The commercial refrigeration equipment market is projected to reach USD 5.3 billion in 2024. The sector is expected to grow to USD 8.7 billion by 2034. It is forecast that the sales will go up by CAGR 5.1% during the period between 2024 and 2034. The revenue for commercial refrigeration equipment in 2023 was USD 4.9 billion.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2024 | USD 5,295.3 million |
| Projected Size, 2034 | USD 8,724.8 million |
| Value-based CAGR (2024 to 2034) | 5.1% |
The industry holds a commanding position in diverse sectors. The marked-up segments in this sector include supermarkets, restaurants, and storage facilities. The business has grown owing to the increasing need for food storage. The system enacts an ineluctable role in the safety and quality of the food.
Technological upgrades are driving innovation in this sector. Energy-efficient models are getting popular among businesses. These systems help reduce operational costs and environmental impact. Smart refrigeration solutions are also emerging, allowing remote monitoring and management. This enhances efficiency and minimizes food spoilage.
The business is influenced by changing consumer preferences. The appetite for both raw and processed food items has been on the rise. This has led to retailers embracing modernized refrigeration. This is particularly the case for developing regions with growing cities. Increased disposable income is also contributing to higher food consumption rates.
The factors influencing the landscape for commercial refrigeration equipment include several regulatory frameworks. Countries have begun enforcing measures emphasizing energy consumption.
To allay these well-founded fears, manufacturers have traditionally embraced the creation of less energy-consuming and environmentally friendly products. There is a clear shift towards the use of natural refrigerants. This supports combat climate change initiatives. To maintain the overall trend, the growth of the commercial refrigeration equipment market in the future looks bright.
The rise in demand for food products, urbanization, growth in the e-commerce sector, government policies, and a drive for sustainability are some of the factors fuelling the cold chain business in the Asia Pacific region.
Cold chain services compose refrigerated storage and transportation that enable seamless food products’ movement within the supply chain, and clients anticipate latest temperature controls and monitoring systems enabling the users to control temperatures of the stored food products.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global commercial refrigeration equipment industry.
In the first half (H1) of the semi-annual from 2023 to 2033, the business is predicted to surge at a CAGR of 4.1%, followed by a slightly higher growth rate of 5.7% in the second half (H2).
| Particular | Value CAGR |
|---|---|
| H1 2023 | 4.1% (2023 to 2033) |
| H2 2023 | 5.7% (2023 to 2033) |
| H1 2024 | 4.6% (2024 to 2034) |
| H2 2024 | 5.6% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.6% in the first half and remain relatively moderate at 5.6% in the second half. In the first half (H1) the market witnessed a decrease of 50 BPS while in the second half (H2), an increase of 10 BPS.
Rebates on Energy-Saving Goods and Services
Many organizations offer rebates to manufacturers of refrigeration appliances. The purpose of these schemes is to encourage the use of energy efficient and environmentally friendly methods. The EPA and DOE run program called ENERGY STAR assists businesses in uplifting their process. It offers upfront rebates for efficient refrigeration machinery and umbilical connections.
This brings environmental benefits because the program has minimal efficiency targets. This program has become popular in Canada, Australia, Japan, and New Zealand. Manufacturers may use these to improve the quality of available goods. On the whole, such initiatives foster the adoption of healthier alternatives to the conventional refrigeration practices.
Declining Replacement Rate of this Equipment to Encourage Sales
The replacement rate for commercial refrigerators is declining significantly. Their life expectancy is estimated at seven years or more. This longevity is a positive sign for customers and end-users. It indicates reliable performance and reduced costs over time. However, manufacturers face challenges due to declining production rates.
Year-on-year production may decrease, impacting equipment and component suppliers. This trend could lead to potential supply chain issues. Overall, while customers benefit from durable products, manufacturers must adapt to changing dynamics.
