by The Commercial Refrigeration Equipment Market is estimated to be valued at US$ 55.89 Bn or Mn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Commercial refrigeration equipment refers to machines and appliances that are used for commercial food retail applications such as supermarkets, hypermarkets, convenience stores, restaurants, and other food service establishments. These equipment include beverage coolers, freezer cases, water dispensers, refrigerated display cases, chest freezers, walk-in refrigerators and freezers among others. They play a vital role in food retail sector by enabling safe and hygienic storage as well as display of perishable food items at required temperatures. Their demand is mainly driven by the robust growth of food retail sector worldwide.
Market Dynamics:
One of the key drivers for commercial refrigeration equipment market is rapidly growing food retail sector globally. The supermarket sales have been increasing across both developed and developing economies supported by changing consumer lifestyles, rising disposable income and growing urbanization. For instance, according to Planet Retail, the global supermarket sales are expected to reach US$ 6.5 trillion by 2023 from US$ 5.2 trillion in 2018, exhibiting a CAGR of over 4%. This significant growth of food retail sector is positively impacting the demand for commercial refrigeration equipment from grocery stores, supermarkets and hypermarkets for storage, display and merchandising of perishable and frozen food items.
Another driver for this market is increasing number of quick service restaurants worldwide. Fast food industry has witnessed substantial expansion over the years on back of changing consumer eating habits, urbanization and growing disposable income in developing nations. According to National Restaurant Association, the global quick service restaurant (QSR) sales were valued at over US$ 225 billion in 2017 and are expected to surpass US$ 300 billion by 2022. This growth of food service sector drives the adoption of commercial refrigeration units such as freezers and display cases in restaurants and takeaway stores for storing and serving food and beverages to customers.
Segment Analysis
The commercial refrigeration equipment market can be segmented into walk-in coolers, display cases, refrigerators and freezers, beverage dispensers, ice machines, and others. Display cases dominate the market as they are widely used in supermarkets, hypermarkets, bakeries, butcher shops, green grocers and other food retail outlets to display food and beverage items that require refrigeration. The ease of product visibility and accessibility makes display cases the preferred choice among retailers for product merchandising.
PEST Analysis
Political: Regulations related to energy efficiency and noise pollution are expected to drive technological innovation. For example, the US Department of Energy regulates minimum energy efficiency standards.
Economic: Growth of food retail and food service industries coupled with rising disposable incomes is expected to drive demand. Customers are increasingly looking for fresher convenience food options.
Social: Changing lifestyles and busy schedules have increased demand for ready-to-eat meals and on-the-go food and beverages which require commercial refrigeration for storage and display.
Technological: Adoption of natural refrigerants and innovative digital technologies for monitoring, controlling and optimizing equipment performance will enhance energy efficiency and reduce maintenance costs.
Key Takeaways
The global commercial refrigeration equipment market size is expected to witness high growth, exhibiting a CAGR of 4.7% over the forecast period of 2023 to 2030, due to increasing demand for ready-to-eat meals and on-the-go consumption trends globally. The market size for 2023 is estimated to be US$ 55.89 billion.
North America dominates the commercial refrigeration equipment market owing to strong retail infrastructure and organized food service sectors in the US and Canada. Europe accounts for a sizable share due to stringent regulations regarding energy efficiency and emissions.
Asia Pacific is expected to grow at the fastest pace during the forecast period. Increasing penetration of supermarkets and quick service restaurants and rising health awareness are stimulating market growth in the region.
Key players operating in the commercial refrigeration equipment market incorporate United Technologies Corporation, Ingersoll-Rand plc, Johnson Controls Incorporated, Daikin Industries Limited, Dover Corporation, Hussmann Corporation, AHT Cooling Systems GmbH, Ali SpA, Illinois Tool Works Incorporated, Emerson Electric Company, Leer Incorporated, True Manufacturing Company Incorporated, and Whirlpool Corporation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
