Commercial Refrigeration Equipment Market Overview

The global commercial refrigeration equipment market size is projected to reach a valuation of USD 66323.72 billion by 2032 at a CAGR of 5.3%, from USD 37,580 billion in 2021.

Market growth will be driven mainly by the rapid expansion and preference for take-out food by end-consumers over the forecast period. Market growth will also be supported by increasing regulatory pressures and technological breakthroughs.

The key factors of the commercial refrigeration equipment market are growing demand for refrigeration in grocery stores, increased imports of frozen meat products, growing food & beverage industry, increase in number hotels & restaurants chains from the region.

Global Commercial Refrigeration Equipment Market Scope:

Product Analysis

On the basis of ‘Product’, the commercial refrigeration equipment segment accounted for more than a 23.5% share in revenues in 2021. This can be attributed the increasing popularity of restaurants and food trucks around the world. Blaster chillers are also included in this category. These chillers can be used to quickly freeze or cool items at lower temperatures, and stop bacteria growth. It is also important to note that healthcare professionals are increasingly using chillers to store vital medicines and tissue samples from controlled tests and vaccines.

With the increase in the use of medium capacity beverage coolers for travel and vacationers, the beverage refrigeration sector is expected to grow at a rate of 5.0% CAGR. Drink refrigeration equipment demand is expected to grow due to the increasing popularity of ‘grab & go’ and “sip and store” across retail chains in order to provide a better customer experience.

Application Analysis

Between 2023 and 2032, the CAGR for the food & beverage distribution segment will be nearly 5.4%. Ongoing developments in cold channel logistics for transporting temperature-sensitive items are positively impacting this segment’s growth. Moreover, the increase in demand for high-end temperature-controlled refrigerators for various transport vehicles for reliable distribution of beverages, liquor, fish, biopharmaceutical, and other perishable products is also favoring business growth.

In addition, this segment will continue to expand due to its growing appeal to capital-intensive customers in the food & beverage distribution segment.

In 2021, 32.0% of this total market’s revenue was accounted for by the food service segment. The growing trend of Quick-Service Restaurants in the foodservice industry and food trucks account for this substantial revenue share. According to the National Restaurant Association of the United States (NRA), more than 1,000,000 restaurant locations were found in the U.S. in 2020. These include QSRs FSRs bars, and taverns. There is a significant demand for refrigeration equipment. The growth of several prominent food & beverage chains such as Subway IP LLC, McDonalds, and Starbucks Coffee Company, is expected to further increase this demand.

System Type Analysis

In 2021, the ‘Self Contained’ segment accounted for 83.7% of this commercial refrigeration equipment market’s share as a result of higher product demand. The reason for this is increasing product demand.

Statistics from the Environmental Agency show that in 2020, self-contained commercial refrigeration systems were responsible for around 26% of all HFC emissions worldwide. Due to severe HFC emission laws, manufacturers are compelled to replace R404A refrigerant, which can reduce the Glboal Warming Potential (GWP) of refrigeration equipment by about 70%.

Between 2023 and 2032, commercial refrigeration equipment sales are projected to increase at an annual CAGR of over 4%. The refrigerators’ heat output will diminish as their use expands among eateries with small kitchens. These refrigerators are quieter than self-contained units because the compressor unit is situated outside the kitchen. They are however less energy efficient, and require professional installation which further increases their already high cost price.

Capacity Analysis

By 2021, the 51 Cu.Ft. – 100 Cu.Ft. category had a significant sales share of about 46.0%. The development of supermarkets, hypermarkets, specialty food stores, as well as other grocery stores around the world were responsible for this.

With a storage capacity ranging between 50 Cu.Ft. to 75 Cu.Ft., reach-in refrigerators have been immediately accepted in commercial spaces, enabling this segment’s expansion. This has made it easier for manufacturers to offer a range of goods that can satisfy evolving consumer needs.

In 2021, the below 50 Cu.Ft. category contributed close to 30% of this market’s total sales. The increase in demand from highly concentrated industries like restaurant, work, and cold channel logistics are partly responsible for this.

Key Market Segments:

By Product

• Transportation Refrigeration Equipment
• Refrigerators & Freezers
• Beverage Refrigeration
• Display Showcases
• Ice Merchandisers & Ice Vending Equipment
• Other Products

By Application

• Food Service
• Food & Beverage Retail
  • Hypermarkets
  • Supermarkets
  • Convenience Stores
  • Specialty Food Stores
  • Others
• Food & Beverage Distribution
• Food & Beverage Production
• Other Applications

By System Type

• Self-Contained
• Remotely Operated

By Capacity

• Less than 50 Cu. Ft.
• 50 to 100 Cu. Ft.
• More than 100 Cu. Ft.