The manufacturing or supply side, including equipment and component manufacturers, might face challenges with declining production rates. Factors that influence the life expectancy of commercial refrigerators include brand and quality, proper maintenance, and usage. High-quality refrigerators built by trusted manufacturers tend to last longer. Regular maintenance can extend the life of the appliance.
Transportation Refrigeration System Segment to Pose Opportunities in the Sector
In America, around 30% of the produced harvest is wasted every year due to a deprived cold chain network. This results in huge losses. The majority of this loss occurs during storage and transportation, thus intensifying the demand for transportation refrigeration systems to ensure that the loss is curbed.
Export promotion and trade policy agencies are focusing on developing international cold chains through improved regulatory environments, increased skill levels of the workforce, and encouragement of infrastructure investment, thereby promoting international trade for food and beverages, which is creating growth opportunities for transport refrigeration systems players.
Ongoing Upgrades in Energy-efficient Products to Uptrend the Growth
Manufacturers are increasingly investing in innovative refrigeration systems such as airflow management systems for commercial refrigeration products, LED lighting, digital illumination systems, anti-fog display case doors, close-the-case mechanisms, and solar PV power supply systems for energy efficiency.
Principal Consultant
The global commercial refrigeration equipment market was showcased at a CAGR of 3.2% from 2019 to 2023. This growth was driven by the expanding food services sector. Restaurants, cafes, and catering services have all contributed to this growing demand.
The onset of the pandemic disrupted the sector with many restrictions and supply chain issues. Widespread lockdowns forced dining establishments to close or operate at limited capacity. This situation led to a sharp decline in the food services segment.
Supermarkets and convenience stores saw increased sales during this period. Panic buying and stockpiling drove grocery sales up. This shift in consumer behavior towards home cooking necessitated enhanced refrigeration capacities.
As COVID-19 is retreating, the sector has exhibited stability and evident rebound. In the recent past, sectors involved in the production and distribution of food and beverages are incorporating new refrigeration systems. Designers and fabricators began meeting new demands in their designs. Notable shifts were observed in consumer behavior with an increased demand for fresh products, organic produce, and products grown within the areas.
The business is responding to the new challenges and possibilities it faces. Due to a growing need for creative solutions, the sector will maintain its upward trend. Firms will most probably occupy the share in the next few years. These firms will promote sustainability without disregarding efficiency.
Tier 1 companies comprise players with a revenue of above USD 8,500 million capturing a significant share of 25% to 30% in the global market. These leaders are characterized by high production capacity and a wide product portfolio. These industry leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within Tier 1 include Panasonic Corporation, Daikin Industries Ltd., Carrier Corporation (UTC Climate), Electrolux AB & Dover Corporation.
Tier 2 companies include mid-size players with revenue of USD 700 to 8,500 million having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong knowledge.
These players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Illinois Tool Works Inc., Epta S.p.A, Hoshizaki Corporation, GEA Group AG, Blue Star Limited, Standex International Corporation & Fukushima Galilei Co. Ltd.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 700 million. These companies are notably oriented towards fulfilling local demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the industry analysis for the commercial refrigeration equipment market for different countries. Demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Western Europe, and others, is provided.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| The USA | 3.5% |
| China | 6.3% |
| Canada | 5.3% |
| Germany | 3.5% |
| UK | 3.9% |
| India | 7.9% |
The commercial refrigeration equipment market is estimated to grow at a CAGR of 3.5% through 2034. The growth is subject to the rising trend of energy-efficient and environmentally friendly refrigeration systems.
The food and beverage sector in Germany is expanding since it is the most significant food producer in Europe. Thus, an increasing demand for advanced refrigeration systems in supermarkets, hypermarkets, and food service establishments is seen.
The United States has a vibrant food and beverage industry that necessitates a growing need for energy-saving and technologically oriented refrigeration systems. The country is foretold to maintain a 4.1% CAGR from 2024 to 2034.
The United States leads the market owing to its capabilities in food production and exports. The industry here is also supported by sustainable guidelines promoting the usage of energy-efficient and eco-friendly refrigerants.
