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The commercial refrigeration equipment market size is forecast to increase by USD 14.85 billion, at a CAGR of 6.66% between 2023 and 2028. The need to increase the storage life of food products is driving demand for refrigeration solutions that can maintain optimal storage conditions. Market expansion by end-users, such as supermarkets, convenience stores, and restaurants, is also fueling growth in the market. Additionally, the growing focus on merchandising refrigerated food and beverages is creating opportunities for innovative refrigeration solutions that can enhance product visibility and appeal to customers. The increasing demand for fresh food and healthy food options is also driving the market's growth, as consumers seek out products that are properly stored and maintained. Additionally, advancements in technology, such as energy-efficient systems and smart monitoring capabilities, are enabling businesses to reduce operating costs and improve overall efficiency.
The APAC market is experiencing growth due to the increased presence of commercial refrigerator equipment companies in the region. Ali Group Srl provides commercial refrigeration equipment designed to adapt to varying loads, ensuring efficient cooling, consistent temperature, and reduced energy consumption. On the other hand, Blue Star Ltd offers commercial refrigeration equipment featuring an upright cabinet for convenient storage and an electronic panel for precise temperature regulation.
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The Market encompasses a wide range of equipment used in various industries to preserve and display perishable food items and beverages at specific temperatures. Key technologies in this market include takeaway meals, liquid-vapor compression using ammonia absorption systems, ENERGY STAR certified equipment, magnetic refrigeration systems, and transportation refrigeration equipment. Energy efficiency and reducing carbon footprint are crucial factors driving market growth. Commercial refrigeration equipment includes blast chillers, commercial refrigerators, freezers, coolers, display cases, beverage dispensers, and ice machines. These are extensively used in convenience stores, hospitality businesses, and the food service industry to maintain optimal temperatures for food and beverage STAR-certifiedes. High Global Warming Potential (GWP) refrigerants are a concern due to their impact on the environment, leading to the development and adoption of more eco-friendly alternatives. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The quality and shelf life of food products depend significantly on their storage conditions. Inadequate storage temperatures can lead to degradation and significant losses for food service establishments. Commercial refrigerators play a vital role in maintaining the quality of food products. The shelf life of food is primarily influenced by controlling microbial growth, achieved through refrigeration, reducing water activity, and using preservatives.
Moreover, refrigeration is particularly crucial as it helps retain freshness without compromising quality through excessive processing. It also plays a critical role in preserving nutritional and microbial quality, especially for frozen food items, by maintaining low temperatures to prevent bacterial growth. Proper refrigeration is essential for minimizing spoilage microbes and preserving the flavor, color, and texture of food products by controlling moisture transport. Hence, such factors are driving the market growth during the forecast period.
End-users typically favor commercial refrigeration equipment that offers cost-saving advantages in terms of energy usage. One effective method they use to minimize energy consumption is by opting for ENERGY STAR-certified commercial refrigeration equipment. This certification ensures that the equipment is about 20% more energy-efficient than standard models.
Moreover, ENERGY STAR-certified commercial refrigeration units feature specialized components like Electronically Commutated Motor (ECM) evaporators and condenser fan motors. They also come equipped with hot gas anti-sweat heaters and high-efficiency compressors, which contribute to reducing energy usage and lowering utility costs. Hence, such factors are driving the market growth during the forecast period.
Global market vendors are increasingly focusing on enhancing product features. However, not all end-users can afford cutting-edge models. Many prefer to buy cost-effective commercial refrigeration equipment, including pre-owned units available at lower prices. Information about these models is often found in print media ads.
Additionally, platforms like Gumtree and eBay offer a wide range of pre-owned commercial refrigeration equipment. These options are particularly attractive for end-users looking to expand their refrigerated food offerings. Consequently, the growing preference for pre-owned units is anticipated to negatively impact new unit sales and, consequently, market growth during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The retail segment is estimated to witness significant growth during the forecast period. The market encompasses a range of refrigerated storage solutions, including walk-in coolers and freezers, used to maintain temperatures below or above 32 degrees Fahrenheit for various industries. Key sectors utilizing these systems are dairy, seafood, fruits and vegetables, and vaccine storage. With the implementation of lockdown measures due to the global pandemic, there has been a heightened demand for reliable and energy-efficient refrigeration systems. Companies in this market, such as Standex International and Middleby, offer specialized refrigeration equipment to cater to unique industry needs.
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The retail segment was the largest and was valued at USD 13.10 billion in 2018. For instance, Standex International provides customized walk-in coolers under its Master-Bilt Products brand, while Middleby offers Celfrost walk-in coolers. These energy-efficient systems are essential for preserving perishable goods like dairy products, seafood, and fruits and vegetables. Furthermore, the market for specialty refrigeration equipment, including beverage refrigeration, is also experiencing growth due to the increasing popularity of cold beverages and the need to maintain their optimal temperature. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
Based on product, the segment is classified into walk-in coolers, display cases, refrigerators for drinks, ice-making machines, freezers, and others. Some of the main companies in the \market include Standex International and Middleby. The manufacturing of walk-in coolers is in standard sizes but can be customized as per the end-user requirements. For instance, Standex International offers Bilt2Spec customized walk-in coolers under its brand Master-Bilt Products. Hence, such factors are expected to drive the growth of this segment which, in turn, will drive the growth of the market growth during the forecast period.