Market Dynamics:

There has been a substantial increase in international food trade, which has resulted in a greater demand for the refrigeration of frozen, processed, as well as seafoods. Product demand is increasing due to constant innovations and the rapid improvement in technology (ammonia absorption and liquid-vapor compression).

Many leading manufacturers are now focusing their R&D efforts to improve the design of their products and temperature control to maintain a competitive edge. Industry players are expected to leverage plenty of growth opportunities in the future due to the increasing need for control and monitoring of commercial kitchen environments.

This market is gaining significant acceptance for smart or automated refrigeration control products. According to the Federal Energy Management Program, on average, commercial refrigerators using ENERGY STAR certifications consume 1.89 kWh in energy per day. On the other hand, refrigerators that are less efficient use around 4.44 kWh per hour. The increasing demand for energy-efficient commercial refrigerators is driving market players to create innovative designs.

Manufacturers have been challenged by climate concerns such as global warming and ozone loss arising from high GWP refrigerants. Market participants are now urging their customers to invest in advanced magnetic refrigeration systems because of the increasing demand for technologies that can combat hazardous gas emissions. These systems improve the energy efficiency and decrease operational costs. These systems are energy efficient and can reduce energy consumption by up to 30%, according the U.S. Department of Energy Statistics.

Following the COVID-19 pandemic, strict containment measures were put in place. These included a temporary halt to commercial refrigeration equipment manufacturing and shipment. However, this pandemic resulted in a strong demand from vaccine producers and stores, which drove the requirement for cold storage solutions for mass immunization campaigns against the coronavirus. In the coming years, there will be a greater demand for transportation refrigeration equipment due to the increased usage of vaccine storage solutions.

Regional Analysis

In 2021, the refrigeration and air conditioning market was most successful in North America. By 2032, this region is projected to account for more than 31.0% of this market share. The key to this immense growth is the developed retail market in the U.S. This region is home to numerous prominent producers of commercial refrigeration equipment. The introduction of smart equipment within professional kitchens is also a good area for further business expansion.

By 2032, it is anticipated that the Asia Pacific will grow at a rate of 6.0%. This will be brought about by rising consumer demand, stable employment rates, and increasing gross spendable money as well as leisure expenditures such as eating out and travelling. This market is attractive in emerging economies such as China, India, and Indonesia due to their high adoption rates for vaccine storage units within research institutions and biopharmaceutical corporations. Additionally, the growth of the tourism & travel industry in countries like Singapore and Indonesia are expected to encourage regional market expansion prospects.

Key Regions and Countries Covered in This Report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Competitive Landscape:

In order to keep up with consumer demand, market leaders have been able to introduce new and improved products to address this growing adoption of sustainable technology equipment. Carrier Commercial Refrigeration installed the PowerCO2OL refrigeration device at a COVID-19 Spanish vaccine storage facility in January 2022. This system uses carbon dioxide, which is a natural frigerant. It serves as a durable and low global warming refrigerant to preserve Spanish vaccines.

In order to grow their market share, these key players like Carrier Corporation, Emerson Electric Co., Haier Electronics Group Co., Ltd, GEA Group, DAIKIN Industries, Ltd., Fujimak Corporation, Hoshizaki Corporation, Hussman Corporation, JOHNSON CONTROLS and others also plan to implement strategic initiatives such collaborations, expansions, mergers, acquisitions, and capacity expansion efforts.

Whirlpool Corporation, which is based in Ottawa in Ohio, announced that it would invest US$65 million over five years to help position the factory as North America’s Premium Refrigeration Factory. In this strategic initiative, the company will increase the Ottawa plant’s capacity to manufacture premium refrigeration products like Built In Refrigerator (BIR). These are prominent players in the global commercial refrigeration market:

Market Key Players:

• AB Electrolux
• Carrier
• Daikin Industries Ltd.
• Dover Corporation
• Hussmann Corporation
• UNITED TECHNOLOGIES CORPORATION
• Johnson Controls International Plc
• AHT Cooling Systems GmbH
• Carrier Corporation
• Standex International Corporation
• GEA Group AG
• Lennox International Inc.
• Emerson Electric Co.
• Fujimak Corporation
• Haier Electronics Group Co., Ltd
• DAIKIN Industries, Ltd.
• Excellence Industries
• Imbera
• Zero Zone Inc.
• Ojeda Usa Inc.
• Other Key Players