The online food delivery platforms and expansion of retail stores have skyrocketed the country’s landscape. These factors together with the growing appetite for fresh and perishable goods are anticipated to drive growth. All these factors contribute to turning North America into a key region for the global commercial refrigeration equipment market.
China is expected to have firm strength when it comes to industrial expansion and infrastructural development, most importantly in the year 2023 the country is projected to account for almost 58% of the commercial refrigeration equipment in East Asia.
China is known for their easy capture of new technology in equivalently less time. The cost of manufacturing is notably less in the country along with the availability of inexpensive labor and extensive consumer plate attracting many producers to enter the Chinese market. China is one of Asia’s most significant markets for the chemical, food, and personal care industries, making it highly valuable for rental IBC manufacturers.
Moreover, the increase in demand for food and agriculture services among the population along with the rise in industrial growth will remarkably cause growth. To gain this advantage, several manufacturers in the commercial refrigeration equipment market are targeting China which is estimated to grow at a CAGR of 5.9% during the forecast period.
The section contains information about the leading segments in the industry.
| Product Type | Freezers and Refrigerators |
|---|---|
| Value Share (2034) | 30.1% |
Refrigerators and freezers are the most prominent and highly demanded segment of the industry. It holds a 55% percent share in 2024.
This is because freezers and refrigerators cost considerably more than any other refrigeration equipment in the market. This includes display cases, walk-in freezers, and ice makers which find their applications across a variety of businesses such as grocery stores, gas stations, restaurants, and hospitals.
As reported by the International Institute of Refrigeration (IIR), the total number of commercial refrigeration units in operation across the globe exceeds 3 million with a large fraction comprising freezers and refrigerators. There is an increasing need for such units as they are used to store perishable temperature-sensitive products to enhance food safety which is crucial in business operations where temperature controlled environment is necessary.
| Application | Food Services |
|---|---|
| Value Share (2034) | 44.1% |
In the food services segment, this trend is expected to continue with a share value of 44 1 in the year 2024. The increase in this growth corresponds to the growing need for cold storage in restaurants, cafes, catering, and other hospitality services across the globe.
Food storage and distribution equipment is now more in demand than ever before, to ensure that food remains free of spoilage and meets safety standards. This is motivated by the ever-increasing preference of consumers towards fresh and ready-to-eat meals.
This segment of food services is growing at a rapid pace owing to the expanding network of quick service restaurants (QSR), casual chains, and even fine dining restaurants. Furthermore, as the concerns of global warming continue to grow, the use of advanced refrigeration equipment such as smart fridges and other energy saver models, is increasing due to newer policies regarding food safety and environmental protection.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the landscape.
The key players in the business are actively enhancing their presence and competitiveness through different strategies by incorporating advanced technologies like variable-speed compressors, intelligent controls, and integration with renewable energy sources to improve energy efficiency and environmental sustainability.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2034, thereby making it more competitive.
Recent Industry Developments in Commercial Refrigeration Equipment Market
The industry is divided into beverage refrigerators, freezers and refrigerators, transportation refrigerators, glass door merchandisers, display cases, beverage dispensers, refrigerated vending machines, ice machines, and ice cream machines.
The segment is categorized into standard and customized capabilities.
The standard segment is further segregated into food services, food and beverage retail, food and beverage production, and distribution.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia Pacific and Middle East and Africa (MEA) have been covered in the report.
The industry is projected to witness a CAGR of 5.1% between 2024 and 2034.
The global commercial refrigeration equipment industry stood at USD 54.1 billion in 2023.
The landscape is anticipated to reach USD 89.7 billion by 2034 end.
South Asia Pacific is set to record the highest CAGR of 7.5% in the assessment period.
Carrier Corporation (UTC Climate), Dover Corporation, Daikin Industries Ltd., and Illinois Tool Works Inc.
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Commercial Refrigeration Equipment Market
