The global commercial refrigeration equipment market size was valued at USD 36.90 billion in 2021. It is projected to reach USD 63.41 billion by 2030, growing at a CAGR of 6.2% during the forecast period (2022–2030).
Commercial refrigeration is the process of removing excess heat from a source of material to keep it at a lower temperature than its surroundings. The equipment keeps fresh food like fruits, vegetables, and meat by maintaining a specific temperature. Commercial refrigeration equipment is used in various end-use industries where temperature control of materials is required, such as food and beverage processing, cold storage applications, and chemical processing. Food processing, beverage production, process cooling, and HVAC applications highly demand such products.
Hypermarkets, supermarkets, convenience stores, specialty food stores, e-commerce, and other end users use commercial refrigeration equipment. Fluorocarbons, inorganics, hydrocarbons/naturals, and other refrigerants are used in commercial refrigeration equipment. Others refer to refrigerants that combine inorganics, naturals, and fluorocarbons.
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The food processing industry requires equipment and solutions to produce, process, and distribute food to billions of households worldwide. It services a complex value chain ranging from agriculture to logistics. The significance of this industry has grown as the global population grows and dietary preferences alter in response to rising incomes and a shift toward value-added products. The rise in discretionary incomes in emerging economies has increased the demand for fresh and processed fruits and vegetables.
Globally, frozen foods are increasingly becoming integral to the daily diet. Additionally, the demand for processed and packaged foods is fueled by rapid urbanization in developing nations and rising living standards. This has led to an increase in the sales of commercial refrigeration equipment, which is anticipated to drive the commercial refrigeration equipment market during the forecast period.
The newly introduced magnetic refrigeration technology is based on the magnetocaloric effect, which induces a temperature change when a reversible magnetic field is applied. The refrigerant is placed in a strong magnetic field, aligning various magnetic dipoles and reducing the equipment's temperature. This magnetic refrigeration technology's incorporation is cost-effective, environmentally friendly, long-lasting, safe, and reduces the overall power consumption, enabling its global application in commercial refrigeration equipment.
The market's growth is anticipated to be restrained due to the machines' expensive purchase prices. Due to the fact that commercial refrigerators, freezers, and other appliances are made to fit into large spaces, the price of this equipment varies depending on its size. As a result, the cost of purchasing and maintaining such massive machinery becomes a constraint. Another major factor impeding the commercial refrigeration equipment market's growth is a lack of awareness among customers about how to use such refrigeration machines efficiently.
The lifespan, total ownership cost, and lifetime coefficient of performance of commercial refrigeration systems are being enhanced by several government organizations and R&D businesses. Manufacturers are attempting to develop natural refrigerant technologies that can improve the energy efficiency of commercial refrigeration systems, considering the Kyoto Protocol and recent EU F-Gas regulations.
Until recently, CO2 and ammonia-based cascade refrigeration systems were only suitable for a limited range of refrigeration tasks. However, due to a growing interest in environmentally friendly refrigerants, Cascade refrigeration systems are preferred for various refrigeration applications. Article 12 of the Kyoto Protocol's Clean Development Mechanism (CDM) encourages using natural refrigerants. The CDM enables a country with a Kyoto Protocol emission-reduction commitment to implement an emission-reduction project. These projects can earn saleable Certified Emission Reduction (CER) credits, which are one tonne of CO2 equivalent and can be used to meet Kyoto targets.
The global commercial refrigeration equipment market is categorized into different regions, namely North America, Europe, Asia Pacific, Latin America and the Middle East and Africa.
North America dominated the global market for commercial refrigeration equipment and is anticipated to account for the largest share of the revenue. The significant growth is mainly attributable to the maturing retail sector in the United States. Numerous leading manufacturers of commercial refrigeration equipment are in this region. In addition, the early adoption of intelligent equipment in commercial kitchens also encourages business growth in the region.
Due to rising product demand caused by improving economic conditions, stable employment rates, rising gross disposable income, and rising spending on leisure activities like traveling and eating out, the Asia Pacific is predicted to have a sizable CAGR. Due to the increasing adoption rate of vaccine storage units among research institutions and biopharmaceutical businesses, developing economies like China and India present the lucrative potential for the market. Also, the expanding travel and tourism sector in nations like Malaysia, Indonesia, and Singapore is anticipated to help the regional market growth.
The global commercial refrigeration equipment market is segmented into product, system type, capacity, and application.
Based on product, the market is divided into transportation refrigeration equipment, refrigerators and freezers, beverage refrigeration, display showcases, ice merchandisers and ice vending equipment, and other equipment.
The refrigerators and freezers segment has the highest revenue share in the global commercial refrigeration equipment market. The travel and tourism industry has expanded globally, and as a result, many new food joints and restaurants have been opened. The segment also includes blast chillers, primarily used to quickly freeze or cool items at lower temperatures while preventing bacteria growth. In addition, the widespread use of chillers by healthcare professionals to store tissue samples from vaccines, controlled tests, and critical medicines is boosting the market.
Due to the growing adoption of medium-capacity beverage coolers for tourists and vacationers, the beverage refrigeration segment is predicted to grow at a CAGR over the forecast period. Additionally, the growing practice of "grab and go" and "drink and shop" among retail chains to provide customers with a better shopping experience is anticipated to fuel demand for beverage refrigeration equipment in the upcoming years.
Based on application type, the market is segmented into food service, food and beverage retail, distribution, and production.
The food and beverage distribution segment is expected to grow significantly. The segment's growth is aided by ongoing cold channel logistics developments for transporting temperature-sensitive items. Furthermore, the demand for high-end temperature-controlled refrigerators for various transport vehicles for the reliable distribution of beverages, liquor, fish, biopharmaceuticals, and other perishable products is boosting the business.
In terms of revenue, the food service industry accounted for around 32.0% of the total market in 2022. The significant revenue share can be attributed to the growing popularity of food trucks and Quick-Service Restaurants (QSRs) in the food service sector. In 2020, there will be more than 1 million restaurant locations in the United States, including QSRs, FSRs, bars, and taverns, generating a significant need for refrigeration equipment. Additionally, it is anticipated that the growth of numerous well-known food and beverage companies, like McDonald's, Subway IP LLC, and Starbucks Coffee Corporation, will further fuel demand for commercial refrigeration equipment.
Based on system type, the market is categorized into self-contained and remotely operated. The self-contained segment held the largest market share due to rising product demand and its advantages, such as simple and cost-effective installation and low appliance maintenance and relocation costs.
The market for remotely operated refrigerators is anticipated to grow significantly throughout the forecast period as more restaurants with small kitchens adopt them to reduce refrigerator heat. Due to the compressor unit's placement outside the kitchen, these refrigerators are quieter than self-contained models. They are less energy-efficient, however, and require professionals for installation, which raises the already high installation cost.
Based on capacity, the market is bifurcated into less than 50 cu. Ft, 50 to 100 cu. Ft and more than 100 cu. Ft. Due to the increasing number of specialty food stores, hypermarkets, and supermarkets worldwide, the 51-to-100 cu. Ft. segment held a significant revenue share the rapid adoption of reach-in refrigerators with a storage capacity between 50 and 75 cu. Ft. in commercial spaces is contributing to the segment's growth.
In terms of revenue, the category with less than 50 cu. ft. was responsible for almost 30.0% of the market in 2022. This is mostly attributable to the growing demand for refrigeration equipment in this capacity range for highly specialized application areas like cold channel logistics and food service.