The North America commercial refrigeration equipment industry size is projected to surpass a valuation of USD 24,118.8 million by 2033. As per the analysis, the industry of commercial refrigeration equipment in North America is likely to record a CAGR of 4.1% through 2033, with a current valuation of USD 16,072.9 million in 2023.
| Attributes | Key Insights |
|---|---|
| Commercial Refrigeration Equipment Industry Size (2022) | USD 15,502.0 million |
| Estimated Commercial Refrigeration Equipment Industry Size (2023) | USD 16,072.9 million |
| Projected Commercial Refrigeration Equipment Industry Revenue (2033) | USD 24,118.8 million |
| Value CAGR (2023 to 2033) | 4.1% |
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Industry to Expand Nearly 1.5X through 2033
The sales of commercial refrigeration equipment industry in North America are predicted to increase around 1.5X through 2033, amid a 2.2 % increase in expected CAGR compared to the historical one. This is due to the increasing demand for frozen and chilled products among consumers due to changes in lifestyle and rapid urbanization.
Sales of commercial refrigeration equipment are likely to rise due to the expansion of food retail chains, especially in tier I and tier II cities in developing areas.
Over the forecast period, an increase in food and beverage production, along with the development of cold chain capacities to ensure efficient storage and minimize food waste, is expected to boost demand for commercial refrigeration equipment industry in North America. By 2033, the total Industry revenue is set to reach USD 24,118.8 million.
Modular and Scalable Solutions Ensure Long-term Growth and Evolution
Companies can capitalize on the increased need for modular and scalable solutions. Several businesses are increasingly looking for versatile and adaptable refrigeration systems that can meet their changing demands. This potential entails the design and industry of refrigeration equipment that is modular and scalable, allowing for modification and extension based on unique needs.
The flexible and scalable methodology enables organizations to perform cost-effective updates. Clients can invest in particular modules or additions as needed, avoiding significant financial outlays associated with system replacement. This cost-effectiveness appeals to enterprises looking for cost-effective solutions
| Historical CAGR (2018 to 2022) | 1.9% |
|---|---|
| Forecast CAGR (2023 to 2033) | 4.1% |
The demand of commercial refrigeration equipment industry in North America expanded at a 1.9% CAGR from 2018 to 2022. North America's food sector has grown significantly, owing to factors such as population expansion, changing consumer tastes, and increased demand for packaged and perishable food items. As a result of this expansion, there is a greater demand for efficient and innovative commercial refrigeration systems throughout the food supply chain, from production to distribution to retail.
Businesses are adopting inventive and efficient systems due to ongoing improvements in refrigeration technology. The integration of IoT (Internet of Things), smart controls, and energy-efficient components enhances refrigeration equipment performance. This has also created potential for remote monitoring and predictive maintenance.
Specialized refrigeration systems for storing and shipping perishable items are becoming more necessary due to the expansion of e-commerce, particularly in the food and pharmaceutical industries. Infrastructure investments in the refrigeration equipment industry in North America are likely to surge due to the growth of online grocery shopping and direct-to-consumer delivery services.
Over the forecast period, the sales of the commercial refrigeration equipment industry in North America are anticipated to a valuation of USD 24,118.8 million by 2033. This is due to a combination of several factors, including increasing demand for downstream products, technological advancements in production processes, and a shift toward sustainability.
Innovation in commercial refrigeration systems is likely to be fueled by ongoing initiatives to increase energy efficiency and conform to changing regulatory requirements. In order to save operating expenses and meet sustainability targets, businesses will keep making investments in energy-efficient technology.
The industry will probably continue to see a transition away from conventional synthetic refrigerants and toward natural refrigerants. Regulations intended to lessen refrigeration systems' capacity to contribute to global warming and environmental concerns are the driving forces behind this shift.
Principal Consultant
Growing Demand for Ready-to-Eat Products and Expanding Retail Outlets
The demand for ready-to-eat products is growing in the United States and Canada due to the convenience and time-saving attributes of these products. The rise in the popularity of on-the-go food items, including snacks and mini-meals, reflects the demand for portable and accessible dining choices. Consumers increasingly seek healthy, ready-to-eat food options that align with their wellness goals.
The demand for ready-meal products is surging in countries such as the United States, and the rising number of nuclear families and longer working hours in the region are the primary factors responsible for the increase in the consumption of ready-to-eat food products. Canadian retailers continue to rely on imported foods to fill their shelves and help introduce new and innovative products.
Rapid Growth of the F&B Industry Coupled with the Expanding Warehouse and Logistics/ Cold Supply Chain Facilities
An increase in food and beverage production, along with an expansion of cold chain capacities to ensure efficient storage and minimize wastage of food, is expected to boost demand for commercial refrigeration equipment in North America over the forecast period.
