Industry Analysis of Commercial Refrigeration Equipment in the United States

Analytical Study of Commercial Refrigeration Equipment in the United States from 2024 to 2034

The United States commercial refrigeration equipment industry is projected to rise at a CAGR of 3.90% through 2034. Sales of commercial refrigeration equipment in the United States are estimated to reach US$ 8,049.70 million in 2024 and are projected to surpass US$ 11,801.44 million by 2034.

The growth of the food retail sector, including supermarkets and convenience stores, is a key driver for increased demand for commercial refrigeration equipment. Refrigeration equipment manufacturers are focusing on creating innovative solutions tailored to the unique needs of food retail, ensuring energy efficiency and optimal preservation.

The crucial factor behind the sluggish upward trajectory is the initial high cost of acquiring and installing advanced commercial refrigeration equipment. While businesses recognize the long-term benefits of energy savings and reduced operational costs, the upfront investment can be a barrier.

To address this, companies are exploring financing options and innovative business models to make these technologies more accessible to a wider range of businesses.

Demand Analysis of Commercial Refrigeration Equipment in the United States

• The expanding food service industry, encompassing restaurants, cafes, and catering services, contributes to the rising demand for specialized refrigeration solutions.
• The demand for precise temperature control in healthcare and pharmaceutical settings fuels the need for advanced and reliable refrigeration equipment.
• The need for equipment replacement and upgrades due to technological obsolescence contributes to a continuous demand cycle.
• Evolving consumer preferences for fresh, organic, and perishable products are increasing the demand for advanced refrigeration solutions in retail and grocery stores.
• Adapting to the impacts of climate change, such as temperature fluctuations and extreme weather events, prompts businesses to invest in resilient refrigeration systems.

Key Trends Influencing the Sales of Commercial Refrigeration Equipment in the United States

• Energy Efficiency and Sustainability

A prominent trend driving the adoption of commercial refrigeration equipment in the United States is the heightened focus on energy efficiency and sustainability. Businesses are increasingly seeking refrigeration solutions that meet stringent environmental regulations and contribute to reduced energy consumption. The integration of eco-friendly refrigerants, advanced insulation materials, and energy-efficient compressors reflects this trend. Companies are aligning their offerings to cater to the growing demand for environmentally responsible solutions.

• Rising Demand in eCommerce and Cold Chain Logistics

The growth of eCommerce and the increasing demand for efficient cold chain logistics directly impact the adoption of commercial refrigeration equipment. With more consumers relying on online grocery shopping, there is a heightened requirement for advanced refrigeration solutions. Additionally, the need for temperature-controlled transportation of perishable goods further emphasizes this demand. Companies are aligning their product offerings to cater to the expanding cold chain logistics sector. They are integrating features that ensure the integrity of products during transportation and storage.

• Retrofitting and Upgradation Services

Rather than opting for entirely new refrigeration systems, businesses are increasingly turning to retrofitting and upgrading services. This trend is driven by a desire to enhance the efficiency of existing equipment, reduce energy consumption, and meet evolving regulatory requirements. Companies specializing in retrofitting solutions are witnessing increased demand. They now provide cost-effective alternatives for businesses looking to modernize their refrigeration infrastructure without significant capital investment.

Nikhil Kaitwade

Principal Consultant

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Category-wise Insights

The section provides a detailed segmentation analysis of commercial refrigeration equipment demand in the United States. The analysis focuses on the industry share in 2024, prevailing trends, and factors driving the dominance of these segments in the United States commercial refrigeration equipment industry.

Transportation Refrigerators to Lead the Industry with a Share of 30.50% in 2024

With a commanding 30.50% share in 2024, transportation refrigerators dominate the commercial refrigeration equipment market in the United States.

• Increased transportation of perishable goods fuels demand for refrigeration systems in the logistics sector.
• Growth in eCommerce drives the need for efficient transportation refrigeration solutions to maintain product integrity during delivery.
• Stringent regulations regarding food safety and quality necessitate the use of reliable transportation refrigeration systems to ensure compliance.
• Innovations in transportation refrigeration technology, such as improved energy efficiency and temperature control, drive industry growth.

Food Service Applications to Mark their Dominance with a Share of 27.80% in 2024

Comprising a 27.80% share in 2024, food services are set to emerge as an important segment within the United States commercial refrigeration equipment industry.

• The growing number of restaurants drives demand for commercial refrigeration equipment to store perishable ingredients and maintain food safety standards.
• The expansion of convenience store chains increases the need for refrigeration systems to store beverages, fresh foods, and frozen goods.
• Stringent regulations pertaining to food storage and safety compel food service establishments to invest in high-quality refrigeration equipment.
• Manufacturers develop innovative refrigeration solutions tailored for food service applications, such as energy-efficient walk-in refrigerators and display cases, contributing to industry growth.

Region-wise Insights

The section includes the region-wise analysis of the commercial refrigeration equipment industry in the United States through 2034, including the Northeast United States, Midwest United States, West United States, and the South United States.

Commercial Refrigeration Equipment Industry in the Northeast United States

The Northeast United States commercial refrigeration equipment industry is set to experience a CAGR of 6.2% through 2034.

• Booming cityscapes with expanding restaurants, convenience stores, and healthcare facilities drive demand for advanced refrigeration solutions.
• Consumers' increasing preference for fresh, local produce fuels demand for high-performing cold storage solutions.
• Growth in online grocery delivery necessitates efficient cold chain infrastructure, boosting equipment demand.