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APAC is estimated to contribute 43% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in APAC is experiencing significant growth due to various factors. With the implementation of lockdown measures in several countries, there has been a heightened focus on food safety and preservation. This has led to an increased demand for commercial refrigeration equipment in sectors such as dairy, seafood, fruits and vegetables, and vaccines. Vendors in the market are responding to this trend by launching competitively priced and energy-efficient systems. For instance, specialty refrigeration equipment, including blast freezers and cold storage solutions, are gaining popularity in the region.
Moreover, similarly, beverage refrigeration systems are in high demand due to the growing market for soft drinks and other chilled beverages. Some of the leading vendors in the APAC market include Daikin Industries, Hoshizaki, Middleby, and Panasonic Corp. These companies are expanding their geographic presence and product offerings to meet the growing demand for cooling capacity and energy efficiency. Overall, the market is expected to continue its growth trajectory during the forecast period, driven by the increasing importance of food safety and the need for energy-efficient solutions.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Daikin Industries Ltd: The company manufactures various commercial refrigeration equipment.
We also have detailed analyses of the market's competitive landscape and offer information on key companies, including: Ali Group S.r.l. a Socio Unico, Blue Star Ltd., Daikin Industries Ltd., Dover Corp., Electrolux AB, Felix Storch Inc., FUJIMAK Corp., HOSHIZAKI Corp., Illinois Tool Works Inc., Imbera, Lennox International Inc., Panasonic Holdings Corp., Standex International Corp., Tecumseh Products Co. LLC, TEFCOLD AS, The Middleby Corp., TURBO AIR Inc., UAB FREOR LT, Valpro Refrigeration, and WELBILT INC.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market is a significant sector in the global industrial landscape. This market encompasses various types of refrigeration equipment used in commercial applications, such as supermarkets, restaurants, and food processing industries. The demand for commercial refrigeration equipment is driven by factors like increasing consumer awareness towards health and hygiene, the growing food industry, and the rising demand for convenience food. Key players in this market focus on innovation and technology to offer energy-efficient and cost-effective solutions. Some of the common refrigeration technologies used include compressor technology, absorption technology, and thermoelectric technology. The market is segmented based on product type, application, and region. Product types include refrigerators, freezers, and refrigerated display cabinets. Applications include food retail, food service, and food processing industries. The market is expected to grow at a steady pace due to the increasing demand for refrigerated equipment in various industries. Manufacturers are also focusing on enhancing the design and functionality of their products to cater to the evolving needs of customers. Additionally, the market is witnessing a trend towards the adoption of sustainable refrigeration technologies to reduce carbon footprint and comply with environmental regulations.
In addition, the hospitality and tourism sector plays a crucial role in driving the demand for commercial refrigeration equipment. With a focus on sustainability and energy efficiency, businesses are increasingly seeking ENERGY STAR certification for their refrigeration units. The Federal Energy Management Program also encourages the adoption of energy-efficient solutions. One of the key challenges faced by the industry is the use of High GWP refrigerants, which contribute to environmental concerns. However, advancements in technology are leading to the development of refrigeration systems with lower environmental impact, aligning with HFC emissions regulations. The vaccine production and storage sector, especially amid mass immunization programs, requires specialized refrigeration equipment to maintain the integrity of vaccines. This demand drives innovation in refrigeration solutions, including remotely operated refrigerators. In the retail sector, specialty food stores focusing on fresh produce, meat, and frozen foods rely heavily on efficient refrigeration systems for quality preservation. Likewise, cold channel logistics for cafes, food service outlets, and convenience foods necessitate reliable and energy-efficient refrigeration units. Amid merger and acquisition activities, companies are investing in energy-efficient refrigeration solutions to meet food safety standards and cater to consumer preferences. This trend extends to food processing and storage facilities, where modern refrigeration technology ensures product quality and compliance with regulations.
Market Scope |
|
Report Coverage |
Details |
Page number |
189 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.66% |
Market Growth 2024-2028 |
USD 14.85 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.13 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
China, US, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ali Group S.r.l. a Socio Unico, Blue Star Ltd., Daikin Industries Ltd., Dover Corp., Electrolux AB, Felix Storch Inc., FUJIMAK Corp., HOSHIZAKI Corp., Illinois Tool Works Inc., Imbera, Lennox International Inc., Panasonic Holdings Corp., Standex International Corp., Tecumseh Products Co. LLC, TEFCOLD AS, The Middleby Corp., TURBO AIR Inc., UAB FREOR LT, Valpro Refrigeration, and WELBILT INC. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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