Commercial Refrigeration Equipment Market, Size and Forecast 2024-2028

Date: 18 June 2024
Commercial Refrigeration Equipment Market, Size and Forecast 2024-2028
Commercial Refrigeration Equipment Market, Size and Forecast 2024-2028

The commercial refrigeration equipment market size is forecast to increase by USD 14.85 billion with a growth at a CAGR of 6.66% between 2024 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 and healthy food options is also driving the growth of the market, 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. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.

The APAC market experiences 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.

Market Dynamics

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 beverages. 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 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver - Need to increase storage life of food products

 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.

Significant Market Trends - Growing demand for energy-efficient models of commercial refrigeration equipment

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.

Major Market Challenge - Rising preference for pre-used and rented commercial refrigeration equipment

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.

Market Segmentation by End-user, Product, and Region 

The market is witnessing significant growth driven by diverse sectors such as the hospitality and tourism sector and the mass immunization program, which require specialized refrigeration solutions. Innovations in refrigeration technology are evident with the adoption of ENERGY STAR certification and compliance with the Federal Energy Management Program to ensure energy efficiency and reduce carbon footprint. Manufacturers are moving towards environmentally friendly alternatives to High GWP refrigerants, exploring options like magnetic refrigeration systems and ammonia absorption systems. The food and beverage industry, including convenience stores and hospitality businesses, heavily relies on commercial refrigeration for storing perishable food items at precise temperatures. This includes a wide range of equipment like refrigerators, freezers, coolers, display cases, beverage dispensers, ice machines, and walk-in coolers and freezers.

End-user Segment Analysis:

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. Vendors in this market, such as Standex International and Middleby, offer specialized refrigeration equipment to cater to unique industry needs. 

The retail segment was the largest segment 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.

Product Segment Analysis:

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.

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.

Who are the Major Market Companies?

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.

Detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Ali Group S.r.l. a Socio Unico, 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. 

Read More

Related News


generated: 0.0128