The North American sales of reconditioned walk-in coolers and freezers are estimated to be worth USD 3.2 billion in 2024 and are anticipated to reach a value of USD 4.9 billion by 2034. Sales are projected to rise at a CAGR of 4.4% over the forecast period.
Some of the key factors driving the demand for walk-in coolers and freezers in North America are the product's accessibility, storage efficiency, energy-saving features, and advanced technology. Businesses benefit from customized layouts that maximize space and allow easy movement of products. These systems are highly customizable with shelving and racking options, replacing standalone units that consume more space and energy.
Energy-efficient condensers and compressors reduce electricity costs, making them an eco-friendly choice. Walk-in coolers offer a large interior area, and perishable products are kept safe for extended time periods. The latest technology of walk-in coolers, which has Bluetooth monitoring and motion-activated lighting, increases operational efficiency. Heavy-grade safety features ensure secure use.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2024 | USD 3.2 billion |
| Projected Size, 2034 | USD 4.9 billion |
| Value-based CAGR (2024 to 2034) | 4.4% |
The walk-in coolers and freezers industry is set to experience upward growth during the forecast period. It is projected to create an incremental opportunity of USD 1.7 billion and is predicted to rise 1.5 times the current value through 2034.
Commercial kitchens & restaurants are a significant consumer of walk-in coolers and freezers, capturing over a quarter of the value share in 2024. This sector is set to be 1.6 times its current value by 2034. Restaurants must consider various costs when investing in refrigeration, including installation, energy efficiency, and maintenance. As restaurant numbers grow across North America, especially in fast-paced urban areas, demand for reliable and efficient cooling solutions continues to rise, contributing to the industry’s sustained growth.
In North America, the growing frozen and processed food and beverage industry is driving up the demand for walk-in coolers and freezers. This stems from customer preference for ready-to-cook or ready-to-eat foods, influenced by hectic lifestyles, the rapid growth of quick-service restaurants as well as ready-to-eat meals. The expansion of retailer chains and superstores offering diversified frozen and processed food goods amplifies the need for intense cold storage solutions.
Consumers wish to have safe, fresh, and high-quality products. To cater to these expectations, the food industry has heavily invested in modern refrigeration systems. Storage of such products requires walk-in coolers and freezers for proper temperature maintenance and preservation of shelf life.
Strict regulatory requirements, especially those on food safety and storage standards, have led to the use of advanced refrigeration technology among enterprises. This alone further fuels the growth of the sector while spurring refrigeration solution innovation, such as smart cooling systems and eco-friendly refrigerants. As a result, the industry is developing rapidly, fueled by the dynamic frozen and processed food and beverage industry, and is expected to continue to do so as demand evolves.
Exclusive Offer: 30% Off on Regional Reports
Get a free sample report and customize your regions for a 30% discount on your regional report!
The table below presents a comparative analysis of the variation in CAGR over six months for the base year, 2023, and for the current year, 2024. Such analysis highlights pivotal changes in sector performance, indicating revenue realization patterns and providing a better vision for stakeholders regarding growth trajectory over the year. The first half (H1) of the 2023 to 2033 period is set to see the industry progress at a CAGR of 3.8%, while the second half (H2) is set to witness a CAGR of 4.6%.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 3.8% (2023 to 2033) |
| H2 2023 | 4.6% (2023 to 2033) |
| H1 2024 | 4.1% (2024 to 2034) |
| H2 2024 | 4.7% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.1% in the first half and remain relatively moderate at 4.7% in the second half. In the first half (H1) the sector is set to witness a decrease of 30 BPS while in the second half (H2), the sector is in line to witness an increase of 10 BPS.
Focus on Customized Walk-in Coolers and Freezers
Businesses in a variety of industries, including food service, retail, and healthcare, require customized refrigeration solutions to fulfill their specific storage requirements and space constraints. Customized units are characterized by being better in size, shape, and functioning. This results in good temperature control as well as energy savings. Demand in this regard acts as an incentive for the manufacturers to design and supply custom-made refrigeration systems.