According to the Food and Agricultural Organization of the United Nations (FAO), in 2021, food and beverages worth USD 931 million were wasted across the globe. North American countries are strengthening their cold supply chain infrastructure to minimize food and beverage waste.
According to the 2020 GCCA Global Cold Storage Capacity Report, the total capacity of refrigerated warehouses worldwide was 719 million cubic meters in 2020, which is 16.7% greater than the capacity reported in 2018. The increase in reported capacity since 2018 was largely from North America. The United States, at 156 million cubic meters, was the single top country industry, followed by India at 150 million cubic meters and China at 131 million cubic meters.
Stringent Government Regulations Regarding the Use of Natural Refrigerants Over Fluorochemical-based Refrigerants
Stringent government regulations regarding natural refrigerants over fluorochemical-based refrigerants that are widely used in commercial refrigeration systems in North America are a significant challenge. This specifically poses a huge challenge for small and medium commercial refrigeration equipment industry players.
Natural refrigerants have a lower global warming potential (GWP) than fluorochemical-based refrigerants, making them a more environmentally friendly option. However, the adoption of natural refrigerants requires significant investment in equipment and infrastructure, which can be a challenge for small and medium players in the industry.
The American Innovation and Manufacturing Act (AIM Act) directs the Environmental Protection Agency (EPA) to regulate the transition to alternative refrigerants by phasing down the production and consumption of HFC refrigerants. The federal government has committed to reducing HFC emissions by 85% in Canada by 2036.
The Canadian government has also established a regulatory framework to phase down the use of HFCs and other high-GWP refrigerants. The framework includes regulations to prohibit importing and manufacturing certain HFCs and other high-GWP refrigerants and regulations to establish minimum energy performance standards for commercial refrigeration equipment.
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The table below shows the estimated growth rates of the countries in North America
| Countries | Projected Commercial Refrigeration Equipment CAGR (2023 to 2033) |
|---|---|
| Canada | 5.3% |
| United States | 3.5% |
The United States commercial refrigeration equipment industry size is projected to reach USD 17,058.8 million by 2033. Over the assessment period, demand for Commercial Refrigeration Equipment in the United States is set to rise at 3.5% CAGR.
The diverse industrial applications of commercial refrigeration equipment in the United States contribute to the significant growth of the Industry. Food & beverages, pharma & medical will likely create opportunities for Industry players. These industries have stringent quality standards and regulations, necessitating the use of commercial refrigeration equipment to ensure product quality, safety, and compliance.
The commercial refrigeration equipment industry size in Canada is anticipated to reach USD 5,334.6 million by 2033. Over the forecast period, Commercial Refrigeration Equipment demand in the country is set to increase at a robust CAGR of 5.3%.
The country's rapidly expanding food and beverage sector, which includes a wide range of establishments such as grocery shops, restaurants, and food distribution centers, creates a steady demand for sophisticated refrigeration systems. Manufacturers can benefit from this by developing goods emphasizing energy efficiency, adapting to changing consumer tastes and meeting the industry's changing demands.
Canadian commitment toward environmental sustainability is one of the main motivators for producers of commercial refrigeration equipment in that nation. Because of its strong emphasis on sustainability, firms can flourish in Canada by creating and promoting eco-friendly products.
| Segment | Freezers & Refrigerators (Product Type) |
|---|---|
| Value Share (2023) | 29.64% |
The demand for freezers and refrigerators remains robust across various industries due to their unparalleled versatility and broad applicability. These essential appliances play a pivotal role in preserving the freshness and quality of perishable goods, making them indispensable in the food and healthcare sectors.
Compliance with health and safety regulations often necessitates the use of reliable freezers and refrigerators to maintain specific temperature conditions, ensuring the safety and integrity of stored products. These appliances are fundamental in households, providing a convenient means of storing and preserving a diverse range of food items.
While specialized refrigeration equipment, such as beverage refrigerators, transportation refrigerators, glass door merchandisers, display cases, beverage dispensers, refrigerated vending machines, ice machines, and ice cream machines, cater to specific needs, freezers, and refrigerators continue to be the cornerstone of the refrigeration industry. The demand for general-purpose refrigeration solutions positions freezers and refrigerators as the backbone of diverse sectors, meeting storage and preservation needs across the board.
| Segment | Food Services (Application) |
|---|---|
| Value Share (2023) | 43.3% |
Evolving consumer preferences, the expansion of retail chains, and a focus on visually appealing displays contribute to the sustained growth in this segment. Retailers, responding to consumer demands for fresh products, invest in advanced refrigeration solutions to ensure food safety, comply with regulations, and enhance the merchandising of perishables.
While food services, production, and distribution remain crucial components of the industry, the dynamic landscape of retail, with its emphasis on presentation and compliance, propels the higher growth rate in commercial refrigeration for the food and beverage retail sector.
