USA Commercial Walk-In Refrigeration Market

USA Commercial Walk-In Refrigeration Market Outlook (2022 to 2032)

USA Commercial Walk-In Refrigeration Market will have a worth of US$ 1,980.1 Million by 2032, predicts Future Market Insights (FMI), growing at a CAGR of 4.31% between 2022 and 2032.

The refrigeration system is required due to the pluses of normal life habits, such as those of food and medical businesses. Walk-In Refrigeration comprises cold storage rooms, that contain coolers and freezers with a floor space of less than 3000 square feet that are used to refrigerate or freeze food, beverages, medicines, and other perishable commodities. They are used in a variety of cold chain businesses, including those that deal with food and beverage; industrial kitchens; retail food outlets; medicine; chemicals; and other fields.

Some of the factors influencing the growth of the USA Commercial walk-in refrigeration market include an increase in the number of retail food services and commercial restaurants, strict government laws and regulations regarding refrigeration systems, a rising population, and an increase in purchasing power.

At present Southern USA dominates the Commercial Walk-In Refrigeration Market in the USA. FMI has analyzed that the Southern United States will hold 41.5% of the market share by 2032.

Refrigerator systems for food service are expected to grow in use across commercial restaurants, retail food service, and numerous other end uses. The number of warehouses and distribution centers used by e-commerce websites is steadily rising, which allows customers to make adjustments to their orders and pick them up conveniently. This led to a rise in the demand for quick-serve, ready-to-eat foods, which is what is expected to drive the commercial food market's growth during the course of the forecast period.

Research and development on Commercial Walk-In Refrigeration address the growing customer concern over product quality, especially the efficiency & life of raw materials used in production as well as it should as per the Government rules and regulations. The southern USA region contributes a higher share of the USA Commercial Walk-In Refrigeration Market.

Demand Analysis of Commercial Walk-In Refrigeration from 2017 to 2021 Vs Market Forecast for 2022 to 2032

The demand for the USA Commercial Walk-In Refrigeration market is US$ 1,250.4 Million in 2021, increased in value at a CAGR of 1.4% between 2017 and 2021. As per FMI analysis, the USA Commercial Walk-In Refrigeration market is anticipated to grow at 4.3% CAGR by volume between 2022 and 2032.

Walk-In Refrigeration systems are not only used in commercial restaurants for the rising demand for ready-to-eat products in the regular lifestyle but also it is used over chilling stations for food, pharmaceuticals and hospitals, research laboratories, retail stores, and others. On the other side, in order to maintain the supply chain and boost the speed of the production market, manufacturers are enhancing the quality of walk-ins by using high-quality consumables and components such as refrigerants, rain roofs, refrigeration hoods, drip caps & other for Commercial Walk-In Refrigeration.

The growth of the USA Commercial Walk-In Refrigeration Market is anticipated to benefit from the expansion of the various end-use sectors such as F&B, Pharma, commercial food chains, and cold supply chains. In addition, it is projected that the growth of the pharmaceutical industry and the creation of research labs will lead to market expansion across various economies. For instance, a substantial number of pharmaceutical developments will be visible by the end of 2021 as a consequence of the Covid-19 global pandemic. In a similar vein, it is anticipated that rising demand & development of the pharmaceutical sector will drive demand for commercial walk-in refrigeration systems and boost the market.

What factors are bolstering the Commercial Walk-In Refrigeration Market?

Growing Number of Retail Stores and Demand for Ready-to-Eat Products

A shift in lifestyle, particularly in terms of the type of food consumed and the amount of time spent on these activities, poses a significant challenge to the food industry. In order to meet the rising demand from clients for frozen meals and chilled commodities, food service providers are enhancing their capital expenditure on walk-in coolers and freezers. The development in authorized and franchised locations of limited-service restaurants is another factor driving the demand for walk-in coolers and freezers.

On the other hand, the USA market for this business is quite fragmented, which can meet the increased demand for walk-ins caused by the country's rapid expansion in the number of retail outlets over the past few years. Profiting on customers growing purchasing power in the USA, primarily in the South and West, is the ultimate focus of the end-use sector. However, due to the government's encouraging investment policies, the retail industry has grown significantly in these areas.

Rebates for Energy-Efficient Products and Practices from Various Organizations

Manufacturers of commercial walk-in refrigerators are focusing their efforts on research and development (R&D) activities to develop innovative and creative technologies for these systems that may fulfill both consumer demand and governmental norms and regulations. For employing energy-saving and environmentally friendly production techniques, a number of international governmental and non-governmental organizations may offer rebates to manufacturers of walk-in refrigeration systems and equipment.

The Environmental Protection Agency (EPA) and the Department of Energy (DOE) in the USA jointly administer the Energy Star voluntary program. It promotes environmental conservation by adopting strict energy efficiency criteria for walk-in coolers and refrigeration equipment, and it provides subsidies to businesses and people.

By increasing the private sector's supply of renewable energy and lowering energy use through improved energy efficiency, this project helps the USA achieve greater energy independence. Efforts to improve energy efficiency are predicted to increase demand for walk-in coolers and freezers.

Nikhil Kaitwade

Principal Consultant

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What are the main trends influencing USA Commercial Walk-In Refrigeration Market?