For instance, Norlake is one of the companies that is responding to the growing demand for custom walk-in coolers and freezers. Norlake offers a wide range of configurable refrigeration systems tailored to specific needs in the food service, healthcare, and retail industries. Its several models offer various sizes, configurations, and features, including customized shelving, smart temperature controls, and energy-efficient components.
The focus of Norlake on customization allows businesses the opportunity to have their cold storage systems changed in accordance with particular requirements. This assists them in upping their efficiency levels. This has placed Norlake as a dominant player in the walk-in cooler and freezer sector in North America.
High Rate of Compressor Failure
Several factors contribute to compressor failures, including insufficient maintenance, wear and tear from constant use, and problems caused by power fluctuations or poor installation. These failures not only reduce operational efficiency but also endanger food safety and product integrity.
To address the high rate of compressor failure, advances in compressor technology, improved maintenance methods, and the use of predictive maintenance approaches must be implemented. In the walk-in cooler and freezer industry, the involvement of manufacturers and service providers in the development of more robust and reliable compressor systems that overcome these problems has ensured the continuity of cold storage operations in North America.
Heating Demand for Cold Storage from Pharmaceuticals and Healthcare Enterprises
The pharmaceutical business depends largely on precise temperature control to ensure the efficacy and safety of vaccines, drugs, and biological components. This need is being driven by increased healthcare infrastructure, advances in medical research, and the growing complexity of biopharmaceutical medicines that necessitate strict storage conditions.
Healthcare facilities, pharmaceutical companies, and research laboratories are investing in highly advanced walk-in coolers and freezers with modern temperature monitoring and control. The solutions are such that they will meet any regulatory requirements, make operations more efficient, and lower the probability of product loss from temperature changes.
The United States accounts for approximately 22% of the North American manufacturing sector and 45% of the pharmaceutical sector. The ongoing North American immunization efforts, as well as the accumulating demand for both needed and non-essential medical treatments, will continue to drive high pharmaceutical output and sales in the United States.
The North America walk-in coolers and freezers industry recorded a CAGR of 2% during the historical period between 2019 and 2023. The growth of the industry was positive as it reached a value of USD 3.1 billion in 2023 from USD 2.8 billion in 2019.
It was the best of times and the worst of times for the industry during the pandemic, which experienced rocketing demand, particularly within the pharmaceutical and healthcare industries for vaccine storage. This had arisen from government guidelines set by the USA Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC).
Cold chain logistics played a significant role in moving perishable goods to shop floors where groceries and retail outlets witnessed a high demand for food storage facilities since most consumers were going for bulk purchases. However, the food service and hospitality sectors significantly suffered since many restaurants and hotels had to close their doors amid lockdowns, and thus there was reduced demand for walk-in coolers and freezers.
Government policies, like the USA Department of Energy’s energy efficiency regulations, have encouraged the adoption of more energy-efficient walk-in coolers and freezers. Cold chain logistics remains a priority for the pharmaceutical and healthcare industries, with an emphasis on preparedness for future pandemics.
The food service and hospitality sectors are rebounding, driven by the surge in investments in refrigeration technology for providing contactless services and changing consumer needs. However, the sector is still suffering from issues such as disruptions in supply chains and increased raw material costs.
Tier 1 companies comprise leaders with a revenue of above USD 50 million capturing a significant revenue share of 15% to 20% in North America. These leaders are characterized by high production capacity and a wide product portfolio. These 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 services including reconditioning, recycling, and manufacturing utilizing the latest technology. Prominent companies within Tier 1 include Panasonic Corporation (Hussmann), Dover Corporation (Hillphoenix), Danfoss, Master-Bilt, and Everidge.
Tier 2 companies include mid-size players with revenue of USD 5 to 50 million having a presence in specific regions. These are characterized by a strong presence overseas. These players have good technology and ensure regulatory compliance but may not have wide North American reach. Prominent companies in tier 2 include Norlake, Inc., Amerikooler LLC, Imperial Brown, Welbilt, Inc. (Kolpak), Thermo-Kool / Mid-South Industries, Inc., American Panel Corporation, Bally Refrigerated Boxes, Inc., Polar King & others.