The North America commercial refrigeration equipment industry is fragmented, with leading players accounting for about 25% -30 % of the share. Daikin Industries Ltd., Dover Corporation, Panasonic Corporation, Illinois Tool Works Inc., Carrier Corporation (UTC Climate), Danfoss A/S, Blue Star Limited, Standex International Corporation, Electrolux AB, GEA Group AG, Hoshizaki Corporation, Whirlpool Corporation, Innovative DisplayWorks, etc. are the leading manufacturers and suppliers of Commercial Refrigeration Equipment listed in the report.
Key companies invest in continuous research to produce new products and increase their production capacity to meet end-user demand. They are also inclined toward adopting strategies, including acquisitions, partnerships, mergers, and facility expansions, to strengthen their footprint.
Recent Developments
| Attribute | Details |
|---|---|
| Estimated Industry Size (2023) | USD 16,072.9 million |
| Projected Industry Size (2033) | USD 24,118.8 million |
| Anticipated Growth Rate (2023 to 2033) | 4.1% |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Value (USD million) and Volume (‘000 Units) |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Industry Segments Covered | Product Type, Application, Country |
| Key Countries Covered | United States, Canada |
| Key Companies Profiled | Daikin Industries Ltd.; Dover Corporation; Panasonic Corporation; Illinois Tool Works Inc; Carrier Corporation (UTC Climate); Danfoss A/S; Blue Star Limited; Standex International Corporation; Electrolux AB; GEA Group AG; Hoshizaki Corporation; Whirlpool Corporation; Innovative DisplayWorks; Structural Concepts Corporation; Frigoglass SA |
The demand for North America commercial refrigeration equipment industry is anticipated to rise at 4.1% CAGR.
The North America commercial refrigeration equipment industry size is set to reach USD 24,118.8 million by 2033.
Different types of commercial refrigeration equipment include beverage refrigerators, freezers & refrigerators, transportation refrigerators, and others.
Common issues in the commercial refrigeration equipment industry include energy inefficiency, maintenance costs, and compliance with environmental regulations.
Food Services is expected to lead the industry during the forecast period.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Market - Pricing Analysis 7. Market Demand (in Value or Size in USD Million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 9.1. Beverage Refrigerator 9.1.1. Drinking Fountain 9.1.2. Soda Fountain 9.1.3. Beer Dispensing Equipment 9.1.4. Beverage Coolers 9.2. Freezers & Refrigerators 9.2.1. Freezer & Chillers 9.2.1.1. Blast Chiller/Stock Freezers 9.2.1.2. Contact Freezers 9.2.2. Refrigerators 9.2.2.1. Walk-in-Refrigerators 9.2.2.2. Reach-in Refrigerators 9.3. Transportation Refrigerators 9.3.1. Trailers 9.3.2. Trucks 9.3.3. Shipping Containers 9.4. Glass Door Merchandizers 9.4.1. Hinged Door 9.4.2. Sliding Door 9.5. Display Cases 9.5.1. Ice Cream Cabinets 9.5.2. Bakery/Deli Display 9.6. Beverage Dispensers 9.7. Refrigerated Vending Machine 9.8. Ice Machine 9.9. Ice Cream Machine 10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 10.1. Food Services 10.2. Food & Beverage Retail 10.3. Food & Beverage Production 10.4. Food & Beverage Distribution 11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11.1. USA 11.2. Canada 11.3. Mexico 12. USA Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. Canada Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. Mexico Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. Market Structure Analysis 16. Competition Analysis 16.1. Daikin Industries Ltd. 16.2. Dover Corporation 16.3. Panasonic Corporation 16.4. Illinois Tool Works Inc 16.5. Carrier Corporation (UTC Climate) 16.6. Danfoss A/S 16.7. Blue Star Limited 16.8. Standex International Corporation 16.9. Electrolux AB 16.10. GEA Group AG 16.11. Hoshizaki Corporation 16.12. Whirlpool Corporation 16.13. Innovative DisplayWorks 16.14. Structural Concepts Corporation 16.15. Frigoglass SA 16.16. Metalfrio Solutions SA 16.17. True Manufacturing Co., Inc 16.18. Turbo Air Inc. 16.19. QBD Modular Systems Inc. 16.20. Fujimak Corporation 16.21. Precision Refrigeration Limited 16.22. Epta S.p.A 16.23. Foster Refrigerators Enterprise Inc. 16.24. Marc Refrigeration Manufacturing, Inc. 16.25. Zero Zone, Inc. 16.26. Arneg Group 16.27. Zhejiang Snow Village International Trade Co., Ltd 16.28. Nakano Refrigerators Co., Ltd. 16.29. Daiwa Industries Ltd. 17. Assumptions and Acronyms Used 18. Research Methodology
Industrial Automation
February 2024
REP-US-1305
333 pages
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Commercial Refrigeration Equipment industry analysis in North America