Introduction of innovative Walk-in Coolers with Low Environmental Footprint

The producers of walk-in coolers and freezers are concentrating their efforts on developing economically sensible alternatives in order to minimize their environmental impact. Manufacturers are making significant investments in research and development to produce low-GWP refrigerants. HFCs are potent greenhouse gases that are a major cause of global warming. Governments in a number of nations have established stringent rules regulating GHG emissions from refrigerants, and they are placing restrictions on manufacturers.

Due to these laws and regulations, manufacturers are switching to lower-GWP refrigerants in order to comply with environmental standards and boost the energy efficiency of walk-in coolers and freezers. Over the next several years, it is anticipated that the use of lower-GWP refrigerants would increase dramatically in the walk-in cooler and freezer market.

The South USA is expected to account for 42.2% of the USA Commercial Walk-In Refrigeration Market in 2022. West USA is anticipated to hold a significant share followed by South USA of about 23.4% in the USA market owing to stringent regulations and standards by the government.

Region-wise Insights

Which is the prominent region for USA Commercial Walk-In Refrigeration Market?

The Southern area nearly dominates the USA commercial walk-in refrigeration market.

According to FMI, at the beginning of this year 2022, there were more new retailers opening in the USA than the number of stores closing. It produced a net gain of more than 49 million square feet of new retail space, which raised the demand for commercial walk-in refrigerator markets. It provides the southern region of the USA holds the maximum number of shares around 42.2% of the overall USA Commercial Walk-In Refrigeration Market.

Major of the market is covered by commercial restaurants & retail food services which demand the refrigeration system and the southern region is finding considerable growth in retail food services at 19.7% followed by commercial restaurants at 21.8% which have demand for Walk commercial refrigeration systems to preserve the food in good condition and to maintain the food supply chain.

Which end-use segment has the highest market growth in the USA?

Commercial Restaurants & Retail Food Services is anticipated to grow during the projected period

According to analysis, many retailers aim to appropriately size their store holdings, which may entail a combination of closures and openings. In addition, as consumer buying habits continue to change, retailers are experimenting with new forms. There has been a considerable rise in retail space as a result of the number of retail store closures in the USA being roughly half that of new store openings over the past year.

Consumer choice has changed from FSR (Full Service Restaurants) to QSR (Quick Service Restaurants) due to the rapid change in lifestyles. A quick-service restaurant is one that prioritizes serving food to clients as quickly and effectively as feasible. This typically indicates that there is no table service and that meals are quickly prepared upon request.

The number of quick-service restaurants has significantly increased in recent years. As a result, both international and local businesses are making significant investments in equipment for the same, including walk-in coolers and freezers, along with vending machines and display cases.

Self-Contained technology Type to hold about 42.7% of the USA market share

Self-Contained technology has an advantage over its function when comparing the key market share by technology type. They are cold storage rooms with a complete refrigeration system that includes an evaporator and condenser in a single unit, much like a window air conditioner. Self-contained walk-ins are frequently constructed outside the buildings they serve.

Followed by the Self-Contained technology, remote condensing technology have remarkable shares of 42% in 2022. In walk-in coolers with remote condensing units, the condenser is often not installed exactly next to the room and is not connected to the evaporator, such as on the roof of the building. Many walk-in remote condensing units have many evaporators and are integrated into the structures so they will cool.

Competitive Landscape

The use of Commercial Walk-In Refrigeration systems has increased across numerous commercial restaurants and retail food services along with pharmaceuticals, as a result of the growing demand for ready-to-eat products and medical requirements. Commercial Walk-In Refrigeration service suppliers are thus under constant pressure to enhance their after-sale services along with improved product quality.

Leading market players operating in the USA Commercial Walk-In Refrigeration Market include Panasonic Corporation (Hussmann), Parker Hannifin Corp., TMP Manufacturing Company, Standex International Corporation, Dover Corporation, Welbilt, Inc., Zero Zone, Inc., USA Cooler, SRC Refrigeration, American Panel Corporation, Arctic Industries Inc., Amerikooler LLC, Commercial Cooling - Par Engineering Inc., Thermo-Kool, Bally Refrigerated Boxes Inc., Norlake Inc., Air Services & Refrigeration Specialties Inc., and others—which control the majority of the market share for Commercial Walk-In Refrigeration System.

Commercial walk-in coolers & freezer market players are strategically expanding their business across the USA by creating mergers & Acquisitions with local as well as emerging players.

Commercial Walk-In Refrigeration Report Scope

Key Segments Covered in USA Commercial Walk-In Refrigeration Industry Analysis

USA Commercial Walk-In Refrigeration by Technology:

• Self-Contained
• Remote Condensing
• Multiplex Condensing

USA Commercial Walk-In Refrigeration by Sales Channel:

• OEM
• Aftermarket

USA Commercial Walk-In Refrigeration by Place of Use:

• Indoor
• Outdoor

USA Commercial Walk-In Refrigeration by End Use:

• Pharmaceutical
• Research Laboratories
• Retail Food Services
• Hospitals
• Commercial Restaurant
• Others

USA Commercial Walk-In Refrigeration by Region:

• North East USA
• South USA
• Midwest USA
• West USA