Commercial Refrigeration Equipment Industry in the Midwest United States

The industry in the Midwest United States is poised to witness a steady CAGR of 6.1% through 2034.

• Industrial refrigeration solutions for food processing and storage remain crucial, ensuring a stable demand base.
• Growing environmentally conscious businesses seek eco-friendly refrigeration options, opening doors for sustainable solutions.
• Upgrading outdated equipment in restaurants, supermarkets, and convenience stores presents significant replacement opportunities.
• Increased tourist activity fuels demand for refrigeration in hotels, restaurants, and hospitality facilities.
• Price-sensitive businesses seek cost-efficient equipment, creating opportunities for value-driven manufacturers.

Commercial Refrigeration Equipment Industry in the West United States

The West United States commercial refrigeration equipment industry is set to exhibit a CAGR of 5.8% through 2034.

• Stricter regulations necessitate the adoption of advanced refrigeration systems for improved food safety and reduction of spoilage.
• Rapid population growth fuels demand for new restaurants, supermarkets, and cold storage facilities, driving equipment sales.
• Early adoption of innovative technologies like self-service kiosks and smart fridges creates a competitive edge for tech-savvy players.
• The growing popularity of these services creates demand for efficient and compact refrigeration solutions.

Commercial Refrigeration Equipment Industry in the South United States

The industry in the South United States is projected to register a stable CAGR of 5.7% through 2034.

• An increasing number of supermarkets, convenience stores, and restaurants fuel the demand for commercial refrigeration equipment.
• Increased reliance on air conditioning and cold storage solutions due to higher temperatures creates growth opportunities.
• The booming tourism industry in southern states necessitates additional refrigeration equipment in hotels, restaurants, and resorts.
• Supportive government policies promoting energy efficiency and sustainability benefit eco-friendly equipment manufacturers.
• Growing interest in smart refrigeration and remote monitoring solutions creates new industry segments.

Competition Outlook for Commercial Refrigeration Equipment in the United States

Leading companies are leveraging innovation to maintain their industry dominance. Continuous investment in research and development enables the introduction of energy-efficient and eco-friendly refrigeration solutions, meeting stringent regulatory requirements.

Collaborations and partnerships between equipment manufacturers and technology providers are on the rise. These strategic alliances aim to integrate smart technologies, data analytics, and IoT capabilities into commercial refrigeration systems, enhancing efficiency and performance.

Companies increasingly adopt a customer-centric approach, offering customized solutions to meet specific requirements. This trend emphasizes flexibility, allowing businesses to choose commercial refrigeration equipment tailored to their unique operational demands.

Sustainability has become a key differentiator. Industry leaders are integrating environmentally friendly practices into their manufacturing processes and product offerings. This aligns with the growing demand for sustainable solutions and reflects a commitment to reducing the overall environmental impact of commercial refrigeration.

Recent Developments by Companies Manufacturing Commercial Refrigeration Equipment in the United States

• Carrier Corporation, a subsidiary of United Technologies Corporation, is a global leader in heating, ventilation, air conditioning, and refrigeration solutions. The company has recently launched a new product line called Carrier Transicold Vector 8611MT, which is a multi-temperature trailer refrigeration unit that can deliver efficient cooling and heating performance for trailers that are divided into multiple compartments.
• Dover Corporation recently acquired Kelvion Refrigeration GmbH, a German company that produces commercial refrigeration applications' heat exchangers, condensers, and evaporators.
• Hussmann Corporation, a subsidiary of Panasonic Corporation, is a leading provider of display cases, refrigeration systems, and merchandising solutions for the food retail industry. The company has recently partnered with Trillium Energy Systems, a Canadian company that specializes in energy management and refrigeration optimization solutions. The partnership will enable Hussmann to offer Trillium’s innovative technologies and services to its customers in North America, which can help them reduce energy consumption and greenhouse gas emissions.
• Johnson Controls International plc is a global leader in building technologies and solutions, including commercial refrigeration equipment. The company recently introduced a new product called Johnson Controls Metasys 11.0, a building automation system that can integrate and control various devices and systems, such as HVAC, lighting, security, and refrigeration. The product can help customers improve operational efficiency, sustainability, and occupant comfort.
• Emerson Electric Co. is a global provider of engineering and technology solutions, including commercial refrigeration equipment. The company has recently announced that it will invest $100 million in its Sidney, Ohio facility, which is the company’s global headquarters for its air conditioning and refrigeration business. The investment will support the expansion and modernization of the facility, which will create new jobs and enhance the company’s innovation capabilities.

Key Companies Providing Commercial Refrigeration Equipment in the United States

• Carrier Corporation
• Dover Corporation
• Hussmann Corporation
• Johnson Controls International plc
• Emerson Electric Co.
• United Technologies Corporation
• Manitowoc Company, Inc.
• True Manufacturing Company

Key Segments

By Product Type:

• Refrigerated Display Cases
• Beverage Refrigeration Equipment
  • Drinking Fountain
  • Soda Fountain
  • Beverage Dispensing Equipment
  • Beer Dispensing Equipment
• Transportation Refrigeration Systems
  • Shipping Container Systems
  • Trailer Refrigeration
  • Truck Refrigeration Systems
• Refrigerator & Freezers
  • Walk-in Refrigerators
  • Reach-in Refrigerators
• Ice Machines
• Refrigerated Vending Machines

By Application:

• Food Services
  • Restaurants
  • Convenience Stores
• Food Retail
• Food and Beverage Production
• Logistics and Transportation
• Food and Beverage Distribution

By Region:

• Northeast United States
• Midwest United States
• West United States
• South United States