market growth
The projected hindrance to the expansion of the commercial refrigerant equipment market is the high cost of purchasing the equipment. These commercial appliances, such as refrigerators and freezers, are designed for large spaces and find application in commercial settings, resulting in varying equipment prices depending on size. Consequently, the substantial expense associated with acquiring and maintaining such large-scale equipment becomes a barrier to market growth. Additionally, a significant factor impeding market growth is the lack of consumer knowledge regarding the efficient use of these refrigeration appliances.
The continuous use of HCFCs (hydrochlorofluorocarbons) in consumer appliances has a severe impact on the atmosphere. Governments worldwide have taken action by introducing legislation to limit the use of fluorocarbon refrigerants. These measures aim to phase out the usage of both HCFCs and HFCs (hydrofluorocarbons) by restricting their consumption. Notably, the U.S. Environment Protection Agency has implemented the Clean Air Act, which mandates the regulated application of refrigerants with low Global Warming Potential (GWP) in the commercial sector.
Global Commercial Refrigeration Equipment Market Competitive Landscape
Due to the increasing adoption of sustainable technology equipment in the commercial refrigerator industry, key players have been compelled to introduce new and improved products to meet consumer demand. For instance, in January 2022, Carrier Commercial Refrigeration installed their PowerCO2OL refrigeration system in Spain's COVID-19 vaccine storage facility.
Furthermore, the leading companies in the market are actively pursuing strategic initiatives to enhance their market position, including capacity expansion, partnerships, mergers, and acquisitions. As an example, Whirlpool Corporation revealed its plan in November 2021 to invest over US $65 million in its Ottawa, Ohio factory to transform it into the Premium Refrigeration Factory. The expansion of the Ottawa facility is a crucial step in their strategy to support the production of high-end refrigeration products.
Commercial Refrigeration Equipment Market Recent Developments:
In February 2022, Refrigeration Design & Service Inc., a Philadelphia-based industrial refrigeration design and build provider, was acquired by The Kelvin Group.
In February 2022, Enex, an Italian refrigeration equipment manufacturer, announced that it had joined the R744.com marketplace as a gold partner. The company is well-known for its high-efficiency refrigeration systems that utilize natural refrigerants in particular CO2.
In June 2021, Carrier Corporation delivered 16 new trucks and vans fitted with its Transicold refrigeration systems to Euro Foods, that deals in chilled and frozen food supplying.
In May 2021, Emerson Electric Co. donated sustainable refrigeration to a Gem City Market at Helix Innovation Center in Dayton, Ohio. It is collaborative grocery store in a local food desert that sells fresh food products.
Global Commercial Refrigeration Equipment Key Market Trends
Technological progress has revolutionized commercial refrigeration equipment, providing innovative solutions for both businesses and customers. As the demand for food products in the commercial market continues to rise, the necessity for advanced refrigeration technology becomes increasingly evident.
The commercial refrigeration sector is expanding rapidly, fueled by the booming consumerism in the food and beverage industry. These refrigerators are highly sought after for their adaptability, catering to various needs. Moreover, their space-saving design makes them particularly appealing to small-sized vendors within the F&B sector who require efficient food storage solutions.
Global Commercial Refrigeration Equipment Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our business information services team that collects, collates, co-relates, and analyses the data collected by means of primary exploratory research backed by the robust secondary desk research.
According to the analysis presented in the global market report for commercial refrigeration equipment, there is a notable trend towards adopting natural refrigerant-based systems (HCFCs). This shift is driven by the potential for substantial energy savings and the implementation of stringent regulations worldwide, which aim to phase out ozone-depleting substances like hydrofluorocarbons (HFCs) and hydrochlorofluorocarbons.
One of the leading solutions in this trend is the NH3/CO2 cascade systems, which offer various advantages for food processing and low-temperature distribution facilities. These benefits include lower operating costs, reduced capital and regulatory expenses, and the ability to maintain ideal food quality. Notably, these systems utilize less energy per tonne of refrigeration when compared to other alternatives, making them increasingly sought-after in the market.