Tier 3 includes the majority of small-scale companies operating at the local level and serving niche corners, having revenue below USD 5 million. The businesses are particularly driven towards meeting local needs and, therefore, are rated in tier 3. They are relatively low-scale business entities with a relatively narrow reach.
Check Free Sample Report & Save 40%!
Select your niche segments and personalize your insights for smart savings. Cut costs now!
The section below covers the industry analysis for the walk-in cooler and freezer industry for different countries. The United States is anticipated to remain at the forefront in North America, with a value share of 72.1% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| The USA | 3.7% |
| Canada | 5.2% |
| Mexico | 4.5% |
The United States sector is projected to grow at a steady CAGR of 3.7% during the forecast period, reaching an estimated value of USD 206.9 billion by 2034. This growth is fueled by walk-in coolers and freezers’ extensive use in key industries such as food service, hospitality, grocery, retail, and healthcare.
The United States food service industry was worth USD 1.34 trillion in 2022, indicating a strong rebound from the pandemic; restaurants and catering companies were at the forefront of the increase. Grocery and retail contributed a whopping USD 1.05 trillion, indicating their role in the United States food supply chain. Cold chain logistics, such as the need for refrigerated warehouse space, are critical to the pharmaceuticals and food industries and contribute to the evolving demand for the products.
The Mexican walk-in cooler and freezer industry is projected to grow at a CAGR of 4.5% between 2024 and 2034, reaching over USD 32,146 million by the end of the forecast period. In Mexico, food service, grocery, and retail industries are the majority users of refrigeration units.
The food service and hospitality industry has about 46,643 locations, including superstores, which use large walk-in coolers and freezers. Additionally, cold chain logistics, particularly in healthcare and pharmaceuticals, is growing steadily due to the need for temperature-controlled storage for vaccines and biopharmaceuticals. This growth presents vast opportunities for suppliers of refrigeration equipment in Mexico.
The section contains information about the leading segments in the industry. By place of use, the indoor segment is estimated to grow at a CAGR of 4.2% throughout 2034. Additionally, retail food service end use is projected to expand at 3.8% by 2034.
| End Use | Retail Food Services |
|---|---|
| Value Share (2034) | 29.4% |
The retail food services segment is forecast to generate over USD 1.4 billion in revenue by 2034, with a projected CAGR of 3.8% throughout the forecast period. Compared to other end-use industries like commercial kitchens, cold storage warehouses, pharmaceuticals, hospitals, and research labs, the retail food sector requires more frequent and large-scale refrigeration. This is due to its direct connection with consumers and the high turnover of perishable goods.
The key players are actively enhancing their presence and competitiveness through incorporating advanced technologies. These technologies include 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.
Recent Industry Developments in Walk-In Cooler and Freezer Industry
In terms of place of use, the industry is divided into Indoor and Outdoor.
In terms of sales channel, the industry is divided into OEM and After Market.
In terms of Technology, the industry is divided into self-contained, remote condensing, and multiple condensing.
In terms of end use, the industry is segregated into Retail Food Services, Commercial Kitchens, Restaurants, Cold Storage Warehouses, Pharmaceuticals, Research Laboratories, Hospitals & Mortuaries, and Others.
Key countries including the United States, Canada, and Mexico have been covered in the report.
The North American walk-in cooler and freezer industry is projected to witness a CAGR of 4.4% between 2024 and 2034.
The North American walk-in cooler and freezer industry stood at USD 3.1 billion in 2023.
The North America walk-in cooler and freezer industry is anticipated to reach USD 4.9 billion by 2034.
Canada is set to record the highest CAGR of 5.2% in the assessment period.
Panasonic Corporation (Hussmann) and Master-Bilt are two key companies.
Explore Industrial Thermal & HVAC Solutions Insights
View Reports
Walk-In Cooler and Freezer Industry Analysis in North America
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
