The global Commercial Refrigeration Equipment Market is estimated to be valued at US$ 53.38 Bn 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 heavy-duty machines and appliances used for commercial food storage and display purposes. Commercial refrigeration equipment is essential for food retailers, foodservice establishments and grocery stores to keep perishable food fresh and safely stored over long periods of time.
Market key trends:
One of the key trends in the commercial refrigeration equipment market is growing demand for energy-efficient commercial refrigeration systems. With rising energy costs and increasing focus on reducing carbon footprint, end users are increasingly adopting energy efficient commercial refrigeration equipment. According to U.S. Department of Energy, commercial refrigeration equipment account for about 10% of total commercial building energy use in the U.S. Adoption of advanced insulation, electronic expansion valves, efficient motors and compressors can help reduce energy consumption of commercial refrigeration equipment by around 25-30% thereby reducing long term operational costs for end users.
SWOT Analysis
Strength: Commercial refrigeration equipment has wide application in food service industry which drives its demand. It helps in preserving perishable foods and extending their shelf life.
Weakness: High initial investment and maintenance costs associated with commercial refrigeration equipment makes it challenging for small businesses to adopt. Rising energy costs also impacts the total cost of ownership.
Opportunity: Growing food retail and food service industries especially in developing countries present significant growth opportunities for commercial refrigeration equipment manufacturers. Increasing focus on energy efficiency and eco-friendly refrigerants also opens up new revenue streams.
Threats: Strict government regulations around energy efficiency and use of environment-friendly refrigerants increases compliance costs for manufacturers. Supply chain disruptions and availability of substitutes also poses threats.
Key Takeaways
The global commercial refrigeration equipment market is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing food consumption globally. Rapid urbanization and rising disposable incomes in developing economies are driving the growth of organized food retail and food service industries which demands efficient refrigeration solutions.
North America dominated the commercial refrigeration equipment market in 2022 with a share of over 30%, owing to widespread organized retail and strong foodservice sector in the region. Asia Pacific is projected to be the fastest growing market during the forecast period, with China, India and other Southeast Asian countries expected to account for majority of the regional growth. Increasing consumer spending and expansion of retail infrastructure makes Asia Pacific an attractive market for commercial refrigeration equipment manufacturers.
Key players operating in the commercial refrigeration equipment market are 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. Manufacturers are focusing on product innovation and development of energy-efficient refrigeration solutions to strengthen their market share. Collaboration with regional distributors also remains a key strategy to boost geographic footprint.
