Commercial refrigeration equipment market

Commercial refrigeration equipment market size exceeded USD 29 billion in 2014. Massive growth of the hospitality industry and high demand for ready-to-eat food is expected to drive demand. Rising number of hypermarkets, specialty food stores, and supermarkets is projected to spur industry growth over the forecast period. Continuously advancing cooling technologies are triggering the need for energy-efficient system in the hospitality industry. These products are essential for food service operations and find application for storing perishable goods at a suitable temperature for safe and healthy use. Growing international trade of frozen food items among countries owing to changing consumption trends has led to substantial rise in commercial refrigeration equipment market demand. Emergence of remote monitored products which offer varied benefits including the ability to monitor the system for detecting refrigerant leak, high liquid levels, and high system pressures are anticipated to offer lucrative growth opportunities for the commercial refrigeration equipment industry over the next seven years. Food industry efforts for reducing operating costs will offer notable opportunities for suppliers of energy efficient products. These are customized as per the customer requirements; however, varied innovations in terms of design have led to the manufacturing of generalized products, suiting the requirements of majority of customers. Increasing fuel costs, the Montreal and Kyoto protocol and presence of energy inefficient products are some factors that can act as a restraint for the industry.

North America commercial refrigeration equipment market by product, 2012-2022, (USD Million)

  

Product Insights

Products analyzed in the study include transportation and beverage refrigeration devices, refrigerators & freezers, and parts. The transportation segment is expected to grow at a CAGR of over 7% from 2015 to 2022, benefiting from the positive outlook for capital investment. Its sub-products include shipping containers, truck and trailer systems.

Product innovation including hybrid electric systems and products that utilize natural refrigerants such as carbon dioxide are estimated to stimulate sales. The beverage segment is estimated to witness significant growth owing to the rising number of restaurants, especially in the fast-food segment.

The demand for refrigerated vending machines is expected to be high in the developing countries owing to the low labor cost, dampening the need for automated food and beverage distribution.

Application Insights

The industry can be classified on the basis of application into food service, food & beverage retail, distribution and production. The food services sector was estimated to exceed USD 8.5 billion in 2014, growing at a CAGR of over 6.0% from 2015 to 2022.

Refrigerated food service products are used to provide storage for maintaining food products prior to and while serving in foodservice settings. It finds application in restaurants, convenience stores, supermarkets, schools and various other facilities where food is served.

Rise in international food trade is generating the demand for storing seafood, frozen foods, and processed foods across the globe, which is expected to boost volume growth in food & beverage distribution applications.

Regional Insights

North America commercial refrigeration equipment market was valued at over USD 10.0 billion in 2014 and is expected to remain the dominant region over the forecast period. Increased macroeconomic outlook, with rising consumer spending is expected to encourage food industry participants to expand the number of retail restaurants and outlets in the U.S. Rising capital investment and non-residential construction expenditures are anticipated to boost sales in this region.

Asia Pacific commercial refrigeration equipment market is estimated to witness considerate growth and is projected to grow at a CAGR of over 6.5% from 2015 to 2022. This growth can be attributed to factors such as rising per capita income and solid gains in fixed investment expenditures.

After the European economic slump and debt crisis, investment in new outlets and expansion of retail sector has offered essential momentum leading to the revival of industry growth. Demand for new products coupled with replacement of obsolete products is anticipated to drive the industry in this region.

Competitive Insights

Companies dominating commercial refrigeration equipment market share include Daikin Industries, Carrier, Electrolux AB, Dover Corporation, Illinois Tool Works Inc., Ingersoll Rand plc, Hussmann Corporation, and Johnson Controls. These players are focusing on developing products that help to reduce green house gas emission and reducing energy consumption. Thus, the vendors are switching towards green refrigerants including ammonia, CO2 and water vapor for product development.

 

Source: Grand View Research